Supply Chain Exam 2
In which item category would the sourcing strategies of maintaining safety/strategic stocks, developing contingency plans, strengthening relationships, and searching for alternatives, be appropriate?
Bottleneck
Which of the following is NOT one of the keys to successful strategic partnerships?
Building independent objectives
In which sourcing category would an item typically be classified, if it is considered to be low value, low risk, and there are lots of potential suppliers?
Non Critical
In public purchasing in the government & non-profit business sector, bidders (i.e., potential suppliers) are generally required to furnish bonds as an incentive to ensure that the successful bidder will fulfill the contract awarded. Which type of bond provides protection against 3rd party liens (i.e., debts) not fulfilled by the bidder?
Payment Bonds
Which manufacturing strategy is described as a manufacturing strategy where products ordered by customers are produced quickly and are customizable to a certain extent?
Assemble to Order
In which type of manufacturing process would each individual item in the group go through one stage of the production process before the whole group moves on to the next stage?
Batch Production
Total Quality Management (TQM) is an integrated organizational effort to improve quality at every level. Which one of the following is NOT part of TQM?
Customer Segmentation
The key characteristics to consider in the development and implementation of a Supplier Relationship Management System, include all of the following, EXCEPT?
Detachment
The primary goals of purchasing include all of the below, EXCEPT?
Develop as many good quality suppliers as possible for each material or service
All of the following are reasons for Making an item in your own company operations, EXCEPT for which one?
Due to insufficient capacity in your company operations
The manufacturing strategy in which the product is designed, engineered, and built to specifications only after the order has been received is called what? It is used when products are unique and extensively customized for the specific needs of individual customers.
Engineer-to-Order (ETO)
A strong supplier partnership requires that both buyer and supplier adopt a strong tactical perspective.
False
Award-winning suppliers serve as role models for other suppliers and may therefore be exempt from audits and certification programs
False
Backward Vertical Integration refers to a company acquiring one or more of their customer organizations.
False
ISO 14000 is a widely accepted management and quality certification standard.
False
Industrial buyers purchase raw materials and other components for conversion into a finished product, but they do not purchase services or capital equipment.
False
Lean is a disciplined, statistical-based, data-driven methodology for identifying and removing the causes of defects and minimizing variability in manufacturing and in business processes
False
Strategic Sourcing is the process of identifying a company that provides a needed good or service
False
The practice of Supplier Co-location involves a supplier's employee being embedded in a buyer's purchasing department to forecast demand, monitor inventory and place orders for the item(s) provided by the supplier.
False
When using a weighted-criteria evaluation system with five or more categories, suppliers should be ranked based on their score in only the two highest weighted categories.
False
Benefits of implementing an effective supplier certification program include all of the following EXCEPT?
Increasing the supplier base
Which one of the following is NOT part of the seven (7) tools of Quality Control?
LEAN
Which element of Lean can be described as moving people and materials when and where needed, and as soon as possible?
Lean Layouts
Which Manufacturing Strategy can be described as producing products to put into inventory based on a demand forecast?
Make to Stock
he e-Procurement process has many advantages. Which one of those listed below is NOT one of these advantages?
Segmentation
Co-sourcing is the sharing of a process or function between internal staff and an external provider (i.e., a supplier).
True
Duties, taxes, or customs imposed by the host country for imported or exported goods, are known as Tariffs
True
Forward Vertical Integration refers to a company acquiring one or more of their customer organizations.
True
Products with low profit margin, relatively stable demand, and high levels of competition, are known as Functional Products.
True
Products with short product life cycles, volatile demand, high-profit margins, and relatively little competition, are known as Innovative Products.
True
Rationalizing the supplier base" would mean that the purchasing firm is attempting to reduce the number of suppliers in its supplier network.
True
Successful supplier relationships involve equal decision-making control between both the buyer and the supplier.
True
The Weighted-Criteria Evaluation System is typically used to select a supplier or to evaluate the performance of a supplier?
True
Total Cost of Ownership is the sum of the cost elements Quality, Service, Delivery, and Price.
True
Waste encompasses wait times, inventories, material and people movement, processing steps, variability, any other non-value-adding activity
True
Which sourcing concept involves a supplier directly managing the buyer's inventories to reduce the buyer's inventory carrying costs and avoid stockouts?
Vendor Managed Inventory
Which quality expert is is widely considered to be the father of Total Quality Management?
W. Edwards Demming
The process to evaluate a supplier's capabilities, and their capacity to supply a product or service to the buyer, is known as Supplier Certification.
False
A Supplier Code of Conduct is intended to inform suppliers of ethical sourcing expectations and is typically a condition for becoming an approved supplier.
True
Products with low profit margin, relatively stable demand, and high levels of competition, are known as Innovative Products.
False
