MG406 1,3
Which of the following is NOT a key tenant of an SRM system? a. Automation b. Integration c. Lean operations d. Visibility
lean operations
According to the textbook, the top three challenges for CPFR implementation include all of the following EXCEPT: a. Making organizational and procedural changes b. Supplier lead times c. Trust between supply chain partners d. Cost
b. Supplier lead times
It is illegal for corporations to provide their suppliers appreciation banquets to award performance. a. True b. False
False
Before supplier relationship management (SRM), buyers typically spent 40% of their time on expediting orders. After SRM implementation buyers spent about: a. 10% of their time on expediting orders b. 30% of their time on expediting orders c. 20% of their time on expediting orders d. None of these choices are correct.
a. 10% of their time on expediting orders
If actual demand for a period was 108 and the forecast for that period was 103, what is the forecast error for the period? a. 5 b. -5 c. 0 d. Forecast error cannot be determined by the information given.
a. 5
Which of the following would refer to the 80/20 rule when applied to the ABC inventory control system? a. 80 percent of the total annual $ usage is accounted for, by 20 percent of the items. b. 20 percent of the items account for 80 percent of the tasks. c. 80 percent of the items account for 20 percent of the groups. d. 80 percent of the unit cost accounts for 20 percent of the items. e. None of these choices are correct.
a. 80 percent of the total annual $ usage is accounted for, by 20 percent of the items.
Which forecasting method would use the size of the advertising budget as a variable in the forecasting technique? a. Business cycle forecasting b. Random variation forecasting c. Time series forecasting d. Cause-and-Effect forecasting
d. Cause-and-Effect forecasting
Which of the following activities would fall under the foundational element of operation? a. Supplier management b. Third-party logistics services c. Distribution network d. Demand management
d. Demand management
In forecasting, a tracking signal is used to: a. Determine if the forecast bias is within the acceptable control limits b. To route the products on a different mode of transportation c. Estimate the demand for the next period d. Measure the underlying changes in demand
a. Determine if the forecast bias is within the acceptable control limits
The bullwhip effect causes an amplification of the variation in the demand pattern along the supply chain. a. True b. False
a. True
The inventory turnover ratio shows how efficiently a firm is using its inventory to generate revenue. a. True b. False
a. True
If your company had an annual purchase cost of items equal to $2,000,000, an annual holding cost of $150,000 and an annual ordering cost of $50,000 this scenario would reveal that: a. Your order lot size was higher than the EOQ b. Your order size was lower than the EOQ c. Your order lot size was equal to the EOQ d. Nothing because there is insufficient information to discern where the EOQ would be.
a. Your order lot size was higher than the EOQ
For continuous improvement to succeed, employees must first: a. Identify areas that are not working b. Identify areas that are working c. Be compensated for making suggestions d. Understand transaction costs
b. Identify areas that are working
One of the most basic and successful approaches for protecting trade secrets is to: a. Increase the supplier base b. Require employees and vendors to sign a nondisclosure agreement c. Contribute to innovations d. All of these choices are correct.
b. Require employees and vendors to sign a nondisclosure agreement
A benefit to the firm for utilizing a supplier recognition program would be: a. It will increase the supply base b. The award recipients can serve as role models for a firm's other suppliers c. It will lead to the silo-effect d. Suppliers are more likely to lower their product costs
b. The award recipients can serve as role models for a firm's other suppliers
Which one of the following is NOT a reason for firms to carry inventory? a. To meet variations in product demand b. To increase production change/setup costs c. To maintain independence of operations d. To allow for production scheduling flexibility e. To take advantage of quantity discounts
b. To increase production change/setup costs
The cost of a product is $5, and the carrying cost rate is 20%; the cost of processing an order is $45 and the annual demand is 1000. What is the economic order quantity (EOQ)? a. 200 b. 25 c. 300 d. 5 e. 20
c. 300
According to the textbook, which of the following conditions need NOT be present for successful supply chain management: a. High levels of trust b. Accurate communications c. Adversarial relationships d. Collaboration
c. Adversarial relationships
Which of the following terms is described as rethinking and redesigning of business processes to reduce waste and increase performance? a. Benchmarking b. Vertical integration c. Business process reengineering d. Process integration
c. Business process reengineering
According to the text, for long-term forecasts, it is recommended that which type of forecasts be used? a. Quantitative b. Qualitative c. Combination of both qualitative and quantitative d. Forecasts cannot be developed for the long term
c. Combination of both qualitative and quantitative
Which one of the following is NOT a type of qualitative forecasting? a. Consumer survey b. Sales force composite c. Simple moving average d. Jury of executive opinion
c. Simple moving average
The following strategy is usually employed by lean organizations in an effort to ensure continued quality compliance among suppliers and with internal production facilities: a. 3PL b. MRP II c. Six Sigma d. CAP
c. Six Sigma
Meeting the needs of current supply chain members without hindering the ability to meet the needs of future generations refers to: a. Supply chain analytics b. Supply chain visibility c. Supply chain sustainability d. Supply chain performance measurement
c. Supply chain sustainability
When linear trend forecasts are developed, demand would typically be: a. The lead variable b. The independent variable c. The dependent variable d. The passive variable
c. The dependent variable
Benefits for organizations that successfully implement supplier relationship management can include: a. Reduced costs b. Increased speed to market c. Improved quality d. All of these choices are correct.
d. All of these choices are correct
Which of the following is a benefit of CPFR? a. Provides an analysis of key performance metrics b. Integrates planning, forecasting and logistics activities c. Uses joint planning and promotions management d. All of these choices are correct
d. All of these choices are correct
The real value of Collaborative Planning, Forecasting and Replenishment (CPFR) comes from: a. Exchange of forecasting information b. Sophisticated forecasting algorithms c. Both "Sophisticated forecasting algorithms" and "Exchange of forecasting information" d. None of these choices are correct.
a. Exchange of forecasting information
The real value of CPFR comes from: a. Firms exchanging forecasting information b. Centralized purchasing and forecasting relationships c. Reverse logistics programs d. Sophisticated forecasting algorithms
a. Firms exchanging forecasting information
CPFR relies heavily on? a. Firms sharing information b. Firms retaining information c. Firms acting in their own best interest d. Firms acting independently
a. Firms sharing information
Which of the following service providers can help to get goods where they need to be in a timely fashion? a. Freight forwarders b. Trucking/Shipping companies c. Public warehousing firms d. All of these choices are correct.
a. Freight forwarders b. Trucking/Shipping companies c. Public warehousing firms
Which of the following is NOT a benefit of CPFR? a. Improved corporate image among regulators b. Provides analysis of sales and order forecasts c. Strengthens partner relationships d. Allows collaboration on future requirements and plans
a. Improved corporate image among regulators
One of the more crucial issues within supply management involves encouraging or helping the firm's suppliers to perform in some desired fashion. The term for this is _______________. a. Supplier Management b. Inventory Management c. Supply base rationalization d. Co-sourcing
a. Supplier Management
____________ involves streamlining the processes and communications between the buyer and supplier using software applications that enable these processes to be managed more efficiently and effectively. a. Supplier Relationship Management b. Performance Measurement c. Corporate Social Responsibility d. Supplier Certification Program
a. Supplier Relationship Management
Use the information below to calculate the number of orders per year when using the EOQ:Annual demand for an item is 43,000 unitsThe cost to place an order is $200The per unit cost of the item is $50.00The annual holding rate is 35%Choose the closest answer. a. 81 b. 49 c. 123 d. 202
b. 49
The following is an example of the bullwhip effect: a. Barkley's products are so successful that it adds a new retailer for distribution b. Barkley's incorrectly anticipates consumer demand resulting in stockouts at several popular retailers c. Barkley's produces a defective product and thus realizes an excessive increase in consumer returns d. Barkley's is unhappy with the performance of a distributor which causes a chain-reaction of replacements to companies involved in its supply chain
b. Barkley's incorrectly anticipates consumer demand resulting in stockouts at several popular retailers
Which of the following would be considered a dependent demand item? a. Furniture b. Bicycle tires used to assemble a bicycle c. Televisions d. Retail customers
b. Bicycle tires used to assemble a bicycle
The ABC inventory control prioritizes dependent demand inventory items into three groups, A, B, and C. A items receive the smallest amount of safety stock, while C items typically have the most safety stock. a. True b. False
b. False
The four categories of inventory are raw materials, intermediate assemblies, work-in-progress and finished goods. a. True b. False
b. False
In general, European companies prefer suppliers: a. Who are in the United States b. Whose headquarters are in a developing county c. Who have ISO 9001 certifications d. Who employ the most people
c. Who have ISO 9001 certifications
When using a Weighted Criteria Evaluation System to evaluate suppliers, all of the following are true EXCEPT: a. The weights for all dimensions must sum to 1 or 100% b. Multiply the dimension ratings by their respective important weights and then sum to get an overall weighted score c. Evaluate each of the performance measures on a rating between zero and one-hundred d. Select the key dimensions of performance based on what is important to the end consumer
d. Select the key dimensions of performance based on what is important to the end consumer
Two methods have been used to produce the following forecasts over the past four months. Which forecast is the best one?DemandForecast AForecast B150130180200170180220184180190195180 a. Forecast A b. Forecast B c. They are equally good. d. There is not enough information to tell.
Lowest the MAD the better the forecast
The formula for forecast error is calculated by using the equation: a. Actual demand for period t minus the forecasted demand for period t b. Actual demand for period t plus the forecasted demand for period t c. Actual demand for period t divided by the forecasted demand for period t d. The average of Actual demand for period t and forecasted demand for period t
a. Actual demand for period t minus the forecasted demand for period t
SRM software can automate procurement activities that lead to significant cost savings as purchasing professionals move toward: a. Collaborative planning b. Expediting each order c. Diversifying their hiring d. Improving capacity
a. Collaborative planning
The following is an example of the bullwhip effect: a. IGT incorrectly anticipates consumer demand resulting in stockouts at several popular retailers b. IGT produces a defective product and thus realizes an excessive increase in consumer returns c. IGT is unhappy with the performance of a distributor which causes a chain-reaction of replacements to companies involved in its supply chain d. IGT's products are so successful that it adds a new retailer for distribution
a. IGT incorrectly anticipates consumer demand resulting in stockouts at several popular retailers
Designing and building a distribution network to ensure successful product delivery is part of which foundation element? a. Logistics b. Supply c. Integration d. Operations
a. Logistics
Which of the following is a software system that can be used for managing inventory, purchases, and production schedules? a. Material requirements planning (MRP) b. Demand capacity tracking (DCT) c. Demand process reengineering (DPR) d. Inventory sourcing (IS)
a. Material requirements planning (MRP)
Which of the following terms describes an amplification of the variation in the demand pattern along the supply chain? a. Process integration b. Assignable variations c. Benchmarking d. Bullwhip effect
d. Bullwhip effect
Hormel Food Corporation's No. 1 Award program differs from other programs because: a. The award is given out once every five years b. The award is given out bi-annually c. They provide cash incentives to the recipients d. Qualification for the award include green recovery criteria
a. The award is given out once every five years
Which of the following is NOT a reason for supplier recognition programs? a. To select the best suppliers b. To help suppliers' reputation in the marketplace c. To encourage suppliers to be more innovative d. To reward suppliers for excellent performance
a. To select the best suppliers
A positive error implies that a forecast was? a. Too low b. Too high c. Neither too high or too low d. The sign of an error gives no information as to the direction of the error.
a. Too low
According to the textbook, conditions which must be present for successful supply chain management include: a. Corporate contracts regarding performance expectations b. Cooperation among firms c. Vertical Integration d. Short-term company focused performance
b. Cooperation among firms
Which of the following is NOT an assumption of the economic order quantity (EOQ) model? a. Demand is known, constant, and independent. b. Production and use occur simultaneously. c. Lead time is known and constant. d. The only variable costs are setup cost and holding cost. e. Quantity discounts are not possible.
b. Production and use occur simultaneously
Which of the following statements is TRUE? a. The lean production system has also been referred to as the Intel production system b. Six Sigma was originally created at Motorola in the 1980s c. Service response logistics is the digital distribution of services d. One of the key activities in supplier management is material requirements planning
b. Six Sigma was originally created at Motorola in the 1980s
According to the text, which of the following is NOT one of the top three challenges for CPFR? a. Trust b. Sophisticated forecasting algorithms c. Cost d. Difficulty making internal changes
b. Sophisticated forecasting algorithms
In 2016, Spin Master, did not properly forecast demand for their new product, Hatchimals, causing ___________ for their distributors. a. Excess stock b. Stockouts c. Price reductions d. The bullwhip effect
b. Stockouts
Which of the following is NOT important in developing a successful supplier partnership? a. Mutual/compatible needs that result in a win-win situation for the partners b. Creating value for all participants c. Annual sales knowledge of the supplier d. Open communication and information exchange
c. Annual sales knowledge of the supplier
Proper demand forecasting enables _____________________ for businesses to be competitive. a. High inventory costs and increased profits b. Low inventory costs and increased costs of obsolescence c. Better planning and utilization of resources d. Stockouts and good responsiveness to market dynamics
c. Better planning and utilization of resources
According to the text, which of the following is considered a current trend in supply chain management? a. Using supply chain analytics b. Increasing supply chain visibility c. Both "Using supply chain analytics" and "Increasing supply chain visibility" d. None of these choices are correct.
c. Both "Using supply chain analytics" and "Increasing supply chain visibility"
The impact of poor communication and inaccurate forecasts resonates along the supply chain and results in the: a. Mean deviation b. Delphi method c. Bullwhip effect d. CPFR effect
c. Bullwhip effect
All of the following are important capabilities offered by SRM software EXCEPT: a. Visibility b. Optimization c. Human Resource Management d. Automation
c. Human Resource Management
A form of inventory management (also referred to just-in-time) is accomplished through use of a: a. Third-party logistics service b. Strategic partnership c. Lean production system d. Distribution network
c. Lean production system
Which of the following is a reverse logistics activity: a. Developing a collaborative relationship with your supplier b. Managing the quality of products c. Recycling products and components d. Delivering finished goods to your customer
c. Recycling products and components
Which of the following would be considered a third party provider? a. A Raw materials supplier b. An end product manufacturer c. An intermediate component manufacturer d. A firm that leases storage warehousing
d. A firm that leases storage warehousing
ISO 9000 certification is described best by which of the following? a. Developed by the International Organization for Standardization for environmental compliance b. A prerequisite for obtaining ISO 14000 certification c. A series of purchasing standards developed by Toyota in the 1970s d. A series of management and quality assurance standards in design development, production, installation and services
d. A series of management and quality assurance standards in design development, production, installation and services
Customers and suppliers must develop stronger relationships and partnerships based on: a. The profit leverage effect b. Simplification c. A tactical perspective d. A strategic perspective
d. A strategic perspective
Successful partnerships have the potential to: a. Improve material flows between buyers and suppliers b. Contribute to innovations c. Create a competitive advantage for the firm d. All of these choices are correct.
d. All of these choices are correct.
Which company is experimenting with the management of the final mile of delivery in some markets, using small aerial drones to deliver shoebox-size packages from fulfillment centers? a. Zappos b. FedEx c. UPS d. Amazon
d. Amazon
The term vertical integration means to: a. Own/buy your suppliers and/or customers b. Create a virtual company c. Create more jobs in the higher ranks of the company d. Develop the ability to produce products that complement the original product
d. Develop the ability to produce products that complement the original product (wrong answer in practice but do not know why)
Which of the following is NOT important in developing a successful strategic alliance? a. Developing cross-functional team capabilities externally and within the company b. Developing performance metrics c. Open lines of communication that both promote sharing and secure confidentiality d. Developing efficient processes that will remain unchanged for the duration of the partnership
d. Developing efficient processes that will remain unchanged for the duration of the partnership
Which of the following can happen as a result of the bullwhip effect? a. Increase in defective products b. Quicker distribution to warehouses c. Decreased levels of safety stock d. Excess costs for each firm in a supply chain
d. Excess costs for each firm in a supply chain
Inaccurate forecasts can result in negative outcomes like: a. Material shortages and decreased costs of obsolescence b. Low inventory costs and stockouts c. High inventory costs and increased profits d. Imbalances in supply and demand
d. Imbalances in supply and demand
Which of the following is TRUE? a. ISO 75000 is the supplier award given to the highest rated supplier in Japan. b. The key to successful partnerships is developing performance measures with weights greater than 3.50. c. SRM software modules are very affordable (less than $50,000) and can be implemented with a week. d. Performance metrics and personal business relationships are both keys to building successful partnerships.
d. Performance metrics and personal business relationships are both keys to building successful partnerships.
If an item is ordered using its economic order quantity, the annual carrying cost should be: a. slightly less than the annual ordering cost. b. the square root of the annual ordering cost. c. twice the annual purchase price. d. equal to the annual ordering cost. e. None of these choices are correct.
d. equal to the annual ordering cost.
The College Bookstore sells a unique calculator to college students. The demand for this calculator has a normal distribution with an average daily demand of 20 units and a standard deviation of 4 units per day. The lead time for this calculator is 9 days. Compute the statistical reorder point that results in a 95 percent in-stock probability. Choose the closest answer. a. 180 units b. 80 units c. 420 units d. 20 units e. 200 units
e. 200 units
The College Bookstore sells a unique calculator to college students. The demand for this calculator is constant at 20 units per day. The lead time for this calculator is variable at an average of 9 days with a standard deviation of 2 days. Compute the statistical reorder point that results in a 95 percent in-stock probability. Choose the closest answer. a. 26 units b. 226 units c. 46 units d. 182 units e. 246 units
e. 246 units
When demand and delivery lead time are known and constant, daily demand = 8, purchase lead time = 5 days, and the purchase price = $20/unit, then the reorder point is: a. 2. b. 13. c. 56. d. 32. e. 40.
e. 40. Reorder point = Lead time demand + Safety stock Since safety stock is not given, only lead time demand will be the reorder point Lead time demand = Daily demand x Purchase lead time = 8 x 5 = 40 units So, as per above calculations, option E is the correct option
The primary purpose of the basic economic order quantity (EOQ) model is to: a. Maximize the customer service level b. Minimize the sum of purchase cost and holding cost c. Calculate the optimum safety stock level d. Calculate the reorder point, so that replenishments take place at the proper time e. None of these choices are correct.
e. None of these choices are correct.
Which of the following is true under the Periodic Review System? a. the only uncertainty is the magnitude of demand during the delivery lead time b. it is more expensive to administer compared to the Continuous Review System c. there are no discrepancies between physical inventory and the stock record d. a lower level of safety stock is needed to buffer against uncertainty in demand over a longer planning horizon, compared to the EOQ system e. a higher level of safety stock is needed to buffer against uncertainty in demand over a longer planning horizon, compared to the EOQ system
e. a higher level of safety stock is needed to buffer against uncertainty in demand over a longer planning horizon, compared to the EOQ system
Which of the following is a disadvantage of carrying too much inventory? a. it leads to higher annual inventory ordering costs. b. it leads to lower average finished goods inventories. c. it increases the need to purchase items. d. it reduces the need to conduct cycle counts. e. it creates an unnecessary waste of scarce resources.
e. it creates an unnecessary waste of scarce resources.
According to the text, which of the following is TRUE? a. About 50% of companies recognize excellent performance with supplier awards and appreciation banquets b. One of the most basic and successful approaches to protecting trade secrets is threat of litigation c. One result of an effective supplier certification program is an increase in the supplier base d. About 75% of companies recognize excellent performance with supplier awards and appreciation banque
a. About 50% of companies recognize excellent performance with supplier awards and appreciation banquets
Supply chain management includes the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. It also includes: a. Coordination and collaboration with channel partners b. Program evaluation and review techniques. c. Human resources and job design d. Selling and marketing products
a. Coordination and collaboration with channel partners
An internal or external event that causes a disruption or failure of supply chain operations is an example of a. Supply chain risk b. Bull-whip effect c. Back-shoring d. Six Sigma quality management
a. Supply chain risk
According to the text, the FOUR important elements of the supply chain are: a. Supply, operations, logistics, integration b. Purchasing, manufacturing, transportation, retail stores c. Purchasing, manufacturing, logistics, transportation d. Supply, operations, manufacturing, distribution
a. Supply, operations, logistics, integration
Developed in the 1990's as a popular way of developing radically new business processes in an effort to reduce waste and increase performance is referred to as: a. Benchmarking b. Business process reengineering c. Vertical integration d. Process integration
b. Business process reengineering
SRM software allows buyers to focus on more strategic and value-added activities such as: a. Risk pooling b. Collaborative planning c. Time utility d. Simplification
b. Collaborative planning
All of the following may influence demand and should be considered when developing. Supplier quality a forecast EXCEPT a. Emerging markets b. Ergonomic conditions c. New competition d. Supplier quality
b. Ergonomic conditions
Trends in supply chain management include expansion of the supply chain and decreasing supply chain visibility. a. True b. False
b. False
Which one of the following is NOT a type of qualitative forecasting? a. Consumer survey b. Naïve method c. Jury of executive opinion d. Delphi method
b. Naïve method
Which of the following is a criteria generally found in certification programs: a. Planned order releases b. No incoming nonproduct rejections over a specified time c. Non-disclosure agreements d. No negative income
b. No incoming nonproduct rejections over a specified time
Examining raw supply chain data and then reaching conclusions or making predictions with the information is sometimes referred to as: a. Profit-leverage effect b. Supply chain analytics c. Enterprise resource planning d. Electronic data interchange
b. Supply chain analytics
What type of major cost category is considered in the cost associated with placing and receiving the order? a. Pre-transaction Cost b. Transaction Cost c. Supplier-Development Cost d. Turnover Cost
b. Transaction Cost
According to the textbook, Supplier Recognition Programs: a. Are generally not very effective b. Are used by 90% of companies c. Encourage suppliers to keep their performance high d. Are difficult to implement
c. Encourage suppliers to keep their performance high
Which of the following is important in developing successful relationships in a partnership? a. Mutual/compatible needs that result in a win-win situation for the partners b. Commitment by top management c. Interpersonal business relationships between employees of the companies d. All of these choices are correct
d. All of these choices are correct
Which of the following is a reverse logistics activity? a. Inspecting raw materials when they arrive at factory b. UPS delivering the product to the end customer c. Sharing information with supply chain partners through the Internet d. Customer returning a car to the dealer for warranty repair
d. Customer returning a car to the dealer for warranty repair
Quantitative forecasts use mathematical techniques that are based on: a. Sales force knowledge of the market b. Expert opinions c. Surveys d. Historical data
d. Historical data
Which of the following is NOT a benefit of better forecasts? a. Reduced stock outs b. Smoother production plans c. Improved customer service d. Improved corporate image among regulators
d. Improved corporate image among regulators
According to the text, key ingredients for developing successful supply partnerships include all of the following EXCEPT: a. Performance metrics b. Mutual benefits and needs c. Personal relationships d. Individualized objectives
d. Individualized objectives
A value-enhancing benefit from supply chain management efforts would be: a. Centralized decision making b. Larger supply base c. Increased organizational cost d. Lower purchasing and inventory carrying costs
d. Lower purchasing and inventory carrying costs
The impact of poor communication and inaccurate forecasts along the supply chain can cause: a. Reverse Logistics b. Consumer's risk c. Economies of scale d. Material shortages
d. Material shortages
Which of the following can happen because of the bullwhip effect? a. Increased profit in the long term b. Smooth production planning and static requirements c. Effective purchasing methods resulting in decreased inventory costs d. Oversupply of goods leading to increased inventory costs
d. Oversupply of goods leading to increased inventory costs
Streamlining the processes and communications between the buyer and supplier using software applications that enable these processes to be managed more efficiently and effectively can be referred to as: a. SCSS b. ISO 9000 c. CRM d. SRM
d. SRM
An organization's process for evaluating the quality systems of key suppliers in an effort to eliminate incoming inspections can be referred to as: a. Supplier Inspection b. Quality Systems Certification c. Supply Management d. Supplier Certification
d. Supplier Certification
Which type of forecasting technique would a firm likely use when launching a new product and historical data does not exist? a. Qualitative b. Associative c. Quantitative d. Time Series
a. Qualitative
When there is not a lot of currently relevant data available it is generally best to use: a. Qualitative forecasting b. Time series forecasting c. Naive forecasting d. Simple moving average forecasting
a. Qualitative forecasting
Which of the following strategies might help eliminate the bullwhip effect? a. Reduction of safety stock b. Manufacturers knowing its customers' purchase plans c. Reduction in the number of suppliers d. All of these choices are correct
a. Reduction of safety stock b. Manufacturers knowing its customers' purchase plans c. Reduction in the number of suppliers
Which of the following activities allows buyers to assume the supplier will meet certain product quality and service requirements? a. Supplier certification b. Right-shoring c. Distribution network d. Business process reengineering
a. Supplier certification
Cyclical variations are longer than a year and can be influenced by: a. Imbalances in supply and demand b. Political factors c. Population growth d. Events such as natural disasters
b. Political factors
When evaluating supplier performance, the cost of certifying and training suppliers, is part of which major cost category? a. Post-transaction costs b. Pre-transaction cost c. Transaction costs d. All of these choices are correct
b. Pre-transaction cost
According to the text, one of the most basic and successful approaches to protecting trade secrets is: a. Requiring employees and partners to get ISO 9000 certified b. Requiring employees and vendors to sign non-disclosure agreements c. Threat of litigation d. Working with law makers to increase fines and sentences for those that steal trade secrets
b. Requiring employees and vendors to sign non-disclosure agreements
According to the text, the goal of a good performance evaluation system is to provide metrics that are: a. Understandable, quantitative, focused on quality-related results b. Understandable, easy to measure, focused on value-added results c. Understandable, qualitative, focused on short-term results d. Understandable, quantitative, focused of cost-related results
b. Understandable, easy to measure, focused on value-added results
When a particular item is in short supply accompanied by rising prices, a firm might find it beneficial to: a. Purchase the item from a manufacturer who cuts corners and provides a product below market price. b. Discontinue buying the product and focus more on cheaper products. c. Align itself with one of the suppliers to ensure a continued supply of the scarce item. d. All of these choices are correct.
c. Align itself with one of the suppliers to ensure a continued supply of the scarce item.
A company is conducting forecasting that revolves around the global recession and real estate crises. This type of forecasting can be referred to as what component of a time series? a. Trend Variations b. Seasonal Variations c. Cyclical Variations d. Random Variations
c. Cyclical Variations
Which of the following is NOT a key factor for developing a successful supplier partnership? a. Information sharing and lines of communication b. Shared vision and objectives c. Developing efficient processes that will remain unchanged for the duration of the partnership d. Personal relationships
c. Developing efficient processes that will remain unchanged for the duration of the partnership
Lean production is typically associated with which of the following company's production systems? a. Proctor and Gamble b. Samsung c. Toyota d. Kraft
c. Toyota
What component of a time series is based on increasing or decreasing movements over many years and are due to factors such as population growth, population shifts, cultural changes, and income shifts? a. Seasonal Variations b. Random Variations c. Trend Variations d. Cyclical Variations
c. Trend Variations
Which of the following statements is NOT true of many large firms today? a. They are selling-off business units to focus more on core capabilities b. They are trying to create alliances or strategic partnerships with suppliers c. Use of vertical integration is much more common due to the low cost and ease in managing diverse business units d. All of these choices are correct.
c. Use of vertical integration is much more common due to the low cost and ease in managing diverse business units
When did U.S. manufacturers begin to use mass production techniques to reduce costs and improve productivity? a. 1980s b. 1990s c. 1940s d. 1950s
d. 1950s
A company using a weighted-criteria evaluation system has established these 5 categories and the appropriate weight in parentheses:Quality (0.25)Responsiveness (0.10)Delivery (0.15)Cost (0.15)Technology (0.30)Company X received the following ratings in each of the five categories: Quality(90), Responsiveness(90), Delivery(80), Cost(80), Technology(85). What is its total score? a. 83.0 b. 82.5 c. 84.5 d. 81.0
d. 81.0
SRM software should be capable of: a. Automating transactional processes b. Integration of the supply chain making it possible to monitor multiple departments and processes both internally and externally c. Making information flow between partners more visible d. All of these choices are correct.
d. All of these choices are correct.
The continuing cycle of erratic demand causing forecasts to include safety stock which in turn magnify supplier forecasts and cause production planning problems is known as: a. Supply chain management b. Process integration c. Back-shoring d. Bullwhip effect
d. Bullwhip effect
Which of the following acronyms is NOT paired with its correct "translation?" a. ERP - Enterprise Resource Planning b. TQM - Total Quality Management c. JIT - Just-in-Time d. TLS - Third-party Logistics Services
d. TLS - Third-party Logistics Services
Transactional SRM: a. Focuses on long-term procurement strategies b. Provides answers to questions such as: Which suppliers would make the company more profitable? c. Helps organizations assess where they want to go in the future to meet their strategic purchasing goals d. Tends to focus on short-term reporting and is event driven
d. Tends to focus on short-term reporting and is event driven
A program used to celebrate the achievements of the best suppliers is: a. The Top Quality Management Program (TQM) b. The Supplier Development Program c. The Evaluation and Certification Program d. The Supplier Recognition Program
d. The Supplier Recognition Program
The one true source of income for all supply chain organizations is a. The second tier suppliers b. Retailers c. The service provider d. The supply chain's end customer
d. The supply chain's end customer
Which of the following do organizations use in supplier evaluation and certification processes? a. Inventory turnover ratio b. Consumer sales c. Logistics d. Tracking service quality
d. Tracking service quality
Your company is conducting forecasting that revolves around population growth in large cities. This type of forecasting can be referred to as what component of a time series? a. Cyclical Variations b. Seasonal Variations c. Random Variations d. Trend Variations
d. Trend Variations
Random variations in a Time Series component are due to: a. Using a large value for the exponential smoothing constant b. Population growth c. Inaccurate responses of the expert participants d. Unpredictable events
d. Unpredictable events
Automating procurement activities can lead to significant cost savings as buyers move toward managing processes by exception. a. True b. False
true
