MKT 460 test 2
Which of the following is true of today's purchasing staff members?
All the above
ISO 14000 may play a role in a firms
Supplier certification programs
Convincing your supplier to cutting back on packaging, fuel, or electricity is an example of:
Sustainable sourcing
A practice aimed at ensuring that purchased products or materials meet environmental objectives of the organization is referring to as green purchasing
T
Demands by customers for companies to become more ethically and environmentally focused have placed added pressures on firms to improve their performance in supply chain management.
T
Sustainable sourcing takes into account the long-term impact on people, profits, and planet
T
companies outsources to help them reach their sustainability goals
T
there are two approaches to deciding whether or not an action is ethical. the first appoarch is utilitarianism. the second approach is rights and duties
T
For a large company with many strategic supplier alliances, what would be the best way to manage them
Create an alliance board to oversee alliances
Not all ERP software is designed to provide the exact same tools, nonetheless, some of the common modules usually included in ERP software packages include:
Customer relationship management and Human resource management
When demand and delivery lead time are known and constant, the reorder point is the ____.
Demand during the delivery lead time
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 is NOT a common module of ERP systems?
Marketing Resources Management
Which strategy uses overtime and subcontracting to cope with the high demand periods ?
Mixed Production Strategy
Legacy MRP systems had which of the following limitations?
all of these
Successful strategic supplier alliances can result in which of the following
all of these
As described in the text, a "fair trade product" refers to selling and purchasing products without cash transactions
F
Benchmarking is the practice of watching the mistakes other businesses do and try to avoid the same mistakes
F
Ethical sourcing policies should not include determining where all purchased goods come from and how they are made
F
It is best for firms to learn through their own experiences the methods and tools that work the best, rather than benchmarking
F
Reverse logistics has become an important trend in ethical and sustainable sourcing.
F
Sustainable sourcing practice include promoting diversity by intentionally buying from ethnic minority business
F
Which of the following is NOT a step suggested in the Supply Chain Sourcing Strategy Framework
Certify suppliers as ISO 9001 compliant
Which of the following basic production strategies works best with make-to-order manufacturing firms?
Chase Production Strategy
Which of the following MRP terms represents the parts demanded by a parent?
Component
Independent demand is the:
Demand for a a firms end products
Which of the following is considered a disadvantage of utilizing an ERP system?
ERP systems are very complex and have proven difficult to implement
Which of the following is considered an advantage/benefit of utilizing an ERP system?
Enables the company to utilize a single centralized database system, thus eliminating duplicate data entries
The acronym ERP is short for:
Enterprise Resource Planning
There are just a small number of resources available for firms seeking to learn about and implement successful sourcing practices
F
______________ considers the public consequences of organizational buying.
Ethical Sourcing
Promoting diversity by intentionally buying from small firms or ethnic minority businesses is an example of:
Ethical sourcing
Which of the following describes a global RFID challenge?
Globally, the RFID industry does not have its own UHF spectrum allocation.
The EOQ model with quantity discounts attempts to determine:
How many units should be ordered
the use of environmental suppliers certification programs assists companies by which for the following
Identifying strategic alliance candidates
Which one of the following statements regarding the economic order quantity (EOQ) is true?
If an order quantity is larger than the EOQ, then the annual holding cost will exceed the annual ordering cost.
Which of the following is NOT one of the three basic methods used to calculate the available-to-promise quantities?
Indiscrete available-to-promise
While ERP is a relatively new technology, it has grown rapidly since the early 1990s. Which of the following is the reason that has contributed to its rapid growth?
The year 2000 millennium bug
Sustainable sourcing policies should include which of the following?
Use of renewable energy
In designing an ethical and sustainable strategy a firm might make use of which of the following?
Use performance measures to identify weakness
Which of the following terms refers to an act that creates the greatest good for the greatest number of people:
Utilitariansim
which of the following is true?
VMI stands for Vendor Managed inventory
A service where key customers ask suppliers to take on the job of store level replenishment planning is called:
Vendor Managed inventory
Which of the following would be considered a dependent demand item?
Bicycle tires used to assemble a bicycle
If an item is ordered using its economic order quantity, the annual carrying cost should be:
equal to the annual ordering cost.
Why are firms migrating to ERP systems?
erp systems tie together a variety of specialized systems
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
In the ABC Inventory Matrix shown, inventory in area Y suggests:
inventory that matches sales.
Which of the following is a disadvantage of carrying too much inventory?
it creates an unnecessary waste of scarce resources.
Classify the following inventory items as either A, B, or C items using the ABC inventory control system:
item 1 (C), item 2 (A), item 3 (C), item 4 (B), item 5 (C)
The primary purpose of the basic economic order quantity (EOQ) model is to:
none of the above
Use the information below to calculate the number of orders per year when using the EOQ:
49
If at the end of the year, the cost of revenue = $2,500, total revenue = $12,000 and inventory value = $2,000, the inventory turnover ratio would be:
1.250
The College Bookstore sells a unique calculator to college students. The demand for this calculator has a normal distribution with an average daily demand of 20 units and a standard deviation of 4 units per day. The lead time for this calculator is 9 days. Compute the statistical reorder point that results in a 95 percent in-stock probability. Choose the closest answer.
200
The College Bookstore sells a unique calculator to college students. The demand for this calculator is constant at 20 units per day. The lead time for this calculator is variable at an average of 9 days with a standard deviation of 2 days. Compute the statistical reorder point that results in a 95 percent in-stock probability. Choose the closest answer.
246
Complete the following MRP record and provide the planned order releases for Week 1. Lead time is 2 weeks. Safety stock is 3. Use LFL lot sizes.
29
The cost of a product is $5, and the carrying cost rate is 20%; the cost of processing an order is $45 and the annual demand is 1000. What is the economic order quantity (EOQ)?
300
When demand and delivery lead time are known and constant, daily demand = 8, purchase lead time = 5 days, and the purchase price = $20/unit, then the reorder point is:
40
If an available-to-promise (ATP) for any period is negative, the deficit must be subtracted from the:
Most recent positive ATP
Which of the following would refer to the 80/20 rule when applied to the ABC inventory control system?
80 percent of the total annual $ usage is accounted for, by 20 percent of the items.
A fair trade product refers to one that is manufactured or grown by a disadvantaged producer in a developing country that receives for its goods
A fair Price
benchmarking is
A practice where companies attempt to learn and apply the best practices of other companies
Calculate the final discrete available-to-promise quantity for Week 1 using the following table.
ATP1 = 10
Which of the following keeps the production plan's capacity fixed during the planning horizon?
Aggregate Production Plan
The __________ specifies which end product is to be made, how many are required, and when they need to be completed.
Aggregate production plan
Which of the following is a trend in ethical and sustainable sourcing?
All of these
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.
What inventory factor may be omitted from the basic EOQ derivation because it is a constant?
Annual Purchase cost of goods
Leading companies practicing sustainable sourcing and seeking to reduce costs would not use which of the following strategies
Backward integration to purchase suppliers
Using the ________________ multiple software infrastructures and databases may have to be used to link the multiple applications obtained from different vendors.
Best-of-breed solution
An advantage/benefit of utilizing an ERP system includes which of the following?
Both A & B
Which of the following results from using the chase production strategy?
Both a and b
According to the textbook, which of the following is considered a reason that ERP implementations fail?
Lack of communication within an organization
Sustainability reporting is ______________ for American companies
Largely a voluntary effort
All of the following are reasons for the increasing use of ethical and sustainable sourcing practices EXCEPT:
Legislation requiring corporate ethical and sustainable sourcing
In a bill of materials, items at which level are independent demand items?
Level 0
Which of the following should NOT be used as assessment criteria to evaluate the purchasing department's performance?
Lowering inventory turnover rates
Lubricants for production equipment which are not parts of the final products are called:
Maintenance, repair and operating supplies
The ___________ planning horizon is shorter than the aggregate production plan's, but must be longer than a firm's production lead time to ensure the end item can be completed within the planning horizon?
Master production schedule
Which of the following seeks to develop short range plans seeking to effectively and efficiently manage components and/or subassemblies over time period of few days to a few weeks?
Material requirements plan
Some businesses refer to sustainability in terms of supporting the three P's. This stands for
People, Planet, profit
What is the most important output of the MRP?
Planned order releases
Which of the following is NOT an assumption of the economic order quantity (EOQ) model?
Production and use occur simultaneously
The _______________ is used to check the feasibility of the Master Production Schedule.
Rough-Cut Capacity Plan
Which of the following MRP terms represents a committed order awaiting delivery for a specific period?
Scheduled receipt
ERP systems are very complex and have proven difficult to implement
Single integrator
Which of the following is TRUE regarding the EOQ figure below?
The EOQ is at lot size G, and curve K is the annual holding cost curve.
Which strategy allows finished goods inventories to accrue and relies on backlogs to handle the demand?
The Level Production Strategy
Legacy MRP systems typically utilized multiple software packages and databases which caused:
The same information to be stored in multiple locations
one standard which is a measured in environmental supplier certification is
The suppliers' recycled content
Why do firms assess their sourcing capabilities?
They can gauge their success in improving their own value-enhancing contributions to the firm
Which one of the following is NOT a reason for firms to carry inventory?
To increase production change/setup costs
A negotiation where both sides work together to maximize the joint outcome or to create joint optimal results referred to as:
Win-Win negotiations
The Ethical Trading Initiative (ETI) does NOT include which of the following:
Workers receive a 30 min break for an 8 hour shift
If your company had an annual purchase cost of items equal to $2,000,000, an annual holding cost of $150,000 and an annual ordering cost of $50,000 this scenario would reveal that
Your order lot size was higher than the EOQ
Which of the following is true under the Periodic Review System?
a higher level of safety stock is needed to buffer against uncertainty in demand over a longer planning horizon, compared to the EOQ system
Which of the following can be used as a punishment for suppliers that perform poorly
all of these
which of the following could be an ethical and environmental certification requirement
all of these