5-8 TF

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

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

Developmental suppliers that need to make improvements

An effective supplier certification program may increase the time spent on incoming inspections

False

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

Individualized Objectives

What company originated the concept of Six Sigma?

Motorola

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

Outsourcing allows a firm to concentrate on core capabilities and reduce staffing levels

True

Successful supplier relationships involve equal decision-making control between both the buyer and the supplier.

True

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

Waste reduction and continuous improvement

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

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:

De-centrilizing Purchasing

A purchase order is legally binding once issued by the buyer.

False

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

False

Award-winning suppliers serve as role models for other suppliers and may therefore be exempt from audits and certification programs

False

ISO 14000 is a widely accepted management and quality certification standard

False

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

The Profit-Leverage Effect states that a decrease in purchasing expenditures will directly decrease profit

False

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

False

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

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

Increase Supplier base

LEAN regularly results in: the following benefits EXCEPT?

Increased Inventory

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

Increasing the supplier base

7 Total Cost of Manufacturing include the following EXCEPT:

Manufacturing and Procurement activities Inventory and Warehousing activities Transportation activities

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

Overspending

The process commonly utilized in continuous improvement is known as?

Plan, Do, Check, Act

Buyer-supplier partnerships are easier to manage with a rationalized supply base, and they can result in

Reduced purchase prices Fewer supplier management problems Closer and more frequent interaction between buyer and supplier Greater levels of quality and delivery reliability

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

A management philosophy based on the principle that every employee must be committed to maintaining high standards of work in every aspect of a company's operations is called ?

Total Quality Management

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

True

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

Duties, taxes, or customs imposed by the host country for imported or exported goods, are known as Tariffs

True

Pain and Gain Share contract provisions are associated with supplier rewards and recognition programs.

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 of the following is TRUE?

VMI stands for Vendor-Managed Inventory

Term used in business to describe the in-depth process of capturing internal and external customer's expectations, preferences, likes, and dislikes

Voice of Customer

Collaborative Negotiations - Both sides work together to maximize the outcome or create a win-win result. Requires open discussions and a free-flow of information between parties.

true