supply chain

A Supplier Code of Conduct is intended to inform suppliers of ethical sourcing expectations and is typically a condition for becoming an approved supplier.

true

A purchase order is legally binding only after it is accepted by the supplier.

true

outsourcing

buying materials and components from suppliers instead of making them in your company-owned operations

Which of the following new technologies can improve supplier selection and increase the effectiveness of supplier relationship management?

artificial intelligence

Which manufacturing strategy is described as a manufacturing strategy where products ordered by customers are produced quickly and are customizable to a certain extent?

assemble to order

all of the following are reasons for buying/outsourcing an item from a supplier except for

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

A tender, proposal, or quotation submitted in response to a solicitation (i.e., RFP, RFQ) from a contracting authority is known as what?

bid

a proposal or quotation submitted in response to a solicitation from a contracting authority is known as what?

bid

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?

bottleneck

Which tool of quality control is used to study how a process changes over time?

control chart

The key characteristics to consider in the development and implementation of a Supplier Relationship Management System, include all of the following, EXCEPT?

detachment

Award-winning suppliers serve as role models for other suppliers and may therefore be exempt from audits and certification programs

false

Forward Vertical Integration refers to a company acquiring one or more of their sources of supply.

false

In a Spend Analysis, purchases that involve items representing a low percentage of the firm's total spend and having very little supply risk, are categorized as Leverage Purchases.

false

In the context of Total Cost of Manufacturing (TCM), in general terms, procurement, manufacturing, inventory, warehousing, and transportation per unit costs each go up as volume goes up.

false

Benefits of implementing an effective supplier certification program include all of the following EXCEPT?

increasing the supplier base

The keys to developing successful supply partnerships include all of the following EXCEPT? personal relationships performance metrics mutual benefits and needs individualized objectives

individualized objectives

The purchasing tool described as "A standard business process whose purpose is to collect written information about the capabilities of various suppliers", is known as?

request for information

The purchasing tool described as "A document used to solicit bids (i.e., price and delivery) from interested and qualified suppliers for goods or services that the organization needs to obtain", is known as?

request for quote

co-sourcing

the sharing of a process or function between internal staff and an external provider

a strategic partnership with a supplier

Is a commitment over an extended period to work together to the mutual benefit of both parties

The best supplier candidates for Supplier Relationship Management (SRM) include all of the following EXCEPT? Developmental suppliers that need to make improvements Preferred Suppliers Suppliers that provide high volumes of products or services Suppliers that provide lesser quantities of a crucial products/services

Developmental suppliers that need to make improvements

Which one of the following is NOT part of the seven (7) tools of Quality Control?

LEAN layouts

The goal of a good supplier performance evaluation system is to provide metrics that are:

Understandable, easy to measure, and focused on real value-added results

An effective supplier certification program may increase the time spent on incoming inspections.

false

which of the following are described as agents licensed by the governmental regulatory authority to conduct business on behalf of importers, for a service fee?

import brokers

Which element of Lean can be described as moving people and materials when and where needed, and as soon as possible?

lean layouts

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?

leverage

Buying materials and components from suppliers instead of making them in your company-owned operations, is known as?

outsourcing

The process commonly utilized in continuous improvement is known as?

plan, do, check, act

To make or process raw materials into finished products, especially by means of a large-scale industrial operation, is called what?

manufacturing

Which one of the following is NOT a reason to have a single supplier?

to spread the risk of a supply disruption

Backward Vertical Integration refers to a company acquiring one or more of their sources of supply.

true

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

true

Outsourcing allows the company that is outsourcing a product, to concentrate on core capabilities and reduce staffing levels.

true

Products with low profit margin, relatively stable demand, and high levels of competition, are known as Functional Products.

true

one of the main reasons to consider purchasing from an international global source is the opportunity to improve quality, cost, and delivery performance

true

Lean is a disciplined, statistical-based, data-driven methodology for identifying and removing the causes of defects and minimizing variability in manufacturing and in business processes

false

Sourcing Sustainability is described as the ability to meet the current needs of the supply chain without costing the company any additional time or money.

false

Supplier Relationship Management 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

false

The role of workers in Lean is to create the cultural change needed for Lean to succeed

false

Which cost of quality category includes performing audits to confirm that the quality system is operating properly?

appraisal costs

Costs incurred in the process of finding or discovering defects which includes testing, evaluating, and inspecting quality, are categorized as which of the following?

appraisal costs

backward vertical integration

a company acquiring one or more of their suppliers

In which item category would the sourcing strategies of consolidating volumes as a negotiation tool, using the competitive marketplace to reduce costs, and automating supplier interfaces to minimize process related costs, be appropriate?

leverage items

Which sourcing strategy would typically be used for items with low profit margins, relatively stable demand, and high levels of competition?

multi source

In public purchasing in the government & non-profit business sector, bidders (i.e., potential suppliers) are generally required to furnish bonds as an incentive to ensure that the successful bidder will fulfill the contract awarded. Which type of bond provides protection against 3rd party liens (i.e., debts) not fulfilled by the bidder?

payment bonds