Intro to Supply Chain - Practice Exam 2 Q's

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

- Build long-term relationships - Reducing time spent on incoming inspections - Recognizing excellence

LEAN manufacturing emphasizes all of the following.

- Continous improvement - Reduction of waste - Synchronization of material flows

Which of the following are the primary goals of Purchasing?

- Ensure the uninterrupted flow of materials and services at the lowest total cost - Improve the quality of the finished goods produced - Optimize customer satisfaction

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

- Personal relationships - Mutual benefits and needs - Performance metrics

An outsourcing program can result in all of the following positive outcomes.

- Reducing staffing levels - Cost reduction - Gains in manufacturing flexibility

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

- Time savings - Real time access - Trackability

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

A 4PL, commonly referred to as a lead logistics provider, is a trucking company that also provides tracking services.

False

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

False

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

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

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

False

While the purchasing function is one of the most value-enhancing functions in any organization, it is not preferable to periodically monitor the purchasing function's performance against set standards, goals, and/or industry benchmarks.

False

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

Overspending

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

Strategic Sourcing

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 combination of the purchase price of a product, plus all costs associated with the use and maintenance of a good or service, is referred to as?

Total Cost of Ownership

"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

A LEAN system is also known as a pull system.

True

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

True

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

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 stand for Vendor-Managed Inventory

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

Waste reduction and continuous improvement