Chapter 6 Test Questions

An outsourcing program can result in all of the following positive outcomes, except? (A) Reducing staffing levels (B) Decreased need for supplier management (C) Cost reduction (D) Gains in manufacturing flexibility

(B) Decreased need for supplier management

Managing a firm's external resources in ways that support the long-term goals of the firm can be referred to as? (A) Ethical Sourcing (B) Functional Sourcing (C) Strategic Sourcing (D) Hybrid Sourcing

(C) Strategic sourcing

Which of the following is TRUE? (A) A VMI stands for Vertically Managed Inventory (B) 3PL stands for Third Party Leverage (C) VMI stands for Vendor-Managed Inventory (D) 3PL stands for Three Point Logistics

(C) VMI stands for Vendor-Managed Inventory

(T/F) A 4PL, commonly referred to as a lead logistics provider, is a trucking company that also provides tracking services

FALSE

(T/F) While paperless transactions are now possible through e-procurement and web-based services, these would NOT be considered sustainable business practices

FALSE

(T/F) "Rationalizing the supplier base" would mean that the purchasing firm is attempting to reduce the number of suppliers in its supplier network by eliminating poor performing suppliers in its present supplier base

True

The following term refers to an act that creates the greatest good for the greatest number of people? (A) Rights and duties (B) Corporate responsibility (C) Utilitarianism (D) Social sustainability

Utilitarianism