SCM Chapter 4

In a recent U.S. retailer survey, _____ of respondents claimed their organizations were either currently enhancing their ethical sourcing capabilities or planned to do so in the future.

92%

A firm decides to intentionally increase purchases from ethnic minority businesses. This decision can be considered: a. Ethical Sourcing b. Unethical c. Unitarianism d. Illegal

Ethical Sourcing

Identifying and selecting environmentally and socially conscious suppliers is one trend followed by firms utilizing:

Ethical and sustainable sourcing

Why do firms assess their sourcing capabilities? a. They can easily spot suppliers who are not practicing sustainable sourcing practices b. They are looking for ways to reduce their employee headcount c. They can gauge their success in improving their own value-enhancing contributions to the firm d. All of these choices are correct.

c. They can gauge their success in improving their own value-enhancing contributions to the firm

Criteria to evaluate a purchasing department's performance should include both quantitative and qualitative assessments. a. True b. False

true

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. a. True b. False

true

The main benefit(s) from benchmarking sourcing practices is/are: a. Allows firms to leapfrog the experience-gaining stage by trying things that have worked well for other companies. b. Savings in energy consumption and materials, lower distribution costs, and improved corporate image among regulators, customers and community. c. Larger market for products, economies of scale in purchasing and production, and lower labor costs. d. Lower prices of goods and services, use of fewer buyers and lower administrative costs

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

For a large company with many strategic supplier alliances, what would be the best way to manage them? a. Create an alliance board to oversee alliances b. Hire an outside firm to manage them c. Reduce the number of supplier alliances to less than five d. All of these choices are correct.

a. Create an alliance board to oversee alliances

One benefit from benchmarking sourcing practices is: a. Firms can learn through others experiences the methods and tools that work the best b. Lower prices of goods and services, use of fewer buyers and lower administrative costs c. Larger market for products, economies of scale in purchasing and production, and lower labor costs d. Savings in energy consumption and materials, lower distribution costs, and improved corporate image among regulators, customers and community

a. Firms can learn through others experiences the methods and tools that work the best

The Amazon Kindle and Tesla's Model S automobile are two examples of: a. Innovative products b. Cyclical products c. Radio Frequency Identification (RFI) products d. Functional products

a. Innovative products

Which of the following should NOT be used as assessment criteria to evaluate the purchasing department's performance? a. Lowering inventory turnover rates b. Participating in value engineering/value analysis efforts c. Contributing to new product developments d. Optimizing the supply base

a. Lowering inventory turnover rates

Some businesses refer to sustainability in terms of supporting the three P's. This stands for: a. People, planet, profit b. Place, price, promotion c. Planet, people, price d. People, place, price

a. People, planet, profit

Which of the following hastened many organizations' plans to institute better supply chain strategies in the recent past? a. The British vote to exit the EU b. Volkswagen Group installing a secret device in cars that allows them to cheat on emissions tests c. Donald Trump being elected President of the U.S. d. The ban on Muslim people from a select group of countries

a. The British vote to exit the EU

Which of the following terms refers to an act that creates the greatest good for the greatest number of people? a. Utilitarianism b. Corporate responsibility c. Social sustainability d. Multinational

a. Utilitarianism

A negotiation where both sides work together to maximize the joint outcome or to create a joint optimal result is referred to as: a. Win-win negotiations b. Distributive negotiations c. Optimal review period d. DMAIC improvement cycl

a. Win-win negotiations

The purchasing department at Big Horn Sheep Corporation decided to intentionally increase purchases from small, underdeveloped nations. This decision can be considered: a. Illegal b. Ethical Sourcing c. Utilitarianism d. Unethical

b. Ethical Sourcing

The use of environmental supplier certification programs assists companies by which of the following? a. Identifying companies who are the most popular with consumers b. Identifying strategic alliance candidates c. Helping communities who are in jeopardy of plant closures d. All of these choices are correct

b. Identifying strategic alliance candidates

ISO 14000 may play a role in a firm's. a. Negotiated pricing program b. Supplier certification program c. Customer certification program d. Manufacturing flexibility program

b. Supplier certification program

Which of the following terms refers to an act that creates the greatest good for the greatest number of people: a. Rights and duties b. Utilitarianism c. Social sustainability d. Corporate responsibility

b. Utilitarianism

______ refers to one that is manufactured or grown by a disadvantaged producer in a developing country that receives for its goods. a. Bitcoin b. Freedom of association c. A fair trade product d. An imported product

c. A fair trade product

The Ethical Trading Initiative (ETI) is: a. The largest and most visible international trade initiative dealing with the global rules of trade between nations. b. An agreement to remove trade and investment barriers among the U.S., Canada and Mexico. c. An alliance of organizations agreeing to implement the ETI Base Code. d. A group of organizations attempting to implement the SCOR model.

c. An alliance of organizations agreeing to implement the ETI Base Code.

Which of the following is NOT a step suggested in the Supply Chain Sourcing Strategy Framework? a. Establish corporate ethical and sustainable sourcing policies b. Develop a performance measurement system c. Certify suppliers as ISO 9001 compliant d. Prioritize items based on ethical and sustainability opportunities and ease of implementation.

c. Certify suppliers as ISO 9001 compliant

Which of the following is NOT a step suggested in the Supply Chain Sourcing Strategy Framework? a. Establish corporate ethical and sustainable sourcing policies b. Prioritize items based on ethical and sustainability opportunities and ease of implementation. c. Compare supplier prices based on the lowest cost bid. d. Expand focus to include other departments and customers.

c. Compare supplier prices based on the lowest cost bid.

______________ considers the public consequences of organizational buying. a. Benchmarking b. The bullwhip effect c. Ethical sourcing d. Vendor managed inventory

c. Ethical sourcing

Sustainability reporting is ______________ for American companies: a. Mandated quarterly b. Required every 3 years c. Largely a voluntary effort d. Required in the U.S.

c. Largely a voluntary effort

The term "benchmarking" as used in business firms is: a. A system of marking defective inbound inventory so it can quickly be identified for return to the supplier b. A program where suppliers compete for contracts, but those companies who are outbid are provided advice for winning future contracts c. A system of performance metrics that seeks to motivate suppliers to perform better d. A practice where companies attempt to learn and apply the best practices of other companies

d. A practice where companies attempt to learn and apply the best practices of other companies

Which of the following can be a result of successful strategic supplier alliances? a. Access to new technologies and knowledge b. Higher return on investment c. Better market penetration d. All of these choices are correct.

d. All of these choices are correct.

Which of the following can be used as a punishment for suppliers that perform poorly? a. Downgrade the supplier's status b. Elimination of future business with the focal firm c. Billback penalty d. All of these choices are correct.

d. All of these choices are correct.

According to the text, which of the following is one of the most effective supply chain integrative techniques? a. Counterpurchasing b. Process integration c. Single integrator solution d. Early supplier involvement

d. Early supplier involvement

Which of the following is NOT a typical strategy for firms to obtain benchmarking data about other companies? a. Collecting published trade information on benchmarking studies b. Utilizing resources from the Center for Advanced Purchasing Studies c. Discussing sourcing strategies with colleagues at business association meetings d. Hiring former employees from other companies and assessing their knowledge

d. Hiring former employees from other companies and assessing their knowledge

Environmental supplier certification programs can assist companies by doing which of the following? a. Helping communities who are in jeopardy of plant closures b. Identifying companies who are the most popular with consumers c. Encouraging distributive negotiations in strategic alliance development d. Identifying rogue suppliers before they can cause problems or disruptions in their supply chains

d. Identifying rogue suppliers before they can cause problems or disruptions in their supply chains

Firms assess their sourcing capabilities because: a. It allows them to maintain a variety of product options b. Doing the right social and environmental things make economic sense c. They need to know the effect of external elements d. Monitoring the purchasing function's performance, helps firms to continuously improve their products and processes

d. Monitoring the purchasing function's performance, helps firms to continuously improve their products and processes

Which of the following is NOT a key area to focus on, in order to establish sustainable sourcing, as identified by a U.K. Food Industry Group on Ethical Trade? a. Move towards a low carbon economy b. Work within the finite limits of the planet's resources c. Respect human rights and reduce poverty by creating profitable trading d. Procurement rationalization

d. Procurement rationalization

Which of the following is NOT a step used in maintaining a successful strategic alliance program? a. Provide continuous evaluation of alliance performance, visibility and support b. Reward suppliers as performance merits c. Facilitate the dissemination of information d. Supplier managing inventory at customers' site

d. Supplier managing inventory at customers' site

Convincing your supplier to cutting back on packaging, fuel, or electricity is an example of: a. Sole sourcing b. Global sourcing c. Ethical sourcing d. Sustainable sourcing

d. Sustainable sourcing

An important measurement used in supply base rationalization initiatives would include which of the following? a. The number of trucks owned by the supplier b. The number of employees at the supplier c. The number of second-tier suppliers used by the supplier deliveries d. The suppliers' greenhouse gas emissions

d. The suppliers' greenhouse gas emissions

One standard which is measured in environmental supplier certification is: a. The number of on-time deliveries b. The number of trucks owned by the supplier c. Technology investment by the supplier d. The suppliers' recycled content

d. The suppliers' recycled content

Sustainable sourcing policies should include which of the following? a. Use of child labor b. Use of minority workers c. Fair working conditions d. Use of renewable energy

d. Use of renewable energy

According to the text, which of the following two approaches are used in deciding whether or not an action is ethical? a. Critical quality and corruption framework b. Supplier involvement and environmental performance c. General Agreement on Tariffs & Trade (GATT) and leverage purchasing d. Utilitarianism and rights & duties

d. Utilitarianism and rights & duties

Green purchasing is a practice aimed at ensuring that purchased products or materials meet environmental objectives of the organization such as: a. Ride sharing b. Aggregate planning c. Hedging inventories d. Waste reduction

d. Waste reduction