Supply Chain Management -- Exam 2

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. (True or False)

False (this is the definition of Six Sigma)

Waste encompasses wait times, inventories, material and people movement, processing steps, variability, any other non-value-adding activity. (True or False)

True

Strategic Sourcing is the process of identifying a company that provides a needed food or service. (True or False)

False

Which of the following is NOT one of the drivers of Strategic Sourcing? *Focusing on the customer *Reducing the delivery lead times *optimizing the number of global suppliers *increasing the selling price of the product

Increasing the selling price of the product

Intermittent Production Processes are used to produce a large variety of products with different processing requirements in lower volumes. (True or False)

True

Which tool of quality control is used to study how a process changes over time? *Histogram *Cause and Effect Diagram *Control Chart *Scatter Diagram

control chart

A proposal or quotation submitted in response to a solicitation from a contracting authority is known as what?

Bid

The role of workers in Lean is to create the cultural change needed for Lean to succeed. (True or False)

False

Which cost of quality category includes performing audits to confirm that the quality system is operating properly? *appraisal costs *prevention costs *internal failure costs *external failure costs

appraisal costs

Which sourcing strategy would typically be used for items with low-profit margins, relatively stable demand, and high levels of competition? *single-source *multi-source sole-source

multi-source

All of the following are reasons for Buying or Outsourcing an item from a supplier, EXCEPT for which one? *Due to the lack of expertise in your own company operations *Because you want to adopt a multi-sourcing strategy *Because you want to use existing idle capacity in your own company operations *Because the item I non-strategic

Because you want to use idle capacity in your own company operations

What is the term for an internal document that defines the need for goods and/or services? *Procurement *Purchase Order *e-Procurement *Purchase Requisition

Purchase Requisition

Root Cause Analysis is a term that described a wide range of approached, told, and techniques use to uncover causes of problems. (True or False)

True

A key supplier's activities to help the buyer's company reduce cost, improve quality and reduce new product development time beginning wit the initial design phase, are known as? *Early Supplier Involvement *Value Engineering *Supplier Development *Supplier Recognition

Value Engineering

Candidates for a supplier verification program include suppliers who meet on or more of the following criteria, EXCEPT?

A supplier who has a MINIMAL number of significant negative quality related incidents for a specified time period. (should be NO)

Which of the following new technologies can improve supplier selection and increase the effectiveness of supplier relationship management? *Blockchain *eFulfillment *Artificial intelligence *The internet of things

Artificial Intelligence

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? *Job Shop Production *Batch Production *Line Flow Production *Continuous Flow Production

Batch Production

Purchase Order

Becomes a legally binding contract ONLY when accepted by the supplier.

Which of the following is NOT one of the keys to successful strategic partnerships? *developing personal relationships *gaining commitment from top management *building independent objectives *understanding and influencing capabilities

Building independent objectives

Which element of Lean is described as a system based on making little changes on a regular basis, anywhere changes can be made, to reduce process, delivery, and quality problems? *Uniform Plant Loading *Lean Supply Chain Relationships *Workforce Empowerment *Continuous Improvement

Continuous Improvement

The key characteristics to consider in the development and implementation of a Supplier Relationship Management System, include all of the following, EXCEPT? *Collaboration *Visibility *Integration *Detachment

Detachment

All of the following are reasons for Making and item in your own company operations, EXCEPT for which one? *There is no competent supplier available *Due to sufficient capacity in your company operations *to protect your proprietary technology *to control transportation and warehousing costs

Due to insufficient capacity in your company operations

Which Lean related process can be described as a strategy to increase the level of services to consumer through close cooperating among retailers, wholesalers, and manufacturers. *Quick Response *Efficient Consumer Response *Just-in-Time *Keiretsu Relationsips

Efficient Consumer Response

The concept which attempts to bring about positive social change through organizational buying behavior, is known as?

Ethical Sourcing

Which of the following is NOT one of the 12 steps in the basic Purchasing Process? *Obtain authorization as necessary *Fulfillment *Expediting *Analysis

Expediting

ISO 14000 certification is a series of management and quality standards in design, development, production, installation, and service. (True or False)

False

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. (T or F)

False

Total Quality Management is the term used in business to describe the in-depth process of capturing internal and external customer's expectations, preferences, likes, and dislikes. (True or False)

False (this is the defenition for Voice of the Customer

Which of the following are described as Agents licensed by the governmental regulatory authority to conduct business on behalf of importers, for a service fee? *import merchants *import brokers *trading companies

Import Brokers

Which one of the following is NOT one of the advantages of e-Procurement? *mobility *inaccuracy *real time *trackability

Inaccuracy

Which general sourcing category comprises items where many alternatives of supply exist, and supply risk is low. Spend is high and there are potential procurement savings? *Non-Critical *Bottleneck *Leverage *Strategic

Leverage

Which manufacturing strategy can be described as producing products to put into inventory based on a demand forecast? *Make-to-Stock *Make-to-Order *Assemble-to-Order *Engineer-to-Order

Make-to-Stock

Performance measure should be S.M.A.R.T. which is an acronym that means?

Specific, Measurable, Achievable, Relevant, Time-oriented

One of the main reasons to consider purchasing from an international global source is the opportunity to improve quality, cost, and delivery performance. (True or False)

True

The weighted-criteria evaluation system is typically used to select a supplier or to evaluate the performance of a supplier. (True or False)

True

Through collaborative negotiations both sides work together to maximize the outcome or create a win-win result. (True or False)

True

Total Cost of Ownership is the sum of the cost elements Quality, Service, Delivery, and Price. (True or False)

True

Which sourcing concept involves a supplier directly managing the buyer's inventories to reduce the buyer's inventory carrying costs and avoid stockouts? *Reverse Auction *Vendor Managed Inventory *Co-Managed Inventory *Supplier Co-Location

Vendor Managed Inventory

Which element of Lean can be described as moving people and materials when and where needed, and as soon as possible? *small batch scheduling *inventory, setup time & changeover time reduction *lean layouts *waste reduction

lean layouts