SupplyChainMidTerm

A cause-and-effect diagram is a useful tool for presenting data in an organized fashion, indicating process problems from most to least severe.

False

A follow-up is considered a reactive approach to speed up an overdue shipment.

False

A low ROA suggests that management is capable of generating large pro ts with relatively small investments.

False

A small LTL shipment that originates on a truck in San Francisco and is moved from San Francisco to Las Vegas where it is unloaded and put onto another truck for final shipment to Phoenix would be considered an intermodal shipment since it utilizes more than one vehicle during shipment.

False

A weakness of lean system is that none of its practices are related to the environment of sustainability.

False

Air carriers compete most favorably when the distance is long and the shipments are heavy or bulky.

False

An SRM strategy refers to a situation wherein a supplier's employee is permanently housed in the purchasing department of the buyer's organization.

False

As companies outsource more and more parts, it becomes easier to achieve cost savings internally.

False

Assistance with helping products clear customs is not offered by third-party logistics providers (3PLs).

False

During the 1950's and 1960's, mass production techniques were targeted toward creating supplier partnerships, improving process design and flexibility, and improving product quality.

False

Environmental and social impacts are not considered within supply chain management.

False

Foreign-trade zones (FTZs) are secure sites within the European Union under the supervision of the EU Customs and Tariffs

False

If the break-even point in a typical make-buy scenario is 19,000 units and 10,000 units are required by the firm, then the firm should choose to make the units.

False

In a 2016 survey of 3PL usage, 70% of shippers and 85% of 3PL services said the use of 3PLs contributed to higher logistics costs.

False

In a Total Cost of Ownership system, certification and training of suppliers would be considered post-transactional costs.

False

In-house vertically integrated business structures, where more control over business units is possible, is becoming more popular with many large firms.

False

It is critical that buyers and suppliers develop stronger relationships and partnerships based on a tactical rather than a strategic perspective.

False

Lean production is an operating philosophy or mindset that essentially attempts to minimize the impact of system variability and flaws in forecasting through the use of high safety stock inventories.

False

Managing the various compensation and benefit programs within an organization is considered a supply chain management activity.

False

Merchants' primary task is to purchase raw materials for conversion purposes.

False

One definition of supply chain management that is universally accepted is "the management and integration of the parties involved in producing the end items coveted by consumers."

False

Organizations practicing lean production often increase their inventory levels in order to create a cushion against variability so that they can investigate and eliminate the weaknesses in their systems.

False

Supply, Operations, Customer Service, and Logistics all serve as the foundation elements of supply chain management.

False

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?

Profit Leverage Effect

Transportation management systems (TMS) applications allow firms to find carriers, track fuel usage and product movements, and stock the shelves at customers' locaitons

Public warehouses

________________ are for-profit organizations that contract out or lease a wide range of light manufacturing, warehousing, and distribution services to other companies

Public warehouses

Which of the following is a reason for favoring single sourcing?

Reduces variability in quality levels

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

Requiring employees and vendors to sign non-disclosure agreements

Streamlining the processes and communications between the buyer and supplier using software applications that enable these processes to be managed more efficiently and effectively can be referred to as _______________.

SRM

Summers, Inc. needs to generate a list of goods/services purchased per supplier. Which type of software program can the manager consult to obtain this information?

SRM

Foreign trade zones are

Secure sites within the U.S. where goods and materials can be assembled and exported without being levied domestic duties or excise taxes

The ___________ strategy is typically employed by lean organizations in an effort to ensure continued quality compliance among suppliers and with internal production facilities.

Six Sigma

Which of the following illustrates Forward Vertical Integration?

Sony buying trucks to deliver their finished goods inventories to their customers' warehouses,

An organization's process for evaluating the quality systems of key suppliers is an effort to eliminate incoming inspections can be referred to as:

Supplier Certification

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

Supply chain risk

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

To select the best suppliers

Which of the following company's production systems are associated with lean production?

Toyota

In Europe, rail transportation trends to be much more prevalent and reliable than rail transportation in the US, because European track, facilities, and equipment are newer and better maintained.

True

International intermediaries can provide shipping, consolidation, and other import and export services. Some examples of these international intermediaries include: NVOCCs and trading companies.

True

It can be argued that transportation deregulations is good because it encourages competition and allows prices to adjust as supple, demand, and negotiations dictate.

True

The goal of a good purchasing system is to ensure efficient information transitions between the materials users, the purchasing personnel, and the suppliers.

True

The purchase order is NOT a legally binding contract until it is accepted by the supplier.

True

The quick response program, developed in the 1980s, was an offshoot of the following supply chain concept:

Just-in-Time

Before supplier relationship management (SRM), buyers typically spent 40% of their time on expediting orders. After SRM implementation, buyers spent about ___________________________.

10% of their time on expediting orders.

The term Supply Chain Management and the field of study it represents today seems to have emerged in the _______.

1980s

A company produces 8-pound bags of cat litter. As shown below, it gathered 5 samples with 6 bags in each sample for quality control purposes. The weights of each of the bags are listed below. Determine Xbarbar (the average of the averages).

8.06

A company that produces 8 pound bags of cat litter gathered 5 samples of 6 bags each. The weights of each bags' contents are listed below. What would you plot on the X chart for sample 2?

8.130

Which of the following would be a good reason to outsource (buy) versus making?

A firm lacks the technology or expertise to produce an item

Of the following, which would be considered a third-party provider?

A firm that leases storage warehousing

A company using a weighted-criteria evaluation system has established these 3 categories and the appropriate weight in parentheses: Quality (0.30), Delivery (0.40), and Cost (0.30). The scores for each category are shown below. Which of the following companies has the highest total score?

All companies scored the same.

Which of the following is an example of how lean programs can help to protect the environment

All of the above

Which of the following is important in developing successful relationships in a partnership?

All of these

Which of the following are intermodal transportation alternatives?

All the above

______________________ was developed in the 1990's as a popular way of developing radically new business processes in an e ort to reduce waste and increase performance.

Business process reengineering

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

Collaborative planning

Benefits derived from implementing e-procurement systems include all of the following EXCEPT:

Creates numerous additional job opportunities in the purchasing department

If lot sizes are reduced by 50%, what impact will this have on average inventory levels?

Decrease by 50%

The following are all examples of lean warehousing capabilities EXCEPT:

Decreased assembly operations

The Hormel company awards their Hormel Food Corporation's No. 1 Award to their top supplier. How often do they give this award?

Every 5 years

When designing a manufacturing or service process, a Pareto chart would be an essential tool for evaluating the process in terms of its action elements, waiting periods, and process flow.

False

When developing successful partnerships, it is best to avoid inter-personal business relationships between buyers and suppliers.

False

A _______________ consolidates large numbers of small shipments to fill entire truck trailers or rail cars to achieve truckload or carload transportation rates.

Freight forwarder

The first major transportation regulation in the US was which of the following

Granger Laws

Efficient Consumer Response was initially developed in the 1990s for the following industry:

Grocery

The five S's refer to:

Industrial housekeeping

Japanese manufacturing firms sometimes create cooperative coalitions with their suppliers in order to provide the suppliers with a certain degree of financial support. What are these cooperative coalitions called?

Keiretsu Networks

______________ creates the efficient flow of goods between supply chain partners, allowing profits and competitive advantage to be maximized.

Logistics

Blanket or open-end purchase orders are suitable for buying __________________________.

Office supplies

Which of the following is TRUE?

Performance metrics and personal business relationships are both keys to building successful partnerships.

The following is a term that refers to error or mistake proofing:

Poka-Yoke

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

Poor supplier performance could result in plant shutdowns

Costs associated with investigating alternative suppliers and investigating alternative delivery options can be classified as:

Pre-transaction costs

Which type of requisition is used for materials and standard parts that are requested on a recurring basis?

Traveling requisition

A Malcolm Baldrige National Quality Award recongizes firms for their quality achievements but is only given to US firms

True

A result of the bullwhip e ect is companies producing excessive defective products; defective items are whipped back from the end customer toward the manufacturer of the defect.

True

A seven-step approach to supplier development might include identifying critical suppliers not meeting performance requirements.

True

An effective reverse logistics process can create goodwill and enhance customers' percents of product quality.

True

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

Cost savings is an advantage of using an e-procurement system.

True

Deming, Crosby, and Juran are all prominent quality professionals whose ideas were vital to the development of Six Sigma.

True

Foreign suppliers located farther away may be able to deliver goods faster than domestic suppliers due to more efficient transportation and logistical systems.

True

NAFTA and the WTO are trade organizations seeking to reduce tariff and non-tariff barriers among its member countries.

True

Poor logistics management can bring a supply chain to its knees, regardless of the quality of the products.

True

Private warehouses refer to warehouses that are owned by the firm storing the goods

True

Production can be scheduled according to expected supplier deliveries by using supply chain analytics along the supply chain.

True

Purchasing can be broadly classified into two categories: merchants and industrial buyers.

True

Reverse logistics refers to the movement and storage of returned goods

True

Statistical process control (SPC) allows firms to compare process performance to desired levels or required standards

True

Statistical process control uses control charts to monitor the outputs of a process to identify variations due to assignable causes and variations due to common causes.

True

Successful supplier relationships involve equal decision-making control.

True

The term "lean production" essentially refers to the Toyota Production System in its entirety.

True

Toyota initially designed their JIT program on Ford's manufacturing system.

True

Transportation, warehousing, marketing, and customer service play very significant roles in the logistics function.

True

A firm might find it beneficial to _________________________ when a particular item is in short supply accompanied by rising prices.

align itself with one of the supplier to ensure a continued supply of the scarce item.

One result of the bullwhip effect is ______________________.

excess costs for each firm in a supply chain

The implementation of a software system known as _____________________ is one operational method for managing inventory.

material requirements planning (MRP)

Which of the following is an advantage of a centralized purchasing department?

quality discounts

"The ability to meet the needs of current supply chain members without hindering the ability to meet the needs of future generations" is the definition of _____________________.

sustainability

Which condition must be present for successful supply chain management?

vertical integration

In general, European countries prefer suppliers ____________________________.

who have ISO 9001 certifications