Supply Chain exam 1 (quizzes from cengage)
In 2016, ___________ was the leading market for U.S. exports.
Canada
Making all the purchasing decisions, including order quantity, pricing policy, contracting, negotiations, and supplier selection and evaluation are the key characteristics of
Centralized Purchasing
Which of the following statements is FALSE?
Centralized purchasing is where individual, local purchasing departments, such as at the plant level, make their own purchasing decisions.
SRM software allows buyers to focus on more strategic and value-added activities such as:
Collaborative planning
SRM software can automate procurement activities that lead to significant cost savings as purchasing professionals move toward:
Collaborative planning
Which of the following is NOT a step suggested in the Supply Chain Sourcing Strategy Framework?
Compare supplier prices based on the lowest cost bid.
According to the textbook, conditions which must be present for successful supply chain management include:
Cooperation among firms
Supply chain management includes the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. It also includes:
Coordination and collaboration with channel partners
Which of the following is a reverse logistics activity?
Customer returning a car to the dealer for warranty repair
Trends in supply chain management include expansion of the supply chain and decreasing supply chain visibility.
False
While most public procurement is focused on goals like those of purchasing departments in the private sector, U.S. federal government purchases must comply with the:
Federal Acquisition Regulation
One benefit from benchmarking sourcing practices is:
Firms can learn through others experiences the methods and tools that work the best
Purchasing activities include all the following EXCEPT:
Franchising services
Which of the following is NOT used to calculate total transportation cost when using the Total Cost of Ownership concept?
Gas prices
All of the following are important capabilities offered by SRM software EXCEPT:
Human Resource Management
The following is an example of the bullwhip effect:
IGT incorrectly anticipates consumer demand resulting in stockouts at several popular retailers
For continuous improvement to succeed, employees must first:
Identify areas that are working
Environmental supplier certification programs can assist companies by doing which of the following?
Identifying rogue suppliers before they can cause problems or disruptions in their supply chains
A form of inventory management (also referred to just-in-time) is accomplished through use of a:
Lean production system
A value-enhancing benefit from supply chain management efforts would be:
Lower purchasing and inventory carrying costs
Which of the following should NOT be used as assessment criteria to evaluate the purchasing department's performance?
Lowering inventory turnover rates
Firms assess their sourcing capabilities because:
Monitoring the purchasing function's performance, helps firms to continuously improve their products and processes
Which of the following is NOT a factor to consider when selecting suppliers for important materials?
Number of customers with which the supplier currently has contracts
Blanket or open-end purchase orders are suitable for buying:
Office supplies
Which of the following can happen because of the bullwhip effect?
Oversupply of goods leading to increased inventory costs
The term vertical integration means to:
Own/buy your suppliers and/or customers
One of the most basic and successful approaches for protecting trade secrets is to:
Require employees and vendors to sign a nondisclosure agreement
According to the text, one of the most basic and successful approaches to protecting trade secrets is:
Requiring employees and vendors to sign non-disclosure agreements
An internal or external event that causes a disruption or failure of supply chain operations is an example of
Supply chain risk
Meeting the needs of current supply chain members without hindering the ability to meet the needs of future generations refers to:
Supply chain sustainability
According to the text, the FOUR important elements of the supply chain are:
Supply, operations, logistics, integration
A benefit to the firm for utilizing a supplier recognition program would be:
The award recipients can serve as role models for a firm's other suppliers
Which of the following is NOT a step used in maintaining a successful strategic alliance program?
The steps used to maintain a successful strategic alliance program should include: 1) Determine the key strategic parameters to organize around. 2) Facilitate the dissemination of information. 3) Elevate the importance of the strategic alliance program. 4) Provide continuous evaluation of alliance performance, visibility, and support. 5) Reward suppliers as performance merits.
The term "benchmarking" as used in business firms is:
A practice where companies attempt to learn and apply the best practices of other companies
Which of the following terms is described as rethinking and redesigning of business processes to reduce waste and increase performance?
Business process reengineering
According to the text, the goal of a good performance evaluation system is to provide metrics that are:
Understandable, easy to measure, focused on value-added results
Which of the following statements is NOT true of many large firms today?
Use of vertical integration is much more common due to the low cost and ease in managing diverse business units
Which of the following terms refers to an act that creates the greatest good for the greatest number of people?
Utilitarianism
According to the text, which of the following two approaches are used in deciding whether or not an action is ethical?
Utilitarianism and rights & duties
Green purchasing is a practice aimed at ensuring that purchased products or materials meet environmental objectives of the organization such as:
Waste reduction
In general, European companies prefer suppliers:
Who have ISO 9001 certifications
ISO 9000 certification is described best by which of the following?
a family of standards for quality management systems published by the International Organization for Standardization (ISO) that is designed to help organizations better meet the needs of their customers and other stakeholders
The Ethical Trading Initiative (ETI) is:
An alliance of organizations agreeing to implement the ETI Base Code.
Which of the following is NOT important in developing a successful supplier partnership?
Annual sales knowledge of the supplier
More than a dozen presidential executive orders requiring federal purchasing officials to include environmental considerations and human health when making purchasing decisions can be attributed to a concept called:
Green purchasing
Which of the following can be a result of successful strategic supplier alliances?
Higher return on investment Better market penetration Access to new technologies and knowledge All of these choices are correct.
A(n) _______________ performs transactions for a fee, and does not take title to the goods. Instead, title passes directly from the seller to the buyer.
Import broker
The Amazon Kindle and Tesla's Model S automobile are two examples of:
Innovative products
Which of the following is NOT a form of countertrade?
Kaizen blitz
Which of the following is NOT a reason for favoring multiple sourcing?
Less quality variability
Designing and building a distribution network to ensure successful product delivery is part of which foundation element?
Logistics
Which of the following is a software system that can be used for managing inventory, purchases, and production schedules?
Material requirements planning (MRP)
Petty cash is being phased out in favor of:
P-cards
Which of the following is TRUE?
Performance metrics and personal business relationships are both keys to building successful partnerships.
Which of the following is a reason that single sourcing is considered risky/bad?
Poor supplier performance could result in plant shutdowns
When evaluating supplier performance, the cost of certifying and training suppliers, is part of which major cost category?
Pre-transaction cost
Which of the following is NOT a key area to focus on, in order to establish sustainable sourcing, as identified by a U.K. Food Industry Group on Ethical Trade?
Procurement rationalization
Which of the following refers to the measurement of the impact of change in purchase spend on a firm's profit before taxes, assuming gross sales and other expenses remain unchanged?
Profit-Leverage Effect
The purchasing and supply management function in the government and nonprofit sectors, such as educational institutions; hospitals; and federal, state, and local governments is called:
Public procurement
Inventory Turnover can be calculated by:
Ratio of cost of goods sold over average inventory cost
Which of the following is a reverse logistics activity:
Recycling products and components
Streamlining the processes and communications between the buyer and supplier using software applications that enable these processes to be managed more efficiently and effectively can be referred to as:
SRM
Firms can use total cost analysis to:
Select the most cost-effective supplier
Which of the following statements is TRUE?
Six Sigma was originally created at Motorola in the 1980s
The total cost of ownership for Supplier 1 is $1,670,000. The total cost of ownership for Supplier 2 is $1,750,000. The total cost of ownership for Supplier 3 is $1,690,000. Using Total Cost Analysis, it will be more cost-effective to use
Supplier 1
The total cost of ownership for Supplier A is $2,670,000. The total cost of ownership for Supplier B is $1,750,000. The total cost of ownership for Supplier C is $2,990,000. Using Total Cost Analysis, it will be more cost-effective to use
Supplier B
One of the more crucial issues within supply management involves encouraging or helping the firm's suppliers to perform in some desired fashion. The term for this is _______________.
Supplier Management
____________ involves streamlining the processes and communications between the buyer and supplier using software applications that enable these processes to be managed more efficiently and effectively.
Supplier Relationship Management
Examining raw supply chain data and then reaching conclusions or making predictions with the information is sometimes referred to as:
Supply chain analytics
Transactional SRM:
Tends to focus on short-term reporting and is event driven
A program used to celebrate the achievements of the best suppliers is:
The Supplier Recognition Program
Automating procurement activities can lead to significant cost savings as buyers move toward managing processes by exception.
True
Decentralized purchasing is the practice where individual, local purchasing departments throughout a single corporation make their own, individual purchasing decisions to fulfill their individual local needs.
True
When did U.S. manufacturers begin to use mass production techniques to reduce costs and improve productivity?
1950s
Given the following information, find the break-even quantity using Break-even Analysis. Costs Make Option Buy Option Fixed Cost $100,000 $5,000 Variable Cost $12 $15
31,667 units
Given the following make-buy information, what would be the break-even point? Make Option Buy Option Fixed Costs $5,500 $1,500 Variable Costs $4 $9
800 units
A company using a weighted-criteria evaluation system has established these 5 categories and the appropriate weight in parentheses: Quality (0.25) Responsiveness (0.10) Delivery (0.15) Cost (0.15) Technology (0.30) Company X received the following ratings in each of the five categories: Quality(90), Responsiveness(90), Delivery(80), Cost(80), Technology(85). What is its total score?81.0
81.0
In a recent U.S. retailer survey, _____ of respondents claimed their organizations were either currently enhancing their ethical sourcing capabilities or planned to do so in the future.
92%
Which of the following would be considered a third party provider?
A firm that leases storage warehousing
Customers and suppliers must develop stronger relationships and partnerships based on:
A strategic perspective
According to the text, which of the following is TRUE?
About 50% of companies recognize excellent performance with supplier awards and appreciation banquets
Which of the following is an advantage of decentralized purchasing departments?
Advantages of Decentralization include: 1) Better knowledge of unit requirements 2) Local sourcing 3) Less bureaucracy.
According to the textbook, which of the following conditions need NOT be present for successful supply chain management:
Adversarial relationships
The following is an example of the bullwhip effect:
Barkley's incorrectly anticipates consumer demand resulting in stockouts at several popular retailers
A(n) ____________ purchase order is negotiated for repeated supply over a fixed time period, such as quarterly or yearly.
Blanket
Which of the following terms describes an amplification of the variation in the demand pattern along the supply chain?
Bullwhip effect
Developed in the 1990's as a popular way of developing radically new business processes in an effort to reduce waste and increase performance is referred to as:
Business process reengineering
Which of the following is NOT a key factor for developing a successful supplier partnership?
Developing efficient processes that will remain unchanged for the duration of the partnership
Which of the following is NOT important in developing a successful strategic alliance?
Developing efficient processes that will remain unchanged for the duration of the partnership
According to the text, which of the following is one of the most effective supply chain integrative techniques?
Early supplier involvement
According to the textbook, Supplier Recognition Programs:
Encourage suppliers to keep their performance high
One of the primary goals of purchasing is to:
Ensure uninterrupted flows of raw materials at the lowest total cost
A firm decides to intentionally increase purchases from ethnic minority businesses. This decision can be considered:
Ethical Sourcing
Identifying and selecting environmentally and socially conscious suppliers is one trend followed by firms utilizing:
Ethical and sustainable sourcing
Which of the following hastened many organizations' plans to institute better supply chain strategies in the recent past?
The British vote to exit the EU
Hormel Food Corporation's No. 1 Award program differs from other programs because:
The award is given out once every five years
An important measurement used in supply base rationalization initiatives would include which of the following?
The suppliers' greenhouse gas emissions
The one true source of income for all supply chain organizations is
The supply chain's end customer
Lean production is typically associated with which of the following company's production systems?
Toyota
Successful partnerships have the potential to:
a. Contribute to innovations b. Create a competitive advantage for the firm c. Improve material flows between buyers and suppliers All of these choices are correct.
Which of the following is a potential challenge for global sourcing?
a. Currency exchange b. Dealing with duties c. Political problems All of these choices are correct.
Benefits for organizations that successfully implement supplier relationship management can include:
a. Increased speed to market b. Reduced costs c. Improved quality
Which of the following strategies might help eliminate the bullwhip effect?
a. Reduction of safety stock b. Manufacturers knowing its customers' purchase plans c. Reduction in the number of suppliers All of these choices are correct.
Which of the following is an advantage to utilizing an e-procurement system?
a. Time savings b. Cost savings c. Mobility All of these choices are correct.
