OMIS 320 Exam 1
The term Supply Chain Management and the field of study it represents today seems to have emerged in the:
1980's
Given the following make-buy information, what would be the break-even point? Make Option Buy Option Fixed Costs $15000 $1250 Variable Costs $ 5 $ 10
2750 Units
Which of the following would be a good reason to outsource (buy) versus making?
A firm lacks the technology or expertise to produce an item
Which of the following would be considered a third party provider?
A firm that leases storage warehousing
Given the following make-buy information, what would be the break-even point? Make Option Buy Option Fixed Costs $7500 $1500 Variable Costs $ 4 $ 9
1200 Units
Field failures, loss of goodwill, a decreased reputation, and warranty costs can all be classified as:
Post-transaction costs
Costs associated with investigating alternative suppliers and investigating alternative delivery options can be classified as:
Pre-transaction costs
According to the text, the FOUR important elements of the supply chain are:
Purchasing, operations, logistics, integration
Which third party certification was adopted by the European Union in 1992 that caused US suppliers wanting to stay competitive in European Union countries to get certified?
ISO 9000
One operational method for controlling and managing inventory is the implementation of a software system which can be referred to as:
Material requirements planning (MRP)
The Uniform Commercial Code governs the purchase and sale of goods in the US except in the state of:
Louisiana
Which of the following acronyms is NOT paired with its correct "translation?"
MRP Manufacturing Responsiveness and Planning
Which of the following is TRUE?-
Continuous improvement and change management are both keys to building successful partnerships.
Right-shoring refers to:
Contraction activities within the supply chain
A company using a weighted-criteria evaluation system has established these 3 categories and the appropriate weight in parentheses: Quality(0.30), Delivery(0.40), Cost(0.30).The scores for each category are shown below. Which of the following companies has the highest total score?
All companies scored the same.
SRM software should be capable of:
All of these
Which of the following can be classified as a 3PL?
All of these
Which of the following is an illustration of a company that has vertically integrated?
All of these
The hybrid purchasing system, such as the one utilized by Harrah's, includes many benefits. In such a system the regional office preserves four fundamental purchasing rights. Which of the following is NOT one of those rights?
Allow suppliers to bid for each purchase
The following is an example of the bullwhip effect:
Barkley's incorrectly anticipates consumer demand resulting in stockouts at several popular retailers
Which of the following was a popular way in the 1990's of developing radically new business processes in an effort to reduce waste and increase performance?
Business process reengineering
Which of the following is a system that aids in controlling inventory?
Both MRP and ERP
The following supply chain concept was introduced in the 1990's in an attempt to reduce waste and increase performance:
Business Process Reengineering
When calculating Return on Investment, current assets include:
Cash, Accounts Receivable, and Inventory
A company using a weighted-criteria evaluation system has established these 3 categories and the appropriate weight in parentheses: Quality(0.30), Delivery(0.20), Cost(0.50).The scores for each category are shown below. Which of the following companies has the highest total score?
Company B: Quality(70), Delivery(90), Cost(80)
A certain supply chain is made up of: 1. Raw Materials Supplier 2. Components Manufacturer 3. A firm that manufacturers Sub-assemblies 4. End Item Manufacturer 5. Wholesale Distributor 6. Local Retail Chain Warehouse Who is considered the End Item Manufacturer's second tier supplier?
Components Manufacturer
Benefits derived from implementing an e-procurement system include all EXCEPT:
Decentralized Purchasing
Which of the following statements is FALSE?
Decentralized purchasing means not having any purchasing departments and allowing all employees to act as purchasing agents
While most public procurement is focused on goals similar to those of purchasing departments in the private sector, U.S. federal government purchases must comply with the:
Federal Acquisition Regulation
If a distribution company that focused on warehousing and distribution of grocery items decided to purchase a chain of grocery stores, the distribution company would be exemplifying:
Forward vertical integration
According to the textbook, the Las Vegas division of Harrah's Entertainment utilizes which of the following purchasing structures?
Hybrid (centralized-decentralized)
Which of the following is NOT a form of countertrade
Incoterming
Benefits of implementing an effective supplier certification program include all or the following EXCEPT:
Increasing supplier base
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:
Planned Order Release
The process of certifying a new supplier is considered what type of major cost category?
Pretransaction Cost
Inventory Turnover can be calculated by:
Ratio of cost of goods sold over average inventory cost
A certain supply chain is made up of: 1. Raw Materials Supplier 2. Components Manufacturer 3. A firm that manufacturers Sub-assemblies 4. End Item Manufacturer 5. Wholesale Distributor 6. Local Retail Chain Warehouse Who is considered the second tier supplier of the firm that manufacturers Sub-assemblies?
Raw Materials Supplier
Which of the following is a reverse logistics activity:
Recycling products and components
Direct benefits of ISO 14000 include:
Reduction of pollution emission
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:
Request for Quotation
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
Streamlining the processes and communications between the buyer and supplier using software applications that enable these processes to be managed more efficiently and effectively can be referred to as:
SRM
When using a Weighted Criteria Evaluation System to evaluate suppliers, all of the following are true EXCEPT:
Select the key dimensions of performance based on what is important to the consumer
Which of the following is strategy usually employed by lean organizations in an effort to ensure continued quality compliance among suppliers and with internal production facilities?
Six Sigma
Which of the following statements is TRUE?
Strategic partnerships are seen as one of the foundations of supply chain management
The acronym SRM refers to:
Supplier Relationship Management
Which of the following is a reason that single sourcing is considered risky/bad?
The limited (finite) capacity of one supplier
Successful modern supply chain management typically includes the practice of:
The sharing of information between supply chain partners
According to the text, the goal of a good performance evaluation system is to provide metrics that are:
Understandable, easy to measure, focused on value-added results
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 (0.20) Cost (0.25) Technology (0.20) Company X received the following ratings in each of the five categories: Quality(90), Responsiveness(90), Delivery(80), Cost(80), Technology(90). What is their total score?
85.5
A company using a weighted-criteria evaluation system has established these 5 categories and the appropriate weight in parentheses: Quality (0.30) Responsiveness (0.20) Delivery (0.20) Cost (0.20) Technology (0.10 )Company X received the following ratings in each of the five categories: Quality(90), Responsiveness(80), Delivery(80), Cost(90), Technology(90). What is their total score?
86.0
According to the textbook, conditions which must be present for successful supply chain management include:
Cooperation among firms
which of the following statements is TRUE? Consumers buy products based on a combination of:
Cost, quality, availability, maintainability, and reputation
Benefits derived from implementing e-procurement systems include all of the following EXCEPT:
Creates numerous additional job opportunities in the purchasing department
Which of the following is NOT important in developing a successful strategic alliance?
Developing efficient processes that will remain unchanged for the duration of the partnership
The primary goals of purchasing include all EXCEPT:
Ensure the highest quality raw materials are purchased
According to the text, key ingredients for developing successful supply partnerships include all of the following EXCEPT:
Individualized objectives
Assembly or production of finished products, producing the right amount of product, and ensuring that finished products meet specific quality, cost, and customer service requirements are all important issues that are most closely related to:
Operations
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 referred to as:
Profit-Leverage Effect
Which of the following documents is considered the buyer's 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 document?
Purchase Order
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
On occasion, firms assist suppliers, new or old, to improve their processing capabilities, product or service quality, delivery effectiveness, and cost performance by providing the required technical and financial assistance. This is referred to as:
Supplier development
Encouraging or helping a firm's suppliers to perform in a desired fashion can be referred to as:
Supplier management
The combination of the purchase price of a good and additional costs incurred before or after product delivery can be referred to as:
Total cost of ownership
Lean production is typically associated with which of the following company's production systems?
Toyota
A pre-printed order form for purchasing materials and standard parts that are requested on a recurring basis is referred to as:
Traveling Requisition
Which type of requisition is used for materials and standard parts that are requested on a recurring basis?
Traveling requisition
Which of the following is important in developing successful relationships in a partnership?
all of these
The Hormel company awards their Hormel Food Corporation's No. 1 Award to their top supplier. How often to the give this award?
every 5 years
According to the textbook, which of the following companies utilizes a supplier development program called Supplier Continuous Quality Improvement (SQDI) focused on improving the quality of the goods and services purchased and minimize the time needed to inspect incoming products?
intel
Transportation management, customer relationship management, network design, and service response logistics are all important issues that are most closely related to:
logistics
Which of the following acronyms is NOT paired with its correct "translation?"
ERP Estimated Response Parameters
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:
Early supplier involvement
Summers, Inc. needs to generate a list of good/services purchased per supplier. Which type software program can the manager consult to obtain the information?
SRM
Which of the following illustrates Forward Vertical Integration?
Sony buying trucks to deliver their finished goods inventories to their customers' warehouses