Exam 2 quiz questions

What is the term that is often used for the acquisition of services?

Contracting

An outsourcing program can result in all of the following positive outcomes, except?

Decreased need for supplier management

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

Developmental suppliers that need to make improvements

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

Which of the following is NOT a quality tool of Six Sigma?

Hysterical Charts

LEAN manufacturing emphasizes all of the following EXCEPT:?

Large Batch sizes

The process commonly utilized in continuous improvement is known as?

PLAN Do CHECK ACT

Managing a firm's external resources in ways that support the long-term goals of the firm can be referred to as?

Strategic Sourcing

The sum of all costs associated with every activity in the supply stream of a product, is referred to as?

TCO

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

True

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

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

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

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

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

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

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

While paperless transactions are now possible through e-procurement and Web-based services, these would NOT be considered sustainable business practices.

False

"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

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

True

The following term refers to an act that creates the greatest good for the greatest number of people?

Utilitarianism

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

Waste reduction and continuous improvement

A LEAN system is also known as a push system

false

LEAN and Six Sigma are essentially two terms that mean the same thing

false

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

increase the supplier base

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

increasing the supplier base

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

individualized Objectives

All of the following are included in the seven wastes EXCEPT:?

overspending

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

Benefits derived from implementing an e-procurement system include all of the following EXCEPT:

decentralized purchasing