Intro to Supply Chain Management (Chapter 5, 6, 7
Benefits derived from implementing an e-procurement system include all of the following except Time savings Real Time Access Trackability Decentralizing Purchasing
Decentralizing Purchasing
An outsourcing program can result in all of the following positive outcomes, except? reducing staffing levels decreased need for supplier management cost reduction gains in manufacturing flexibility
Decreased need for supplier management
Award-winning suppliers serve as role models for other suppliers and may therefore be exempt from audits and certification programs
False
The purchasing function is one of the most value-enhancing function in any organization, and therefore, it is NOT necessary to periodically monitor the purchasing function's performance against a set of standards or industry benchmarks (True or False)
False
Which sourcing strategy would typically be used for items with low profit margins, relatively stable demand, and high levels of competition?
Functional product -> multi source
Which of the following is NOT one of the primary goals of purchasing? Ensure the uninterrupted flow of materials and services at the lowest total cost Improve the quality of the finished goods produced Increase the supplier base Optimize customer satisfaction
Increase the supplier base
LEAN manufacturing emphasizes all of the following EXCEPT Continuous improvement Large batch sizes Reduction of waste Synchronization of material flows
Large batch sizes
High value, low risk, and there are multiple potential suppliers
Leverage
managing a company's external resources in ways that support the long-term goals of the company can be referred to as?
Strategic sourcing
A purchase order is only legally binding once approved by....
The seller
The sum of all costs associated with every activity in the supply chain of a product, is referred to as?
Total Cost of Ownership
Outsourcing allows a firm to concentrate on core capabilities and reduce staffing levels (True or False)
True
Pain and Gain Share contract provisions are associated with the supplier rewards and recognition programs
True
Successful supplier relationship involve equal decision-making control between both the buyer and the supplier
True
Low value, high risk, and there are a small number or alternative suppliers
Bottleneck
Which statistical tool of Six Sigma is used to determines the frequency of specific problems?
Check Sheet
What is the term that is often used for the acquisition of services?
Contracting
The best supplier candidates for Supplier Relationship Management (SRM) include all of the following EXCEPT? Preferred suppliers Developmental suppliers that need to make improvements Suppliers that provide lesser quantities of a crucial products/services Suppliers that provide high volumes of products or services
Developmental suppliers that need to make improvements
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
False
The Profit-Leverage Effect states that a decrease in purchasing expenditures will directly decrease profit (True or False)
False
Low value, low risk, and there are lots of potential suppliers
Non-Critical
The process commonly utilized in continuous improvement is known as
Plan, do, check, act
High value, high risk, and there are few suppliers, but they are excellent
Strategic
An organization's process for evaluating the quality systems of key suppliers in an effort to eliminate income inspections can be referred to as?
Supplier certification
Which of the following would be a good reason to outsource (buy) versus make an item? The company lacks the technology or expertise to produce an item To utilize existing capacity within a company's own operations To have more direct control over the design and production of an end item No competent supplier presently produces the needed item
The company lacks the technology or expertise to produce an item
Duties, taxes, or customs imposed by the host country for imported or exported goods, are known as Tarrifs (True or False)
True