Int. to Supply Chain TEST 2
MC: Which of the following new technologies can improve supplier selection and increase the effectiveness of supplier relationship management? A. Blockchain B. eFulfillment C. Artificial Intelligence D. The Internet of Things
Artificial Intelligence
MC: A proposal or quotation submitted in response to a solicitation from a contracting authority is known as what? A. Bond B. Tariff C. Countertrade D. Bid
Bid
MC: Which of the following is NOT one of the keys to successful strategic partnerships? A. Developing personal relationships B. Gaining commitment from top management C. Building independent objectives D. Understanding and influencing capabilities
Building independent objectives
MC: What is the term that is often used for the acquisition of services?
Contracting
MC: The key characteristics to consider in the development and implementation of a Supplier Relationship Management System, include all of the following, EXCEPT? A. Collaboration B. Visibility C. Integration D. Detachment
Detachment
MC: The best supplier candidates for Supplier Relationship Management (SRM) include all of the following EXCEPT? A. Preferred Suppliers B. Developmental suppliers that need to make improvements C. Suppliers that provide lesser quantities of a crucial products/services D. Suppliers that provide high volumes of products or services
Developmental suppliers that need to make improvements
MC: Which one of the following is NOT one of the advantages of e-Procurement? A. Mobility B. Inaccuracy C. Real Time D. Trackability
Inaccuracy
MC: Which of the following is NOT one of the primary goals of Purchasing?
Increase the supplier base
MC: The process commonly utilized in continuous improvement is known as? A. Specific, Measurable, Achievable, Relevant, Time-Oriented (S.M.A.R.T.) B. Plan, Source, Make, Deliver C. Ready, Aim, Fire D. Plan, Do, Check, Act
Plan, Do, Check, Act
MC: What is the term for an internal document that defines the need for goods and/or services? A. Procurement B. Purchase Order C. e-Procurement D. Purchase Requisition
Purchase Requisition
MC: Performance Measures should be S.M.A.R.T. which is an acronym that means? A. Substantial, Meaningful, Accurate, Rational, Time-sensitive B. Specific, Measurable, Achievable, Relevant, Time-oriented C. Significant, Memorable, Appropriate, Reasonable, Time-tested D. Suitable, Marketable, Applicable, Remarkable, Time-based
Specific, Measurable, Achievable, Relevant, Time-oriented
MC: Managing a company's external resources in ways that support the long-term goals of the company can be referred to as? A. Ethical sourcing B. Functional sourcing C. Strategic sourcing D. Hybrid sourcing
Strategic sourcing
TRUE/FALSE: Through collaborative negotiations both sides work together to maximize the outcome or create a win-win result.
TRUE
TRUE/FALSE: Total Cost of Ownership is the sum of the cost elements Quality, Service, Delivery, and Price.
TRUE
MC: The sum of all costs associated with every activity in the supply chain of a product, is referred to as?
Total Cost of Ownership
MC: Which of the following terms refers to an act that creates the greatest good for the greatest number of people? A. Utilitarianism B. Rights and duties C. Corporate responsibility D. Social sustainability
Utilitarianism
MC: Which of the following statements is TRUE? A. VMI stands for Vertically Managed Inventory B. 3PL stands for Third Party Leverage C. VMI stands for Vendor-Managed Inventory D. 3PL stands for Three-Point Logistics
VMI stands for Vendor-Managed Inventory
MC: A key supplier's activities to help the buyer's company reduce cost, improve quality and reduce new product development time beginning with the initial design phase, are known as? A. Early Supplier Involvement B. Value Engineering C. Supplier Development D. Supplier Recognition
Value Engineering
TRUE/FALSE: ISO 14000 certification is a series of management and quality standards in design, development, production, installation, and service.
FALSE
TRUE/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
TRUE/FALSE: The concept of Distributive Negotiations refers to both sides working together to create a "win-win" result or positive outcome for both parties.
FALSE
TRUE/FALSE: The purchasing function is one of the most value-enhancing functions in any organization, and therefore, it is not necessary to periodically monitor the purchasing function's performance against a set of standards or industry benchmarks
FALSE
TRUE/FALSE: While paperless transactions are now possible through e-procurement and Web-based services, these would NOT be considered sustainable business practices.
FALSE
TRUE/FALSE: The Profit-Leverage Effect states that a decrease in purchasing expenditures will directly decrease profit
FALSE
MC: Benefits of implementing an effective supplier certification program include all of the following EXCEPT? A. Building long-term relationships B. Reducing time spent on incoming inspections C. Increasing the supplier base D. Recognizing excellence
Increasing the supplier base
MC: The keys to developing successful supply partnerships include all of the following EXCEPT? A. Personal Relationships B. Individualized Objectives C. Mutual Benefits and Needs D. Performance Metrics
Individualized Objectives
MC: Which of the following are described as Agents licensed by governmental regulatory authority to conduct business on behalf of importers, for a service fee? A. Import Merchants B. Import Brokers C. Trading Companies
Import Brokers
MC: Which of the following is NOT one of the drivers of Strategic Sourcing? A. Focusing on the customer B. Reducing the delivery lead times C. Optimizing the number of global suppliers D. Increasing the selling price of the product
Increasing the selling price of the product
TRUE/FALSE: ISO 14000 is a widely accepted quality certification standard
FALSE
TRUE/FALSE: Pain and Gain Share contract provisions are associated with supplier rewards and recognition programs.
TRUE
MC: Which sourcing strategy would typically be used for items with low profit margins, relatively stable demand, and high levels of competition? A. Single-source B. Multi-source C. Sole-source
Multi-source
MC: All of the following are reasons for Buying or Outsourcing an item from a supplier, EXCEPT for which one? A. Due to the lack of expertise in your own company operations B. Because you want to adopt multi-sourcing strategy C. Because you want to use existing idle capacity in your own company operations D. Because the item is non-strategic
Because you want to use existing idle capacity in your own company operations
MC: The sourcing strategies including; maintaining safety and/or strategic stocks, developing contingency plans, strengthening relationships, and searching for alternatives, are appropriate for which item category? A. Non-Critical Items B. Bottleneck Items C. Leverage Items D. Strategic Items
Bottleneck Items
MC: Benefits derived from implementing an e-procurement system include all of the following EXCEPT:
Decentralizing Purchasing
MC: An outsourcing program can result in all of the following positive outcomes, except? A. Reducing staffing levels B. Decreased need for supplier management C. Cost reduction D. Gains in manufacturing flexibility
Decreased need for supplier management
MC: All of the following are reasons for Making an item in your own company operation, EXCEPT for which one? A. There is no competent supplier available B. Due to insufficient capacity in your company operations C. To protect proprietary technology D. To control transportation and warehousing costs
Due to insufficient capacity in your company operations
MC: The concept which attempts bring about positive social change through organizational buying behavior, is known as? A. Business Ethics B. Sustainability C. Ethical Sourcing D. Supplier Code of Conduct
Ethical Sourcing
TRUE/FALSE: A robust and long-lasting supplier partnership requires that both buyer and supplier adopt a strong tactical perspective
FALSE
TRUE/FALSE: Award-winning suppliers serve as role models for other suppliers and may therefore be exempt from audits and certification programs
FALSE
MC: An organization's process for evaluating the quality systems of key suppliers in an effort to eliminate incoming inspections can be referred to as? A. Quality Systems Certification B. Supplier Management C. Supplier Certification D. Supplier Inspection
Supplier Certification
TRUE/FALSE: One of the main reasons to consider purchasing from an international global source is the opportunity to improve quality, cost, and delivery performance.
TRUE
TRUE/FALSE: Outsourcing allows a firm to concentrate on core capabilities and reduce staffing levels
TRUE
MC: Candidates for a Supplier Certification Program include suppliers who meet one or more of the following criteria, EXCEPT? A. A supplier who has a fully documented process and a quality system with cost controls and continuous improvement capabilities. B. A supplier whose processes are determined to be stable and in control. C. A supplier who has a minimal number of significant negative quality related incidents for a specified time period. D. A supplier who has no incoming product rejections for a specified time period.
A supplier who has a minimal number of significant negative quality related incidents for a specified time period.
MC: Which one of the following is NOT one of the 12 steps in the basic Purchasing Process? A. Obtain authorization as necessary B. Fulfillment C. Expediting D. Analysis
Expediting
TRUE/FALSE: A purchase order is legally binding once issued by the buyer
FALSE
TRUE/FALSE: Strategic Sourcing is the process of identifying a company that provides a needed good or service.
FALSE
MC: Which general sourcing category comprises items where many alternatives of supply exist, and supply risk is low. Spend is high and there are potential procurement savings? A. Non-Critical B. Bottleneck C. Leverage D. Strategic
Leverage
TRUE/FALSE: "Rationalizing the supplier base" typically means that the company is trying to reduce the number of suppliers in its supplier network.
TRUE
TRUE/FALSE: 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
TRUE/FALSE: An effective supplier recognition program may provide motivation, improve loyalty, encourage suppliers to adapt to the company's culture, create entry barriers for competitors, and encourage suppliers to participate in product innovation.
TRUE
TRUE/FALSE: Duties, taxes, or customs imposed by the host country for imported or exported goods, are known as Tariffs
TRUE
TRUE/FALSE: Successful supplier relationships involve equal decision-making control between both the buyer and the supplier.
TRUE
TRUE/FALSE: The Weight-Criteria Evaluation System is typically used to select a supplier or to evaluate the performance of a supplier.
TRUE
MC: Which of the following would be a good reason to outsource (buy) versus make an item?
The company lacks the technology or expertise to produce an item
MC: Which sourcing concept involves a supplier directly managing the buyer's inventory carrying costs and avoid stockouts? A. Reverse Auction B. Vendor Managed Inventory C. Co-Managed Inventory D. Supplier Co-Location
Vendor Managed Inventory