Supply Chain Exam 2

Which of the following would be a good reason to outsource (buy) versus make an item?

A firm lacks the technology or expertise to produce an item

The sourcing strategies including; maintaining safety and/or strategic stocks, developing contingency plans, strengthening relationships, and searching for alternatives, are appropriate for which item category?

Bottleneck Items

Which Statistical Tool of Six Sigma is used to determine the frequency of specific problems?

Check Sheet

What is the term that is often used for the acquisition of services?

Contracting

Benefits derived from implementing an e-procurement system include all of the following EXCEPT:

Decentralizing Purchasing

An outsourcing program can result in all of the following positive outcomes, except?

Decreased need for supplier management

The best supplier candidates for Supplier Relationship Management (SRM) include all of the following EXCEPT?

Developmental suppliers that need to make improvements

(T/F) A purchase order is legally binding once issued by the buyer

False

(T/F) A purchase order is legally binding once issued by the buyer.

False

(T/F) An effective supplier certification program may increase the time spent on incoming inspections

False

(T/F) Award-winning suppliers serve as role models for other suppliers and may, therefore, be exempt from audits and certification programs

False

(T/F) LEAN production is an operating philosophy or mindset that attempts to minimize the impact of supply variability and flaws in forecasting through the use of safety stock inventories.

False

(T/F) The concept of Distributive Negotiations refers to both sides work together to maximize the outcome or create a win-win result.

False

(T/F) The purchasing function is one of the most value-enhancing functions in any organization, and therefore, it is not necessary to periodically monitor the purchasing function's performance against a set of standards or industry benchmarks

False

(T/F) While the purchasing function is one of the most value-enhancing functions in any organization, it is not preferable to periodically monitor the purchasing function's performance against set standards, goals, and/or industry benchmarks

False

(T/F) The Profit-Leverage Effect states that a decrease in purchasing expenditures will directly decrease profit

False

A strong supplier partnership requires that both buyer and supplier adopt a strong tactical perspective

False

ISO 14000 is a widely accepted management and quality certification standard

False

While paperless transactions are now possible through e-procurement and Web-based services, these would NOT be considered sustainable business practices.

False

Which one of the following is NOT a quality tool of Six Sigma?

Hysterical Charts

Which of the following is NOT one of the primary goals of Purchasing?

Increase the supplier base

Which of the following is NOT one of the primary goals of Purchasing? 1.Ensure the uninterrupted flow of materials and services at the lowest total cost 2.Improve the quality of the finished goods produced 3.Increase the supplier base 4.Optimize customer satisfaction.

Increase the supplier base

Benefits of implementing an effective supplier certification program include all of the following EXCEPT?

Increasing the supplier base

The keys to developing successful supply partnerships include all of the following EXCEPT?

Individualized Objectives

LEAN manufacturing emphasizes all of the following EXCEPT?

Large batch sizes

What company originated the concept of Six Sigma?

Motorola

All of the following are included in the eight wastes EXCEPT?

Overspending

Which quality guru (i.e., expert) is credited with the concept that 'quality is free; defects are costly'

Philip Crosby

The process commonly utilized in continuous improvement is known as?

Plan, Do, Check, Act

Which of the following is NOT one of the "Seven Tools of Quality Control"

Small Batch Scheduling

Managing a firm's external resources in ways that support the long-term goals of the firm can be referred to as?

Strategic sourcing

An organization's process for evaluating the quality systems of key suppliers in an effort to eliminate incoming inspections can be referred to as?

Supplier Certification

The sum of all costs associated with every activity in the supply stream of a product, is referred to as?

Total Cost of Ownership

(T/F) VMI stands for Vendor-Managed Inventory

True

(T/F) "Rationalizing the supplier base" would mean that the purchasing firm is attempting to reduce the number of suppliers in its supplier network.

True

(T/F) 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

(T/F) Duties, taxes, or customs imposed by the host country for imported or exported goods, are known as Tariffs

True

(T/F) Outsourcing allows a firm to concentrate on core capabilities and reduce staffing levels

True

(T/F) Pain and Gain Share contract provisions are associated with supplier rewards and recognition programs.

True

(T/F) Successful supplier relationships involve equal decision-making control between both the buyer and the supplier.

True

The primary design objective of a LEAN layout is to reduce wasted movements of workers and/or materials.

True

The following term refers to an act that creates the greatest good for the greatest number of people?

Utilitarianism

Which one of the following is among the most important elements of the LEAN manufacturing philosophy?

Waste reduction and continuous improvement