Supply Chain Management Capstone- SCM4350

Which of the following statements about the evolutionary models of supply chain relationships is false?

A firm's approach to supply chain relationships typically moves from more collaborative towards more arm's length in nature as time goes on

XYZ Company is developing several new products, and has requested that the supply manager participates in the supplier development process for the materials needed to manufacture. Which of the following would be the BEST type of supplier for the new product development effort?

A supplier with a large infrastructure dedicated to XYZ's production

When assessing supply risk, ______ is classified as a high probability, low impact event.

ANNOYANCE

Which of the following is NOT one of the 4-sub supply chains?

Analytical

Which of the following best describes cost-driven pricing

Prices are determined by adding up individual component cost plus desired profit

Which of the following sourcing models suggest firms should devote the most resources towards suppliers that provides goods/services that have a significant impact on value to the end customers?

Strategy driven sourcing model

In addition to reduction of total cost of ownership, which of the following is the primary reason why organizations look to supply management for top line revenue generation?

Supply management has access to the supplier base for information and innovation

Changes in the external environment require firms to change their business strategy, which may require supply management to change strategies as well

TRUE

Implementing vendor managed inventory is is one strategy identified for handling purchases categorize in the tactical quadrant.

TRUE

One goal of inter enterprise information supply chain is to enable near real-time review of orders

TRUE

One major source of difficulty in the information supply chain is that B2B interactions are often point to point in nature

TRUE

Supply managers in the future state should think about price as the outcome, not the goal.

TRUE

The primary sources of supply risk are : 1)Individual supplier failures and 2) The markets in which suppliers compete

TRUE

Price and cost are the same thing.

false

When considering External influences on strategic sourcing, firms should completely avoid any supplier marketplaces characterized by Limited competition such as monopolies and oligopolies

false

Which of the following factors is least likely to be among those appraised during a site visit to a potential supplier

financial condition

Which of the following refers to a process by which a purchasing and supply organization identifies world class organization with which to compare its practices and results?

Benchmarking

A home medical testing device includes a very sensitive sensor with a customized, easily readable display. This sensor is low cost but high risk because shortages could stop production at the buying organizations plant. In this situation, which term best describes the sensor?

Bottleneck item

In which of the following areas is the movement into offshore markets and global sourcing most likely to create risks?

Business continuity

A firm is concerned about the risks and impact of the disposal of hazardous wastes generated by its production facilities. The firm contracts out most, but not all, of its waste handling to local specialists, the firm wants to have maximum protection in variety of situations. Which of the following will MOST likely protect the firm?

COMPLYING FULLY WITH MANDATORY TREATMENT STANDARDS

Which of the following MOST effective method for negotiating with sole supplier of a unique item?

COST ANALYSIS NEGOTIATIONS

Which of the following is NOT typically consider in a total cost of ownership analysis?

COST OF MERGERS

Suppliers that set their prices by ensuring they cover their variable costs as well as contributions towards fixed costs and profits are using:

COST-PLUS PRICING

Which of the following category of purchases is the use of early supplier design involvement a primary strategy to reduce costs to a buyer firm?

Critical

Which of the following has been identified as inventory megatrend?

Firms are seeking ways to increase inventory visibility and velocity

The trend of increasing customer demands has led to all of the following EXCEPT:

Firms must view all demands as equally important and focus on maximizing service levels

Learning curves are LEAST useful for:

HIGHLY AUTOMATED PRODUCTION PROCESSES

Which of the following reasons for establishing a supplier diversity program is likely to have the GREATEST benefit to an organization?

INCREASING COMPETITION AMONG SOURCES

XYZ Inc. maintains a successful supplier diversity program that tracks payments to direct suppliers and mandates the inclusion of minority and women owned businesses (M/WBEs) in all bid solicitations. Which of the following is MOST likely to improve this program?

INSTITUTING PROCEDURES TO INCLUDE INCENTIVIZING AND TRACKING TIER-TWO AND TIER-THREE SUPPLIER DIVERSITY SPEND

The need to search for different paradigms for creating products/services most closely aligns with which dimension of supply management?

Identification

Firms who are hesitant to invest in global sourcing and unsure of its usefulness are most likely to use which type of approach?

Identify and select a trading agent

Benefits to outsourcing the entire procurement process function include all the following except:

Increasing control over supplier selection

Which is one concept that categorizes supply management?

Integration

Which of the following market factors would be plotted on the low end of the market complexity axis on the spend analysis matrix?

Many suppliers, excess capacity, standard specifications, possible substitutes.

Which of the following is MOST useful in identifying supply opportunities

Market Intelligence

Centralization of the purchasing function can be beneficial for all of the following reasons EXCEPT:

Maximizes emphasis on business unit strategic requirements

A Supply manager has several suppliers that use copper in the products they manufacture. However, none of these suppliers is a major buyer of copper. The supply manager decides to purchase the copper on behalf of their suppliers. Which of the following, BEST describes this type of arrangement?

Multi-tier purchasing agreement

Several items are identified as critical in a supply segmentation analysis. In order to add value, the supply management professional should look to

issue long-term contracts

Company X is implementing an eSourcing tool. The supply manager has been tasked with developing a pipeline of categories that will be sourced through the new system. In determining which items to start with, which of the following should the supply manager consider first?

leverage and non-critical categories

When assessing international markets for suppliers, the most important item supply management should consider is the

risk of the extended supply chain

Which of the following is the primary purpose of creating a supplier performance measurement program?

to promote competitive advantage through the contribution of suppliers

Which of the following is MOST likely to reduce the risk of disruptions to business continuity?

Working with suppliers who are located in close proximity to the firm

A supply manager for GHI, Inc completes a thorough financial analysis of Supplier A, which is one of only a few local firms that can supply certain products that are critical to GHI's manufacturing process. The supply manager finds some problems with supplier A's cash flow, but is otherwise satisfied with its quality and operations, and wishes to purchase its products. If GHI proposes to pay for the products 5 days after delivery rather than its customary 40-day term, this change will benefit Supplier A by favorably adjusting the:

Cash Conversion Cycle

A manufacturer of women's dresses has been a supplier for many years to a regional retail chain. Based on internal seasonal demand forecasts the manufacturer orders fabric, and arranges for production overseas. However, instances of stockouts and excess inventory are common. Given this situation, which of the following would be MOST beneficial?

Collaborative Planning, Forecasting, and Replenishment (CPFR)

A part supplier for FGH, Inc informs the company it is no longer interested in being FGH's supplier and returns all of FGH's tooling. FGH decides to move all of its business to a new supplier in China. The firm must pay now to ship all their tools to the China firm with the hope that the tools are compatible with the new supplier's equipment. Which of the following would MOST likely have prevented this situation?

Contingency Plans

A supply manager in charge of warehouse operations learns that items are missing from a second-tier suppliers freight deliveries. The supplier located in another state about 2,000 miles away. Which of the following is the first course of action the supply manager should take?

Create a supply chain map

Which of the following is a primary supplier performance measurement?

Delivery

Which of the following is not a future force that is likely to affect the strategic direction of supply management?

Ever decreasing customer demands

A manufacturer contracts with an outside supplier for services to complement its core competencies. The supplier notifies the manufacturer that it does not plan to offer such services in the future, but will work through the expiration date of the current contract. Despite considerable research into the marketplace, the manufacturer has not yet found another supplier that can meet its schedules and quality standards. Given this situation, which of the following is the BEST course of action for the manufacturer to take?

Explore ways the service might be provided by in-house resources

Buyers do not have to be concerned with invoice processing errors, as late payments only negatively affect suppliers.

FALSE

It is estimated that over 40% of all invoices have data errors or other issues that make on time payment difficult.

FALSE

Major US automakers (FORD/GM/Chrysler) have been well known for their commitment to long term, collaborative relationships with their suppliers for over 30 years

FALSE

Models constructed through regression analysis should always be trusted as they never fail.

FALSE

Outsourcing contracting is typically considered to be less complex than traditional services outsourcing

FALSE

Supply management roles are currently decreasing in scope and responsibility in many companies.

FALSE

When taking visits to a supplier site, the buyers site inspection team shit only consist of personnel from the purchasing department.

FALSE

While helpful, top management support is typically no required to develop a company culture that embraces purchasing social responsibility.

FALSE

From a supply chain management perspective, risk levels should always be minimized

False

One benefit of mass industry consolidation is that it makes company-specific benchmarking more useful

False

One factor increasing the importance of supply chain is the continued shift of product life cycles as they become longer than product development cycles

False

When measuring KPI's, Only late deliveries should be penalized because early deliveries are always beneficial to a buyer firm

False

All of the following are typical characteristics of a SLA except:

It should never be tied to performance metrics

A supply management organization concludes that customer service is critical to its success. To determine how well it is doing in this area, the supply management organization issues a survey to internal customers. Respondents are asked to rate the supply management organization on a scale of 1 to 5, with 1 representing " Poor customer service" And 5 representing "Excellent customer service". The survey results measure which of the following?

Key performance indicators

Which of the following are PRIMARY factors that influence transportation costs?

Labor and energy

Which of the following is likely to reduce the amount of excess capacity in an industry?

Lean manufacturing and waste elimination practices are adopted

Under which of the following structures does market power reside with the suppliers?

MONOPOLIES AND OLIGOPOLIES

A company's mission states that the firm "will be premier supplier of products to the luxury automotive industry". Which of the following criteria would be MOST appropriate to ensure alignment of this company's supply chain management department with the overall business model?

Obtaining the highest quality products, with due consideration to impact on cost production

In general, a commodity manager purchasing strategy should be guided PRIMARILY by:

Overall corporate strategy

A supply manager is negotiating a contract with a supplier to purchase one million components. To determine a pricing arrangement satisfactory to both parties, which of the following is LEAST appropriate?

PERFORMING A MAKE-BUY ANALYSIS

Purchasing corporate responsibility includes all of the following dimensions EXCEPT:

PRIVACY

All of the following actions would fall under the umbrella of Purchasing Social Responsibility EXCEPT:

PROMOTING STRONG LABOR UNIONS AT SUPPLIER LOCATIONS

Which of the following statements about risk-reward provisions is false?

Risk-Reward provisions should be triggered whenever the slightest deviation from expected performance occurs (+/- 1%)

An organization decides to end its relationship with a long-term supplier due to quality and delivery concerns. The components sourced from the supplier are used for ongoing production within its facility. Which of the following is MOST likely to ensure continuity of supply?

STOCKING SUFFICIENT INVENTORY TO COVER ANY STARTUP PROBLEMS WITH NEW SUPPLIERS

Which of the following BEST illustrates traditional buyer-supplier relationships?

Short-term relationships

Partnerships and strategic alliances are typically characteristics of

Single sourcing

Which of the following is not a common reason companies pursue global sourcing and supply?

To better facilitate JIT and other lien inventory strategies pursues by the firm

Which of the following is NOT a reason for firms pursue outsourcing?

To enable firms to shift from a variable cost model that requires flexibility to fixed cost model that requires mass production

Companies are increasingly focused on managing inventory levels because inventories are seen as substitutes for cash?

True

The greatest opportunity for cost reductions is found at the design/specification stage of product development

True

Value networks are links of multiple 'best in class' firms with complementary core competencies jointly working together to deliver end products

True