SCM Exam 3

Supply chain synchronization attempts to achieve which of the following?

Coordinate multiple firms activities across the supply chain.

A successful supply chain management strategy integrates:

processes and systems within and across organizations

Supply managers believe they can add the most value to the outsourcing decision by:

providing a comprehensive, competitive process.

The traditional supplier evaluation criteria are:

quality, quantity, delivery, price and service.

SA8000 certification is for:

social sustainability.

The question: "How can supply and the supply chain contribute effectively to organizational objectives and strategy?" is a key question in:

strategic supply management.

Strategies designed to make available the knowledge and capabilities of supply chain members to others in the buying organization are called:

supply-chain-support strategies.

A zero defects quality strategy emphasizes:

"do it right the first time."

Three major challenges facing supply executives when setting supply strategies and objectives are:

(1) What is the effective interpretation of corporate objectives and supply objectives? (2) What is the appropriate action plan or strategy to achieve the desired objectives? and, (3) How can supply issues be identified and integrated into organizational objectives and strategies?

Supply has the potential to contribute to:

-profitability, competitive position and sustainability performance.

The design and management of seamless, value-added processes across organizational boundaries to meet the needs of the end customer is called:

-supply chain management.

Outsourcing is:

a high risk venture because the costs of reversing the decision are often high.

Subcontracting refers to the practice of:

a prime contractor bidding out part of a job to another contractor.

Evaluation of the supply function's contribution to organizational goals and strategies can be viewed in the context of:

operational and strategic. direct and indirect.

Outsourcing of services is:

realistic if service requirements and quality expectations can be clearly defined.

Sustainability is:

the combination of environmental and social performance

Noncore competencies of an organization are typically:

the first things to be outsourced to access supplier expertise.

Privatization is:

the term for outsourcing used in the public sector.

For an organization with revenue of $100 million, purchases of $60 million, and profit of $8 million before tax, a 10 percent reduction in purchase spend would result in an increase in profit of:

-75 percent.

Evidence of the growth and influence of supply management in an organization includes:

-involvement in strategic planning and executive status of the chief supply officer.

The use of the concepts of purchasing, procurement, supply, and supply chain management will vary from organization to organization depending on:

-the organization's stage of development and/or sophistication, the industry in which they operate and the organization's competitive position.

Company image may be directly influenced by:

-treating suppliers in a fair and equitable manner, complying with regulatory requirements and sustainability practices of suppliers.

In manufacturing organizations, the dollars spent with suppliers fall into what range as a percent of revenues?

50 to 80

In 2016 US business logistics costs represented what portion of Gross Domestic Product (GDP)?

7.5%

Facility network design is concerned with which of the following?

How many buildings. The location of the buildings. The ownership structure of the buildings.

Direct logistics operating arrangement accomplish which of the following?

Ship products direct to the consumers destination from one or more locations

Which one of these concepts is not part of logistical integration objectives?

Using less parcel shipping.

Echelon logistics operating arrangements accomplish which of the following?

Utilize warehouses to create inventory assortments and achieve consolidation economies.

The decision to make or buy a good or service is:

a decision of strategic importance that deserves careful evaluation.

Total Cost Logistics Model takes into consideration ______

all expenditures necessary to perform logistical requirements

A strategy is:

an action plan to achieve specific long-term goals and objectives.

Reverse marketing is:

an aggressive, purchaser-initiated approach to finding and developing world class suppliers.

Linking current and future needs with current and future markets is the primary focus of:

an effective supply strategy.

A request for quotation (RFQ):

asks the supplier to declare at what price and what terms they are prepared to supply.

Supply strategies that are based on changes in demand and supply are known as:

assurance-of-supply strategies.

In the portfolio matrix, characteristics of goods and services in the leverage quadrant are:

competitive supply market, substitution is possible, price per unit is important.

Supply strategies that are designed to exploit market opportunities and organizational strengths to give the buying organization an advantage in the marketplace are known as:

competitive-edge strategies.

The three factors fundamental to transportation performance are ______

cost, speed, and consistency

The logistics activities most frequently outsourced are:

transactional, operational and repetitive.

The work of logistics involves ______.

transportation, inventory, order processing, warehousing, and facility network design

When developing supply strategies, the supply manager must determine:

what to make or buy, when to buy, how much to buy and how it should be ordered.

Interest in the supply function as a managerial activity began:

during World Wars I and II because of global materials shortages.

Supply strategies that are designed to anticipate and recognize shifts in the economy, organization, people, legal, government regulations and controls, and technologies are:

environmental change strategies.

Supply management's role in environmental sustainability is:

expanding because suppliers can influence the ability to achieve the goal of zero environmental impact.

The more significant the service ______ impact upon a customer's business, the greater the priority placed on error free logistical performance.

failure

Supply can influence risk management in which area(s)?

financial, operational and reputation

To avoid risk, a buyer can:

hedge in a commodities market, require bid or performance bonds and decide not to do business in certain countries.

When a supply-related risk exists, the supply management team should:

identify and classify risks, assess possible impact, develop a mitigation strategy, inform the chief supply officer, await instructions, and implement the directive.

Subcontracts can only occur:

if there is a prime contractor bidding out part of a job.

Make or buy and insourcing or outsourcing decisions are:

key strategic decisions.

One of the most fundamental and critical decisions in any organization is, should we:

make or buy the needed good or service?

A supplier's references:

may be useful if they are of similar size and objectives as the buyer's organization.

Decision trees:

may be useful in making effective supplier selection decisions if probabilities of success and failure are assessed for each option.

Outsourcing:

may reduce operating costs, improve focus on core competencies, and gain access to world-class capabilities.

Assessment of a potential supplier's financial situation:

may yield substantial opportunities for negotiating favorable terms for both buying and selling organizations.

The supply area is a good training ground for managers because it provides exposure to:

pressure of decision making under uncertainty and various levels and functions in the organization.

In the outsourcing decisions in many organizations, supply has had:

relatively moderate involvement.

The impact of supply management actions on the balance sheet is measured by the:

return on assets effect.

The goal of logistics is to ______.

support procurement, manufacturing, and customer accommodation

Normally, most organizational objectives can be summarized as:

survival, growth, financial, and sustainability.

When developing strategies related to "how to buy," decisions must be made about:

systems and processes.

The return on assets effect (ROA) quantifies and measures:

the impact of supply actions on inventory and the balance sheet.

Performance cycle uncertainty has the following trait: ______.

the larger the variance to desired goal, the bigger the impact

Logistics is ______.

the process that links supply chain participants into integrated operations the catalyst of activity between different supply chain functional areas such as procurement and warehousing a critical component to supply chain success an amazing career to pursue

Which of the following statements supports single sourcing:

the use of just-in-time production, stockless buying, or systems contracting.

Logistical operations have two main flows: ______.

inventory and information

Reverse marketing:

is encouraged by the rapid rate of technological change, growth in international trade, and the need to extract competitive advantage from supply chains.

On average, the dollars spent with suppliers as a percent of revenues:

is greater in manufacturing organizations than in service organizations.

Small suppliers:

often provide the greatest responsiveness and flexibility.

When a team decides that a task or function currently performed by company employees is a noncore competency, the team is likely to recommend:

outsourcing.