Supply Chain Exam 2 (Chapter 4: Test)

Sustainability reporting is ______________ for American companies: a. Required in the U.S. b. Largely a voluntary effort c. Mandated quarterly d. Required every 3 years

b. Largely a voluntary effort

Criteria to evaluate a purchasing department's performance should include both quantitative and qualitative assessments. a. True b. False

a. 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. a. True b. False

a. True

A negotiation where both sides work together to maximize the joint outcome or to create a joint optimal result is referred to as: a. Win-win negotiations b. Optimal review period c. Distributive negotiations d. DMAIC improvement cycle

a. Win-win negotiations

The use of environmental supplier certification programs assists companies by which of the following? a. Identifying strategic alliance candidates b. Helping communities who are in jeopardy of plant closures c. Identifying companies who are the most popular with consumers d. All of these choices are correct.

a. Identifying strategic alliance candidates

ISO 14000 may play a role in a firm's. a. Supplier certification program b. Customer certification program c. Manufacturing flexibility program d. Negotiated pricing program

a. Supplier certification program

One standard which is measured in environmental supplier certification is: a. The suppliers' recycled content b. The number of on-time deliveries c. The number of trucks owned by the supplier d. Technology investment by the supplier

a. The suppliers' recycled content

Why do firms assess their sourcing capabilities? a. They can gauge their success in improving their own value-enhancing contributions to the firm b. They can easily spot suppliers who are not practicing sustainable sourcing practices c. They are looking for ways to reduce their employee headcount d. All of these choices are correct.

a. They can gauge their success in improving their own value-enhancing contributions to the firm

Which of the following is NOT a step suggested in the Supply Chain Sourcing Strategy Framework? a. Prioritize items based on ethical and sustainability opportunities and ease of implementation. b. Certify suppliers as ISO 9001 compliant c. Establish corporate ethical and sustainable sourcing policies d. Develop a performance measurement system

b. Certify suppliers as ISO 9001 compliant

For a large company with many strategic supplier alliances, what would be the best way to manage them? a. Hire an outside firm to manage them b. Create an alliance board to oversee alliances c. Reduce the number of supplier alliances to less than five d. All of these choices are correct.

b. Create an alliance board to oversee alliances

Sustainable sourcing policies should include which of the following? a. Fair working conditions b. Use of renewable energy c. Use of minority workers d. Use of child labor

b. Use of renewable energy

The main benefit(s) from benchmarking sourcing practices is/are: a. Larger market for products, economies of scale in purchasing and production, and lower labor costs. b. Savings in energy consumption and materials, lower distribution costs, and improved corporate image among regulators, customers and community. c. Allows firms to leapfrog the experience-gaining stage by trying things that have worked well for other companies. d. Lower prices of goods and services, use of fewer buyers and lower administrative costs

c. Allows firms to leapfrog the experience-gaining stage by trying things that have worked well for other companies.

______________ considers the public consequences of organizational buying. a. The bullwhip effect b. Vendor managed inventory c. Ethical sourcing d. Benchmarking

c. Ethical sourcing

_______ refers to one that is manufactured or grown by a disadvantaged producer in a developing country that receives for its goods. a. Freedom of association b. Bitcoin c. An imported product d. A fair trade product

d. A fair trade product

Which of the following can be used as a punishment for suppliers that perform poorly? a. Billback penalty b. Elimination of future business with the focal firm c. Downgrade the supplier's status d. All of these choices are correct.

d. All of these choices are correct.

The purchasing department at Big Horn Sheep Corporation decided to intentionally increase purchases from small, underdeveloped nations. This decision can be considered: a. Unethical b. Utilitarianism c. Illegal d. Ethical Sourcing

d. Ethical Sourcing

Which of the following is NOT a typical strategy for firms to obtain benchmarking data about other companies? a. Utilizing resources from the Center for Advanced Purchasing Studies b. Discussing sourcing strategies with colleagues at business association meetings c. Collecting published trade information on benchmarking studies d. Hiring former employees from other companies and assessing their knowledge

d. Hiring former employees from other companies and assessing their knowledge

Some businesses refer to sustainability in terms of supporting the three P's. This stands for: a. People, place, price b. Planet, people, price c. Place, price, promotion d. People, planet, profit

d. People, planet, profit

Convincing your supplier to cutting back on packaging, fuel, or electricity is an example of: a. Ethical sourcing b. Sole sourcing c. Global sourcing d. Sustainable sourcing

d. Sustainable sourcing

Which of the following terms refers to an act that creates the greatest good for the greatest number of people: a. Social sustainability b. Corporate responsibility c. Rights and duties d. Utilitarianism

d. Utilitarianism