BUS 141 (Exam 2)

Cost of quality do not include:

advertising costs

Reverse marketing is:

an aggressive, purchaser-initated, approach to finding and developing world class suppliers

Demand for buttons and zippers at a sportswear manufacturer is an example of:

dependent demand.

A transportation strategy should include consideration of:

safety on the ground, in the air and on water, environmental factors such as pollution, alternative transport modes all of the above.

The three main inputs of a material requirements planning (MRP) system are:

a bill of material, a master production schedule, and the inventory record.

The lowest price that ensures a continuous supply of the proper quality where and when needed and allows the supplier to make a reasonable profit, is commonly known as:

a fair price.

Hedging is a way to:

Try to minimize price and exchange risks.

Maquiladoras in Mexico:

are designed to take advantage of low Mexican labor costs.

Transportation rates:

are established primarily through negotiation.

"C" items as classified in ABC analysis of inventory are:

are in large quantities and ordered frequently.

The fairest possible means of treating all suppliers alike in a competitive bidding situation is to:

establish a policy of firm bidding.

A six sigma (6s) approach to quality:

focused on preventing defects by using data to reduce variation and waste.

In international buying, the type of entity that normally assists in locating supplier and handling documentation is a(n):

import broker

Vendor-Managed inventories has the following benefit(s):

improves inventory turnover rates

With deregulation of the transportation industry and the development of intermodal service, the focus for the transport buyer is:

the carrier's ability to handle multiple parts of the logistics process.

Integrated carriers (truck-air) like UPS and Federal Express are able to capture a large market share because they:

utilize their own aircraft, have extensive ground networks, have accurate, real-time tracking systems. all of the above.

The supplier evaluation process that includes: (1) facts or criteria for evaluation, (2) the importance of each factor, (3) a system for rating each supplier on each factor, is called a(n):

weighted point evaluation

The selection of the FOB point is important to the purchaser, for it determines:

who pays the carrier, when legal title to goods being shippers passes to the buyer, who is responsible for preparing and pursuing loss or damage claims. all of the above.

Compared to domestic sourcing, when sourcing offshore more lead time may be needed because of:

Inland transportation delays in the supplier's country, time needed to procure payment documentation, delays in domestic customs. all of the above

Cost incurred in the operation of a production plant or process, are called:

indirect costs.

Trends in supply management include:

limiting the number of suppliers and focusing on results from key suppliers.

When comparing the total of ownership from an international supplier to that of a domestic supplier, the international suppler's:

low labor rates must be considered in the context of productivity and quality.

A supplier certification program:

may enable the buyer and seller to lower costs and improve quality.

The cost approach to pricing:

means prices are set to cover direct costs, contribute to indirect, and attain profit.

When sourcing offshore, a buyer:

must have extensive knowledge and analysis of the country

ISO 9001:2008 provides a tested framework for a systematic approach to consistently delivering product that satisfies customers' exceptions by:

providing a set of standardized requirements a quality system must meet.

A sampling technique in which every element in the population has an equal chance of being selected is called:

random sampling.

A goal of supply chain management is to:

reduce uncertainty and risks between and among members of the supply chain.

Buyer-supplier partnerships:

result in early supplier and supply involvement in design and description

The real costs of quality:

rise significantly as defects increase in the finished product.