SCM Ch. 5-8 Quizes
True/False: An effective supplier certification program may increase the time spent on incoming inspections
False
True/False: Award-winning suppliers serve as role models for other suppliers and may, therefore, be exempt from audits and certification programs
False
True/False: Benefits derived from implementing an e-procurement system include Decentralizing Purchasing
False
True/False: Developmental suppliers that need to make improvements is the best supplier candidates for Supplier Relationship Management (SRM)
False
True/False: Hysterical Charts are a quality tool of Six Sigma?
False
True/False: ISO 14000 is a widely accepted management and quality certification standard
False
True/False: Increasing the supplier base is a benefits of implementing an effective supplier certification program
False
True/False: Increasing the supplier base is one of the primary goals of Purchasing.
False
True/False: LEAN production is an operating philosophy or mindset that attempts to minimize the impact of supply variability and flaws in forecasting through the use of safety stock inventories.
False
True/False: Overspending is included as one of the eight Wastes?
False
True/False: Small Batch Scheduling is one of the "Seven Tools of Quality Control"
False
True/False: The Profit-Leverage Effect states that a decrease in purchasing expenditures will directly decrease profit
False
True/False: The concept of Distributive Negotiations refers to both sides work together to maximize the outcome or create a win-win result.
False
True/False: The keys to developing successful supply partnerships include individualized objectives
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: LEAN manufacturing emphasizes large batch sizes
False (because they emphasize small batch sizes)
True/False: Duties, taxes, or customs imposed by the host country for imported or exported goods, are known as Tariffs
True
True/False: Outsourcing allows a firm to concentrate on core capabilities and reduce staffing levels
True
True/False: Pain and Gain Share contract provisions are associated with supplier rewards and recognition programs.
True
True/False: Successful supplier relationships involve equal decision-making control between both the buyer and the supplier.
True
True/False: Waste reduction and continuous improvement is among the most important elements of the LEAN manufacturing philosophy?
True
The following term refers to an act that creates the greatest good for the greatest number of people?
Utilitarianism
An outsourcing program can result in all of the following positive outcomes, except? a) reducing staffing levels b) cost reduction c) decreased need for supplier management d) gains in manufacturing flexibility
c) Decreased need for supplier management
Which of the following 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
c) VMI stands for Vendor-Managed Inventory
True/False: A purchase order is legally binding once issued by the buyer
False
True/False: A strong supplier partnership requires that both buyer and supplier adopt a strong tactical perspective
False
What company originated the concept of Six Sigma?
Motorola
True/False: The primary design objective of a LEAN layout is to reduce wasted movements of workers and/or materials.
True
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 Items
Which Statistical Tool of Six Sigma is used to determine the frequency of specific problems?
Check Sheet
What is the term that is often used for the acquisition of services?
Contracting
Which quality guru (i.e., expert) is credited with the concept that 'quality is free; defects are costly'
Philip Crosby
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 sum of all costs associated with every activity in the supply stream of a product, is referred to as?
Total Cost of Ownership
True/False: "Rationalizing the supplier base" would mean that the purchasing firm is attempting 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: A firm lacking the technology or expertise to produce an item is a good reason to outsource (buy) versus making an item.
True