SCM 300 EXAMINATION 1
(T/F) The development of relationships with suppliers brings about changes that must be managed for a company to stay focused on their core businesses.
True
(T/F) The goal of a good purchasing system is to ensure efficient information transitions between the materials users, the purchasing personnel, and the suppliers.
True
(T/F) The purchase order is NOT a legally binding contract until it is accepted by the supplier.
True
According to the text, key ingredients for developing successful supply partnerships include all of the following EXCEPT: a. Personal relationships b. Performance metrics c. Mutual benefits and needs d. Individualized obiectives
Individualized obiectives
Customer relationship management, distribution network, transportation management, and service response logistics are all important issues that are most closely related to: a. Purchasing b. Logistics c. Integration d. Manufacturing
Logistics
Which of the following statements is TRUE? a. Supply chain management was invented by the auto manufacturing industry. b. Strategic partnerships are seen as one of the foundations of supply chain management. c. Purchasing is seen as the final and most difficult step in the supply chain. d. Service response logistics is the digital distribution of services.
Strategic partnerships are seen as one of the foundations of supply chain management.
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: a. Supplier certification programs b. Heuristics c. Early supplier involvement d. Focused Work Centers
Early supplier involvement
According to the textbook, Supplier Recognition Programs: a. Are generally not very effective b. Are used by 90% of companies c. Encourage suppliers to keep their performance high d. Are difficult to implement
Encourage suppliers to keep their performance high
The primary goals of purchasing include all EXCEPT: a. Secure materials at the lowest cost b. Maximize customer satisfaction c. Improve the quality of finished goods produced d. Ensure the highest quality raw materials are purchased
Ensure the highest quality raw materials are purchased
The Hormel Company awards its Hormel Food Corporation's No. 1 Award to its top supplier. How often do they give this award? a. Every year b. Every 6 months c. Every 5 years d. Every 3 years
Every 5 years
(T/F) The universally accepted definition of supply chain management is "the management and integration of the parties involved in producing the end items coveted by consumers."
False
According to the textbook, conditions which must be present for successful supply chain management include: a. High level of trust among firms b. Corporate contracts regarding performance expectations c. Short-term company focused performance d. Benchmarking
High level of trust among firms
The benefits of implementing an effective supplier certification program include all of the following EXCEPT: a. Building long-term beneficial relationships b. Increasing supplier base c. Reducing time spent on incoming inspections d. Recognizing excellence
Increasing supplier base
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: a. Material Requirements Planning (MRP) b. Supplier Relationship Management (SRM) c. ISO 9000 d. Distribution Resource Planning (DRP)
Supplier Relationship Management (SRM)
(T/F) Generally, firms outsource noncore activities while focusing on core competencies.
True
(T/F) The procedures for public procurement differ from the private sector.
True
Before entering into any partnership. organizations should conduct a thorough investigation of its suppliers' capabilities and core competencies.
True
According to the text, the goal of a good performance evaluation system is to provide metrics that are: a. Understandable, easy to measure, focused on value-added results b. Understandable, quantitative, focused of cost-related results c. Understandable, qualitative, focused on short-term results d. Understandable, quantitative, focused on quality-related results
Understandable, easy to measure, focused on value-added results
The total cost of ownership for Supplier A is $1,670,000. The total cost of ownership for Supplier B is $2,250,000. The total cost of ownership for Supplier C is $1,990,000. Using Total Cost Analysis, it will be more cost-effective to use a. Supplier A b. Supplier B c. Supplier C d. Cannot be determined
Supplier A
(T/F) If a company is effectively focusing on its core competencies, its level of outsourcing is likely to increase.
True
Which of the following best describes incoterms? a. Incoterms deal with dispute resolutions. b. Incoterms are a substitute for a sales contract. c. Incoterms simplify international transactions of goods with respect to transport obligations. d. Incoterms deal with consequences for breach of performance.
Incoterms simplify international transactions of goods with respect to transport obligations.
Which of the following is NOT a potential challenge for global sourcing? a. Long delivery lead times b. Costs involved in selecting foreign suppliers c. Reduction of international trade barriers d. Labor and legal problems
Reduction of international trade barriers
The Supplier Working Relations Index WRIG) is an annual survey of the working relationships between which of the following? a. NAFTA and WTO b. North America-based OEM customers and their Tier 1 suppliers c. The European Union and the United States d. North America-based OEM customers and their product development teams
North America-based OEM customers and their Tier 1 suppliers
Blanket or open-end purchase orders are suitable for buying a. Computers b. Heavy equipment c. Custom built components d. Office supplies
Office supplies
An organization's process for evaluating the quality systems of key suppliers in an effort to eliminate incoming inspections can be referred to as: a. Quality Systems Certification b. Supply Management c. Supplier Inspection d. Supplier Certification
Supplier Certification
Which of the following companies are indirectly involved in most supply chains? a. Trucking and airfreight companies b. Freight forwarders c. Public warehousing firms d. All of these
All of these
SRM software should be capable of: a. Automating transactional processes b. Making information flow between partners more visible c. Integration of the supply chain making it possible to monitor multiple departments and processes both internally and externally d. All of these are correct
All of these are correct
Which of the following is important in developing successful relationships in a partnership? a. Commitment by top management b. Interpersonal business relationships between employees of the companies c. Mutual/compatible needs that result in a win-win situation for the partners d. All of these are correct
All of these are correct
An example of an internal or external event that causes a disruption or failure of supply chain operations is: a. Supply chain risk b. Back-shoring c. Six Sigma quality management d. COVID-19 Pandemic
COVID-19 Pandemic
SRM software can automate procurement activities that lead to significant cost savings as purchasing professionals move toward: a. Collaborative planning b. Diversifying their hiring c. Improving capacity d. Expediting each order
Collaborative planning
Which of the following is an advantage of a centralized purchasing department? a. Less bureaucracy b. More frequent shipments c. Common supply base d. Closer contact between buyer and user
Common supply base
(T/F) According to the textbook, environmental and social impacts are considered outside of the supply chain.
False
Petty cash is being phased out in favor of: a. Hard cash b. A blank check c. P-card d. Wire transferring
P-card
Return on assets (ROA) can be calculated by: a. Ratio of cost of goods sold over total assets b. Ratio of net income over total assets c. Ratio of average inventory cost over total assets d. Ratio of net income over average inventory cost
Ratio of net income over total assets
When a product is purchased that is complicated or highly technical, what may be issued instead of a request for quotation? a. Request for proposal b. Purchase order c. Contract for sale d. Sales order
Request for proposal
When using a Weighted Criteria Evaluation System to evaluate suppliers, all of the following are true EXCEPT: a. Use a tracking signal to determine if the system is within acceptable limits b. Assign weights to each of the dimensions of performance based on their relative importance to the company's objectives c. Evaluate each of the performance measures on a rating between zero and one-hundred d. Multiply the dimension ratings by their respective important weights and then sum to get an overall weighted score
Use a tracking signal to determine if the system is within acceptable limits
When a particular item is in short supply accompanied by rising prices, a firm might find it beneficial to: a. Discontinue buying the product and focus more on cheaper products. b. Align itself with one of the suppliers to ensure a continued supply of the scarce item. c. Purchase the item from a manufacturer who cuts corners and provides a product below market price. d. All of these
Align itself with one of the suppliers to ensure a continued supply of the scarce item.
According to the Buy American Act, which of the following does the Buy American Act apply to? a. The procurement is intended for public use within the U.S. b. The materials to manufacture the goods are available in the U.S. c. U.S. government purchasers must purchase domestically produced goods d. All of the choices are correct
All of the choices are correct
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? a. Company A: Quality (90), Delivery (85), Cost (60) b. Company B: Quality (70), Delivery (95), Cost (60) c. Company C: Quality (80), Delivery (80), Cost (70) d. All companies scored the same.
Company A: Quality (90), Delivery (85), Cost (60)
Benefits derived from implementing e-procurement systems include all of the following EXCEPT: a. Allows buyers to submit bids and suppliers to respond to those bids in real time b. Increases the accuracy in communication between buyers and suppliers c. Creates numerous additional job opportunities in the purchasing department d. Allows buyers to support minority or locally owned businesses by storing this supplier information
Creates numerous additional job opportunities in the purchasing department
Which of the following is NOT important in developing a successful strategic alliance? a. Developing performance metrics b. Developing cross-functional team capabilities externally and within the company c. Developing customer contact centers d. Open lines of communication that both promote sharing and secure confidentiality
Developing customer contact centers
Which of the following is NOT a form of countertrade? a. Barter b. Kaizen blitz c. Offset d. Counter purchase
Kaizen blitz
One operational method for managing inventory is the implementation of a software system which can be referred to as: a. Customer relationship management (CRM) b. Demand capacity tracking (DCT) c. Material requirements planning (MRP) d. Demand process reengineering (DPR)
Material requirements planning (MRP)
The following is an example of the bullwhip effect: a. Nike includes safety stock of 5,000 units of shoestrings in its demand forecast causing its shoestring supplier to increase their normal output for Nike. b. Nike products are so successful that it adds a new retailer for distribution c. Nike produces a defective product and thus realizes an excessive increase in consumer returns d. Nike is unhappy with the performance of a distributor which causes a chain-reaction of replacements to companies involved in its supply chain
Nike includes safety stock of 5,000 units of shoestrings in its demand forecast causing its shoestring supplier to increase their normal output for Nike.
Which of the following is 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? a. Material requisition b. Green purchasing c. Planned order release d. Distributed purchasing
Planned order release
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? a. Break-Even Analysis b. Profit-Leverage Effect c. Direct Offset d. Leveraging Purchase Volume
Profit-Leverage Effect
Total Cost of Ownership does NOT consider which of the following factors? a. Purchase order costs b. Freight costs c. Currency exchange fees d. Tooling costs
Purchase order costs
Which of the following would decrease purchase spend? a. Increasing safety stock levels b. Increasing queue management c. Decreasing information visibility along the supply chain d. Purchasing materials at a lower total acquisition cost
Purchasing materials at a lower total acquisition cost
According to the textbook, the order of product and service flow is as follows: a. Raw material supplier, retailer, component manufacturer, wholesale distributor, end product manufacturer, end-product consumer b. Raw material supplier, component manufacturer, retailer, wholesale distributor, end product manufacturer, end-product consumer c. Component manufacturer, raw material supplier, retailer, wholesale distributor, end product manufacturer, end-product consumer d. Raw material supplier, component manufacturer, end product manufacturer, wholesale distributor, retailer, end-product consumer
Raw material supplier, component manufacturer, end product manufacturer, wholesale distributor, retailer, end-product consumer
Which of the following is a reverse logistics activity? a. Delivering finished goods to your customer b. Recycling products and components c. Developing a collaborative relationship with your supplier d. Managing the quality of products
Recycling products and components
Summers, Inc. needs to generate a list of good/services purchased per supplier. Which type software program can the manager consult to obtain this information? a. ISO 9000 b. MRP c. SRM d. SCSS
SRM
The following strategy is usually employed by lean organizations in an effort to ensure continued quality compliance among suppliers and with internal production facilities: a. Six Sigma b. MRP II c. 3PL d. CAPS
Six Sigma
Firms typically use all of the following factors when considering which suppliers to select for important materials EXCEPT: a. Order system and cycle time b. Location c. Process and product technologies d. Slotting fees
Slotting fees
Encouraging or helping a firm's suppliers to perform in a desired fashion can be referred to as: a. Progressive procurement b. Supplier management c. Right-shoring d. Supply chain performance management
Supplier management
During the COVID-19 pandemic, organizations found out that what were more important than ever to mitigate the risk of supply chain disruptions? a. Time horizons b. Computer numerical controls c. Developing missions and strategies d. Supplier relationships
Supplier relationships
Which of the following is a reason that single sourcing is considered risky/bad? a. There could be supplier interruptions due to political instability b. It could establish close relationships with the supplier c. Larger orders make quantity discounts more likely d. Decreases the item quality variability of items purchased
There could be supplier interruptions due to political instability
To soften supply chain disruptions in the event we face another global crisis, a good strategy for organizations would be: a. To add more customer flexibility to better meet changing product preferences b. To build a more resilient supply chain c. For managers to focus on a limited number of products d. To develop a time-phased stock-replenishment plan
To build a more resilient supply chain
Which of the following is a reason small value purchases are handled differently? a. To give the buyer additional supplier choices b. To obtain a higher quality product c. To have better tracking of material usage d. To control unnecessary administrative costs
To control unnecessary administrative costs
Which of the following statements is TRUE regarding SRM? a. Transactional SRM tends to focus on short-term reporting and is event driven, focusing on such questions as: What did we buy yesterday? b. Analytic SRM tends to focus on short-term reporting and is event driven, focusing on such questions as: What did we buy yesterday? c. Transactional RM enables more difficult and important questions about supplier relationships, such as: Which suppliers should we develop long-term relationships with? d. None of these answers is true.
Transactional SRM tends to focus on short-term reporting and is event driven, focusing on such questions as: What did we buy yesterday?
Which type of requisition is used for materials and standard parts that are requested on a recurring basis? a. Open requisition b. Blanket requisition c. Traveling requisition d. Recyclable requisition (Cyc-Rec)
Traveling requisition
(T/F) A low ROA suggests that management is capable of generating large profits with relatively small investments.
False
(T/F) Transactional SRM enables an organization to track supplier interactions such as order planning, order payment, and returns.
True
(T/F) Today, it is sufficient to just reward your best suppliers with more business.
False
Which of the following acronyms is NOT paired with its correct "translation"? a. TQM - Total Quality Management b. JIT - Just-in-Time c. TLS - Third-party Logistics Services d. ERP - Enterprise Resource Planning
TLS - Third-party Logistics Services
(T/F) Trends in supply chain management include expansion of the supply chain and decreasing supply chain visibility.
False
Which of the following activities would fall under the foundational element of operation? a. Distribution network b. Supplier management c. Demand management d. Third-party logistics services
Demand management
Which of the following is NOT a reason for supplier recognition programs? A. To help suppliers' reputation in the marketplace B. To select the best suppliers C. To encourage suppliers to be more innovative D. To reward suppliers for excellent performance
To select the best suppliers
Lean production is typically associared will which of the following company's production systems? a. Procter and Gamble b. Kraft c. Samsung d. Toyota
Toyota
(T/F) A circular economy refers to an economic system aimed at eliminating waste and the continual use of resources.
True
(T/F) According to the textbook, supply chains include raw material suppliers, intermediate component manufacturers, end-product manufacturers, wholesale distributors, retailers, and end-product consumers.
True
(T/F) Merchant buyers' primary task is to purchase raw materials for resale purposes.
True
Field failures, loss of goodwill, a decreased reputation, and warranty costs can all be classified as: A. Pre-transaction costs B. Post-transaction costs C. Transaction costs D. All of these are correct
Post-transaction costs
According to the text, in 2019 which of the following were the top two countries with ISO 14001 certificates? a. Japan and the United States b. China and Mexico c. China and Japan d. Singapore and United States
China and Japan
Which of the following illustrates Forward Vertical Integration? a. Microsoft starting a new division that designs and manufactures clothing b. Ford automotive buying additional machines for production c. Subway sandwich company buying a bakery to make the bread for their sandwiches d. Dell Computers buying retail computer stores to sell computers to the public
Dell Computers buying retail computer stores to sell computers to the public
Which of the following can happen as a result of the bullwhip effect? A. Increase in defective products B. Excess costs for each firm in a supply chain C. Decreased levels of safety stock D. Quicker distribution to warehouses
Excess costs for each firm in a supply chain
(T/F) The 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 can all be considered elements of operations.
True
(T/F) The bullwhip effect causes an amplification of the variation in the demand pattern along the supply chain.
True
(T/F) The supplier certification process implies a willingness on the part of customers and suppliers to share goals, commitments, and risks to improve their relationships.
True
(T/F) A reason for making items instead of buying them would include better quality control.
True
(T/F) As companies outsource more and more parts, it becomes easier to achieve cost savings internally.
False
(T/F) Blank check purchase orders, Corporate purchasing cards, Petty cash, and Open-end purchase orders are all possible alternatives to dealing with small value purchases such as those for office supplies.
True
Before supplier relationship management (SRM), buyers typically spent 40% of their time on expediting orders. After SRM implementation buyers spent about: a. 10% of their time on expediting orders b. 20% of their time on expediting orders c. 30% of their time on expediting orders d. None of the these is correct
10% of their time on expediting orders
The term Supply Chain Management and the field of study it represents today seems to have emerged in the: A. 1960s B. 1970s C. 1980s D. 1990s
1980s
Which of the following would be a good reason to outsource (buy) versus making? a. To utilize existing capacity within a company's own firm b. A firm is running at or near capacity and is unable to meet demand requirements c. To have more direct control over the design and production of an end item d. No competent supplier presently produces the needed item
A firm is running at or near capacity and is unable to meet demand requirements
Which of the following would be considered a third party logistics provider? A. A raw materials supplier B. An intermediate component manufacturer C. A firm that leases storage warehousing D. An end product manufacturer
A firm that leases storage warehousing
Which of the following is NOT a true statement? A. Trust is critical for any partnership or alliance to work. B. Many alliances and partnerships have failed because objectives are not well aligned or are overly optimistic. C. When both parties share in the benefits of the partnership, the relationship will be productive and long-lasting. D. All of these are true statements.
All of these are true statements.
The continuing cycle of erratic demand causing forecasts to include safety stock which in turn magnify supplier forecasts and cause production planning problems is known as: a. Supply chain management b. Process integration c. Back-shoring d. Bullwhip effect
Bullwhip effect
Developed in the 1990s as a popular way of developing radically new business processes in an effort to reduce waste and increase performance is referred to as: A. Process integration B. Benchmarking C. Business process reengineering D. Vertical integration
Business process reengineering
Which of the following events caused one of the biggest disruptions in global supply chain history? A. World War II B. COVID-19 C. 2011 Japanese tsunami D. Hurricane Katrina
COVID-19
Which of the following statements is FALSE? a. Centralized purchasing is where individual, local purchasing departments, such as at the plant level, make their own purchasing decisions. b. Centralized purchasing minimizes the competition problem when scarce materials are purchased from the same supplier. c. Centralized purchasing eliminates the duplication of job functions. d. Centralized purchasing allows larger shipments to be made which can decrease overall transportation costs.
Centralized purchasing is where individual, local purchasing departments, such as at the plant level, make their own purchasing decisions.
In general, ISO certification encourages organizations to: a. Develop concurrent engineering teams for product design b. Consistently deliver products that meet customer and applicable statutory and regulatory requirements c. Increase their reliance on nearshoring d. Develop a critical path method to control large projects
Consistently deliver products that meet customer and applicable statutory and regulatory requirements
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: a. Human resources and job design b. Selling and marketing products c. Coordination and collaboration with channel partners d. Program evaluation and review techniques.
Coordination and collaboration with channel partners
Which of the following is NOT an appropriate strategy for managing supplier relationships during a pandemic? a. Keep in touch with suppliers to see how they are doing and to offer any assistance if needed b. Employees must exhibit a good balance of empathy and patience c. Enforce compliance to contracts made before COVID-19 d. Ensure there is open and transparent information sharing
Enforce compliance to contracts made before COVID-19
When calculating Return on Investment, fixed assets include: A. Cash, Accounts Receivable, and Inventor B. Cash, Accounts Receivable, and Equipment C. Accounts Receivable, Equipment, and Real Estate D. Equipment, Buildings, and Real Estate
Equipment, Buildings, and Real Estate
(T/F) According to the textbook, in the 1950s and 1960s, mass production techniques focused on creating supplier partnerships, improving process design and flexibility, and improving product quality.
False
(T/F) An SRM strategy refers to a situation wherein a supplier's employee is permanently housed in the purchasing department of the buyer's organization.
False
(T/F) As companies outsource more and more parts, a smaller portion of costs lies outside the company in a supply chain and it becomes easier to achieve further cost savings internally.
False
(T/F) Centralized 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.
False
(T/F) During the COVID-19 pandemic, organizations found that supplier relationships were not important to mitigate the risk of supply chain disruptions.
False
(T/F) If the break-even point in a typical make-buy scenario is 19,000 units and 10,000 units are required by the firm, then the firm should choose to make the units.
False
(T/F) In a Total Cost of Ownership system, certification and training of suppliers would be considered post-transaction costs.
False
(T/F) In a weighted-criteria evaluation system, the weights of all the performance dimensions must add up to more than 1.00 and less than 100.
False
(T/F) It is illegal for corporations to provide their suppliers appreciation banquets to award performance.
False
(T/F) Many large firms are moving to in-house vertically integrated structures where they have more control over each business unit.
False
(T/F) Successful supplier relationships should NOT involve equal decision-making control.
False
(T/F) Supply Chain Management activities work with computer-aided design programs to ensure the continued supply of a scarce item.
False
(T/F) Supply chain management activity includes managing the various compensation and benefits programs within an organization.
False
(T/F) The Uniform Commercial Code (UCC) governs the purchase and sale of goods in every state in the U.S.
False
(T/F) The bullwhip effect is the result of companies producing excessive defective products; defective items are whipped back from the end customer toward the manufacturer of the defect.
False
(T/F) The foundation elements of supply chain management are Supply, Operations, Customer Service, and Logistics.
False
(T/F) The possibility of events like strikes, assembly line breakdowns, and natural disasters are all reasons a company should favor using a single supplier.
False
(T/F) Trade estimates suggest that the bullwhip effect results in excess costs on the order of 50 percent for each firm in a supply chain.
False
While most public procurement is focused on goals like those of purchasing departments in the private sector, U.S. federal government purchases must comply with the: A. Services and Materials Acquisition Act B. Fair Standards and Equitable Purchases Act C. Federal Code of Conduct for Procurement D. Federal Acquisition Regulation
Federal Acquisition Regulation
According to the text, which of the following is considered a current trend in supply chain management? a. Outsourcing the CRM function b. Increasing supply chain visibility c. Use of self-directed teams d. None of these
Increasing supply chain visibility
Which of the following is NOT a key tenet of an SRM system? a. Automation b. Lean operations c. Visibility d. Collaboration
Lean operations
Which of the following states is NOT governed by the Uniform Commercial Code (CC) in the purchase and salo of a. Delaware b. Louisiana c. Texas d. Maine
Louisiana
Which of the following is TRUE? a. Performance metrics and personal business relationships are both keys to building successful partnerships. b. ISO 75000 is the supplier award given to the highest rated supplier in Japan. c. The key to successful partnerships is developing performance measures with weights greater than 3.50. d. SRM software modules are very affordable (less than $50.000) and can be implemented with a week.
Performance metrics and personal business relationships are both keys to building successful partnerships.
Costs associated with field failures, company's goodwill/reputation, maintenance costs, and warranty costs can be classified as: a. Pre-transaction costs b. Post-transaction costs c. Transaction costs d. All of these are correct
Post-transaction costs
Inventory Turnover can be calculated by: A. Ratio of cost of goods sold over average inventory cost B. Ratio of average inventory cost over the cost of goods sold C. Ratio of inventory days in stock over average inventory cost D. Ratio of average inventory cost over inventory days in stock
Ratio of cost of goods sold over average inventory cost
Which of the following is a reason for favoring single sourcing? A. Encourages competition among suppliers B. Spreads the risk of supply interruption C. Reduces variabilities in quality levels D. Reduces information about new processing technologies
Reduces variabilities in quality levels
According to the text, one of the most basic and successful approaches to protecting trade secrets is: a. Threat of litigation b. Working with lawmakers to increase fines and sentences for those that steal trade secrets c. Requiring employees and vendors to sign nondisclosure agreements d. Requiring employees and partners to get ISO 9000 certified
Requiring employees and vendors to sign nondisclosure agreements
Which of the following tends to reduce duplicate testing and inspections and the need for extensive supplier evaluation? A. Supplier certification B. Right-shoring C. Business process reengineering D. Pilot Production
Supplier certification
According to the text, the FOUR important elements of the supply chain are: a. Purchasing, manufacturing, transportation, retail stores b. Supply, operations, logistics, integration c. Purchasing, manufacturing, logistics, transportation d. Supply, operations, manufacturing, distribution
Supply, operations, logistics, integration
Indicate which of the following can be defined as "the ability to meet the needs of current supply chain members without hindering the ability to meet the needs of future generations." A. Reverse logistics B. Enterprise resource planning C. Sustainability D. Strategic partnerships
Sustainability
What type of major cost category is considered in the cost associated with placing and receiving the order? a. Turnover Cost b. Supplier-Development Cost c. Transaction Cost d. Pre-transaction Cost
Transaction Cost
(T/F) A criterion in supplier certification programs might include being ISO 14001 certified.
True
(T/F) A material requisition and a purchase requisition are the same things.
True
(T/F) According to the text, no industry was more severely affected by the pandemic than the healthcare supply chains.
True
(T/F) According to the textbook, a supply chain's end customers are the only true source of income for all supply chain organizations.
True
(T/F) According to the textbook, the keys to successful supply chain management include trust, cooperation, collaboration, and honest, accurate communications between supply chain partners.
True
(T/F) Automating procurement activities can lead to significant cost savings as buyers move toward managing processes by exception.
True
(T/F) Building Trust, Shared Vision, and Objectives, Personal Business Relationships, Mutual Benefits, and Needs are key factors that contribute to a lasting supplier partnership.
True
(T/F) Foreign suppliers located farther away may be able to deliver goods faster than domestic suppliers due to more efficient transportation and logistical systems.
True
(T/F) Highly valued customers with large purchasing budgets who achieve moderate supply chain management success have been known to lower purchasing and inventory carrying costs and create better quality products with higher levels of customer service.
True
(T/F) It is critical that customers and suppliers develop stronger relationships and partnerships based on a strategic rather than a tactical perspective.
True
(T/F) Offering an awards program to suppliers both motivates the suppliers to commit to a program of continuous improvement as well as provides role models for other suppliers to follow.
True
(T/F) One definition of supply chain management is "Coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers."
True
(T/F) Procurement credit cards can be used for small purchases including meals, lodging, and travel expenses.
True
(T/F) Purchasing can be broadly classified into two categories: merchants and industrial buyers.
True
(T/F) Smoother processes, faster cycle times, reduced new product development, and improved time-to-market are possible benefits from the increased visibility that is offered by SRM software.
True
(T/F) Supply chain analytics can be used along the supply chain to schedule production according to expected supply deliveries.
True
(T/F) Supply chain finance reduces the risk of supply chain disruption and enables both buyers and suppliers to optimize their working capital.
True
(T/F) Supply chain management is concerned about how suppliers' products are designed, produced, and transported.
True
(T/F) The Total Cost of Ownership Concept includes qualitative costs.
True
(T/F) The supply base refers to the list of suppliers that a firm uses to acquire its materials, services, supplies, and equipment.
True
(T/F) The total cost analysis demonstrates how the unit cost alone can affect purchase decisions.
True
(T/F) USMCA and the EU are trade organizations seeking to reduce tariff and non-tariff barriers among its member countries.
True
(T/F) Unless an organization has a firm grasp of the key issues surrounding supplier relationships, it cannot reap the benefits of such relationships.
True
