midterm 2 practice
T/F A growing trend among firms that practice supply chain management is supplier development.
T
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?
individualized objects
The process commonly utilized in continuous improvement is known as?
plan do check act
Managing a firm's external resources in ways that support the long-term goals of the firm can be referred to as?
strategic sourcing
An organization's process for evaluating the quality systems of key suppliers in an effort to eliminate incoming inspections can be referred to as?
supplier certification
The following term refers to an act that creates the greatest good for the greatest number of people?
utilitarianism
On occasion, firms assist suppliers, new or old, to improve their processing capabilities, product or service quality, delivery effectiveness, and cost performance by providing the required technical and financial assistance. This is referred to as: a. Supplier development b. Outsourcing c. Centralized purchasing d. Supplier hybridization
A
When a material is not available in the warehouse and there is no current supplier for the item, the buyer must identify a pool of suppliers and issue a: a. Request for Quotation b. Purchase Order c. Contract for Sale d. Sales Order
A
Which of the following would be a good reason to outsource (buy) versus making? a. A firm lacks the technology or expertise to produce an item b. To utilize existing capacity within a company's own firm c. To have more direct control over the design and production of an end item d. No competent supplier presently produces the needed item
A
If a distribution company that focused on warehousing and distribution of grocery items decided to purchase a chain of grocery stores, the distribution company would be exemplifying: a. Backward vertical integration b. Forward vertical integration c. Backward horizontal integration d. F
B
Inventory Turnover can be calculated by: a. Ratio of average inventory cost over cost of goods sold b. Ratio of cost of goods sold over average inventory cost c. Ratio of inventory days in stock over average inventory cost d. Ratio of average inventory cost over inventory days in stock
B
The primary goals of purchasing include all EXCEPT: a. Secure materials at the lowest cost b. Ensure the highest quality raw materials are purchased c. Improve the quality of finished goods produced d. Maximize customer satisfaction
B
A form of purchasing that is placed directly to the supplier and suitable when firms use the same components to make standard goods over a relatively long period of time is referred to as: a. Material Requisition b. Purchase Requisition c. Planned Order Release d. Traveling Requisition
C
Benefits derived from implementing e-procurement systems include all of the following EXCEPT: a. Allows buyers to submit bids and suppliers to respond to those bids in real time b. Increases the accuracy in communication between buyers and suppliers c. Creates numerous additional job opportunities in the purchasing department d. Tracking bids and transactions is easier and faster
C
Benefits derived from implementing an e-procurement system include all EXCEPT: a. Time Savings b. Real Time Access c. Trackability d. Decentralized Purchasing
D
Which of the following documents is considered the buyer's offer to purchase products or services from a supplier, is legally binding once the supplier accepts it, and usually has the terms and conditions of purchase preprinted on the back of the document? a. Purchase requisition b. Planned order release c. Material requisition d. Purchase order
D
Which of the following illustrates Forward Vertical Integration? a. Microsoft starting a new division that designs and manufactures clothing b. Ford automotive buying additional machines for production c. Subway sandwich company buying a bakery to make the bread for their sandwiches. d. Sony buying trucks to deliver their finished goods inventories to their customers' warehouses
D
T/F A strong supplier partnership requires that both buyer and supplier adopt a strong tactical perspective
F
T/F An effective supplier certification program may increase the time spent on incoming inspections
F
T/F Award-winning suppliers serve as role models for other suppliers and may, therefore, be exempt from audits and certification programs
F
T/F Centralized purchasing is the practice where individual, local purchasing departments throughout a single corporation make their own, individual purchasing decisions to fulfill their individual local needs.
F
T/F ISO 14000 is a widely accepted management and quality certification standard
F
T/F Industrial supply chain member buyers purchase their merchandise in volume to take advantage of quantity discounts, transportation economy, and storage efficiency, and then they create value through services like consolidating merchandise or break bulking.
F
T/F The Profit-Leverage Effect states that a decrease in purchasing expenditures will directly decrease profit
F
T/F The concept of Distributive Negotiations refers to both sides work together to maximize the outcome or create a win-win result.
F
T/F 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
F
T/F While paperless transactions are now possible through e-procurement and Web-based services, these would NOT be considered sustainable business practices.
F
The sum of all costs associated with every activity in the supply stream of a product, is referred to as?
TCO
T/F "Rationalizing the supplier base" would mean that the purchasing firm is attempting to reduce the number of suppliers in its supplier network.
T
T/F A Supplier Code of Conduct is intended to inform suppliers of ethical sourcing expectations and is typically a condition for becoming an approved supplier.
T
T/F Outsourcing allows a firm to concentrate on core capabilities and reduce staffing levels
T
T/F Pain and Gain Share contract provisions are associated with supplier rewards and recognition programs.
T
T/F Purchasing can be broadly classified into two categories: merchants and industrial buyers.
T
T/F Successful supplier relationships involve equal decision-making control between both the buyer and the supplier.
T
T/F The acquisition of services is also known as contracting.
T
T/F The term Supply Management is used to describe responsibilities above and beyond those of traditional purchasing.
T
Which of the following would be a good reason to outsource (buy) versus make an item?
a firm lacks technology or expertise to produce an item
Which of the following statements is FALSE? a. More than 50% of each sales dollar typically goes towards covering supply chain costs b. Decentralized purchasing means not having any purchasing departments and allowing all employees to act as purchasing agents c. Electronic procurement systems can aid a company in saving both time and money d. If a firm lacks the technology to make a required component they will need to consider buying/outsourcing.
b
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?
bottleneck
As firms seek to improve the products they offer to the market, companies are seeking help from their suppliers in new product design and development through: a. Supplier certification programs b. Manufacturer certification programs c. Early supplier involvement d. Total Cost of Ownership initiatives
c
Which of the following is NOT a form of countertrade? a. Barter b. Offset c. Incoterming d. Counterpurchase
c
What is the term that is often used for the acquisition of services?
contracting
Benefits derived from implementing an e-procurement system include all of the following EXCEPT:
decentralized purchasing
An outsourcing program can result in all of the following positive outcomes, except?
decreased need for supplier management
The best supplier candidates for Supplier Relationship Management (SRM) include all of the following EXCEPT?
developmental suppliers that need to make improvements
Which of the following is NOT one of the primary goals of Purchasing?
increase the supplier base