Supply Chain Opps Exam 1

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Chapter 2

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Chapter 3

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Chapter 4

A fair price

A fair trade product refers to one that is manufactured or grown by a disadvantaged producer in a developing country that receives for its goods.

Adversarial relationships

According to the textbook, which of the following conditions need NOT be present for successful supply chain management:

?

If a firm manages to lower its purchase spend on materials by $10,000 then:

Ratio of cost of goods sold over average inventory cost

Inventory Turnover can be calculated by:

Centralized Purchasing

Making all the purchasing decisions, including order quantity, pricing policy, contracting, negotiations, and supplier selection and evaluation are the key characteristics of

Supply chain sustainability

Meeting the needs of current supply chain members without hindering the ability to meet the needs of future generations refers to:

Green Purchasing

More than a dozen presidential executive orders requiring federal purchasing officials to include environmental considerations and human health when making purchasing decisions can be attributed to a concept called:

Collaborative planning

SRM software can automate procurement activities that lead to significant cost savings as purchasing professionals move toward:

a. Integration of the supply chain making it possible to monitor multiple departments and processes both internally and externally b. Making information flow between partners more visible c. Automating transactional processes

SRM software should be capable of:

Innovative products

The Amazon Kindle and Tesla's Model S automobile are two examples of:

Bullwhip effect

The continuing cycle of erratic demand causing forecasts to include safety stock which in turn magnify supplier forecasts and cause production planning problems is known as:

IGT incorrectly anticipates consumer demand resulting in stockouts at several popular retailers

The following is an example of the bullwhip effect:

Six Sigma

The following strategy is usually employed by lean organizations in an effort to ensure continued quality compliance among suppliers and with internal production facilities:

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

The main benefit(s) from benchmarking sourcing practices is/are:

Align itself with one of the suppliers to ensure a continued supply of the scarce item.

When a particular item is in short supply accompanied by rising prices, a firm might find it beneficial to:

1950s

When did U.S. manufacturers begin to use mass production techniques to reduce costs and improve productivity?

Amazon

Which company is experimenting with the management of the final mile of delivery in some markets, using small aerial drones to deliver shoebox-size packages from fulfillment centers?

TLS - Third-party Logistics Services

Which of the following acronyms is NOT paired with its correct "translation?"

Supplier certification

Which of the following activities allows buyers to assume the supplier will meet certain product quality and service requirements?

Demand management

Which of the following activities would fall under the foundational element of operation?

a. Elimination of future business with the focal firm b. Billback penalty c. Downgrade the supplier's status

Which of the following can be used as a punishment for suppliers that perform poorly?

a. Offset b. Barter c. Kaizen blitz d. Counterpurchase C is the answer

Which of the following is NOT a form of countertrade?

Less quality variability

Which of the following is NOT a reason for favoring multiple sourcing?

a. To select the best suppliers b. To help suppliers' reputation in the marketplace c. To encourage suppliers to be more innovative d. To reward suppliers for excellent performance A is the answer

Which of the following is NOT a reason for supplier recognition programs?

?

Which of the following is NOT a step suggested in the Supply Chain Sourcing Strategy Framework

Compare supplier prices based on the lowest cost bid

Which of the following is NOT a step suggested in the Supply Chain Sourcing Strategy Framework?

Hiring former employees from other companies and assessing their knowledge

Which of the following is NOT a typical strategy for firms to obtain benchmarking data about other companies?

a. Developing cross-functional team capabilities externally and within the company b. Developing efficient processes that will remain unchanged for the duration of the partnership c. Developing performance metrics d. Open lines of communication that both promote sharing and secure confidentiality B is the answer

Which of the following is NOT important in developing a successful strategic alliance?

Select the most cost-effective supplier

Firms can use total cost analysis to:

False

It is illegal for corporations to provide their suppliers appreciation banquets to award performance.

?

Sustainable sourcing policies should include which of the following?

The supply chain's end customer

The one true source of income for all supply chain organizations is

Public procurement

The purchasing and supply management function in the government and nonprofit sectors, such as educational institutions; hospitals; and federal, state, and local governments is called:

Own/buy your suppliers and/or customers

The term vertical integration means to:

False

Trends in supply chain management include expansion of the supply chain and decreasing supply chain visibility.

Office supplies

Blanket or open-end purchase orders are suitable for buying

:

chapter 4 quiz

Requiring employees and vendors to sign non-disclosure agreements

According to the text, one of the most basic and successful approaches to protecting trade secrets is:

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

According to the text, the goal of a good performance evaluation system is to provide metrics that are:

Encourage suppliers to keep their performance high

According to the textbook, Supplier Recognition Programs

Lower purchasing and inventory carrying costs

A value-enhancing benefit from supply chain management efforts would be:

Blanket

A(n) ____________ purchase order is negotiated for repeated supply over a fixed time period, such as quarterly or yearly.

Import broker

A(n) _______________ performs transactions for a fee, and does not take title to the goods. Instead, title passes directly from the seller to the buyer.

Supply chain risk

An internal or external event that causes a disruption or failure of supply chain operations is an example of

Sustainable sourcing

Convincing your supplier to cutting back on packaging, fuel, or electricity is an example of:

True

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

True

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

Business process reengineering

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

Supply chain analytics

Examining raw supply chain data and then reaching conclusions or making predictions with the information is sometimes referred to as:

?

One of the primary goals of purchasing is to:

?

One standard which is measured in environmental supplier certification is:

Which of the following can happen because of the bullwhip effect?

Oversupply of goods leading to increased inventory costs

P-cards

Petty cash is being phased out in favor of:

a. Franchising services b. Negotiations c. Contract administration d. Logistics considerations A is the answer

Purchasing activities include all the following EXCEPT

a. SRM software modules are very affordable (less than $50,000) and can be implemented with a week. b. ISO 75000 is the supplier award given to the highest rated supplier in Japan. c. Performance metrics and personal business relationships are both keys to building successful partnerships. d. The key to successful partnerships is developing performance measures with weights greater than 3.50. C is the answer

Which of the following is TRUE?

a. Political problems b. Currency exchange c. Dealing with duties all of these

Which of the following is a potential challenge for global sourcing?

There could be supplier interruptions due to political instabilit

Which of the following is a reason that single sourcing is considered risky/bad

Poor supplier performance could result in plant shutdowns

Which of the following is a reason that single sourcing is considered risky/bad?

Customer returning a car to the dealer for warranty repair

Which of the following is a reverse logistics activity?

Better knowledge of unit requirements

Which of the following is an advantage of decentralized purchasing departments?

. a. Cost savings b. Time savings c. Mobility all of the above

Which of the following is an advantage to utilizing an e-procurement system?

Profit-Leverage Effect

Which of the following refers to the measurement of the impact of change in purchase spend on a firm's profit before taxes, assuming gross sales and other expenses remain unchanged?

a. Trucking/Shipping companies b. Freight forwarders c. Public warehousing firms d. All of these choices are correct. D

Which of the following service providers can help to get goods where they need to be in a timely fashion?

a. Electronic procurement systems can aid a company in saving both time and money. b. More than 50% of each sales dollar typically goes towards covering supply chain costs. c. If a firm lacks the technology to make a required component they will need to consider buying/outsourcing. d. Centralized purchasing is where individual, local purchasing departments, such as at the plant level, make their own purchasing decisions D

Which of the following statements is FALSE?

use of vertical integration is much more common due to the low cost and ease in managing diverse business units

Which of the following statements is NOT true of many large firms today?

a. Manufacturers knowing its customers' purchase plans b. Reduction of safety stock c. Reduction in the number of suppliers

Which of the following strategies might help eliminate the bullwhip effect?

bullwhip effect

Which of the following terms describes an amplification of the variation in the demand pattern along the supply chain?

Business Process Reengineering (BPR)

Which of the following terms is described as rethinking and redesigning of business processes to reduce waste and increase performance?

Federal Acquisition Regulation

While most public procurement is focused on goals like those of purchasing departments in the private sector, U.S. federal government purchases must comply with the:

Ethical sourcing

______________ considers the public consequences of organizational buying.