Supply Chain Exam 2
(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) ISO 14000 certification is a series of management and quality standards in design, development, production, installation, and service
False
(T/F) ISO 14000 is a widely accepted management and quality certification standard.
False
(T/F) The role of workers in Lean is to create the cultural change needed for Lean to succeed
False
The operating philosophy that focuses on waste reduction and value enhancement is known as?
Lean
(T/F) "Supply Management" is a newer term that encompasses all acquisition activities beyond the simple purchase transaction.
True
(T/F) A purchase order is legally binding only after it is accepted by the supplier.
True
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
Which of the following is NOT one of the keys to successful strategic partnerships?
Building independent objectives
The Six Sigma 5-Step Plan referred to as DMAIC stands for?
Define, Measure, Analyze, Improve, Control
(T/F) Supplier Relationship Management is a comprehensive approach for locating and sourcing key suppliers, so that an organization can leverage its consolidated purchasing power to find the best possible values in the marketplace
False
Which of the following is NOT one of the primary goals of Purchasing?
Increase the supplier base
Which general sourcing category comprises commodity items where many alternatives of supply exist, and supply risk is low. Spend is high and there are potential procurement savings?
Leverage
The process commonly utilized in continuous improvement is known as?
Plan, Do, Check, Act
Costs incurred in the process of establishing specifications for incoming materials, processes, products, and services, are categorized as which of the following?
Prevention Costs
The e-Procurement process has many advantages. Which one of those listed below is NOT one of these advantages?
Segmentation
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 following term refers to an act that creates the greatest good for the greatest number of people?
Utilitarianism
VMI stands for
Vendor-Managed Inventory
Which one of the following is among the most important elements of the LEAN manufacturing philosophy?
Waste reduction and continuous improvement
(T/F) Outsourcing allows the company that is outsourcing a product, to concentrate on core capabilities and increase staffing levels.
False
(T/F) Products with short product life cycles, volatile demand, high-profit margins, and relatively little competition, are known as Functional Products.
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) 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
(T/F) While paperless transactions are now possible through e-procurement and Web-based services, these would NOT be considered sustainable business practices.
False
Which Manufacturing Strategy can be described as producing products to put into inventory based on a demand forecast?
Make-to-Stock
Which one of the following Manufacturing Strategies has the shortest (i.e., fastest) Customer Delivery Cycle?
Make-to-Stock
Which of the following is an internal document that defines the need to purchase goods and/or services? This document does not constitute a contractual relationship with any external party.
Purchase Requisition
(T/F) Co-sourcing is the sharing of a process or function between internal staff and an external provider (i.e., a supplier).
True
(T/F) Ethical sourcing policies should include such things as the reporting of supplier compliance to stakeholders, and detailing ethical sourcing expectations to suppliers.
True
(T/F) In the context of Total Cost of Manufacturing (TCM), in general terms, procurement, manufacturing, and transportation per unit costs each go down as volume goes up.
True
(T/F) Products with short product life cycles, volatile demand, high-profit margins, and relatively little competition, are known as Innovative Products.
True
(T/F) Successful supplier relationships involve equal decision-making control between both the buyer and the supplier.
True
(T/F) The Weighted-Criteria Evaluation System is typically used to select a supplier or to evaluate the performance of a supplier?
True
(T/F) 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.
True
(T/F) Total Cost of Ownership is the sum of the cost elements Quality, Service, Delivery, and Price.
True
In which item category would the sourcing strategies of consolidating volumes as a negotiation tool, using the competitive marketplace to reduce costs, and automating supplier interfaces to minimize process related costs, be appropriate?
Leverage Items
The fastest or most immediate way that a purchasing person can directly impact the profit of their company is to:
Obtain a price reduction on the items they are buying
(T/F) Waste encompasses wait times, inventories, material and people movement, processing steps, variability, any other non-value-adding activity
True