exam1

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

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

Supplier Certification

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

TLS - Third-party Logistics Services

Which of the following terms refers to an act that creates the greatest good for the greatest number of people:

Utilitarianism

A negotiation where both sides work together to maximize the joint outcome or to create a joint optimal result is referred to as

Win-Win Negotiations

Supply chain management includes the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. It also includes:

Coordination and collaboration with channel partners

Which of the following statements is FALSE?

. Centralized purchasing is where individual, local purchasing departments, such as at the plant level, make their own purchasing decisions.

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

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

A company using a weighted-criteria evaluation system has established these 5 categories and the appropriate weight in parentheses: Quality (0.25) Responsiveness (0.10) Delivery (0.15) Cost (0.15) Technology (0.30) Company X received the following ratings in each of the five categories: Quality(90), Responsiveness(90), Delivery(80), Cost(80), Technology(85). What is its total score?

81.0

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

A.Mutual/compatible needs that result in a win-win situation for the partners b. Interpersonal business relationships between employees of the companies c. Commitment by top management All of these choices are correct.(answer)

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?

Amazon

The following is an example of the bullwhip effect:

Barkley's incorrectly anticipates consumer demand resulting in stockouts at several popular retailers

According to the text, which of the following is considered a current trend in supply chain management?

Both "Using supply chain analytics" and "Increasing supply chain visibility

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

Demand Management

According to the textbook, Supplier Recognition Programs:

Encourage suppliers to keep their performance high

The purchasing department at Big Horn Sheep Corporation decided to intentionally increase purchases from small, underdeveloped nations. This decision can be considered:

Ethical Sourcing

Which of the following can happen as a result of the bullwhip effect?

Excess costs for each firm in a supply chain

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

False

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

Hiring former employees from other companies and assessing their knowledge

SRM software should be capable of:

Integration of the supply chain making it possible to monitor multiple departments and processes both internally and externally b. Automating transactional processes c. Making information flow between partners more visible d. All of these choices are correct.( Answer)

Which of the following is NOT a form of countertrade?

Kaizen blitz

Sustainability reporting is ______________ for American companies:

Largely a voluntary effort

Which of the following is NOT a key tenant of an SRM system?

Lean Operations

Blanket or open-end purchase orders are suitable for buying

Office Supplies

Some businesses refer to sustainability in terms of supporting the three P's. This stands for:

People,Planet, Profit

Which of the following is true?

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

inventory Turnover can be calculated by:

Ratio of cost of goods sold over average inventory cost

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

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

Six Sigma

The total cost of ownership for Supplier A is $2,670,000. The total cost of ownership for Supplier B is $1,750,000. The total cost of ownership for Supplier C is $2,990,000. Using Total Cost Analysis, it will be more cost-effective to use

Supplier B

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

Supplier certification

ISO 14000 may play a role in a firm's.

Supplier certification program

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

To select the best suppliers

Automating procurement activities can lead to significant cost savings as buyers move toward managing processes by exception.

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.

True

When a product is purchased which is complicated or highly technical a ______________may be issued instead of a request for quotation.

request for proposal