Supply Chain Management Quiz 3

Which of the following can be a result of successful strategic supplier alliances?

-Better market penetration -Access to new technologies and knowledge -Higher return on investment

When a process is considered in control, this means that:

-Only natural process variations are present. -The data plots appear normally distributed around the desired measurement. -No data plots fall outside the control limits.

According to the Six Sigma philosophy, the Six Sigma goal is to have ____ defects per million measurement opportunities.

3.4

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%

kanban

A Japanese word for "card"; it is a visual tool used in lean production.

muda

A Japanese word meaning waste or anything that does not add value.

C charts are useful when:

A number of mistakes or errors can occur per unit of output, but they occur infrequently.

The term "benchmarking" as used in business firms is:

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

Which tool is useful for determining the frequencies of specific problems?

Check Sheets

Which of the following is NOT a step suggested in the Supply Chain Sourcing Strategy Framework?

Compare supplier prices based on the lowest cost bid

value engineering

Designing better quality and cost savings into the products originally.

According to the text, which of the following is one of the most effective supply chain integrative techniques

Early supplier involvement

The Amazon Kindle and Tesla's Model S automobile are two examples of:

Innovative products

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?

Procurement rationalization

The Toyota Production System was initially designed based on:

Several trips by the Toyoda family to the Ford manufacturing plant.

In lean terminology, yokoten refers to:

Sharing best practices with suppliers and customers.

Which of the following is NOT a step used in maintaining a successful strategic alliance program?

Supplier managing inventory at customers' site

Which of the following hastened many organizations' plans to institute better supply chain strategies in the recent past?

The British vote to exit the EU

Green purchasing is a practice aimed at ensuring that purchased products or materials meet environmental objectives of the organization such as:

Waste reduction

Producer's Risk refers to which of the following scenarios?

When a buyer rejects a shipment of high quality units because the sample did not meet the acceptance standard.

The Ethical Trading Initiative (ETI) is:

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

Variations in process measurements can be classified as either natural or:

Assignable

When purchase order quantities are cut in half, which of the following will be true?

Average inventory levels will also be cut in half.

Poka-yoke refers to:

Error- or mistake-proofing

A firm decides to intentionally increase purchases from ethnic minority businesses. This decision can be considered:

Ethical Sourcing

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

Ethical and sustainable sourcing

One benefit from benchmarking sourcing practices is:

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

Environmental supplier certification programs can assist companies by doing which of the following?

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

Which of the following is one of the MOST important elements of the lean production philosophy?

Inventory reduction and continuous improvement

How do lean systems impact the environment?

It reduces waste, which improves the environment.

Moving small production batches through a lean production facility is often accomplished using:

Kanbans

Which of the following should NOT be used as assessment criteria to evaluate the purchasing department's performance?

Lowering inventory turnover rates

functional products

MRO items and other commonly purchased items and supplies. These items are characterized by low profit margins, relatively stable demands and high levels of competition.

Firms assess their sourcing capabilities because:

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

Use of Six Sigma helps supply chains become lean, due to:

The impact that improved quality has on reducing safety stocks

Attribute data are shown as:

The percent defectives within a sample.

An important measurement used in supply base rationalization initiatives would include which of the following?

The suppliers' greenhouse gas emissions

Which of the following terms refers to an act that creates the greatest good for the greatest number of people?

Utilitarianism

According to the text, which of the following two approaches are used in deciding whether or not an action is ethical?

Utilitarianism and rights & duties

keiretsu relationships

partnership arrangements between Japanese manufacturers and suppliers.