Intro to Supply Chain Exam 2 hw questions
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
In which type of manufacturing process would each individual item in the group go through one stage of the production process before the whole group moves on to the next stage?
Batch Production
Which element of Lean is described as a system based on making little changes on a regular basis, anywhere changes can be made, to reduce process, delivery, and quality problems?
Continuous Improvement
The best supplier candidates for Supplier Relationship Management (SRM) include all of the following EXCEPT?
Developmental suppliers that need to make improvements
All of the following are reasons for Making an item in your own company operations, EXCEPT for which one?
Due to insufficient capacity in your company operations
Outsourcing allows the company that is outsourcing a product, to concentrate on core capabilities and increase staffing levels. True/False
False
Products with low profit margin, relatively stable demand, and high levels of competition, are known as Innovative Products. True/False
False
The process commonly utilized in continuous improvement is known as?
Plan, Do, Check, Act
Performance Measures should be S.M.A.R.T. which is an acronym that means?
Specific, Measurable, Achievable, Relevant, Time-oriented
"Supply Management" is a newer term that encompasses all acquisition activities beyond the simple purchase transaction. True/False
True
The Weighted-Criteria Evaluation System is typically used to select a supplier or to evaluate the performance of a supplier. True/False
True
The following term refers to an act that creates the greatest good for the greatest number of people?
Utilitarianism
Which sourcing strategy would typically be used for items with low profit margins, relatively stable demand, and high levels of competition?
Multi-source
A high Return on Assets (ROA) is an indication that a company has a high level/value of assets compared to a low profit margin. True/False
False
A strong supplier partnership requires that both buyer and supplier adopt a strong tactical perspective. True/False
False
An effective supplier certification program may increase the time spent on incoming inspections. True/False
False
Award-winning suppliers serve as role models for other suppliers and may therefore be exempt from audits and certification programs. True/False
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. True/False
False
In the context of Total Cost of Manufacturing (TCM), in general terms, procurement, manufacturing, inventory, warehousing, and transportation per unit costs each go down as volume goes up. True/False
False
Industrial buyers purchase raw materials and other components for conversion into a finished product, but the do not purchase services or capital equipment. True/False
False
The Profit-Leverage Effect states that a decrease in purchasing expenditures will directly decrease profits. True/False
False
The process to evaluate a supplier's capabilities, and their capacity to supply a product or service to the buyer, is known as Supplier Certification. True/False
False
Which one of the following is NOT one of the Seven Tools of Quality Control?
Hysterical Charts
Benefits of implementing an effective supplier certification program include all of the following EXCEPT?
Increasing the supplier base
Which one of the following is NOT part of the eight (8) wastes identified through LEAN Manufacturing?
Insufficient Capacity
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
In which item category would the sourcing strategies of ensuring availability of supply, focusing on relationship building, encouraging process integration and innovation, frequent communications, and establishing mutually agreeable supplier performance criteria, be appropriate?
Strategic Items
Managing a firm's external resources in ways that support the long-term goals of the firm can be referred to as?
Strategic Sourcing
Co-sourcing is the sharing of a process or function between internal staff and an external provider (i.e., a supplier). True/False
True
In-sourcing is defined as reverting to in-house production when external quality, delivery, and services do not meet expectations. True/False
True
Successful supplier relationships involve equal decision-making control between both the buyer and the supplier. True/False
True
The practice of Supplier Co-location involves a supplier's employee being embedded in a buyer's purchasing department to forecast demand, monitor inventory and place orders for the item(s) provided by the supplier. True/False
True
Which of the following is the best description of a Preferred Supplier?
A supplier who best meets all of your company's overall purchasing requirements
The operating philosophy that focuses on waste reduction and value enhancement is known as?
Lean
Which element of Lean can be described as moving people and materials when and where needed, and as soon as possible?
Lean Layouts
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 an element of Lean Manufacturing?
Mass Customization
Buying materials and components from suppliers instead of making them in your company-owned operations, is known as?
Outsourcing
Which if the following is TRUE?
VMI stands for Vendor-Managed Inventory
A tender, proposal, or quotation submitted in response to solicitation (i.e., RFP, RFQ) from a contracting authority is known as what?
Bid