Ops Management
It is illegal for corporations to provide their suppliers appreciation banquets to award performance:
False
Forming cross-functional teams to develop the key process objectives and accompanying performance measures is an example of:
Internal process integration
One of the SCM Profiles shows how Land O' Lakes and General Mills collaborated to:
Save shipping costs
When did U.S. manufacturers begin to use mass production techniques to reduce costs and improve productivity?
1950's
Petty cash is being phased out in favor of:
P-card
Which of the following is important in developing successful relationships in a partnership?
-Mutual/compatible needs that result in a win-win situation for the partners -Commitment by top management -Interpersonal business relationships between employees of the companies
Use the following information to determine which supplier is more cost-effective using total cost analysis
32,000
ISO 9000 certification is described best by which of the following?
A series of management and quality assurance standards in design development, production, installation and services
Customers and suppliers must develop stronger relationships and partnerships based on:
A strategic perspective
According to the text, which of the following is TRUE?
About 50% of companies recognize excellent performance with supplier awards and appreciation banquets
The formula for forecast error is calculated by using the equation:
Actual demand for period t minus the forecasted demand for period t
Which of the following conditions need not to be present for successful supply chain management?
Adversarial Relationships
Which of the following is NOT important in developing a successful supplier partnership?
Annual sales knowledge of the supplier
Which of the following is an advantage of decentralized purchasing departments?
Better knowledge of unit requirements
Proper demand forecasting enables _____________________ for businesses to be competitive.
Better planning and utilization of resources
A(n) ____________ purchase order is negotiated for repeated supply over a fixed time period, such as quarterly or yearly.
Blanket
The manufacturing flow management process is responsible for:
Both "Making the actual product" and "Designing the production system to meet cycle-time requirements
Which of the following terms describes an amplification of the variation in the demand pattern along the supply chain?
Bullwhip effect
Which of the following terms is described as rethinking and redesigning of business processes to reduce waste and increase performance?
Business process reengineering
In 2016, __________ was the leading market for U.S exports.
Canada
Which forecasting method would use the size of the advertising budget as a variable in the forecasting technique?
Cause-and-Effect forecasting
Making all the purchasing decisions, including order quantity, pricing policy, contracting, negotiations, and supplier selection and evaluation are the key characteristics of:
Centralized Purchasing
SRM software allows buyers to focus on more strategic and value-added activities such as:
Collaborative planning
According to the text, for long-term forecasts, it is recommended that which type of forecasts be used?
Combination of both qualitative and quantitative
A company using a weighted-criteria evaluation system has established these 4 categories and the appropriate weight in parentheses: Reputation (0.20), Quality (0.35), Environmental (0.15), Cost (0.30). The scores for each category are shown below
Company C
Which of the following is a reverse logistics activity?
Customer returning a car to the dealer for warrant repair
A company is conducting forecasting that revolves around the global recession and real estate crises. This type of forecasting can be referred to as what component of a time series?
Cyclical Variations
In forecasting, a tracking signal is used to:
Determine if the forecast bias is within the acceptable control limits
Which of the following is NOT a key factor for developing a successful supplier partnership?
Developing efficient processes that will remain unchanged for the duration of the partnership
Which of the following is NOT important in developing a successful strategic alliance?
Developing efficient processes that will remain unchanged for the duration of the partnership
One of the primary goals of purchasing is to:
Ensure uninterrupted flows of raw materials at the lowest total cost
Benefits achieved when information systems create information visibility along the supply chain include:
Fewer data transfer errors
The real value of CPFR comes from:
Firms exchanging forecasting information
CPFR relies heavily on?
Firms sharing information
Purchasing activities include all the following EXCEPT:
Franchising services
All of the following are important capabilities offered by SRM software EXCEPT:
Human Resource Management
The following is an example of the bullwhip effect:
IGT incorrectly anticipates consumer demand resulting in stock outs at several popular retailers
For continuous improvement to succeed, employees must first:
Identify areas that are working
Which of the following is NOT a benefit from CPFR?
Improved corporate image among regulators
Which of the following is NOT a benefit of better forecasts?
Improved corporate image among regulators
Collaboration and information sharing in a supply chain can lead to all of the following benefits EXCEPT this:
Increased time to market
According to the text, key ingredients for developing successful supply partnerships include all of the following EXCEPT:
Individualized objectives
An unwillingness to share information out of fear of being taken advantage of- is associated with which of the following obstacles to process integration?
Lack of Trust
Which obstacle to supply chain integration concerns itself with product safety standards, trade agreements, and security requirements, and making information available for importers, shippers, and logistics providers?
Lack of supply chain visibility
A form of inventory management (also referred to just-in-time) is accomplished through use of a:
Lean Production System
Designing and building a distribution network to ensure successful product delivery is part of which foundation element?
Logistics
A value-enhancing benefit from supply chain management efforts would be:
Lower purchasing and inventory carrying costs
Which of the following is a software system that can be used for managing inventory, purchases, and production schedules?
Material requirements planning (MRP)
Identifying backup suppliers and logistics services is an activity which is used for:
Managing supply chain risk
The impact of poor communication and inaccurate forecasts along the supply chain can cause:
Material Shortages
Which one of the following is NOT a type of qualitative forecasting?
Naïve method
Which of the following is a criteria generally found in certification programs:
No incoming nonproduct rejections over a specified time
Which of the following is NOT a factor to consider when selecting suppliers for important materials?
Number of customers with which the supplier currently has contracts
Which of the following can happen because of the bullwhip effect?
Oversupply of goods leading to increased inventory costs
Which of the following gives firms the capability to track the progress toward meeting each of the objectives for the key processes?
Performance Measures
When evaluating supplier performance, the cost of certifying and training suppliers, is part of which major cost category?
Pre-transaction cost
Creating an executive-level position such as director of corporate security is an example of what type of security system response initiative?
Proactive
Sharing information, collaborating, and coordinating resources to jointly manage a process is referred to as _______.
Process integration
Which key supply chain business process is responsible for getting new products to market efficiently and integrating suppliers and customers into the process to reduce time to market?
Product development and commercialization
If a firm manages to lower its purchase spend on materials by $10,000 then:
Profits before taxes increase by $10,000
The purchasing and supply management function in the government and nonprofit sectors, such as educational institutions; hospitals; and federal, state, and local governments is called:
Public Procurement
Which type of forecasting technique would a firm likely use when launching a new product and historical data does not exist?
Qualitative
To improve external process integration, which technology can be used to provide real-time information visibility along the supply chain?
RFID
One of the most basic and successful approaches for protecting trade secrets is to:
Require employees and vendors to sign a nondisclosure agreement
According to the text, one of the most basic and successful approaches to protecting trade secrets is:
Requiring employees and vendors to sign non-disclosure agreements
Which of the key supply chain business processes include activities like substance disposal and recycling, designing effective reverse logistics processes and warranty repairs?
Returns management
Customers bought mass quantities of Twinkies in reaction to Hostess Brands entering Chapter 7 liquidation. Suppliers used a strategy known as ____________ which exacerbated the supply problem.
Shortage gaming
Failing to see the big picture is associated with which of the obstacles to process integration?
Silo mentality
Which of the following statements is TRUE?
Six Sigma was originally created at Motorola in the 1980s
According to the text, which of the following is NOT one of the top three challenges for CPR?
Sophisticated forecasting algorithms
One of the more crucial issues within supply management involves encouraging or helping the firm's suppliers to perform in some desired fashion. The term for this is _______________.
Supplier Management
___________ involves streamlining the processes and communications between the buyer and supplier using software applications that enable these processes to be managed more efficiently and effectively.
Supplier Relationship Management
Examining raw supply chain data and then reaching conclusions or making predictions with the information is sometimes referred to as:
Supply Chain Analytics
Meeting the needs of current supply chain members without hindering the ability to meet the needs of future generations refers to:
Supply Chain Sustinability
Interruptions in the supply of goods and services in a supply chain caused by an internal or external event that disrupts supply chain operations, causing potential reductions in service levels, product quality, and sales are referred to as:
Supply chain risks
Transactional SRM:
Tends to focus on short-term reporting and is event driven
A program used to celebrate the achievements of the best suppliers is:
The Supplier Recognition Program
Hormel Food Corporation's No. 1 Award program differs from other programs because:
The award is given out once every five years
A benefit to the firm for utilizing a supplier recognition program would be:
The award recipients can serve as role models for a firm's other suppliers
Order batching amplifies demand variability which creates greater use of safety stock and causes:
The bullwhip effect
Which of the following do organizations use in supplier evaluation and certification processes?
Tracking service quality
What type of major cost category is considered in the cost associated with placing and receiving the order?
Transaction Cost
What component of a time series is based on increasing or decreasing movements over many years and are due to factors such as population growth, population shifts, cultural changes, and income shifts?
Trend Variations
Automating procurement activities can lead to significant cost savings as buyers move toward managing processes by exception.
True
Successful partnerships have the potential to:
a. Create a competitive advantage for the firm b. Contribute to innovations c. Improve material flows between buyers and suppliers
Which of the following is an advantage to utilizing an e-procurement system?
a. Mobility b. Cost savings c. Time savings
Which of the following is a potential challenge for global sourcing?
a. Political Problems b. Dealing with duties c. Currency exchange
Benefits for organizations that successfully implement supplier relationship management can include:
a. Reduced costs b. Improved quality c. increased speed to market
Which of the following strategies might help eliminate the bullwhip effect?
a. Reduction of safety stock b. Reduction in the number of suppliers c. Manufacturers knowing its customers' purchase plans
Which of the following is a benefit from using cloud based communication systems?
a. Systems can be up and running in a short amount of time b. Ensure faster time to market c. Faster response to changing market dynamics and demands
Which of the following service providers can help to get goods where they need to be in a timely fashion?
a. Trucking/Shipping companies b. Public warehousing firms c. Freight Forwarders
Which of the following is NOT used to calculate total transportation cost when using the Total Cost of Ownership concept?
gas prices
More than a dozen presidential executive orders requiring federal purchasing officials to include environmental considerations and human health when making purchasing decisions can be attributed to a concept called:
green purchasing
The global process integration software market is expected to _________ from 2017 to 2021.
grow
A(n) _____________ performs transactions for a fee, and does not take title to the goods. Instead, title passes directly from the seller to the buyer.
import broker
Which of the following is not a reason for favoring multiple sourcing?
less quality variability (maybe)
The term "vertical integration" means to :
own/buy your suppliers and/or customers
Which of the following is a reason that single sourcing is considered risky/bad?
poor supplier performance could result in plant shutdown
The total cost of ownership for Supplier 1 is $1,670,000. The total cost of ownership for Supplier 2 is $1,750,000. The total cost of ownership for Supplier 3 is $1,690,000. Using Total Cost Analysis, it will be more cost-effective to use:
supplier 1
The one true source of income for all supply chain organizations is:
the supply chain's end customer
