Operations Management Exam 3
A practice aimed at ensuring that purchased products or materials meet environmental objectives of the organization is referred to as green purchasing.
True
ERP provides the mechanism for supply chain members to share information so that scarce resources can be fully utilized to meet demand, while minimizing the bullwhip effect and supply chain inventories
True
Functional products are characterized by low profit margins, relatively stable demands, and high levels of competition.
True
Implementing a best-of-breed solution may cause firms to link databases from multiple software applications of different vendors.
True
It is important for firms to addresses the impact of ethical and sustainable sourcing on other facets of the organization and its trading partners.
True
As described in the text, a "fair trade product" refers to selling and purchasing products without a cash transaction
False
The use of ethical and environmental certifications for suppliers is decreasing
False
There are just a small number of resources available for firms seeking to learn about and implement successful sourcing practices
False
In general, single integrator ERP solutions are better suited to more intricate workplaces
False
The best-of-breed solution picks all the desired applications from a single vendor for the ERP system
False
The three basic production strategies for addressing the aggregate planning problem are the chase production strategy, the level production strategy, and the aggregate production strategy
False
. System nervousness is when even small changes to upper-level production plans cause major changes in lower-level production plans
True
An ERP system is generally a multi-module application software for managing an enterprise's internal functional activities, as well as its suppliers and customers.
True
Criteria to evaluate a purchasing department's performance should include both quantitative and qualitative assessments.
True
ERP systems were designed to coordinate the information requirements for purchasing, planning, scheduling and distribution of an organization operating in a complex multi-unit global environment.
True
Environmental supplier certifications can be used to identify rogue suppliers before they can cause problems
True
Two reasons ERP implementations have been known to fail include: lack of top management commitment and lack of communication between the firm and its ERP software provider.
True
It is best for firms to learn through their own experiences the methods and tools that work the best, rather than benchmarking.
False
ERP Implosion is the process of converting a parent item's planned order releases into component gross requirements
False
Sustainable sourcing practices include promoting diversity by intentionally buying from ethnic minority businesses
False
The legacy MRP system was programmed to coordinate with other functional areas in the firm
False
When a single company that is implementing an ERP system chooses to use one company to provide an operations module, another to provide the sales and marketing application, and yet another company to provide the finance and accounting module, that single company has chosen to utilize the single integrator approach.
False
Because internationally recognized certifications like ISO 9000 are becoming so common among suppliers, it is becoming more important that purchasing firms develop internal certification programs that are geared toward the specific needs of the purchasing organization.
True
Creating strategic supplier alliances benefits firms by increasing the performance and value of suppliers as well as increasing brand awareness
True
Demands by customers for companies to become more ethically and environmentally focused have placed added pressures on firms to improve their performance in supply chain management
True
Developing a collaborative negotiation infrastructure includes four steps: build a preparation process, develop a negotiation database, design a negotiation launch process, and institute a feedback mechanism
True
Firms assess their sourcing capabilities because the sourcing function is one of the most value-enhancing functions in an organization
True
Lack of communication between the implementing firm and its ERP software provider can become a major hindrance for a successful implementation.
True
Rewarding suppliers for maintaining high levels of performance is an important step used in maintaining a successful strategic alliance program.
True
The mixed strategy uses overtime and subcontracting to cope with the high demand periods
True