supply chain plan control 2

Making all the purchasing decisions, including order quantity, pricing policy, contracting, negotiations, and supplier selection and evaluation are the key characteristics of a. Decentralized Purchasing b. Logistics Management c. Centralized Purchasing d. Single stage replenishment

Centralized Purchasing

More than a dozen presidential executive orders requiring federal purchasing officials to include environmental considerations and human health when making purchasing decisions can be attributed to a concept called: a. Hybrid Purchasing b. Counter Purchasing c. Green Purchasing d. Buy America Act

Green Purchasing

Good performance measurement systems: a. Assist in pricing of products b. Help to eliminate non-value-creating activities c. Are purchased from software providers d. Use primarily financial performance measures

Help to eliminate non-value-creating activities

The use of environmental supplier certification programs assists companies by which of the following? a. Helping communities who are in jeopardy of plant closures b. Identifying companies who are the most popular with consumers c. Identifying strategic alliance candidates d. All of these choices are correct.

Identifying strategic alliance candidates

A(n) _______________ performs transactions for a fee, and does not take title to the goods. Instead, title passes directly from the seller to the buyer. a. Leverage buyer b. Second-tier-supplier c. Import broker d. Keiretsu

Import broker

Which of the following is NOT a reason for favoring multiple sourcing? Spreads the risk of supply interruption b. Less quality variability c. Increases information about new processing technologies d. Encourages competition among suppliers

Less quality variability

Which of the following would be considered a good starting point for building a green supply chain strategy among supply chain partners? a. Measuring the Supply Chain Carbon-to-Carbon Cycle Time b. Created a director of environmental sustainability for supply chain members c. Obtaining ISO 14000 certifications d. Calculating the supply chain cash-to-cash cycle times

Obtaining ISO 14000 certifications

Some businesses refer to sustainability in terms of supporting the three P's. This stands for: a. People, planet, profit b. People, place, price c. Planet, people, price d. Place, price, promotion

People, planet, profit

An organization's process for evaluating the quality systems of key suppliers in an effort to eliminate incoming inspections can be referred to as: a. Quality Systems Certification b. Supplier Inspection c. Supply Management d. Supplier Certification

Supplier Certification

Which of the following supply chain performance metrics measures the average percentage of orders among supply chain members that arrive on time, complete, and damage-free? a. Supply chain delivery performance b. Supply chain perfect order fulfillment performance c. Total supply chain management costs d. Supply chain cash-to-cash cycle time

Supply chain perfect order fulfillment performance

Promoting diversity by intentionally buying from small firms or ethnic minority businesses is an example of: Ethical sourcing b. Sustainable sourcing c. Supply base rationalization d. Supply base sourcing

ethical sourcing

The purchasing department at Big Horn Sheep Corporation decided to intentionally increase purchases from small, underdeveloped nations. This decision can be considered: . Unethical b. Utilitarianism c. Illegal d. Ethical Sourcing

ethical sourcing

The benefits of implementing an effective supplier certification program include all of the following EXCEPT: a. Building long-term beneficial relationships b. Recognizing excellence c. Increasing supplier base d. Improving responsiveness

increasing supplier base

Which of the following should NOT be used as assessment criteria to evaluate the purchasing department's performance? a. Improving time to market b. Participating in value engineering/value analysis efforts c. Lowering inventory turnover rates d. Creating supplier alliances

owering inventory turnover rates

Costs associated with investigating alternative suppliers and investigating alternative delivery options can be classified as: a. Post-transaction costs b. Transaction costs c. Pre-transaction costs d. All of these choices are correct.

pre transaction costs

Which of the following is NOT one of the four perspectives of the BSC framework? a. Financial b. Customer c. Internal Business Process d. Reliability

reliability

In designing an ethical and sustainable strategy a firm might make use of which of the following? a. Use performance measures to identify weaknesses b. Create many short term relationships with suppliers c. Hire more supervisors to address problems quickly d. All of these choices are correct.

se performance measures to identify weaknesses

According to the SCOR model, which of the following is NOT one of the supply chain operations process categories? a. Return b. Sell c. Plan d. Enable

sell

Sustainable sourcing policies should include which of the following? a. Use of minority workers b. Use of renewable energy c. Use of child labor d. Fair working conditions

use of renewable energy

Using the following information, calculate the total productivity:Output = 25,000 units; 400 labor hours @ $15.00 per hourMaterial cost = $625,000; Utilities cost = $1,400 . 1.231 units/$ b. 0.0395 units/$ c. 6.264 units/$ d. 0.0087 units/$

0.0395 units/$

Before supplier relationship management (SRM), buyers typically spent 40% of their time on expediting orders. After SRM implementation buyers spent about: a. 20% of their time on expediting orders b. 30% of their time on expediting orders c. 10% of their time on expediting orders d. None of these choices are correct.

10% of their time on expediting orders

Given the following information, find the break-even quantity using Break-even Analysis. CostsMake OptionBuy OptionFixed Cost$100,000$5,000Variable Cost$12$15a. 35,000 units b. 33,333 units c. 25,000 units d. 31,667 units

31,667

A company using a weighted-criteria evaluation system has established these 5 categories and the appropriate weight in parentheses:Quality (0.25)Responsiveness (0.10)Delivery (0.15)Cost (0.15)Technology (0.30)Company X received the following ratings in each of the five categories: Quality(90), Responsiveness(90), Delivery(80), Cost(80), Technology(85). What is its total score? a. 84.5 b. 83.0 c. 82.5 d. 81.0

81.0

Which of the following is a potential challenge for global sourcing? a. Currency exchange b. Political problems c. Dealing with duties d. All of these choices are correct.

All of these choices are correct.

The main benefit(s) from benchmarking sourcing practices is/are: a. Lower prices of goods and services, use of fewer buyers and lower administrative costs b. Larger market for products, economies of scale in purchasing and production, and lower labor costs. c. Allows firms to leapfrog the experience-gaining stage by trying things that have worked well for other companies. d. Savings in energy consumption and materials, lower distribution costs, and improved corporate image among regulators, customers and community.

Allows firms to leapfrog the experience-gaining stage by trying things that have worked well for other companies.

Which of the following was designed in 1992 by Kaplan and Norton as a way to align a firm's performance measures with its strategic plans and goals? a. Balanced scorecard approach b. The top-down reliance model c. The supply chain alignment model d. The SCOR model

Balanced scorecard approach

Which of the following is an advantage of decentralized purchasing departments? Avoids duplication b. Lower transportation costs c. Use of common supply base d. Better knowledge of unit requirements

Better knowledge of unit requirements

Which of the following is NOT a characteristic of supply chain performance measurement systems? a. The measures must overlay the entire supply chain such that firms are all contributing to the supply chain strategy b. Their goal is to achieve cost minimization for each supply chain member c. The focus of the system is on value creation for end customers d. They link supply chain trading partners to achieve breakthrough performance

Their goal is to achieve cost minimization for each supply chain member

Which of the following is most associated with world class performance measurement systems? a. Productivity measures are heavily upon b. They link firm strategies and operating decisions to customer requirements c. Firm success is guided by financial and economic measures d. None of these choices are correct.

They link firm strategies and operating decisions to customer requirements

Sustainable sourcing policies should include which of the following? a. Fair working conditions b. Use of renewable energy c. Use of minority workers d. Use of child labor

Use of renewable energy

Truckload (TL ≥ 40,000 lbs): $0.90 per ton-mileTruckload Less-than-truckload (LTL): $1.10 per ton-mileNote: per ton-mile = 2,000 lbs. per mile; number of days per year = 365 Using Supplier 2 will save about $20,000 b. Using Supplier 1 will save about $32,000 c. Using Supplier 2 will save about $30,000 d. Using Supplier 1 will save about $41,000 Hide Feedback

Using Supplier 1 will save about $32,000

hich of the following terms refers to an act that creates the greatest good for the greatest number of people: a. Social sustainability b. Rights and duties c. Corporate responsibility d. Utilitarianism

Utilitarianism

Which of the following is an advantage to utilizing an e-procurement system? a. Time savings b. Cost savings c. Mobility d. All of these choices are correct

all choices are correct

Successful strategic supplier alliances can result in which of the following? a. Higher return on investment b. Better market penetration. c. Access to new technologies and knowledge d. All of these choices are correct.

all correct

Which of the following could be an ethical and environmental certification requirement? a. Energy Star certification b. Fair Trade certification c. Forest Stewardship Council (FSC) certification d. All of these choices are correct

all correct

Which of the following is a problem with a company establishing labor and machine utilization standards for performance? a. Encourages the firm to reduce labor levels until everyone is overworked b. There is a tendency to continue producing and adding to inventory just to keep machines and people busy c. Less time is spent doing preventive maintenance, training, and projects that can lead to greater performance d. All of these choices are correct.

all correct

Which of the following is a trend in ethical and sustainable sourcing? Discontinuing purchases from firms that use unacceptable labor practices b. Reducing the number of delivery miles traveled c. Using suppliers who are reducing their carbon footprint d. All of these choices are correct.

all correct

Which of the following is important in developing successful relationships in a partnership? Commitment by top management b. Interpersonal business relationships between employees of the companies c. Mutual/compatible needs that result in a win-win situation for the partners d. All of these choices are correct.

all correct

A(n) ____________ purchase order is negotiated for repeated supply over a fixed time period, such as quarterly or yearly. a. Blanket b. Automatic c. Invitation for bid d. Blank check

blanket

Which of the following is TRUE? ISO 75000 is the supplier award given to the highest rated supplier in Japan. b. The key to successful partnerships is developing performance measures with weights greater than 3.50. c. Performance metrics and personal business relationships are both keys to building successful partnerships. d. SRM software modules are very affordable (less than $50,000) and can be implemented with a week.

c performance metrics