SCM Chapter 5-9 Quiz Questions

The process commonly utilized in continuous improvement is known as? a. plan, do, check, act b. specific, measurable, achievable, relevant, time-oriented (SMART) c. ready, set, go d. plan, source, make, deliver

a. plan, do, check, act

Intermittent Production Processes are used to produce a large variety of products with different processing requirements in lower volumes a. true b. false

a. true

The Weighted-Criteria Evaluation System is typically used to select a supplier or to evaluate the performance of a supplier? a. true b. false

a. true

Through collaborative negotiations both side work together to maximize the outcome or create a win-win result a. true b. false

a. true

The role of workers in Lean is to create the cultural change needed for Lean to succeed. a. true b. false

b. false

Total Quality Management (TQM) is the term used in business to describe the in-depth process of capturing internal and external customer's expectations, preferences, likes, and dislikes a. true b. false

b. false

When using a weighted-criteria evaluation system with five or more categories, suppliers should be ranked based on their score in only the two highest weighted categories a. true b. false

b. false

In which sourcing category would an item typically be classified, if it is considered to be high value, low risk, and there are multiple potential suppliers? a. non-critical b. strategic c. bottleneck d. leverage

d. leverage

Which of the following would be a good reason to outsource (buy) versus make an item? a. no competent supplier presently produces the needed item b. a firm lacks the technology or expertise to produce an item c. to utilize existing capacity within a company's own firm d. to have more direct control over the design and production of an end item

b. a firm lacks the technology or expertise to produce an item

Which of the following is NOT a reason for buying or outsourcing? a. to take advantage of better quality b. to achieve a cost savings c. due to a lack (i.e., shortage) of procurement personnel d. due to insufficient capacity to make the item internally in your company-owned operations

c. due to a lack (i.e., shortage) of procurement personnel

Which Lean related process can be described as a strategy to increase the level of services to consumers through close cooperation among retailers, wholesalers, and manufacturers? a. quick response b. just-in-time c. efficient consumer response d. keiretsu relationships

c. efficient consumer response

A strong supplier partnership requires that both buyer and supplier adopt a strong tactical perspective a. true b. false

b. false

In which sourcing category would an item typically be classified, if it is considered to be low value, low risk, and there are lots of potential suppliers? a. bottleneck b. non-critical c. strategic d. leverage

b. non-critical

Candidates for Supplier Certification Program include suppliers who meet one or more of the following criteria, EXCEPT? a. a supplier who has no incoming product rejections for a specified time period b. a supplier who has a fully documented process and quality system with cost controls and continuous improvement capabilities c. a supplier who has a minimal number of significant negative quality related incidents for a specified time period d. a supplier whose processes are determined to be stable and in control

c. a supplier who has a minimal number of significant negative quality related incidents for a specified time period

The process of taking a statistically significant representative sample to be measured against the quality acceptance standard, is known as? a. acceptance sampling b. six sigma c. kaizen d. lean manufacturing

a. acceptance sampling

Which of the following is NOT one of the keys to successful strategic partnerships? a. building independent objectives b. developing personal relationships c. understanding and influencing capabilities d. gaining commitment from top management

a. building independent objectives

Which of the following is NOT one of the drivers of Strategic Sourcing? a. increasing the selling price of the product b. optimizing the number of global suppliers c. focusing on the customer d. reducing the delivery lead times

a. increasing the selling price of the product

Lean Manufacturing emphasizes all of the following EXCEPT? a. large batch sizes b. continuous improvement c. synchronization of material flows d. reduction of waste

a. large batch sizes

The operating philosophy that focuses on waste reduction and value enhancement is known as? a. lean b. continuous improvement c. six sigma d. total quality management

a. lean

To make or process raw materials into finished products, especially by means of a large-scale industrial operation, is called what? a. manufacturing b. inventory management c. work-in-process d. mass customization

a. manufacturing

Which of the following is an internal document that defines the need to purchase goods and/or service? This document does not constitute a contractual relationship with any external party. a. purchase requisition b. purchase order c. eProcurement d. request-for-quote (RFQ)

a. purchase requisition

The quality management philosophy that focuses on improving the overall quality of process outputs by identifying and removing the causes of defects and minimizing variability in manufacturing and business processes, is known as? a. six sigma b. lean manufacturing c. kaizen d. acceptance sampling

a. six sigma

In which sourcing category would an item typically be classified, if it is considered to be high value, high risk, and there are few suppliers, but they are excellent? a. strategic b. bottleneck c. non-critical d. leverage

a. strategic

Among other advantages, preferred suppliers are more likely than non-preferred suppliers to provide capacity for meeting unexpected demand, and also provide cost efficiency due to economies of scale. a. true b. false

a. true

Co-sourcing is the sharing of a process or function between internal staff and an external provider (i.e., a supplier). a. true b. false

a. true

Duties, taxes, or customs imposed by the host country for imported or exported goods, are known as Tariffs a. true b. false

a. true

Strategic Sourcing is a comprehensive approach for locating and sourcing key suppliers, so that an organization can leverage its consolidated purchasing power to find the best possible values in the marketplace. a. true b. false

a. true

Successful supplier relationships involve equal decision-making control between both the buyer and the supplier a. true b. false

a. true

The purchasing function is one of the most value-enhancing functions in any organization, however, it is still necessary to periodically monitor the purchasing function's performance against a set of standards or industry benchmarks a. true b. false

a. true

Which of the following new technologies can improve supplier selection and increase the effectiveness of supplier relationship management? a. blockchain b. artificial intelligence c. eFulfillment d. the internet of things

b. artificial intelligence

All of the following are reasons for Buying or Outsourcing an item from a supplier, EXCEPT for which one? a. because the item is non-strategic b. because you want to use existing idle capacity in your own company operations c. due to the lack of expertise in your own company operations d. because you want to adopt a multi-sourcing strategy

b. because you want to use existing idle capacity in your own company operations

In which sourcing category would an item typically be classified, if it is considered to be low value, high risk, and there are a small number of alternative suppliers? a. strategic b. bottleneck c. leverage d. non-critical

b. bottleneck

A purchase order is legally binding once issues by the buyer a. true b. false

b. false

An effective supplier certification program may increase the time spent on incoming inspections a. true b. false

b. false

Backward Vertical Integration refers to a company acquiring one or more of their customer organizations a. true b. false

b. false

Lean 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 a. true b. false

b. false

While paperless transactions are now possible through e-procurement and Web-based services, these would NOT be considered sustainable business practices. a. true b. false

b. false

The best supplier candidates for Supplier Relationship Management (SRM) include all of the following EXCEPT? a. suppliers that provide high volumes of products or services b. suppliers that provide lesser quantities of a crucial products/services c. developmental suppliers that need to make improvements d. preferred suppliers

c. developmental suppliers that need to make improvements

What is the Sourcing Strategy that involves commodity items where many alternatives of supply exist, supply risk is low, spend is high, and there are potential procurement savings? a. non-critical b. strategic c. leverage d. bottleneck

c. leverage

The goal of a good supplier performance evaluation system is to provide metrics that are: a. understandable, quantitative, and focuses on quality-related results b. understandable, quantitative, and focused on cost-related results c. understandable, easy to measure, and focused on real value-added results d. understandable, qualitative, and focused on performance-related results

c. understandable, easy to measure, and focused on real value-added results