311 exam 1

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

12. Which of the following is not one of the common examples of indirect spend? A. Professional and consulting services b. Employee benefits c. Production components d. Maintenance, repair, and operating supplies

A. Professional and consulting services

20. When a material is not available in the warehouse and there is no current supplier for the item, the buyer must identify a pool of suppliers and issue a: A. Request for Quotation B. Purchase order C. Contract for sale D. Sales order

A. Request for Quotation

18. Inaccurate forecasts can result in negative outcomes like: A. Stockouts and poor responsiveness to market dynamics B. High inventory costs of inventory and increased profits C. Material shortages and decreased costs of obsolescence D. Low inventory costs of inventory and stockouts

A. Stockouts and poor responsiveness to market dynamics

15. Which of the following illustrates Forward Vertical Integration a. Microsoft starting a new division that designs and manufactures clothing b. Ford automotive buying additional machines for production c. Subway sandwich company buying a bakery to make the bread for their sandwiches D. Sony buying trucks to deliver their finished goods inventories to their customers' warehouses

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

22. Negotiation is: a. A process you can control b. An art c. Very standard d. A process largely out of your control

a. A process you can control

11. The impact of poor communication and inaccurate forecasts resonates along the value system or supply chain and results in the: a. Bullwhip Effect b. Delphi method c. CPFR effect d. Mean Deviation

a. Bullwhip Effect

10. Which best describes shipping terms that a customer firm would use to control the freight, if they were focused on cost based pricing, and they (the customer) perceived that the supplier perceived that the supplier perceived a power position in the relationship? a. FOB Origin- Freight Collect b. FOB Destination - Freight Prepaid c. FOB Origin - Freight Collect and Allowed d. FOB Destination - Freight Prepaid and Charged back

a. FOB Origin- Freight Collect

36. Bargaining activity includes which of the following elements? a. Position Development, issue discussion, finalization b. Position Development, Strategy Implementation, outcome c. Issue discussion, concession implementation, agreement d. Environmental assessment, position development, concession implementation

a. Position Development, issue discussion, finalization

43. Of the members of the Value System or Supply Chain participants below, who is considered the "Component Part Manufacturer's" second tier supplier? a. Raw material source and initial supplier b. Wholesale distributor c. The final end item consumer d. Component part manufacturer e. Raw material assembler f. Retail store g. Retail chain distribution center h. End item/finished goods manufacturer i. Sub-assembly Manufacturer from component parts to be used in the ultimate completion of finished goods

a. Raw material source and initial supplier

28. Which of the following is a reverse logistics activity? a. Recycling products and components b. Delivering finished goods to your customer c. Developing a collaborative relationship with your supplier d. managing the quality of products

a. Recycling products and components

44. From the list of relationship identifiers below, identify which type of relationship has low trust, high interaction frequency, and low commitment? a. administered relationship b. joint ventures c. functional relationships d. alliances e. partnerships f. non-strategic transactions g. contractual relationships h. tailored relationships i. specialty contract relationships j. bilateral relationships

a. administered relationship

26. Benchmarking is: a. A system of performance metrics that seeks to motivate suppliers to perform better b. A practice where companies attempt to learn and apply the best practices of other companies c. A system of marking defection inbound inventory so it can quickly be identified for return to the supplier d. A program where suppliers compete for contacts, but those companies who are outbid are provided advice for winning future contracts

b. A practice where companies attempt to learn and apply the best practices of other companies

33. A demand-driven system is also known as a. A push system b. A pull system c. A marketing system d. A multi-echelon system

b. A pull system

49. Finalization is that point in the negotiation process when the negotiators... a. Sign the final Contract b. Come to an agreement on each individual issue c. Finish the development of strategy for the negotiation d. Decide that there is no hope for a successful outcome from the negotiation

b. Come to an agreement on each individual issue

8. According to the main course textbook, collaborative relationships place a relatively lower importance rating on which of the following competitive priorities: a. Speed of delivery b. Cost c. Product Quality d. Frequency of Deliveries

b. Cost

4. 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

19. The primary benefits of _____ include costs savings and freeing up time for purchasing staff to concentrate on the firm's core activities. a. eProcurement b. Insourcing c. The Ethical Trade Initiative d. Six Sigma

b. Insourcing

9. There is much discussion of collaboration between suppliers and customers in the business community. The relationship research presented in this class indicates, that from the perspective of managers describing their perceptions of relationships that their firms have with their suppliers or customers, _____________% are characterized as being high trust and consequently more collaborative. a. About 20% b. Just less than 40% c. 65% d. Over 90%

b. JUST LESS THAN 40%

38. Encouraging or helping a firm's suppliers to perform in a desired fashion can be referred to as: a. Progressive procurement b. Supplier management c. Right-shoring d. Supplier performance management

b. Supplier management

21. What does the acronym CPFR represent? a. coordinated planning and forecasting relationships b. collaborative planning, forecasting, and replenishment c. centralized purchasing and forecasting relationships d. collaborative purchasing, forecasting, and receivables

b. collaborative planning, forecasting, and replenishment

27. What type of power could be derived from a contract? A. coercive b. legitimate c. expert d. referent

b. legitimate

35. One of the most value enhancing activities performed by a supplier, for a key customer, which minimizes carrying costs and can avoid stock outs: a. Early supplier involvement scheduling b. vendor managed inventory c. strategic inventory planning d. purchase spend reduction forecasting

b. vendor managed inventory

48. A maquiladora plant is a. a new type of flower b. an entity created under NAFTA c. A US plant performing manufacturing, processing, or assembly activity in Mexico d. A factory owned by the Maquiladora Corporation

c. A US plant performing manufacturing, processing, or assembly activity in Mexico

13. Which of the following would be considered a third party provider? a. A raw materials supplier b. An intermediate component manufacturer c. A firm that leases storage warehousing d. An end product manufacturer

c. A firm that leases storage warehousing

1. Some measures of forecasting accuracy include mean absolute deviation, mean absolute percentage error, and mean squared error. The formula for each is dependent on the forecast error, which is calculated by using the equation: a. Actual demand for period t divided by the forecasted demand for period t b. Actual demand for period t plus the forecasted demand for period t c. Actual demand for period t minus the forecasted demand for period t d. The average of actual demand for period t and forecasted demand for period t

c. Actual demand for period t minus the forecasted demand for period t

45. When evaluating potential negotiation strategies used by negotiators, what TWO core elements are used to assess the approach taken by the parties? a. Friendliness and knowledge of the parties b. insight and financial contributions of the parties c. Assertiveness and cooperativeness of the parties d. ethics and social contributions of the parties

c. Assertiveness and cooperativeness of the parties

5. In his book "The wealth of nations" Adam Smith stated that economies are: a. Allowing specialization of tasks b. Ensuring that logistics is used to gain advantage in the marketplace c. Becoming multi-national d. Moving production off shore

c. Becoming multi-national

37. As firms seek to improve the products they offer to the market, companies are seeking help from their suppliers in new product design and development through: a. Supplier certification programs b. Manufacturer certification programs c. Early supplier involvement d. total cost of ownership initiatives

c. Early supplier involvement

41. A form of purchasing that is placed directly to the supplier and suitable when firms use the same components to make standard goods over a relatively long period of time is referred to as: a. Material Requisition b. Purchase Requisition c. Planned Order Release d. Traveling Requisition

c. Planned Order Release

30. The measurement of the impact of change in purchase spend on a firm profit before taxes, assuming gross sales and other expenses remain unchanged, is referring to: a. Break-even analysis b. Direct offset c. Profit-leverage effect d. Leveraging purchase volume

c. Profit-leverage effect

29. Negotiation goals were introduced in class as having two levels of consideration. Those two levels were: a. Preparation and bargaining goals b. Environmental and outcome goals c. Relationship and issue goals d. Issue and outcome goals

c. Relationship and issue goals

25. Managing a firm's external resources in ways that support the long-term gals of the firm can be referred to as: a. Ethical Sourcing b. Functional Sourcing c. Strategic Sourcing d. Hybrid Sourcing

c. Strategic Sourcing

46. Which of the following is a reason that single sourcing is considered risky/bad? a. The buyers required ordering quantities are very low b. Larger orders make quantity discounts more likely c. The limited (finite) capacity of one supplier d. Decreases the item to quality variability of items purchased

c. The limited (finite) capacity of one supplier

31. Which of the following provides the clearest rationale for a negotiator holding a bargaining session at his/her office? a. convenience b. accessibility to the other party's information c. control over the environment d. enhanced opportunity to leave the bargaining situation

c. control over the environment

34. Globalization was initially driven by countries a. seeking new territories b. outside the US seeking to establish plants in the US c. seeking materials and goods not available in their own land d. sponsoring trading missions

c. seeking materials and goods not available in their own land

39. In what type of political environment are negotiated prices lowered, market controlled contract structures increased, and competition increased? a. Fractionalized industry b. Regulated industry c. Defractionalized industry d. Deregulated industry

d. Deregulated industry

40. Which best describes shipping terms that a supplying firm would use if their customer focused on demand based or value of service pricing, and the supplier perceived a power position, and was pressured for improved financial performance by the supplier CFO? a. FOB Origin - Freight Collected b. FOB Destination - Freight Prepaid c. FOB Origin - Freight Collected & Allowed d. FOB Destination - Freight Prepaid & Chargedback

d. FOB Destination - Freight Prepaid & Chargedback

2. Walmart is the driving force behind a system of measurement intended to influence how products are made and purchased in the future. This system of measurement is a. Greenstream b. ISO 17000 c. Retail Carbon footprint d. Global sustainability index

d. Global sustainability index

42. Which of the following are elements that affect conflict potential? a. Goal incompatibility, domain dissensus & power position b. Goal incompatibility, issue importance & power position c. Goal incompatibility, domain dissensus & perceptual incongruency d. Goal incompatibility, domain dissensus & perceptual incongruency

d. Goal incompatibility, DOMAIN DISSENSUS AND PERCEPTUAL INCONGRUENCY

32. Which one of the following is not a type of qualitative forecasting? a. Sales force composite b. consumer survey c. jury of executive opinion d. Naïve (Extrapolation) method

d. Naïve (Extrapolation) method

14. What two measures are used to assess the power of a supplier or customer? a. Perceived power & incentive power b. Information power & operational power c. Incentive power & operational power d. Perceived power & Operational Power

d. Perceived power & Operational Power

6. Which of the following documents is considered the buyers offer to purchase products or services from a supplier, is legally binding once the supplier accepts it, and usually has the terms and conditions of purchase preprinted on the back of the: a. Purchase requisition b. Planned order release c. Material requisition d. Purchase order

d. Purchase order

7. Use of incentive systems in contractual relationships is the use of: a. Expert power b. Coercive power c. Referent Power d. Reward Power

d. Reward Power

50. When developing approaches to concessions in a negotiation, what TWO core elements are used to assess the approach taken by the parties? a. Sensibility and benefit of the concessions b. Ethics and validity of the concessions c. Assertiveness and cooperativeness of the concessions d. Starting position and concession strategy

d. Starting position and concession strategy

24. From the list of relationship identifiers below, identify which type of relationship has high trust, high interaction frequency, and high commitment? a. administered relationship b. joint ventures c. functional relationships d. alliances e. partnerships f. non-strategic transactions g. contractual relationships h. tailored relationships i. specialty contract relationships j. bilateral relationships

d. alliances

16. You are Director of sourcing for Green Turbine, a manufacturer of turbine... From the choices below, select the most appropriate method that Roger should use and the appropriate demand range of his consideration. 4,200 - Four Years Ago 4,250 - Three Years Ago 4,300 - Two Years Ago 4,350 - One Year Ago 4,400 - This Past Year a. 4008 to 4555 units of demand based on Extrapolation Analysis b. 3812 to 4658 units of demand based on Exponential Smoothing Analysis c. 3496 to 4576 units of demand based on Moving Averages Analysis d. 4828 to 5900 units of demand based on Weighted Moving Averages Analysis e. 5008 to 6120 Units of demand based on Extrapolation Analysis f. 5438 to 5954 units of demand based on Moving Averages Analysis g. 5228 to 6154 units of demand based on Weighted Moving Averages Analysis h. 4838 to 5914 units of demand based on Moving Averages Analysis i. 3814 to 4900 units of demand based on Weighted Moving Averages Analysis j. 2824 to 3632 units of demand based on Exponential Smoothing Analysis

e. 5008 to 6120 Units of demand based on Extrapolation Analysis

3. From the list of relationship identifiers below, identify which type of relationship has moderate trust, moderate interaction frequency, and moderate commitment? a. Administered Relationship b. Joint Ventures c. Functional Relationships d. Alliances e. Partnerships f. Non-strategic transactions g. Contractual relationship h. Tailored Relationships i. Specialty Contract Relationships j. Bilateral Relationships

g. Contractual relationship

47. You are director of sourcing for Green Turbine.... 4,200 - Four Years Ago 4,350 - Three Years Ago 4,300 - Two Years Ago 4,250 - One Year Ago 4,400 - This Past Year a. 4008 to 4555 units of demand based on Extrapolation Analysis b. 3812 to 4658 units of demand based on Exponential Smoothing Analysis c. 3496 to 4576 units of demand based on Moving Averages Analysis d. 4828 to 5900 units of demand based on Weighted Moving Averages Analysis e. 5008 to 6120 Units of demand based on Extrapolation Analysis f. 5438 to 5954 units of demand based on Moving Averages Analysis g. 5228 to 6154 units of demand based on Weighted Moving Averages Analysis h. 4838 to 5914 units of demand based on Moving Averages Analysis i. 3814 to 4900 units of demand based on Weighted Moving Averages Analysis j. 2824 to 3632 units of demand based on Exponential Smoothing Analysis

h. 4838 to 5914 units of demand based on Moving Averages Analysis

23. Of the members of the Value System or Supply Chain participants below, who is considered the "End item Manufacturer's" first tier supplier? a. Raw Material Source and Initial Supplier b. Wholesale Distributer c. The final end item consumer d. Component Part Manufacturer e. Raw Material Assembler f. Retail Store g. Retail Chain Distribution Center h. End Item/ Finished Goods Manufacturer i. Sub-assembly Manufacturer from Component Part to be used in the ultimate completion of finished goods

i. Sub-assembly Manufacturer from Component Part to be used in the ultimate completion of finished goods