OPIM 3601 - Chapter 3 SB

Key success factors for successful supply teams include Multiple select question. A. Non-supportive organizational culture where structure and systems are complicated. B. All functional areas involved in up-front preparation, mutual leadership roles, and role flexibility. C. Commitment to performance and completion with choices delegated to the correct level. D. Prepared for customer satisfaction rather than individual functional success.

- All functional areas involved in up-front preparation, mutual leadership roles, and role flexibility. - Commitment to performance and completion with choices delegated to the correct level. - Prepared for customer satisfaction rather than individual functional success.

What are the three common supply organizational models? Multiple select question. A. Decentralized B. Hybrid C. Coordinated D. Centralized

- Decentralized - Hybrid - Centralized

Identify the consequences of a substandard television that is sold and used by a consumer. Multiple select question. A. Increased cost for the raw materials to build a new television. B. Lost revenue due to loss of future business. C. The cost of replacement. D. Cost for shipping the television back and delivery of the new one.

- Lost revenue due to loss of future business. - The cost of replacement. - Cost for shipping the television back and delivery of the new one.

Select the responsibilities of sourcing and commodity personnel. Multiple select question. A. Supplier capabilities analysis B. Supplier selection C. Creation of contracts D. Management of department budget

- Supplier capabilities analysis - Supplier selection - Creation of contracts

What are some benefits of using cross-functional teams for supply functions? Multiple select question. A. Technology management. B. Improvements in quality. C. Product development. D. Develop training for employees.

- Technology management. - Improvements in quality. - Product development.

Which factors influence the importance placed on supply functions within an organization? Multiple select question. A. The location of the organizations headquarters. B. The amount of purchases made through outside vendors. C. The competitive advantage an organization has in regards to supply and suppliers. D. The types and complexity of purchased goods or services.

- The amount of purchases made through outside vendors. - The competitive advantage an organization has in regards to supply and suppliers. - The types and complexity of purchased goods or services.

Supplier council is an important forum and is useful for Multiple select question. A. agreeing on competitive delivery terms. B. identifying problems with the supply base early. C. reducing administrative costs. D. encourage internal continuous improvement.

- agreeing on competitive delivery terms. - identifying problems with the supply base early.

Supply managers contribute to the organization's competitive position by ensuring decisions contribute to Multiple select question. A. asset management. B. revenue enhancement. C. cost reduction. D. employee satisfaction.

- asset management. - revenue enhancement. - cost reduction.

Supplier participation teams face obstacles with Multiple select question. A. short cycle times. B. confidentiality. C. intellectual property concerns. D. supplier capabilities.

- confidentiality. - intellectual property concerns.

Externally focused activities are either Multiple select question. A. customer focused. B. production focused. C. supplier focused. D. budget focused.

- customer focused. - supplier focused.

Indirect spend should be monitored because: Multiple select question. A. decentralized nature of spend gives control to individual units. B. there is a wide variety of goods and services sourcing. C. these products must be quality to be included in the end product. D. it can increase cost pressure.

- decentralized nature of spend gives control to individual units. - there is a wide variety of goods and services sourcing. - it can increase cost pressure.

Decentralized supply models often have the advantages of: Multiple select question. A. easier coordination with purchasing. B. better communication with other business units. C. faster response time when requesting funding. D. business units understand their unique needs.

- easier coordination with purchasing. - faster response time when requesting funding. - business units understand their unique needs.

Supply managers can bring valuable insight into corporate transactions that include: Multiple select question. A. execution of integration after the deal. B. advertising of product development. C. negotiation of deal structure. D. evaluation of deals.

- execution of integration after the deal. - negotiation of deal structure. - evaluation of deals.

An organization benefits from co-location of internal customers and supply through: Multiple select question. A. greater awareness of group challenges. B. greater awareness of organizational goals. C. greater awareness of organizational strategies. D. greater awareness of raw material pricing.

- greater awareness of group challenges. - greater awareness of organizational goals. - greater awareness of organizational strategies.

Benefits of co-locating suppliers inside the buyers firm include Multiple select question. A. decreased process requirements. B. improved buyer-seller communication. C. add more work for the company employees. D. reduction of administrative costs.

- improved buyer-seller communication. - reduction of administrative costs.

Some common responsibilities of the CPO include: Multiple select question. A. logistics. B. nontraditional purchasing. C. employee pay. D. facility management.

- logistics. - nontraditional purchasing. - facility management.

Within hybrid supply models many tasks are often handled at the corporate level to ensure business units are aligned, these can include Multiple select question. A. policy and procedure establishment. B. supply performance auditing. C. development of individual business unit supply strategies. D. training of employees. E. common use item purchasing.

- policy and procedure establishment. - supply performance auditing. - training of employees. - common use item purchasing.

Industry sector will influence supply responsibilities; industries can be divided into Multiple select question. A. process industry. B. supplier industry. C. resale industry. D. discrete goods industry.

- process industry. - discrete goods industry.

Supply managers can add value to corporate decisions through: Multiple select question. A. providing competitive intelligence. B. operational knowledge. C. the delivery of products on time. D. choosing the raw materials purchased.

- providing competitive intelligence. - operational knowledge.

Cost of ownership includes the actual cost of goods and services but also includes: Multiple select question. A. employee pay. B. quality levels. C. spare parts. D. inventory. E. warranty costs.

- quality levels. - spare parts. - inventory. - warranty costs.

Materials management personnel can have responsibilities in areas such as: Multiple select question. A. e-procurement systems. B. receiving inspection. C. scheduling and planning. D. inventory control.

- receiving inspection. - scheduling and planning. - inventory control.

Materials that do not arrive on time can impact Multiple select question. A. cost of raw materials. B. revenues. C. production times. D. customer satisfaction.

- revenues. - production times. - customer satisfaction.

Supply chain contributes to the organization's: Multiple select question. A. advantage of having the fastest payment processes. B. search for the lowest cost for goods. C. long-term strategies and objectives. D. short-term strategies and goals.

- search for the lowest cost for goods. - long-term strategies and objectives. - short-term strategies and goals.

The three significant cross-functional supply teams are: Multiple select question. A. sourcing. B. commodity management. C. developing local leadership. D. new product development.

- sourcing. - commodity management. - new product development.

Commodity management teams engage in activities such as Multiple select question. A. supply base reduction. B. management of supplier relationships. C. new product development. D. management of deliveries.

- supply base reduction. - management of supplier relationships. - management of deliveries.

When an organization moves towards supply centralization, a major concern is ___. Multiple select question. A. the availability of information in regards to total corporate spend B. that too many employees are overqualified within the organization C. the availability of qualified personnel D. the research to be conducted on alternative materials

- the availability of information in regards to total corporate spend - the availability of qualified personnel

The four general categories of supply include Multiple select question. A. what is acquired. B. customer service requirements. C. involvement in corporate activities. D. supply chain activities.

- what is acquired. - involvement in corporate activities. - supply chain activities.

If an organization has a carrying cost of 20 percent, and they can reduce their inventory investment from $2 million to $1 million, they will save $______ in expenditures and $______ inventory carrying costs.

1,000,000; 200,000

Nontraditional annual spending outside of supply functions within organizations can range from ______ to ______ percent.

2 to 40%

The costs of carrying large inventories can cost between ______ to ______ percent of its value.

20 to 50%

During the supply and design engineering phase, close to _____% of the requirements are established with suppliers. Multiple choice question. A. 70 B. 50 C. 100 D. 25

70

Decide if the example is an advantage or disadvantage of supply centralization

Advantage <----> Every business unit in the organization can use the same suppliers. Disadvantage <----> The organization operates with business units silos and information is not shared freely.

Match the organizational supply model with the correct example. Centralized Hybrid Decentralized

Centralized <----> Corporate HQ (Chief Purchasing Officer) has the authority over all purchasing. Hybrid <----> Business units have the ability to purchase up to a certain amount and then the authority is transfered to corporate. Decentralized <----> Business units or branches have the ability to purchase.

The senior executive who has formal authority and responsibility to manage purchasing, buying or sourcing functions for the procurement of goods and services from external suppliers is known as the Multiple choice question. A. Operations Manager B. Chief Purchasing Officer C. Value Stream Manager D. Logistics Specialist

Chief Purchasing Officer

Locating buyers with internal customers to provide lowered costs and improved quality is known as? Multiple choice question. A. Co-location with internal customers B. Customer participation C. Co-location with suppliers D. Supplier participation

Co-location with internal customers

Forecasting and Planning

Develop short-, medium-, and long-term production requirements.

True or false: Cross-functional sourcing teams that incorporate supplier participation are useful for teams assigned to evaluate suppliers.

False

True or false: Hybrid models seek to operate under a model that is fully centralized and fully decentralized at the same time.

False

True or false: Strategic supply decisions only involve tactical efforts.

False

True or false: Typically the CPO is the top executive within any organization.

False

Purchasing/buying

Generating contracts and purchase agreements for supplies.

Professional

Implies that supply professionals have the opportunity to exercise their expertise in important acquisition process stages.

Supply chain management

Managing supplier relationships and partnerships.

Meaningful

Means that parties outside of supply group are willing and able to take supply considerations into account in managing their own areas of responsibility.

What are indicators that supply management is meaningfully involved? Multiple choice question. A. Supply positions will be more specialized and tasks will be distributed. B. All spend is from one location and authority and responsibility for supply related functions. C. Keeping close relations with suppliers could be a challenge. D. One measure of meaningful involvement is the extent to which supply is expected to take part in major corporate activities.

One measure of meaningful involvement is the extent to which supply is expected to take part in major corporate activities.

Transportation

Overseeing the selection of carriers for inbound and outbound deliveries.

Documentary

Requires supply function to act as recorder, sender of PO, or a receiver of bids, but important supply decisions are made outside of supply.

______ refers to the process of agreeing on a common specification or process.

Standardization

______ council give suppliers the opportunity to be proactive in supply management activities of large firms.

Supplier

No involvement

Supply is excluded completely.

A car manufacturer wishes to increase their customer focus on new car design, which team is beneficial for them to form to ensure they meet their goals? Multiple choice question. A. Team with supplier participation. B. Team with customer participation. C. Team involving a supply Council. D. Team with co-location of supply.

Team with customer participation.

Match the hiring trends in the CPO role. Traditional Current

Traditional <----> CPOs are promoted from within the organization as opposed to hiring from outside. Current <----> CPOs are hired from other functional areas of supply.

True or false: Administration personnel are responsible for the preparation and routing of formal purchase documents.

True

True or false: Supply teams can encompass a wide variety that include teams with suppliers, customers, supplier councils, and consortia.

True

E-procurement systems, information systems, and electronic data interchange is managed by ________ personnel. Multiple choice question. A. supply research B. administration C. sourcing and commodity D. materials management

administration

Dependent upon organizational structure, the functions for procurement may be divided among managers, but the ______ over purchasing should be well defined.

authority, responsibility, or leadership

Organizations that move to a decentralized structure will most likely maintain some of the core supply capabilities at the ______ level.

corporate

Supply decisions must be aligned with the ______ structure and strategy.

corporate, company, or organizational

Organizations wishing to restructure with a decentralized plan may find they have a significant concern with Multiple choice question. A. dismantling the centralized unit effectively. B. training new employees. C. purchasing supplies for each unit. D. locating qualified personnel.

dismantling the centralized unit effectively.

Specialization in supply functions allows the staff to develop ______ in areas where they work.

expertise

High-performing teams offer benefits to the organization through lower costs, less time for completion of tasks, and: Multiple choice question. A. improved production cycle times. B. less stakeholder buy-in. C. better engineering design. D. greater stakeholder buy-in.

greater stakeholder buy-in.

Applying the skills of the supply group throughout the acquisition of nontraditional purchases: Multiple choice question. A. does not affect the overall organizational annual spend. B. is only a focus with new business development. C. has significant opportunities for cost savings with annual spending. D. has little opportunities for cost savings with annual spending.

has significant opportunities for cost savings with annual spending.

ABC Freight's CPO reports directly to the executive vice president, a senior executive in the organization, ABC Freight places a Multiple choice question. A. low degree of importance on organizational titles. B. high degree of importance on organizational titles. C. high degree of importance on supply functions. D. low degree of importance on supply functions.

high degree of importance on supply functions.

The functional role of CPO tends to report to ______ positions in the organization than during the 1980s and 1990s.

higher

Co-locating supplier and buyers can improve productivity and Multiple choice question. A. reduce supply chain requirements. B. develop customer relationships faster. C. increase firm competitiveness. D. decrease firm competitiveness.

increase firm competitiveness.

Purchased goods and services that are not a direct part of products or services delivered to customers is known as: Multiple choice question. A. indirect spend. B. commodity purchasing. C. materials procurement. D. direct spend.

indirect spend.

After a contract is signed, the direction for the flow of materials and services is overseen by: Multiple choice question. A. supply research personnel. B. administrative personnel. C. materials management personnel. D. sourcing personnel.

materials management personnel.

An appliance company wants to design a new product that can take advantage of consumer's concern with rising electricity costs. A ______ product supply team should be formed to tackle this task.

new

In the service industry, a provider who utilizes standardization techniques can reduce their supply base, lower operating costs, and Multiple choice question. A. offer lower prices. B. decrease quantity of services. C. charge higher prices. D. lower customer service levels.

offer lower prices.

Supply teams are used for a variety of functions and can be ______ oriented or ______.

project; ongoing

In most cases, ______ goods and services represent the most significant cost encountered by an organization.

purchased

Suppliers who are selected for goods or services are expected to be ______and ______.

responsible, accountable, or answerable; responsive, receptive, or active

Small or medium-sized businesses that have limited personnel and supply responsibilities are often Multiple choice question. A. primary duties. B. managed by the CEO. C. not a concern until the organization grows larger. D. secondary obligations.

secondary obligations.

Supply function decisions are made while balancing conflicting objectives and making trade-offs to obtain the optimum mix of __ rights. Multiple choice question. A. seven B. nine C. five D. three

seven

Involving supply and end customers can lead to delivering a great value in the ______ cycle times.

short

Discrete goods from industries face challenges within the supply chain from consumer preferences, innovation, and Multiple choice question. A. purchases for resale. B. short product life cycles. C. retail sales purchases. D. long product life cycles.

short product life cycles.

Moving towards a centralized supply organization requires employees with ______ experience in areas.

specialized

Late materials can affect an organizations profits, production times, and customer satisfaction. These are also affected by ______ and ______.

supplies; services

Departments like _______ and _________ must work together for strategic sourcing and media campaigns or special promotions. Multiple select question. A. supply B. engineering C. operations D. marketing

supply and marketing

Delivering the best value to the customer by overseeing activities within the supply functions is known as ______ ______.

supply management

Benchmarking studies are the responsibility of: Multiple choice question. A. sourcing. B. supply research. C. materials management. D. administration.

supply research.

Large supply organizations have four general specialized areas, these include sourcing and commodity, materials management, administration, and Multiple choice question. A. supply systems. B. supply management. C. supply acquisitions. D. supply research.

supply research.

Manufacturing engineering department would like to use an alternate material in production; they should send the request for a study through which supply function. Multiple choice question. A. materials management. B. sourcing and commodity. C. administration. D. supply research.

supply research.

Supply decisions involve a balance to meet objectives and make trade-offs from both a Multiple choice question. A. order and delivery perspective. B. situational and big picture perspective. C. human and machine perspective. D. tactical and strategic perspective.

tactical and strategic perspective.

Sourcing and commodity responsibilities can be further specialized by the ______ of the commodity.

type

Throughout the supply chain, process inefficiencies represent: Multiple choice question. A. ownership. B. improvements. C. value-added activities. D. waste.

waste.