Chapter 4
In the vendor managed inventory (VMI) system the _____________ is responsible for stocking, packing, shipping, and invoicing.
supplier
Private marketplaces are accessible on the ________________
extranet
A _________________ oriented person considers the flow of services, information, and materials throughout the entire supply chain while making decisions.
process
Information systems can ___________________ cost and make data ______________ accessible.
reduce, more
A ____________________ auction uses competing suppliers who bid down the price at which they are willing to sell until the buyer accepts a bid.
reverse
EDI requires the use of ___________ message format.
standard
The goals and strategies of the organization must be aligned ______________ and _________________.
vertically, horizontally
An e-procurement system that handles transactions from contracts to payment, and everything, in between, is known as A) ERP B) CMP C) RFID D) P2P
D
You work in purchasing and have received many rushed requisitions, choose if you should approve or disapprove. George forgot to order the supplies his team will need on Monday; he places a rushed order request to prevent production from slowing down while he waits
Disapprove
Placing a(n) _________________ order can give a firm price for goods agreed upon today for delivery at some time in the future
forward
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
How can the supply department reduce the number of emergency requisitions received? (multiple answers) A) process improvements B) keep extra inventory of every item ordered C) education D) do not allow any emergency requests
A, C
The necessary items required on a purchase order are the (multiple answers) A) serial number B) quantity and description of goods C) date of issue D) the buyers organizational capability
A,B,C
Unplanned-uncontrolled procurement done without consultation with the purchasing department is known as A) Maverick buying B) limited buying C) procurement protocol D) eliminated purchasing
A
Using an electronic data interchange system, orders and recording are A) completed automatically B) reverse auctioned C) completed by the vendor D) assigned to a calendar for auto delivery
A
Who authorizes personnel to requisition goods or services internally? A) The supply department B) Anyone can place a requisition internally C) The value stream manager D) The employees supervisor
A
__________________ uses radio waves to transmit a unique serial number as a form of ID for objects
RFID
The _____________ should state when goods will be paid for, either a term after the invoice date or receipt date.
buyer
Place the supply process steps in order. 1. upon receipt, inspection and payment to clear the invoice 2. recognition and description of need is provided 3. preparation and placement of purchase order 4. maintenance of records and relationships 5. follow-up and/or expediting the order 6. identification and selection of supplier including terms
2, 6, 3, 5, 1, 4
Which items can increase costs when purchasing supplies or services? (multiple answers) A) vague descriptions provided to the supply department B) overly particular materials that do not offer value to the finished product C) using cross-functional teams to ensure all supplies are ordered accurately D) Early supply involvement to ensure all supplies and materials are ordered in a timely fashion.
A, B
Issued when there is a clear and definite description of a need, will include a list of potential suppliers. A) RFP B) RFQ C) RFB D) RFI
B
What are the three main elements of cloud computing that supply focuses on? (multiple answers) A) procurement as a service B) platform as a service C) software as a service D) infrastructure as a service
B, C, D
What type of purchase requisition is used for recurring orders? A) bill of material B) inventory C) traveling D) standard
C
If information is missing or does not match the purchase order, who is responsible to make corrections? A) supply B) accounting C) receiving inspection D) supplier
D
Streamlining supply functions is a ways to reduce _______________ A) auction B) policies C) markets D) waste
D
The supply personnel send information back to the supplier regarding their proposal, this is considered A) local information flow B) management information flow C) inward information flow D) outward information flow
D
The _______________ should state when goods will be paid for, either a term after the invoice date or receipt date.
buyer
A _________________ PO contains multiple items and delivery dates scheduled over a period of time, used for recurring needs for expendable goods.
blanket
A key factor for ensuring the success of supply processes is ensuring good ________________ with all stakeholders.
communication
Reverse auction also has _____________ sellers and ______________ buyer.
many, one
Match the internet auction event (open offer, private offer, posted price) the most competitive offers can be made by suppliers until a set time
open offer
Purchase orders are retained under normal conditions for ______________ years as evidence of a contract.
7
For companies who have legacy software layered with new software applications they have the advantages of A) flexibility and cost-effectiveness B) higher costs and modernizations C) flexibility and higher costs D) modernization and extensions
A
Strategic spend describes goods or services that are: A) vital to the mission B) non-specialized items that are outsourced C) noncritical to the task D) specialty outsourced items
A
The regular tracking after a purchase order has been issued is known as? A) Follow-up B) Clearing C) Assessment D) Tracking
A
Small-value orders can come with high processing costs known as _______________ costs.
acquisition
When converting to an ERP system _______ is the leading cause of failure.
poor preparation
A prime purpose of proper receiving practices is to ensure products ordered are delivered in the amount and quality indicated on the ______________ ________________
purchase order
Place the three stages of a reverse auction in order (prep, the auction event, implementation)
1. prep 2. the auction event 3. implementation
There are ____________ basic flows for supply information.
4
Supply professionals provide ______ and ______ skills to source, evaluate, and select suppliers. A) investigative; analytical B) participation; professional C) analytical; participation D) evaluation; negotiation
A
________________teams foster communication throughout the supply chain and can help support critical decisions. A) cross-functional B) management C) supplier D) process improvement
A
As an organization is developing their supply processes they must focus on the (multiple answers) A) long-term goals and strategies B) short-term goals and strategies C) intermediate goals and strategies D) operational goals and strategies
A, B
The main advantages of using an e-marketplace are (multiple answers) A) low transactions costs B) reduced lead times C) increased lead times D) higher transaction fees
A, B
E-commerce is ever changing, questions that must be evaluated prior to choosing this path is. Should we lead or follow? (multiple answers) A) what should be acquired? B) who should be the service provider? C) what tools should be used for acquisition? D) what form of payment should be used?
A, B, C
Supply, when taking a lead role for supplier selection can often help (multiple answers) A) set conditions for payment B) establish supplier quality standards C) develop the engineering specifications D) determine price
A, B, D
Process compliance can be affected by (multiple answers) A) organizational structure B) information systems C) organizational culture D) maverick purchasing
A, C
Choose some of the benefits of e-procurement. (multiple answers) A) better sourcing decisions B) higher transaction fees C) more effective collaboration D) lowers transaction costs
A, C, D
Improving the P2P process can (multiple answers) A) improve internal customer satisfaction B) decrease the price on goods purchased C) decrease administrative costs D) reduce cycle times
A, C, D
The supply policy and procedure manual details (multiple answers) A) the duties of various personnel B) suppliers to be used C) data systems D) procedures
A, C, D
To improve efficiency for nonstrategic spend there must be reductions in (multiple answers) A) the number of invoices B) the number of supplies ordered C) the number of requisitions D) the number of purchase orders
A, C, D
What are the types of purchase requisitions commonly used in supply? (multiple answers) A) traveling B) financial C) standard D) bill of materials
A, C, D
Internet auctions can offered from which platforms (multiple answers) A) posted price B) closed C) reverse D) private E) open
A, C, D, E,
You work in purchasing and have received many rushed requisitions, choose if you should approve or disapprove. Michael needs to get a part to fix his machine, with the rushed requisition he will be able to get production of a critical component back online
Approve
You work in purchasing and have received many rushed requisitions, choose if you should approve or disapprove. The firm has used the same rubber gasket for three years now; a new procedure requires a new material immediately
Approve
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? A) standard requisition B) bill of material C) inventory requisition D) traveling requisition
B
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. A) process B) functionally C) supply D) supplier
B
What is the value with using commodity coding? A) develop purchasing policies B) track spending at all levels C) spend more on future purchases D) manage who makes purchases
B
Which of the following is not a good time to use a reverse auction? A) with a clear understanding of market conditions B) the buyer is not prepared to switch suppliers C) clearly defined specifications D) the buyer and seller are familiar with auction processes
B
Early supply involvement when purchasing goods or services can lead to (multiple answers) A) increased costs on goods and services B) a competitive advantage C) a shorter length of time it takes from a product being conceived until its being available for sale D) a negotiation for better pricing for the firm
B, C, D
What are some ERP challenges? (multiple answers) A) slower time for making purchasing decisions B) need to train vast numbers of employees C) changes in business processes required D) highly complex implementation
B, C, D
Which are considered risks with online auctions? (multiple answers) A) no upfront preparation costs involved with auctions B) damaging the relationship with a supplier C) actual price of goods after all fees and costs are calculated D) auction costs versus expected savings
B, C, D
Nonstrategic spend is driven by (multiple answers) A) the critical need to the business B) dollar value C) the location of the purchaser D) repetitiveness
B, D
Responsibility for clearing invoices can be assigned to (multiple answers) A) marketing B) supply C) accounting D) production
B,C
If a company wants to eliminate receiving inspections, the supplier must A) meet deadlines for shipping and give the purchaser time to locate any bad poor quality before paying. B) make decisions without consulting the purchasing company C) meet all quality standards consistently prior to shipping product D) ensure that product shipped meets quality standards 50% of the time
C
The set of activities from issuance of a purchase order to submitting payment to the supplier is known as A) prepare to pay B) paper to pay C) procure to pay D) proceed to pay
C
The three internal gates for requisition approval are for authorization, A) clarity and payment B) payment and coding C) clarity and clearance D) payment and clearance
C
What approach to inventory management and order fulfillment requires the supplier to be responsible for managing and replenishing inventory? A) TVI B) VMC C) VMI D) SMV
C
What are the ways information systems can benefit firms? A) slower communication B) monetary control C) data accuracy D) speedier communication
C
Which is the best method for small dollar purchases made by internal customers? A) cash B) purchase order C) P-card D) checkbook
C
Supplier selection involves (multiple answers) A) managing the supplier relationship. B) developing the policy on the buyer's share of supplier's capacity. C) assessing the supplier's ability to deliver satisfactory goods on time. D) identifying the supplier.
C, D
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? A) TMV B) VMI C) RFID D) ERP
D
What is a communications standard for sharing business documents between two firms? A) SDE-supply data exchange B) ESE-electronic supply exchange C) SEI-sourcing electronic interchange D) EDI-electronic data interchange
D
You work in purchasing and have received many rushed requisitions, choose if you should approve or disapprove. John works in production and has had orders delivered late a few times now; he submits a rushed requisition to get the materials he will need next month ahead of time
Disapprove
You work in purchasing and have received many rushed requisitions, choose if you should approve or disapprove. Susan usually places her orders an emergency so that she knows supply will process her request without delay
Disapprove
_______________ applies demand on a supplier to meet the initial delivery agreement or speed up a back ordered item.
Expediting
True or false: Purchasers must pay the invoice when received regardless of when the goods are shipped.
False: Suppliers can offer incentives for clearing invoices before receipt of goods, but legally the title cannot pass to the buyer until acceptance of the products.
True or false: At times decision making is more difficult to a lack of available data.
False: often the problem is too much information or analysis paralysis
A(n) __________________ is an information request not binding on either party.
RFI
Requirements for internal controls, standardization, processes, and consistency have greater importance due to the ________________
Sarbanes Oxley Act
True or false: E-catalogs allow buyers to customize the catalog for internal customers.
True: E-catalogs can be customized so that internal customers only have access to items they are authorized to purchase.
True or false: Supply information systems allow supply personnel to focus on higher-value tasks.
True: information systems reduce low-value tasks of supply personnel
A buyer should recommend a ____________________ if there are market shortages or lowered priced items that meet the customer requirements.
alternative
A request for proposal is used when the ____________ is planning to negotiate price and terms.
buyer
A supply _______________ can help organizations standardize goods, services, and processes across multiple sites in decentralized organizations.
council
The _____________ catalog is a digitized version and represents products of thousands of direct suppliers and the goods and services they offer.
electronic
A process __________ is a graphical representation of a supply management process.
flowchart
Actual price of an item may ____________ during an online auction.
increase
_______________________ customers must provide clear and concise needs to supply to produce products that must meet the requirements of _____________________ customers.
internal, external
_______________and ______________ customers are affected by supply chain decisions.
internal, external
Match the internet auction event (open offer, private offer, posted price) the first supplier to meet set price gets the award
posted price
Match the internet auction event (open offer, private offer, posted price) suppliers enter their offer, buyer evaluates
private offer
A company charge card that allows a buy to be made without using the traditional purchasing process is a ________________ card.
procurement
_________________can be caused by unnecessary follow-up or expediting.
waste
