BUAD 337

Which of the following is generally NOT true about supply management and the bottom line (net profit to the firm)?

A Euro increase in sales is equivalent to a Euro decrease in materials cost in impacting the bottom line

What emerging trend will alleviate the need to carry certain inventory such as spare automotive or aircraft parts?

Additive manufacturing

What mode of transportation is the biggest competition for an inland barge?

Air

Which mode of transportation is best used to transport high value goods?

Air

How can purchasing add value to the organization?

All of the above (and MORE) are ways that purchasing can contribute to organizational success.

Manufacturing often has a high level of emphasis within the supply chain because

All of the above (employs many people, often the constraint in the supply chain, capital intensive)

When are supplier evaluation and selection decisions initiated?

All of the above (in response to requests from internal customers, during the design and building of new facilities, during new product development, during routine market testing)

Manufacturing is referred to as the "center" of the supply chain due to:

All of the above (most people, most equipment, most resources, usually is the supply chain constraint)

One of the most challenging aspects of purchasing is to ensure an uninterrupted flow of supply. Which of the following might "interrupt" that flow?

All of the above (natural disasters, supplier quality issues, logistics interruptions, financial issues)

Both objective and subjective measures are used to measure the performance of suppliers. Which of the following is NOT true regarding objective and subjective measures?

An example of a subjective measure is supplier on-time delivery

Carriers will offer better rates if clients give them revenue miles in ______________.

Both directions

An item with high market complexity and low importance to the organization should be classified as:

Bottleneck

On Kraljic's matrix, the quadrant of "bottleneck" is the most challenging for purchasing managers to deal with? In fact it is recommended that you think of ways to shift these items to other quadrants of the matrix. What is one purchasing tactic that might allow you to do that?

Buying consortium, group together multiple buyers

What warehouse automation system is used for high-assortment, low-volume SKUs and maximizes space use?

Carousel

Incoming replenishment shipments are preassigned to actual demand orders, so that as soon as a product arrives in the facility it is already assigned to an order. This describes?

Cross docking

Which is part of a quick response system where inbound shipments of bulk items are not stored long term but instead broken into smaller quantities, mixed together, and quickly shipped to individual stores?

Crossdock

Which of the following is NOT an area in which successful supply managers need expertise?

Customers

What type of storage technique assigns a specific location for each SKU every time it is stored?

Dedicated

The video about Boeing 737 manufacturing is an example of:

Discrete manufacturing

Crowded urban markets require innovative approaches for delivery in the "last mile" logistics initiative. One such solution would be:

Drones

Theoretical capacity includes which of the following items?

Equipment design rate times 24 hours/day times 365 days/year

A dollar saved in material costs goes directly to an increase in revenue for the organization.

False

A manufacturing facility that produces automobiles would be considered a process manufacturing facility

False

Sourcing is the inputs (or things we buy), including materials, sub-assembled components, equipment, and services, that are required to create value.

False

Supplier portfolio analysis was introduced by Michael Porter

False

When calculating the theoretical capacity of a manufacturing facility, operating time for holidays and weekend is subtracted

False

Manufacturing and Service Operations is primarily about creating which type of utility?

Form

A GE refrigerator has a sensor that tracks milk consumption based on the weight of the container and automatically orders from a grocery store when it senses the milk is getting low. This is an example of what global trend?

Internet of Things (IoT)

Top line contributions by the purchasing function include which of the following?

Involvement in new product development

What term is best described as the process of combining purchasing requirements across operations units in order to capitalize on suppliers' fix cost allocations and improvements in suppliers' productivity?

Leveraging

Which of these is not one of the four legs of manufacturing?

Money

Which mode of transportation is best used to transport short distance consumer finished goods?

Motor

What warehouse activity includes identifying the location of the product required to fill an order?

Order picking

Which mode of transportation is best used to transport petroleum or mineral slurry?

Pipeline

Warehouses play a critical role in the supply chain system by:

Placing a buffer between supply and demand

As a category specialist, you need to develop expertise on which of the following?

Price and Availability (A and D only)

A shared understanding of values and priorities is critical to run a successful manufacturing operation. Which one of these categories will change based upon the annual corporate strategy

Priorities

Which of the following maintenance strategies was NOT discussed?

Probabilistic

Which of these is not a key component of transportation management?

Process appropriate information to avoid regulatory approval

____________ is part of the supply chain involved in managing the forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption to meet customers' requirements.

Procurement

________ is the product placement concept that involves assigning SKUs to an appropriate storage or picking location by accounting for factors that influence the movement, staging, and storage of the SKU in the warehouse including volume and the variability of that volume.

Product profiling

Which type of equipment should a manufacturer select for a new facility that will produce state-of-the-art batteries for electric vehicles which have been designed and developed by the company's research team?

Proprietary

What is the best tactic purchasing can use in order to meet the material and support needs of its internal customers?

Provide an uninterrupted flow of the appropriate quality materials and services.

The advantage of proprietary equipment is:

Provides competitive advantage

What type of warehouse has the advantages of minimizing labor disputes, economies of scale, and letting experts run the warehouse?

Public

Based on similar cost and service characteristics, which mode of transportation is the biggest competition for an inland water transport?

Rail

Which mode of transportation is best used to transport heavy construction equipment?

Rail

Safety is a value because:

Safety's importance does not vary with time or situation

What invention by Malcolm McLean revolutionized how products are shipped at reduced cost, considered a key facilitator of global trade?

Shipping containers

You are a supply manager at a large US bank and you are responsible for buying marketing and creative services (advertising, etc.). The marketing services category represents a substantial amount of procurement spend and the suppliers that compete in this industry tend to have very different capabilities. Consider the Kraljic matrix and classify this purchase.

Strategic item.

When thinking about price reductions what can purchasing do to achieve significant price or cost savings and maintain the appropriate supplier relationship when buying leverage items?

Supply base reduction

A current best practice strategy that focuses on equipment maintenance is

TPM

Best Buy has a warehouse containing TVs, video game consoles, and movies. The TVs sell slowly, the consoles sell periodically, and the movies sell quickly. How should Best Buy arrange its warehouse?

TVs in the back, consoles in the middle, movies in the front

Which of the following is the most important right of purchasing?

The RIGHT supplier

Transportation costs per unit of freight increase at a decreasing rate with increasing volume, increasing distance traveled, and higher weight density. This defines what theory?

Transportation Cost Theory

Samsung wants to transport a load of 52-inch HDTVs from Carlsbad, California, to San Francisco. What method of transportation should Samsung use?

Truck

Purchasing has become a strategic contributor to organizational value by contributing to both the top and bottom line of the business.

True

The choice of suppliers is important to ensure an uninterrupted flow of supply and avoid some of the problems inherent in complex supply chains.

True

The purchasing function contributes to the type and the bottom line of an organization

True

When purchasing and supply management works well within an organization, the company acquires the best resources from around the world, which allows its to compete on cost, quality, and innovation.

True

Which of the following is NOT true about a value?

Values change with the priorities of the business.

______ + ______ = Rate bargaining power when negotiating rates.

Volume + Consistency

Which mode of transportation is best used to transport long distance containerized goods

Water