smartbook assignments

True or false: One suppliers finished goods can become the purchaser's raw material.

T

In manufacturing, supply costs range from _____% to _____% of revenue.

50 to 80

Value proposition describes how ____ will improve customer success and allow the organization to do better.

Blank 1: innovation

This class of quantitative forecasts uses linear or multiple regression lines from leading indicators.

Causal models

The senior executive who has formal authority and responsibility to manage purchasing, buying or sourcing functions for the procurement of goods and services from external suppliers is known as the

Chief Purchasing Officer

What are the types of qualitative forecasts?

Collective opinion Delphi technique Market

Quality assurance is important from which aspects?

Production Supplier Customer

What criteria are evaluated under traditional level 2 sourcing options?

Quality Delivery Price

No Involvement matches

Supply is excluded completely.

Nonstrategic spend is driven by

dollar value. repetitiveness.

An organization benefits from co-location of internal customers and supply through

greater awareness of group challenges. greater awareness of organizational strategies. greater awareness of organizational goals

Onshoring sources can be

local. regional. national.

Supply chain technology has allowed organizations to

reduce inventory costs. improve customer service. reduce transaction costs.

Primary motivations for participation in purchasing consortia are ____ through price reductions.

savings

The supply manager wants to implement some continuous improvement initiatives, one of the key places to examine is

the processes that produce.

When testing products prior to purchase, a use test allows

the product to be tested using exact purpose and conditions it will be used for.

True or false: Firms only need to make insourcing and outsourcing decisions during the initial setup phase.

False

True or false: Unusual or infrequent purchases must be dealt with on a case by case basis.

True

Supply chain management requires the evaluation of need under more than just strategic or traditional criteria, these newly added categories include

political factors. risk management. sustainability.

Match the standard steps of the procurement process.

1. the recognition of need 2. the translation of that need into a commercially equivalent description 3. the search for potential suppliers 4. the selection of a suitable source 5. the agreement on order or contract details 6. the delivery of the products or services 7. the payment of suppliers

Service organizations spend between _______ % and _________% on costs for outside suppliers.

25, 35

Six Sigma philosophy allows no more than ____ defects per million opportunities.

3.4

What is a communications standard for sharing business documents between two firms?

Electronic data interchange (EDI)

Multiple sourcing

Protect the buyer during difficult supplier times. When the supplier is dependent on the purchaser. When the future demand is unknown

What options do supply managers have to meet organizational needs?

Purchase the product from a current supplier. Purchase the product from a new supply source. Make the product in house.

What is a form of collaborative purchasing used by both public and private sector organizations to deliver a wider range of services at a lower total cost?

Purchasing consortia

Supply functions that are mismanaged can lead to which types of organizational risks?

Reputation Financial

Every supply decision will be different, and supply professionals must

use experience and judgment to make sound decisions.

Streamlining supply functions is a ways to reduce ________.

waste

____ customers must provide clear and concise needs to supply to produce products that must meet the requirements of ____ customers.

Blank 1: Internal Blank 2: External

One hundred percent inspection means that

every part is checked to tell whether or not it is defective.

Whereas physical loss can be covered by insurance, indirect damages such as ___________can be severe and take a long time to recover.

reputation

Cost of ownership includes the actual cost of goods and services but also includes

spare parts. inventory. quality levels. warranty costs.

Engineering drawings used for procurement have limitations of

the cost to manufacture specialty items. the cost to prepare drawings.

Besides the dollar value, items are considered strategic if

they improve the reputation of the organization. they allow access to new markets.

Supply teams are used for a variety of functions and can be ____ oriented or ____ .

Blank 1: project Blank 2: ongoing

When receiving products through contracts or trade customs, the ____ usually is not responsible for the contingent expense.

Blank 1: supplier

What are the three steps of a JIT production process?

Build-in quality Worker responsibility Compliance to quality standards

True or false: Typically the CPO is the top executive within any organization.

F

DO

Implement countermeasures.

True or false: In some instances, 100 percent inspection can significantly increase the cost of producting a part.

T

What is the value with using commodity coding?

Track spending at all levels.

The types of products or services to offer are strategic ___________ decisions, while what to make or buy are strategic _________ decisions.

entrepreneurial; operational

Corporate image is the responsibility of ____________ employee.

every

Specialization in supply functions allows the staff to develop _____ in areas where they work

expertise

Private marketplaces are accessible on the

extranet

Quality improvement opportunities are ______ in many organizations who have failed to acknowledge them throughout the years.

great

Buying is favored throughout corporations today to

increase productivity. remain competitive. focus on core strengths.

The Japanese name for continuous improvement is

kaizen

Systems contracting allows the supplier to submit a single ____ invoice for all items.

monthly

A ____ auction uses competing suppliers who bid down the price at which they are willing to sell until the buyer accepts a bid.

reverse

The subcontract cost, schedule, technical control, and configuration control are managed by the

subcontract administrator.

The five forms and functions of inventory give supply managers ____ types of inventory to operate with.

25

Decoupling inventory

Allow for activities to be independent of each other.

Suppliers who are selected for goods or services are expected to be______ and ______ .

Blank 1: responsible Blank 2: responsive

Greater ____ is required for supply transactions to prevent financial scandals and avoid fines or citations.

Blank 1: transparency

Public organizations have stricter policies than private to help

allow transparency and fairness to suppliers. support disadvantaged groups. allow for multiple bidders during supply acquisition.

Private organizations have custom requirements as a form of

competitive advantage.

_____ can be customized to include the prices and other terms and conditions negotiated by the buyer with the seller.

Blank 1: Electronic or E Blank 2: Catalogs or catalog

____ standards set the regulations that organizations must meet when concerning employee health and safety, environmental factors, or consumer product safety.

Blank 1: Government or Governmental

Total quality management, lean thinking, and statistical process control are ____ and techniques to assure quality.

Blank 1: tools

Forecasts are typically ____ , continuous improvement methods can help increase accuracy.

Blank 1: unreliable, wrong, inaccurate, or imperfect

The goals and strategies of the organization must be aligned ____ and ____ .

Blank 1: vertically or vertical Blank 2: horizontally or horizontal

True or false: Additional criteria that have been added for supply chain managers to evaluate corporate need from has made supply management easier.

False

Which of the following are reasons that previously make or buy decisions can be reversed?

Market circumstances Environmental circumstances Organizational circumstances

What is it called when a company contracts with a third party to do some of the company's work?

Outsourcing

Which items can increase costs when purchasing supplies or services?

Overly particular materials that do not offer value to the finished product. Vague descriptions provided to the supply department.

Which is the best method for small dollar purchases made by internal customers?

P-card

A(n) ____ is an information request not binding on either party.

RFI

____ uses radio waves to transmit a unique serial number as a form of ID for objects

RFID

Cost-reduction

Reduce the prices of purchased supplies.

Just-in-time (JIT)

Reduce transit inventory by utilizing small batches and local suppliers.

Benefits of co-locating suppliers inside the buyers firm include

improved buyer-seller communication. reduction of administrative costs.

A car manufacturer has ____ the installing of windows in all their models to a third party vendor.

outsourced

The supply personnel send information back to the supplier regarding their proposal, this is considered

outward information flow.

An e-procurement system that handles transactions from contracts to payment, and everything, in between, is known as

p2p

ABC lunch box is an American eatery, since the customer is directly affected by the food provided, the wait staff should

pay extra attention to any special needs.

Specification data can be obtained from

private agencies. the buying organization. government standards.

Supply chain management is a __________ approach to managing materials, services, and information.

systems

True or false: E-catalogs allow buyers to customize the catalog for internal customers.

t

An informal evaluation of service suppliers should include questions on

the ability of the provider to meet quality expectations. the level of customer satisfaction. the difference between the cost of the service and the perceived value.

Throughout the supply chain, process inefficiencies represent

waste

Although there have been many technological advances in supply chains, there are still many opportunities for new product development, better internal and external collaboration, and

waste elimination.

A ____ means the different methods by which the buyer communicates to the seller a clear, detailed picture of the required item.

Blank 1: description

ISO 9001:2015 defines the requirements for a quality system, but does not ____ how they should be be met.

Blank 1: dictate

Sustainable supply chains require supply managers to take both ____ and ____ factors into consideration.

Blank 1: environmental Blank 2: social

Select the responsibilities of sourcing and commodity personnel.

Creation of contracts Supplier selection Supplier capabilities analysis

Services are ____ and nonmanufactured.

Blank 1: intangible

Developing standard quality assessment tools is useful with ____ services.

Blank 1: repetitive

Buffer inventory level can be established by using the ____ coverage.

Blank 1: service

For companies who have legacy software layered with new software applications they have the advantages of

flexibility and cost-effectiveness.

Quality assurance responsibilities include

inspecting incoming material. establish effective quality controls. supporting quality efforts of suppliers for design. monitor continuous quality improvement programs.

True or false: Once the quality of parts being received is consistent, the level of inspection may decrease.

T

What type of purchase requisition is used for recurring orders?

Traveling

A company that needs to protect intellectual property, even with a confidentiality agreement, may choose to ____ over ____ .

make, buy

A supply strategy has___________ major categories to consider when developing strategic plans.

six

Supply sustainability efforts of the future will be

to identify solutions.

Inventories often exist

to makeup for problems in the supply chain.

A receiving inspection and testing procedure should be in place

to protect both the supplier and the buyer.

Sourcing and commodity responsibilities can be further specialized by the ____ of the commodity.

type

Commodity management

Formed with projects that have high expenditures or are complex.

Contributions from supply can be viewed from which contexts?

Strategic Operational

Place the supply process steps in order 1. upon receipt, inspection and payment to clear the invoice2. recognition and description of need is provided3. preparation and placement of purchase order4. maintenance of records and relationships5. follow-up and/or expediting the order6. identification and selection of supplier including terms

2, 6, 3, 5, 1, 4

Service organizations spend between ________% and ________% on costs for outside suppliers.

25, 35

Purchase orders are retained under normal conditions for ____ years as evidence of a contract.

7

Supply function decisions are made while balancing conflicting objectives and making trade-offs to obtain the optimum mix of __ rights.

7

Class c

70-80% of items in inventory. 10-20% of total inventory dollars.

The GDP for the US estimates that services constitute _____ percent.

80

The Pareto curve is often called the____ ____ -rule, or ABC analysis.

80, 20

Managers typically set service coverage levels to ____%

95

Organizations use supply councils to manage buyer-supplier relationships and

encourage continuous improvement.

There are ____ basic flows for supply information.

4

Large fluctuations in demand from the retailer up through the supply chain is known as the ____ effect.

bullwhip

Buffer or uncertainty or safety stock

Allows for variability in demand or supply.

Early supply and supplier involvement can ensure that products or services specified are procurable and represent ____ value.

Blank 1: good

Risk-management

Ensuring adequate coverage of business needs.

Supply chain operational risks can be separated into which two factors?

Events that are directly within the supplier's capability. Events that are beyond the supplier's control.

True or false: Only single source suppliers can be used for procurement.

F

True or false: Purchasers must pay the invoice when received regardless of when the goods are shipped.

F

True or false: Strategic supply decisions only involve tactical efforts.

F

True or false: The place of delivery will not affect the quality standards that need to be met.

F

The regular tracking after a purchase order has been issued is known as?

Follow-up

Forecasts provide managers with a way to make decisions before actual requirements are known, which forecasts should be considered when making purchase decisions?

Lead times Demand Prices

What forces increase the necessity for purchaser initiative in supply sources creation?

Management concerns with maintaining a competitive advantage. Technological advances in product development. Increase in international trade.

Unplanned-uncontrolled procurement done without consultation with the purchasing department is known as

Maverick Buying.

What are indicators that supply management is meaningfully involved?

One measure of meaningful involvement is the extent to which supply is expected to take part in major corporate activities.

A key factor for ensuring the success of supply processes is ensuring good ____ with all stakeholders.

communication

______________ level decisions answer the questions of what business we are in and how we will allocate resources among the businesses.

corporate

Demand for services can be

discrete. periodic. continuous.

Bypassing distributors and purchasing from the manufacturer in the supply chain is known as

disintermediation

Portfolio analysis helps organizations focus more quality attention on

high impact services.

Companies must increase revenue, decrease costs, or do both to

increase long-term shareholder value.

ABC automotive does not currently have the necessary technology and expertise to manufacture a mandatory component required for their exhaust systems, the cost of purchasing the machinery, tooling, training, and employees is very costly. ABC automotive should

purchase the part from a third party vendor.

The supply manager for ABC manufacturing wants to ensure he orders the right components when required by production; he must ensure he includes forecasting, costs, price-volume relationship, availability, and ____ when making decisions.

shortages

In the vendor managed inventory (VMI) system the ____ is responsible for stocking, packing, shipping, and invoicing.

supplier

Supply management is concerned with the ____ of specific needs.

Blank 1: value

What involves all costs attributable to the production of a good or service that is not 100% perfect?

Cost of quality

True or false: Once a type of inventory is decided, managers do not have to reevaluate.

F

Class A

10% of items in inventory. .70-80% of total inventory dollars

Class B

10-20% of items in inventory. 10-15% of total inventory dollars.

The two types of quality checks on tangible products is

100 percent inspection. sampling.

The Deming Prize was established in

1950

Some common responsibilities of the CPO include

Facility management Logistics Nontraditional purchasing

Choose the statements that represents Deming's 14 points of management practices.

Many of the other problems outlined reduce worker satisfaction. Replace short-term reaction with long-term planning. Each department serves not the management, but the other departments that use its outputs. Constantly strive to reduce variation.

What are the two steps to the acquisition process when determining commercial equivalents?

Translate needs into terms suppliers can understand. Determine what is needed and why.

Transit or pipeline inventory

Used to stock the supply chain from suppliers through the organization to customers.

What type of inventory that is managed by the supplier and at a minimum means the supplier determines when to replenish and how much to replenish?

VMI

Responsibility for clearing invoices can be assigned to

accounting. supply.

To fully conduct a financial and management evaluation, the purchaser should review the areas of

accounting. supply. marketing.

Small-value orders can come with high processing costs known as ____ costs.

acquisition

Often, despite the benefits, firms hesitate to participate in purchasing consortia due to

antitrust issues. competitors. confidentiality.

The necessary items required on a purchase order are the

date of issue. serial number. quantity and description of goods.

Travis works in the purchasing department for a large manufacturing company, he is not involved with sourcing or contracting new suppliers and only ensures that purchase orders are paid on time. Travis is a _________ oriented person.

functionally

If supply decisions lead to parts ordered that are of poor quality can negatively impact production by

leading to issues that necessitate higher direct labor costs.

Two major supply chain performance measures are inventory turnover and

level

In the service industry, a provider who utilizes standardization techniques can reduce their supply base, lower operating costs, and

offer lower prices.

Fixed-period models attempt to determine the ________ order period.

optimal

Supplier evaluations include evaluation criteria to assess

quantity. delivery times.

Lean supply management refers to using techniques of just-in-time to

remove delays between process as much as possible, keep inventories at a minimum, ensuring every step in a process adds value

Supplier selection decisions can involve more than information, other considerations are

single vs multiple sourcing. manufacturer vs distributer. geographical locations. supplier size.

Small suppliers can offer the benefits of

speed of response. flexibility. product availability.

EDI requires the use of ____ message format.

standard

Benchmarking studies are the responsibility of

supply research.

Reduced cycle times and more responsive acquisition methods are the direct efforts of

the reengineering work of supply processes.

Which system is designed to have components, materials, and services arrive at work centers exactly as needed?

JIT

TQM was developed in ______ by _________.

Japan; W. Edwards Deming

What is the purpose of ISO 9001:2015?

Provides standardized quality management requirements regardless of industry or size of the organization. Increased emphasis is placed on senior leadership accountability with quality and business strategies. Places a greater emphasis on assessing process inputs and outputs in regards to quality.

True or false: Dollars spent on supplier costs compared to total revenues is a good indicator of supply's performance for an organization.

True

Supplier participation teams face obstacles with

confidentiality. intellectual property concerns

E-procurement systems, information systems, and electronic data interchange is managed by ________ personnel.

administration

True or false: The supply function often contributes directly to the organization through information exchanges with suppliers and consumers.

F

Organizations must properly report all __________, __________, and _________ to withstand investigations and avoid penalties.

Hedge positions Long-term contracts Lease obligations

What approach to inventory management and order fulfillment requires the supplier to be responsible for managing and replenishing inventory?

(VMI) Vendor managed inventory

A supply strategy has ___________ major categories to consider when developing strategic plans.

6

Organizational need can be divided into ____ broad categories.

7

Supply chain support matches

Better communication between buyers and sellers.

If the production manager needs to order all the materials, parts, allowance for scrap to build a bicycle, he should submit which type of purchase requisition?

Bill of material

The costs of carrying large inventories can cost between _______ to _______percent of its value.

Blank 1: 20 Blank 2: 50

purchasing consortia concern

Collaboration can be viewed as anticompetitive.

Plan

Collect data and set performance target.

True or false: Cross-functional sourcing teams that incorporate supplier participation are useful for teams assigned to evaluate suppliers.

F

True or false: Forecasting of services is an easier process than that of tangible goods.

F

New product/service development

Improve the organization's competitive position

Choose some of the benefits of e-procurement.

Lowers transaction costs More effective collaboration Better sourcing decisions

Which supply information source must be carefully vetted for accurate and relevant information?

Online resources

Internet auctions can be offered from which platforms?

Posted price Open Reverse Private

act

Standardize and apply improvement to other parts of the organization.

Every organization has specific needs, the value of these needs are categorized into three levels, they are:

Strategic, traditional, and additional current.

If information is missing or does not match the purchase order, who is responsible to make corrections?

Supplier

True or false: In the event a product cannot be sourced with current or new suppliers and cannot be produced in house, supply managers can seek alternative products to meet requirements.

T

True or false: Statistical Process Control (SPC) is an industry-standard methodology for measuring and controlling quality during the manufacturing process.

T

True or false: Supply information systems allow supply personnel to focus on higher-value tasks.

T

What is a reason a company may choose insourcing?

Threat to assurance of supply

What are two classes of quantitative forecasting?

Time series Causal models

Which of the following is a significant obstacle supply managers may face when developing an adequate supply strategy?

Translating organizational objectives into supply objectives.

True or false: Nonrepetitive purchases must be handled on a case by case basis, this can be from small value purchasing to capital investment.

True

Environmental-change

Understand shifts in the environment and regulatory controls.

The three internal gates for requisition approval are for authorization,

clarity, and clearance.

Organizations wishing to restructure with a decentralized plan may find they have a significant concern with

dismantling the centralized unit effectively.

When supply chain managers consider logistic needs, the packaging can affect

disposal needs. environmental concerns. transportation requirements.

The functional role of CPO tends to report to ____ positions in the organization than during the 1980s and 1990s.

higher

Co-locating supplier and buyers can improve productivity and

increase firm competitiveness.

The three primary reasons to outsource logistics are

increased focus on core activities reduced costs improved services

The triple bottom line balances the three Ps of an organization, these include

people. planet. profit.

During an RFI there are signification costs involved, these should be the responsibility of the

requesting organization.

Many organizations allocate the number of ______________ for the supply department based on the amount of dollars spent on supplies.

resources

Supply manager contribute to the organization's competitive position by ensuring decisions contribute to

revenue enhancement. cost reduction. asset management.

When making decisions supply managers must balance

risk and reward

Time lines for decision trees should evaluate

the past, present, and future.

Strategic spend describes goods or services that are

vital to the mission.

____ can be caused by unnecessary follow-up or expediting.

waste

ISO____ :2015 sets out the criteria for an environmental management system and can be certified to.

14001

Quality function deployment was developed in Japan during the _____.

1960s

Toyota first introduced lean in the ______.

1980s

When was the first version of EMS standard 14001 published?

1995

Nontraditional annual spending outside of supply functions within organizations can range from ____ to ____ %.

2, 40

The supply manager for ABC manufacturing should ensure that a single customer is purchasing no more than _____ to ____ % of their product.

20 to 30

Annual cost for inventory range from __________ of the total value of the inventory.

25-50%

The purchase price of a capital purchase is between _______ percent of the total cost of ownership.

30 and 50

____ to ____ percent of total product costs can be associated to poor quality.

30 to 40

Formal evaluations consist of ____ dimensions.

5

What is Quality Function Deployment (QFD)?

A collection of tools used to translate qualitative customer requirements into quantitative products and services. A systematic process to integrate customer requirements into every aspect of the design and delivery of products and services

The supply manager for ABC manufacturing needs to purchase goods where demand is irregular, who should he use to purchase the goods from?

A distributor

Classifying services as high, medium, or low value can be accomplished using a

ABC Pareto analysis. Portfolio analysis.

Anticipation or certainty inventory matches

Accumulated for future needs.

The three stages of sampling, inspection, and testing are

After a purchase commitment has been made. Before the purchase commitment is made to the supplier. During the commitment to the supplier.

Cycle inventory

Allows for lot purchases rather than individual units.

Which are considered risks with online auctions?

Auction costs versus expected savings. Actual price of goods after all fees and costs are calculated. Damaging the relationship with a supplier.

What is an alternate method to verify financial stability of a supplier?

Bank or financial institution letter

If an organization has a carrying cost of 20%, and they can reduce their inventory investment from $2 million to $1 million, they will save $ in expenditures and $ inventory carrying costs. (Enter the answer in dollar amounts)

Blank 1: 1,000,000 Blank 2: 200,000

____ to ____ percent of total product costs can be associated to poor quality.

Blank 1: 30 or Thirty Blank 2: 40 or Forty

____ laboratory facilities can be used when the tests to be completed are costly or complicated.

Blank 1: Commercial

____ - _____ - teams help to ensure the best buy decision for all goods and services.

Blank 1: Cross Blank 2: Functional

____ and ____ customers are affected by supply chain decisions.

Blank 1: Internal Blank 2: External

_____ _____ forecasts follow patterns over time

Blank 1: Time Blank 2: Series

Reverse marketing or supplier development is an ____ form of procurement.

Blank 1: aggressive

Capital expenditures are shown as ____ on the balance sheet.

Blank 1: assets

Specification by material and method of manufacturing places the risk and responsibility on the ____ organization.

Blank 1: buying

A major trade-off for high skilled service jobs is between estimated ____ and estimated ____ .

Blank 1: costs Blank 2: benefits

A buyer-supplier partnership considerably ____ the frequency of defective materials or services.

Blank 1: decreases, lowers, or reduces

The quantity and inventory levels maintained depend on ____ or ____ and if the inventory is dependent or independent.

Blank 1: demand Blank 2: usage

Often quality assurance is responsible for inspection of materials at receiving, in-process, and with the ____ product.

Blank 1: finished

There are five forms of inventory that include raw materials, work-in-process, ____ goods, ____ items, and resale items.

Blank 1: finished Blank 2: MRO

Repetitive purchase contracts offer both pros and cons. Shorter contracts offer ____ to switch suppliers while longer contracts offer ____ certainty.

Blank 1: flexibility Blank 2: price

Needs that are strategic should be given a ____ degree of attention from the supply manager.

Blank 1: high

Quality risks with the service industries are often ____ compared do that of tangible goods.

Blank 1: higher

ABC manufacturing wants to understand their business needs better, to do this they must first know who ____ those needs.

Blank 1: influences, requires, demands, or drives

According to the six sigma philosophy, if you control the____ , you will control the ____.

Blank 1: input or inputs Blank 2: output or outputs

The value of materials purchased by market grade is subject to ____ to ascertain the degree of compliance.

Blank 1: inspection

The goal of lean enterprise is to optimize the flow of products and services both ____ and ____.

Blank 1: internally Blank 2: externally

Commodity managers must be aware of ____ conditions to ensure they meet supply and demand, price movements, and proper acquisition timing.

Blank 1: market

Sales staff and sales managers can provide estimates for _____ forecasts.

Blank 1: market

Services that have less customer service are ____ standard and quality assessments become easier.

Blank 1: more

The quality of services that are continuous or ongoing have ____ control than those that are discrete or one-shot.

Blank 1: more or greater

Hiring another organization to perform service to save costs, gain expertise, free up management time, and refocus on core competencies is known as ____.

Blank 1: outsourcing

The quality of the ____ component is the primary concern in services with high labor intensity.

Blank 1: people

Supply need management is important for smaller businesses to maintain ____ cash flow.

Blank 1: positive

A prime purpose of proper receiving practices is to ensure products ordered are delivered in the amount and quality indicated on the ____ ____ .

Blank 1: purchase Blank 2: order

ISO 9001:2015 is the international standard for ____ management.

Blank 1: quality

Deming's 14 points of management principles seek to help management increase ____ and ____ .

Blank 1: quality Blank 2: productivity

Fixed-period models place orders only at ____ times.

Blank 1: review

Strategic purchases offer an organization the greatest ____ and the greatest ____

Blank 1: risk Blank 2: reward

When ____ stock is not available, the quality of all incoming components, parts, and services must be adequate.

Blank 1: safety

A ____ sampling plan is where the sample is selected in stages, with the need for each subsequent stage being conditional on the results of the previous stage.

Blank 1: sequential

Maintenance, repair, and operating supplies deal with many ____ value purchases.

Blank 1: small

A ____ is used to complete work that has been bid out by prime contractors.

Blank 1: subcontractor

Late materials can affect an organizations profits, production times, and customer satisfaction. These are also affected by _______ and _________.

Blank 1: supplies Blank 2: services

Given the importance of insourcing and outsourcing decisions, the ____ manager should be heavily involved.

Blank 1: supply

Lack of goal alignment between the ________ department and the _________ department can lead to conflicting behaviors.

Blank 1: supply Blank 2: accounting or finance

Organizations should operate in such a manner they ____ government regulations instead of ____ them.

Blank 1: support, help, aid, or assist Blank 2: opposing, resisting, withstanding, or challenging

Engineering drawings are commonly submitted with a form of descriptive ____.

Blank 1: text

How is using description by brand restrictive?

Brand specific requirements can deprive the buyer of using other suppliers.

Hybrid

Business units have the ability to purchase up to a certain amount and then the authority is transfered to corporate.

Decentralized

Business units or branches have the ability to purchase. Business units or branches have the ability to purchase.

Locating buyers with internal customers to provide lowered costs and improved quality is known as?

Co-location with internal customers

What can an organization use to ensure supplier comply with labor concerns and human rights issues?

Codes of conduct

Key success factors for successful supply teams include

Commitment to performance and completion with choices delegated to the correct level. Prepared for customer satisfaction rather than individual functional success. All functional areas involved in up-front preparation, mutual leadership roles, and role flexibility.

Centralized

Corporate HQ (Chief Purchasing Officer) has the authority over all purchasing.

Identify the consequences of a substandard television that is sold and used by a consumer.

Cost for shipping the television back and delivery of the new one. The cost of replacement. Lost revenue due to loss of future business.

Setup costs

Cost of setting up production runs.

Variations in delivered costs

Costs associated with purchasing in quantities or at times when prices or delivery costs are higher than at other instances

stockout costs

Costs for not having parts or materials on hand when needed

Sources should be evaluated on which levels?

Current additional Strategic Traditional

Which method of description is confined to certain primary materials?

Description by market grade.

Which method of description is used when no other way is conceivable to request product procurement?

Description by sample

Why is supply chain sustainability important to today's supply chain managers?

Developing products that are safe for consumer use. Developing products that use less scarce resources. Global warming/climate change concerns.

How can the supply department reduce the number of emergency requisitions received?

Education. Process improvements.

Assurance-of-supply matches

Ensure future needs are met.

What are the difficulties when acquiring services?

Ensuring adequate capacity. The inability to store for future use. Ensuring the proper timing of delivery.

Competitive-edge

Exploiting market opportunities.

True or false: Closure requirements for all subcontracts are universal

False

True or false: Employees who directly deal with upset customers due to substandard goods or services, always become more prideful in their work.

False

True or false: Every item that arrives at a facility will need receiving inspection prior to use.

False

True or false: Requirements evaluated under the service criteria are easier to quantify than the remaining traditional criteria.

False

What are the implications for JIT managed systems?

Frequent delivery of small orders. Supplier training and cooperation is required. Fewer local suppliers. Suppliers must deliver high and consistent quality.

Carrying, holding, or possession costs

Handling charges for the cost of storage, costs of equipment to move storage, labor, insurance, investment, and opportunity costs

What are the three common supply organizational models?

Hybrid Decentralized Centralized

What are the levels of analysis for linking sourcing with strategy?

Identifying suppliers who can meet the organization's requirements. Determining sourcing that the organization will seriously consider for purchases.

A supply manager must use which of the following to manage and evaluate supply decisions?

Impact assessment Risk identification and classification. Risk strategy

Professional

Implies that supply professionals have the opportunity to exercise their expertise in important acquisition process stages

Sourcing

Include supply and representatives from relevant functional areas to focus on cost reduction, local procurement strategies, evaluating suppliers, and analyzing organizational spend.

Which are considered financial risks that supply chain managers must take into account to prevent supply interruptions?

Increased duties and tariffs. Price change in raw materials. Currency rate changes.

Which form of specification data requires extensive consultation and can be expensive?

Individual standards

What are the three main elements of cloud computing that supply focuses on?

Infrastructure as a service Platform as a service Software as a service

What does the acronym ISO stand for?

International Standards Organization

Meaningful

Means that parties outside of supply group are willing and able to take supply considerations into account in managing their own areas of responsibility.

Check

Measure and evaluate the results of countermeasures.

purchasing consortia benefit

Mutual and equitable sharing of risks, costs and benefits to all stakeholders, including buying firms/members, suppliers and customers.

What are some ERP challenges?

Need to train vast numbers of employees. Changes in business processes required. Highly complex implementation.

Which supply management techniques have increased over the traditional ideals?

Negotiation instead of competitive bidding, Long-term contracts opposed to short-term buying, Close supplier relationships in place of arm's-length dealings

How many items are generally included on a purchase requisition for those regularly stocked?

One

What geographical decisions must supply managers make?

Onshoring of suppliers. Offshoring of suppliers. Reshoring suppliers.

Which of the following supply decisions can lead to poor operational efficiency.

Parts that arrive to the facility that do not meet quality standards. Raw materials that arrive late from the supplier.

The sum of all costs to avoid defects or future occurrences is?

Prevention costs

What five areas can supply manager focus on for reduced complexity and exploitation of economies of scale?

Procurement Product design Order fulfillment Manufacturing Planning

What are some benefits of using cross-functional teams for supply functions?

Product development. Technology management. Improvements in quality.

What are some opportunities to explore when integrating supply management with business processes?

Reduce costs throughout business processes, Increase a products speed to market, Increase quality of products.

Documentary

Requires supply function to act as recorder, sender of PO or a receiver of bids, but important supply decision are made outside of supply.

Requirements for internal controls, standardization, processes, and consistency have greater importance due to the Multiple choice question.

Sarbanes-Oxley Act

Process capabilities studies identify which two types of variation?

Special or assignable causes. Common or random causes.

What are the types of purchase requisitions commonly used in supply?

Standard Traveling Bill of materials

What are the benefits of a supplier certification program for suppliers?

Suppliers receive systematic improvements. Suppliers are considered first for new business. Suppliers are publicly recognized by buyers.

Which term(s) are used to describe related functions within an organization that provides effective and efficient materials and services management?

Supply management, Procurement, Purchasing

Supply managers can bring valuable insight into corporate transactions that include

Supply managers can bring valuable insight into corporate transactions that includ

The terms supply or value chain may is often substituted with which of the following throughout academics and persons involved in supply management?

Supply network, Supply web

True or False: Negotiating with a supplier to create a product with higher quality is considered to be an operational perspective.

T

True or false: Administration personnel are responsible for the preparation and routing of formal purchase documents.

T

True or false: 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.

T

True or false: Supply teams can encompass a wide variety that include teams with suppliers, customers, supplier councils, and consortia.

T

A car manufacturer wishes to increase their customer focus on new car design, which team is beneficial for them to form to ensure they meet their goals?

Team with customer participation.

Which of the following are challenges or questions that must be addressed when an organization decides to insource?

The company must ensure a smooth transition to avoid production interruptions. The company must focus on how they will discontinue relationships with current suppliers. The company must be able to provide raw materials and parts for production.

Choose the reasons a firm should purchase goods or services over making them.

The firm has strict on time delivery deadlines and requires a multi-sourcing strategy using an external supplier in addition to an internal source. The supplier can provide the benefit of economies of scale for components that are non-vital to the organization's operations. The firm wishes to take advantage of a supplier's brand image.

Which of the following are ways a business can reduce acquisition fees for small-value purchases?

The firm uses vendor managed inventory to replenish MRO items. A signed blank check attached, usually at the bottom of the purchase order. Hold off on small purchases until a sufficient dollar amount is attained that justifies the costs.

Allowing managers to make decisions under pressure while training supply functions carries which benefits?

The individual's capacity to take responsibility for decisions that are made. Evaluation of the managers willingness to make sound decisions. Evaluation of the individual's ability to make sound decisions.

Which items influence the decision of an organization for what needs are required to operate the business?

The location of the organization. The size of the organization. The industry the organization is involved in.

When is description by brand desirable?

The manufacturing process is secret or the item is covered by a patent. The quantity bought is so small. Specifications cannot be laid down with sufficient accuracy.

Which of the following are supply chain decision objectives?

The right price The right time The right materials The right place The right quantity

Organizations who turn over inventory control over to the suppliers benefit from which of the following?

The supplier takes on inventory carrying risk, The supplier is responsible for all disposal costs, The organization can removing asset dollars from the ROA calculations

Which factors influence the importance placed on supply functions within an organization?

The types and complexity of purchased goods or services. The competitive advantage an organization has in regards to supply and suppliers. The amount of purchases made through outside vendors.

Which of the following are reasons that a company may choose to make over buy?

To have more control of the quality of the material/product than a supplier. The ability to produce the material or product at a lower cost and avoid paying a 3rd party's profit margin. No existing supplier in the market and not enough time to spend developing one before the product is required.

An integrated effort designed to improve quality performance at every level of the organization.

Total Quality Management

What are the significant challenges supply managers face when setting objectives and strategies?

Translating corporate objectives into supply objectives. Identifying concerns from supply goals and giving feedback into the organizational objectives. Choosing the appropriate plan to achieve goals.

Which decisions can the supply manager help provide insight?

What products or services should be outsourced. Negotiation of contract terms. Which supplier should be selected.

E-commerce is ever changing, questions that must be evaluated prior to choosing this path is. Should we lead or follow?

What should be acquired? What tools should be used for acquisition? Who should be the service provider?

Single sourcing

When the purchaser is interested in partnering with the supplier., Special tooling or technology is required, The purchaser obtains more influence with the supplier.

Early supply involvement when purchasing goods or services can lead to

a competitive advantage. a shorter length of time it takes from a product being conceived until its being available for sale. a negotiation for better pricing for the firm.

Strict regulatory requirements regarding _______ processes and policies are one way public organizations differ from private organizations.

acquisition

Sustainability efforts of supply managers involve effective capture and disposition of products __________ customers have used them.

after

A request for information serves the purpose of

allowing a supplier to express interest in a business relationship. signaling a potential supplier has been identified.

Suppliers and supply function are vital to

an organization's success, competitive advantage, customer satisfaction

When an employee deals with unhappy customers over matters out of their control, the employee can develop

an uncaring attitude.

Confidence in an organization's ability can be improved by

applying sound and ethical policies.

Supplier selection involves

assessing the supplier's ability to deliver satisfactory goods on time. identifying the supplier.

Dependent upon organizational structure, the functions for procurement may be divided among managers, but the ____ over purchasing should be well defined.

authority or responsibility

Using or equal descriptions transfers responsibility for establishing equality to the ____ .

blank 1: bidder

The ____ should state when goods will be paid for, either a term after the invoice date or receipt date.

buyer

Supply chain for most organizations can be classified into seven categories of resale, MRO, services, other, _______, ________, and ______.

capital assets raw components

Basic elements for determining carrying cost include

capital costs. storage space costs. inventory risk costs. inventory service costs.

The ________________ refers to the time between purchasing the raw materials used to make a product and collecting the money from selling the product.

cash conversion cycle

Changes that happen within an organizations strategy will cause _________ within the supply strategy.

changes or adjustments

Causes that are inherent to the process and need changes to the process to remove are known as

common

Systems contracting benefits supply by allowing authorized personnel to place direct orders for

common off-the-shelf purchases.

Using an electronic data interchange system, orders and recording are

completed automatically.

Organizations that move to a decentralized structure will most likely maintain some of the core supply capabilities at the ____ level.

corporate

Supply decisions must be aligned with the ____ structure and strategy.

corporate

A primary way an organization can achieve reduced costs, improved quality, and faster speed to market is with the use of _________-functional teams.

cross

A primary way an organization can achieve reduced costs, improved quality, and faster speed to market is with the use of __________ -functional teams.

cross

Improving the P2P process can

decrease administrative costs. reduce cycle times. improve internal customer satisfaction.

To be competitive an organization must

deliver goods that have a fair price to consumers. deliver goods to consumers on time. deliver goods that meet quality expectations.

For repetitive purchases contract length is influenced by

design stability. product or life cycle.

A _____ spend includes those goods that go into the end product or service.

direct

The most critical issues supply chain managers face, are supply chain ________ and supply chain ___________-.

disruptions and risk

Decentralized supply models often have the advantages of

easier coordination with purchasing. faster response time when requesting funding. business units understand their unique needs.

Compressed cycle times and proper material coordination will allow supply managers to place more ____ orders.

efficient

The ____ catalog is a digitized version and represents products of thousands of direct suppliers and the goods and services they offer.

electronic, online, e, or e-

What integrates all departments and functions throughout an organization into a single IT system so that employees can make decisions by viewing enterprise wide information on all business operations?

erp

Supply, when taking a lead role for supplier selection can often help

establish supplier quality standards. set conditions for payment. determine price.

A subcontract performance summary is beneficial for

evaluation fore future selection. information for renegotiation. information for subsequent claims.

Decision trees help assess success and ____ for sourcing criteria.

failure

Offshoring can involve suppliers that are

far shore. near shore.

Private organizations have _________ restrictions with supplier selection compared to public organizations.

fewer

A process ____ is a graphical representation of a supply management process.

flowchart

Placing a(n) ____ order can give a firm price for goods agreed upon today for delivery at some time in the future

forward

The three levels of strategic planning are

function. corporate. business unit.

A master service agreement is a contract reached between parties, in which the parties agree to most of the terms that will govern ____ transactions.

future

A die shop has three options during production—make the part from a blank, buy a finished piece, or machine a partial piece from a forging. If the production manager chooses to machine an incomplete part from the purchased forging, this is known as the ____ zone.

gray

High performing teams offer benefits to the organization through lower costs, less time for completion of tasks, and

greater stakeholder buy-in.

Applying the skills of the supply group throughout the acquisition of nontraditional purchases

has significant opportunities for cost savings with annual spending.

ABC Freight's CPO reports directly to the executive vice president, a senior executive in the organization, ABC Freight places a

high degree of importance on supply functions.

High skilled services require a

higher degree of quality monitoring.

Supplier council is an important forum and is useful for

identifying problems with the supply base early. agreeing on competitive delivery terms.

Reviewing corporate need under a financial examination allows supply managers to help

improve return on assets. lift the company's financial ratings.

As demonstrated in the reading, Steve Kiefer worked to improve relationships with supplier and benefited with

improved cost and quality.

ISO standard help to facilitate

improved efficiency. improved quality. international trade.

Actual price of an item may ____ during an online auction.

increase

Purchased goods and services that are not a direct part of products or services delivered to customers is known as

indirect spend.

The Deming Prize is given annually in areas of

individual contributions to the field of TQM. businesses who have successfully implemented TQM.

The decision to reverse functions, processes or projects that were being supported with external resources is known as

insourcing.

Indirect supply contributions are often considered "soft" or__________ contributions making them challenging to measure.

intangible

The reputation of an organization is affected by the decisions and behavior of supply personnel; this includes communication that is both

internal and external.

Materials management personnel can have responsibilities in areas such as

inventory control. receiving inspection. scheduling and planning.

Supply professionals provide ______ and ______ skills to source, evaluate, and select suppliers. Multiple choice question.

investigative; analytical

The four general categories of supply include

involvement in corporate activities. what is acquired. supply chain activities.

A challenge with MRO purchases is

keeping acquisition costs low.

High-volume purchases are typically fulfilled by

large suppliers.

To determine the reorder point, the ____ time is necessary.

lead

Supply chain contributes to the organization's

long-term strategies and objectives. short-term strategies and goals. search for the lowest cost for goods.

Vendor Managed Inventory (VMI) is typically for ____ value items that are needed in stock for immediate use as required.

low

The main advantages of using an e-marketplace are

low transactions costs. reduced lead times.

Probability and impact assessments go from ____________ probability and __________ impact to __________ probability and _________ impact.

low, low, high, high

Corporations who use standardization and simplifications can see achievements in

lower inventories. lower costs. improved quality.

Standardized materials for products can lead to

lower tracking costs. lower prices. lower inventory.

The degree of tangibility can be used in strictly service organizations, with no tangible goods, by setting standards for

machine qualification. personnel training.

W. Edwards Deming argued that

making it right the first time should be used to control quality.

Ordering or purchase costs

managerial, clerical, material, telephone, mailing, fax, e-mail, accounting, transportation, inspection, and receiving costs associated with a purchase order

Departments like _______ and _________ must work together for strategic sourcing and media campaigns or special promotions.

marketing supply

After a contract is signed, the direction for the flow of materials and services is overseen by

materials management personnel.

Inventory reduction and purchasing savings are direct contributions that are __________ and tangible.

measurable

Raw materials are basic substances in a _____, _____, or _____ state that are used as inputs to a production process.

modified natural semi-processed

Hybrid models seek to operate under a model that is _____ centralized or decentralized.

neither

The three significant cross-functional supply teams are

new product development. sourcing. commodity management.

Information that is often provided by the supply function includes

new technology. new sources of supply. new products.

Supply managers can add value to corporate decisions through

operational knowledge. providing competitive intelligence.

The three supply chain risk management categories are

operational. financial. reputational.

Process compliance can be affected by

organizational culture. organizational structure.

Financial risks involve supply interruptions that are directly related to the changes in the ___________ of a good or service.

price

The supply policy and procedure manual details

procedures. data systems. the duties of various personnel.

A ____ oriented person considers the flow of services, information, and materials throughout the entire supply chain while making decisions.

process

Industry sector will influence supply responsibilities; industries can be divided into

process industry. discrete goods industry.

The three types of procurement outsourcing contracts are

procure-to-pay source-to-pay source-to-contract

The set of activities from issuance of a purchase order to submitting payment to the supplier is known as

procure-to-pay.

A company charge card that allows a buy to be made without using the traditional purchasing process is a ____card.

procurement

In most cases, __________ goods and services represent the most significant cost encountered by an organization.

purchased

Components or services that are inspected and are free from defects, deficiencies and significant variations and they meet specification requirements, they are considered to be of good

quality

Total quality management emphasizes

quality as the key factor for organization success.

Prior to awarding a supplier business, the buying organization should conduct a

quality assurance survey. quality capability survey.

Specific supply objectives include _______ quantity, delivery, ______ service, flexibility, and continuous improvement.

quality, price

The organization needs to be categorized under the traditional value proposition are evaluated under the criteria of

quantity. service. quality.

Providing training to new managers in supply functions can help them

quickly grasp organizational goals and needs.

A sample in which every element in the population has an equal chance of being selected is a

random sample.

Organizations often increases in their competitive advantages due to`

reduced cycle time. using a just-in-time delivery system.

Materials that do not arrive on time can impact

revenues. customer satisfaction. production times.

Organizations where unethical supply decisions are made can have an increase in reputation ___________

risk

Strategic supply decision balance ____ and expected ____.

risk, return

Small or medium-sized businesses that have limited personnel and supply responsibilities are often

secondary obligations.

Supply functions can increase customer satisfaction by

securing suppliers who deliver better quality, faster, and with a better price.

With highly customized services, the buyer

shares some quality responsibility. is highly involved in the specification process.

Discrete goods from industries face challenges within the supply chain from consumer preferences, innovation, and

short product life cycles.

Involving supply and end customers can lead to delivering a great value in the ____ cycle times.

shorter

Strategic _________ focuses on long-term supplier relationships.

sourcing

Moving towards a centralized supply organization requires employees with ____ experience in areas.

specialized

Benefits of corporate supply councils include

standardization of goods and services across all sites. streamlining of materials processes. standardizing of purchasing processes.

____ sourcing are purchases that are critical to the organization.

strategic

Supply decisions that are opportunistic are considered ___________, while those that help avoid trouble are referred to as ________.

strategic, operational

Supply is an organizational tool of management _______________ and social _____________.

strategy, policy

Performance specification allows the ________ to take advantage of the latest technology to provide the most suitable product.

supplier

____ council give suppliers the opportunity to be proactive in supply management activities of large firms.

supplier

Externally focused activities are either

supplier focused. customer focused.

Given the importance of insourcing and outsourcing decisions, the ____ manager should be heavily involved.

supply

Commodity management teams engage in activities such as

supply base reduction. management of deliveries. management of supplier relationships.

Delivering the best value to the customer by overseeing activities within the supply functions is known as ____ ____.

supply management

Within hybrid supply models many tasks are often handled at the corporate level to ensure business units are aligned, these can include

supply performance auditing. policy and procedure establishment. training of employees. common use item purchasing.

Large supply organizations have four general specialized areas, these include sourcing and commodity, materials management, administration, and

supply research.

Manufacturing engineering department would like to use an alternate material in production; they should send the request for a study through which supply function.

supply research.

Ensuring that an organization meets all of their environmental obligations falls under corporate ________ objectives.

sustainability

Level 3 criteria bases the evaluation of a potential source on

sustainability. innovation. political factors.

A best buy decision includes

technical considerations. market conditions. the products procurability. all relevant stakeholders buy-in.

Strategic management decisions can have an impact on supply functions, gains can be made in

technology advancements.

When an organization moves towards supply centralization, a major concern is

the availability of qualified personnel. the availability of information in regards to total corporate spend

Before choosing an information systems, the firm must understand

the benefits that will be gained from the technology. the options they have available to choose a system from. the trade-offs and costs associated with a supply system.

When acquiring goods or services, the purchaser must determine

the best buy circumstances.

The range between 100% insourcing and 100% outsourcing. that is useful for testing and learning both sides of supply without fully committing is known as

the gray zone.

When the supply function can provide information about new advertising techniques and distribution systems, this may be useful to

the marketing department.

To improve efficiency for nonstrategic spend there must be reductions in

the number of invoices. the number of requisitions. the number of purchase orders.

ABC manufacturing has decided to use a custom component to decrease the ability of competitors to copy their design, the disadvantage of this is

the part is not readily available.

The most significant cost for resellers is

the price they pay for goods they resell.

Service industries may be unable to meet future quality standards due to

their inability to attract and retain employees. their lack of modernized technology.

Indirect spend should be monitored because:

there is a wide variety of goods and services sourcing. decentralized nature of spend gives control to individual units. it can increase cost pressure.

Inventories are maintained by organizations

to smooth the flow of goods through the production process. to obtain a reasonable utilization of people and equipment. to provide and maintain good customer service. to provide protection against the uncertainties of supply and demand.

Organizational financial objectives can include

total expected revenue. increase in return on assets. total budget size.

Organizations with multiple sites face additional concerns with regards to

transportation and storage issues.

Costs associated with rejected parts are

transportation costs. testing costs. contingent expense.

Innovation allows suppliers and purchasers to work together continually to improve

value. total cost of ownership.

Descriptions for supplies can be given using a variety of forms, supply personnels responsibility is to

verify the description and provide alternatives. order as requested.