Supply Chain ch 1-4

an internationally recognized supplier certification program focused on quality

ISO 9000

a popular way in the 1990's of developing radically new business processes in an effort to reduce waste and increase performance

business process reengineering

the practice where individual, local purchasing departments throughout a single corporation make their own, individual purchasing decisions to fulfill their individual local needs

decentralized purchasing

the process of management and other experts reviewing a forecast to ensure that it is aligned with company's strategy, policies, and knowledge

demand planning

demand for an item that is directly related to other items such as material used is _________ demand - calculated

dependent

transportation management, customer relationship management, network design, and service response to logistics are all important issues that are most closely related to

distribution

companies seek help from their suppliers in new product design and development through:

early supplier involvement

ISO 14000 is a series of international standards for _________ ___________

environmental management

t/f: assembly or production of finished products, producing the right amount of product, and ensuring that all finished products meet specific quality, cost, and customer service requirements can all be considered elements of logistics

false

t/f: effective supply chain management relies on competitive bidding, corporate privacy, and contracts based on short-term performance

false

t/f: examples of nontariffs include quotas, licensing agreements, and embargoes on import and export

false

t/f: examples of tariffs include quotas, licensing agreements, and embargoes

false

t/f: future trends in SCM include increasing inventory levels and considering the elimination of logistics intensive online retailing

false

t/f: in a weighted criteria system the weights of all performance dimensions must add up to more than 1 and less than 100

false

t/f: in context of SCM the acts of obtaining raw materials, services, maintenance, repair and operating supplies for money can all be defined as integration

false

t/f: in order to maintain a shared vision, the buyer alone should establish the objectives of the partnership, which must then be fulfilled by the actions of the supplier

false

t/f: industrial supply chain member buyers purchase their merchandise in volume to take advantage of quantity discounts, transportation economy, and storage efficiency, and then they create value through services like consolidating merchandise or break bulking

false

t/f: reverse logistics activities include negotiating purchasing contracts with suppliers and delivering small shipment from manufacturer to distribution centers

false

t/f: smoother processes, faster cycles, reduced new product development, and improved time to market are possible benefits from increased visibility of TCO software

false

t/f: supply chains include raw material suppliers, intermediate component manufacturers, end-product manufacturers, but not warehouses and retailers

false

t/f: the WTO is an organization seeking to establish trade barriers that will protect member countries by excluding nations that pose an economic threat

false

t/f: the bullwhip effect is the result of companies producing excessive defective products; defective items are whipped back from the end customer toward the manufacturer of the defect

false

t/f: the possibility of events like strikes, assembly line breakdowns, and natural disasters are all reasons a company should favor using a single supplier

false

t/f: the universally accepted definition of SCM is "the management and integration of the parties involved in producing the end items coveted by consumers"

false

t/f: when evaluating a supplier it is not possible to create performance metrics that measure delivery speed, quality related outcomes, environmental responsibility, and costs related to inventory

false

t/f: when using a weighted criteria evaluation system with five or more categories, vendors should be ranked based on their score in the two highest weighted categories, and others discarded

false

an estimate of a future demand - developed through data analysis and judgement

forecast

if a distribution company focused on warehousing and distribution of grocery items decided to purchase a chain of grocery stores, the distribution company would be exemplifying:

forward vertical integration

demand for an item that is unrelated to demand for other items such as parts is called ___________ demand - forecasted

independent

assembly or production of finished products, producing the right amount of product, and ensuring that finished products meet specific quality, cost, and customer service requirements are all important issues closely related to:

operations

if a firm lacks technology or expertise to produce an item should they outsource or make

outsource

field failures, loss of goodwill, decreased reputation, and warranty costs are classified as ____-_______ costs

post transaction

costs associated with supplier certification, investigating alternatives, and investigating alternative delivery options are classified as _____-_______ costs

pre transaction

the buyer's offer to purchase products or services from a supplier - legally binding once the supplier accepts and usually has terms and conditions of purchase preprinted on back of document

purchase order

according to the text, the FOUR important elements of the supply chain are:

purchasing, operations, distribution, integration

proctor and gamble is developing capabilities in these three areas to create value for retail customers and also drive growth for their company's businesses: _______ ________, _________ __________ _______ ________, ___________ __________

reliable service, agile demand driven supply, affordable differentiation

inventory level where suppliers replenish their customers' inventory with a predetermined order quantity

reorder point

when firms assist suppliers to improve their processing capabilities, product quality, effectiveness, and performance through technical and financial assistance

supplier development

SRM stands for

supplier relationship management

occurs when supply chain participants realize that the needs and desires of the end item retail consumer dictate the objectives and policies of all the other supply chain participants

supply chain integration

the broad based metric defined as "all costs associated with the acquisition, use, and maintenance of a good or service" - also known as TCO

total cost of ownership

lean production is typically associated with this company's production systems

toyota

requisition used for materials and standard parts that are requested on a recurring basis

traveling requisition

t/f: a common way to calculate inventory turnovers is by dividing the cost of goods sold by the average inventory at cost

true

t/f: a comprehensive SRM strategy would likely include dedicated supplier managers, processes that would help in establishing standardized best practices, and the utilization of tools that would help gather and evaluate results

true

t/f: according to an annual survey, the cost of materials exceeds the value added to the materials during manufacturing

true

t/f: according to the textbook, the keys to successful supply chain management include trust and honest, accurate communications between supply chain partners

true

t/f: blank check purchase orders, corporate purchasing cards, petty cash, and open end purchase orders are all possible alternatives to dealing with small value purchases such as those for office supplies

true

t/f: future trends in supply chain management include increasing supply chain responsiveness and considering the negative environmental impacts of supply chains

true

t/f: in a TCO system, the costs associated with defective products, including repair and warranty costs would be considered post transaction costs

true

t/f: in context of SCM, the acts of obtaining raw materials, services, maintenance, repair and operating supplies for money can all be defined as purchasing

true

t/f: merchant supply chain member buyers purchase their merchandise in volume to take advantage of quantity discounts, transportation economy, and storage efficiency, and then they create value through services like consolidating merchandise or break bulking

true

t/f: offering an awards program to suppliers both motivates the suppliers to commit to continuous improvement as well as provides role models for suppliers to follow

true

t/f: reverse logistics activities include the return of defective and damaged items to the manufacturer, and the recycling of used packaging

true

t/f: smoother processes, faster cycles, reduced new product development, and improved time to market are possible benefits from increased visibility offered by SRM software

true

t/f: strategic partnerships are seen as one of the foundations of supply chain management

true

t/f: supply chains include raw materials suppliers, intermediate component manufacturers, end-product manufacturers, wholesale distributors, and retailers

true

t/f: the assembly or production of finished products, producing the right amount of product, and ensuring that finished products meet quality, cost, and customer service requirements can all be considered elements of operations

true

t/f: the end-product manufacturer is considered the focal firm in modern supply chains

true

t/f: the goal of a good purchasing system is to ensure efficient information transitions between the materials users, the purchasing personnel, and the suppliers

true

t/f: the internet and ERP systems have made global teamwork both possible and necessary for companies trying to compete in today's global marketplace

true

t/f: trucking companies, airfreight shipping companies, and info system providers can all be considered service providers to the supply chain

true

the term supply chain management and the field of study seems to have emerged in the:

1980s

VMI stands for

Vendor managed inventory