SCM Exam 2 Study Questions :)

Which of the following are described as Agents licensed by the governmental regulatory authority to conduct business on behalf of importers, for a service fee?

Import Brokers

Which of the following is NOT one of the keys to successful strategic partnerships?

Building independent objectives

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

False

Which element of Lean is described as a system based on making little changes on a regular basis, anywhere changes can be made, to reduce process, delivery, and quality problems?

Continuous Improvement

Total Quality Management (TQM) is an integrated organizational effort to improve quality at every level. Which one of the following is NOT part of TQM?

Customer Segmentation

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

False

Forward Vertical Integration refers to a company acquiring one or more of their sources of supply.

False

When a company utilizes a "make to stock" strategy, the company is also said to be using a "pull" business model

False

Benefits of implementing an effective supplier certification program include all of the following EXCEPT? Reducing time spent on incoming inspections Increasing the supplier base Building long-term relationships Recognizing excellence

Increasing the supplier base

In which item category would the sourcing strategies of simplifying and streamlining the purchasing process, reducing the number of suppliers and simplifying the ordering process, and transferring the buying responsibility to users within the company, be appropriate?

Non-Critical Items

The e-Procurement process has many advantages. Which one of those listed below is NOT one of these advantages?

Segmentation

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

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

True

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

False

What is the term used in business to describe the in-depth process of capturing internal and external customer's stated and unstated expectations, preferences, likes, and dislikes?

Voice of the Customer (VOC)

Candidates for a Supplier Certification Program include suppliers who meet one or more of the following criteria, EXCEPT?

A supplier who has a minimal number of significant negative quality related incidents for a specified time period.

A tender, proposal, or quotation submitted in response to a solicitation (i.e., RFP, RFQ) from a contracting authority is known as what?

Bid

The application of ethical principles in business situations is known as?

Business Ethics

A strategic partnership with a supplier:

Is a commitment over an extended period to work together to the mutual benefit of both parties

The term for a visual signal that authorizes production or the movement of materials to the next workstations is?

Kanban

Which element of Lean can be described as moving people and materials when and where needed, and as soon as possible?

Lean Layouts

In which sourcing category would an item typically be classified, if it is considered to be high value, low risk, and there are multiple potential suppliers?

Leverage

Which one of the following Manufacturing Strategies has the shortest (i.e., fastest) Customer Delivery Cycle?

Make-to-Stock

Which of the following is TRUE? VMI stands for Vendor-Managed Inventory VMI stands for Vertically Managed Inventory 3PL stands for Three-Point Logistics 3PL stands for Third Party Leverage

VMI stands for Vendor-Managed Inventory

The concept which attempts bring about positive social change through organizational buying behavior, is known as?

Ethical Sourcing

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

False

Supplier Relationship Management is a comprehensive approach for locating and sourcing key suppliers, so that an organization can leverage its consolidated purchasing power to find the best possible values in the marketplace

False

In-sourcing is defined as reverting to in-house production when external quality, delivery, and services do not meet expectations.

True

The goal of a good supplier performance evaluation system is to provide metrics that are:

Understandable, easy to measure, and focused on real value-added results

Products with short product life cycles, volatile demand, high-profit margins, and relatively little competition, are known as Functional Products.

False

Strategic Sourcing is a comprehensive approach for locating and sourcing key suppliers, so that an organization can leverage its consolidated purchasing power to find the best possible values in the marketplace.

True

Products with low profit margin, relatively stable demand, and high levels of competition, are known as Functional Products.

True

The key characteristics to consider in the development and implementation of a Supplier Relationship Management System, include all of the following, EXCEPT?

Detachment

What is the term for starting the production of finished goods only after a customer's order is received?

Make-to-Order

One of the main reasons to consider purchasing from an international global source is the opportunity to improve quality, cost, and delivery performance

True

Which quality expert is credited with introducing the concepts of zero defects?

Philip Crosby

Costs incurred in the process of establishing specifications for incoming materials, processes, products, and services, are categorized as which of the following?

Prevention Costs

If you understand the Total Cost of Ownership (TCO) then you know:

That you need to consider all the related costs over the life of the product

Which one of the following is NOT a reason to have a single supplier? To spread the risk of a supply disruption To establish a good relationship To have less quality variability To achieve transportation economies

To spread the risk of a supply disruption

Ethical sourcing policies should include such things as the reporting of supplier compliance to stakeholders, and detailing ethical sourcing expectations to suppliers.

True