Supply Chain Test 2

Which of the following would be a good reason to outsource (buy) versus make an item? A. A firm lacks the technology or expertise to produce an item B. To utilize existing capacity within a company's own firm C. To have more direct control over the design and production of an end item D. No competent supplier presently produces the needed item

A. A firm lacks the technology or expertise to produce an item

What is the term that is often used for the acquisition of services? A. Purchasing B. Contracting C. Requisitioning D. Ordering

B. Contracting

An outsourcing program can result in all of the following positive outcomes, except? A. Reducing staffing levels B. Decreased need for supplier management C. Cost reduction D. Gains in manufacturing flexibility

B. Decreased need for supplier management

Keys to developing successful supply partnerships include all of the following EXCEPT? A. Personal Relationships B. Individual Objectives C. Mutual Benefits and Needs D. Performance Metrics

B. Individual Objectives

LEAN manufacturing emphasizes all of the following except: A. Continuous improvement B. Large batch sizes C. Reduction of waste D. Synchronization of material flows

B. Large batch sizes

The combination of the purchase price of a good and the additional costs incurred before or after product delivery is referred to as? A. Total Cost of Aquisition B. Total Cost of Ownership C. Purchase Requisition Cost D. Total Procurement Cost

B. Total Cost of Ownership

Which of the following is NOT one of the primary goals of purchasing? A. Ensure the uninterrupted flow of materials and services at the lowest total cost B. Improve the quality of the finished goods C. Increase the supplier base D. Optimize customer satisfaction

C. Increase the supplier base

Benefits of implementing an effective supplier certification program include all of the following EXCEPT? A. Building Long-Term Relationships B. Reducing the time spent on incoming inspections C. Increasing the supplier base D. Recognizing excellence

C. Increasing the supplier base

All of the following are included in the seven wastes EXCEPT: A. Overproducing B. Extra-Processing C. Overspending D. Waiting

C. Overspending

Managing a firm's external resources in ways that support the long term goals of the firm can be referred to as? A. Ethical Sourcing B. Functional Sourcing C. Strategic Sourcing D. Hybrid Sourcing

C. Strategic Sourcing

The following term refers to an act that creates the greatest good for the greatest number of people? A. Rights and duties B. Corporate Responsibility C. Utilitarianism D. Social Sustainability

C. Utilitarianism

Which of the following is true? A. VMI stands for Vertically Managed Inventory B. 3PL stands for Third Party League C. VMI stands for Vendor-Managed Inventory D. 3PL stands for Three Point Logistics

C. VMI stands for Vendor-Managed Inventory

Benefits derived from implementing an e-procurement system include all EXCEPT: A. Time Savings B. Real-Time Access C. Trackability D. Decentralized Purchasing

D. Decentralized Purchasing

An organization's process for evaluating the quality systems of key suppliers in an effort to eliminate incoming inspections can be referred to as? A. Quality Systems Certification B. Supply Management C. Supplier Inspection D. Supplier Certification

D. Supplier Certification

Which one of the following is among the most important elements of the LEAN manufacturing philosophy? A. Quality inspections and a standardized product line B. Fully automated assembly lines and a large supplier base C. Larger inventories and large batch sizes D. Waste reduction and continuous improvement

D. Waste reduction and continuous improvement

A 4PL commonly referred to as a lead logistics provider is a trucking company that also provides tracking services. T/F?

False

A LEAN system is also known as a push system. T/F?

False

A purchase order is legally binding once issued by the buyer. T/F?

False

An effective supplier certification program may increase the time spent on incoming inspections. T/F?

False

Award-winning suppliers serve as role models for other suppliers and may be exempt from audits and certification programs. T/F?

False

LEAN and Six Sigma are essentially two terms that mean the same thing. T/F?

False

LEAN production is an operating philosophy or mindset that attempts to minimize the impact of supply variability and flaws in forecasting through the use of safety stock inventories. T/F?

False

The Profit-Leverage Effect states that a decrease in purchasing expenditures will directly decrease profits. T/F?

False

While paperless transactions are now possible through e-procurement and web-based services, these would NOT be considered sustainable business practices. T/F.

False

While the purchasing function is one of the most value-enhancing functions in any organization, it is not preferable to periodically monitor the purchase function's performance against set standards, goals, and/or industry benchmarks. T/F?

False

"Rationalizing the supplier base" would mean that the purchasing firm is attempting to reduce the number of suppliers in its supplier network by eliminating poor performing suppliers in its present supplier base. T/F?

True

Outsourcing allows a firm to concentrate on core capabilities and reduce staffing levels. T/F?

True

Successful supplier relationships involve equal decision-decision making control. T/F?

True

The primary design objective of a LEAN layout is to reduce wasted movements of workers and/or materials. T/F?

True