SCM Exam 3

For an organization with revenue of $100 million, purchases of $60 million, and profit of $8 million before tax, a 10 percent reduction in purchase spend would result in an increase in profit of: Multiple Choice 10 percent. 36 percent. 57 percent. 60 percent. 75 percent.

75 percent

Which of the following is not a theoretical factor of forecasting? Multiple Choice Amount. Trend. Cyclical. Seasonal.

Amount

When planning for an increase in production, APS helps to ______. Multiple Choice determine what is best for the customer identify and calculate the cost of strategic options determine what is best for suppliers Both determine what is best for the customer and identify and calculate the cost of strategic options are correct

Both determine what is best for the customer and identify and calculate the cost of strategic options are correct

Evaluation of the supply function's contribution to organizational goals and strategies can be viewed in the context of: rev: 10_24_2018_QC_CS-187497 Multiple Choice A. operational and strategic. B. strategic and transactional. Incorrect C. direct and indirect. D. both A and B above. E. both A and C above.

E. both A and C above.

Which of the following is not a benefit of sales and operations planning? Multiple Choice The S&OP process eliminates the need to have finished goods inventory. The S&OP process results in better customer service. The S&OP process provides better visibility into future capacity problems. The S&OP process provides a single set of numbers to run the business.

The S&OP process eliminates the need to have finished goods inventory.

Which of the following is not a purpose of APS planning charts? Multiple Choice Assist planners with evaluating cost procurement. Identify various stages within the supply chain. Aid employees in understanding production purposes. Facilitate decision making for optimal results.

aid employees in understanding production purposes

Which of the following is not a stage in the S&OP maturity model? Multiple Choice Reacting. Anticipating. Competing. Orchestrating.

competing

Which of the following is not a key component of forecast accuracy? Multiple Choice Technique. Support system. Knowledge. Competition.

competition

Promotions such as "buy one get one free" are somewhat risky in terms of forecasting. Why? Multiple Choice Increases likelihood of competition. Could decrease future sales. Decreases perceived value of regular-price items. Gives the impression of a struggling company.

could decrease future sales

What is typically the first planning stage of the APS technology tool? Multiple Choice Supply planning. Demand planning. Financial planning. Factory planning and demand fulfillment.

demand planning

Interest in the supply function as a managerial activity began: Multiple Choice before 1900 when railroads recognized it as an important function. during World Wars I and II because of global materials shortages. Correct in the 1970s during a period of high inflation. in the early 1980s with high interest rates and the costs of financing inventory.

during World Wars I and II because of global materials shortages.

Which of the following is not an APS application issue? Multiple Choice Reliable, consistent forecast. Data integrity. Supply chain and application education. Financial flow.

financial flow

Supply can influence risk management in which area(s)? Multiple Choice financial operational reputation financial and operational financial, operational and reputation

financial, operational and reputation

Which of the following is not a demand planning requirement? Multiple Choice Provide reporting analysis and other metrics. Allow exception alerts and resolution. Handle time fences. Track promotion activity.

handle time fences

The optimization module of an advanced planning and scheduling (APS) system ______. Multiple Choice develops the requirement projections for the planning horizon Incorrect defines and coordinates supply chain system resources and constraints is the computational engine of the supply chain planning system specifies the resource assignments and communicates them to the ERP system

is the computational engine of the supply chain planning system

Which of the following is not true about CPFR? Multiple Choice It can make products more consistent. It is time consuming. It aids in forecasting accuracy. It is good for low-volume items.

it is good for low volume items

Which of the following is not input needed for an APS? Multiple Choice Current inventories. Past inventories. Work already in progress. Time-phased demand plan.

past inventories

Which of the following is not a reason for increased importance of S&OP? Multiple Choice Increased capacity. Lesser variance of products. Strategies are simplified. Precise demands by key customers.

precise demands by key customers

The supply area is a good training ground for managers because it provides exposure to: Multiple Choice accounting systems. pressure of decision making under uncertainty. various levels and functions in the organization. Incorrect accounting systems, pressure of decision making under uncertainty, and various levels and functions in the organization. pressure of decision making under uncertainty and various levels and functions in the organization.

pressure of decision making under uncertainty and various levels and functions in the organization.

A successful supply chain management strategy integrates: Multiple Choice processes and systems within and across organizations. Correct processes and systems within the organization. the flow of materials within an organization. the flow of information within the buying organization.

processes and systems within and across organizations.

In a situation where there are low economies of scale and a long response time, the supply chain strategy should focus on ______. Multiple Choice an accurate short-term forecast with strong tactics and less consideration of history production flexibility since detailed and accurate forecasting is not of critical importance responsiveness at the expense of forecast accuracy both forecast accuracy and responsiveness because they are equally important

production flexibility since detailed and accurate forecasting is not of critical importance

Supply has the potential to contribute to: Multiple Choice financial performance. financial performance and competitive position. profitability, competitive position and sustainability performance. Correct competitive position and sustainability performance.

profitability, competitive position and sustainability performance.

Advanced planning and scheduling (APS) facilitates improvements in customer service by ______. Multiple Choice reducing the time to make accurate commitments to customers reducing inventory levels improving resource utilization None of the above

reducing the time to make accurate commitments to customers

What does the R stand for in CPFR? Multiple Choice Repeat. Replenish. Re-evaluate. Re-design.

replenish

The impact of supply management actions on the balance sheet is measured by the: Multiple Choice return on investment effect. return on inventory effect. inventory turnover effect. return on assets effect.

return on assets effect

A systems approach to managing the flow of information, materials, and services from tiers of suppliers through the buying organization to tiers of customers is: Multiple Choice strategic sourcing. materials management. supply chain management. Correct procurement management. inventory management.

supply chain management

The design and management of seamless, value-added processes across organizational boundaries to meet the needs of the end customer is called: Multiple Choice supply chain management. Correct strategic sourcing. value management.

supply chain management

The return on assets effect (ROA) quantifies and measures: Multiple Choice the indirect contribution of supply management to profitability. any increase in sales that occurs at a greater rate than the cost of assets. Incorrect reduction in the allocations to the operating budget of the supply department. the impact of supply actions on inventory and the balance sheet. Correct the effect on profitability of reduced spend compared to a sales increase.

the impact of supply actions on inventory and the balance sheet.

Supply decisions can affect: Multiple Choice the balance sheet. the income statement. the income statement and the balance sheet. Correct neither the income statement nor the balance sheet.

the income statement and the balance sheet

Which of the following optimizes resources to move materials and goods within supply chains to minimize cost while meeting deadline constraints? Multiple Choice Supply chain planning. Factory planning. Distribution planning. Transportation planning.

transportation planning

Company image may be directly influenced by: Multiple Choice treating suppliers in a fair and equitable manner. complying with regulatory requirements. sustainability practices of suppliers. treating suppliers in a fair and equitable manner, complying with regulatory requirements and sustainability practices of suppliers.

treating suppliers in a fair and equitable manner, complying with regulatory requirements and sustainability practices of suppliers.

The true test of supply's contribution is when the chief executive officer and the senior management team recognize that supply and suppliers are critical to organizational success and competitive advantage. True or False TrueCorrectFalse

true

There is not one best way for all organizations to organize and manage the supply function, conduct activities, and effectively integrate suppliers. True or False TrueCorrectFalse

true

Which of the following is true about forecasting errors? (Select all that apply) Check All That Apply The accuracy of forecasting has improved over time. The accuracy of forecasting has improved over time. Correct Forecasting becomes easier when the specifications are more detailed. Forecasting becomes easier when the specifications are more detailed. Correct Forecasting becomes more difficult at a reduced level of aggregation.

yeet

In manufacturing organizations, the dollars spent with suppliers fall into what range as a percent of revenues? Multiple Choice 25 to 35 30 to 60 45 to 75 50 to 80

50 to 80

For an organization with annual sales of $500 million, purchases of $300 million and profit of $50 million, a 10 percent reduction in the cost of purchases would result in a profit-leverage effect of: Multiple Choice 10 percent (sales increase of 10 percent would be required to achieve the same percentage increase in profit). 15 percent (sales increase of 15 percent would be required to achieve the same percentage increase in profit). 10 percent (sales increase of 50 percent would be required to achieve the same percentage increase in profit). 60 percent (sales increase of 60 percent would be required to achieve the same percentage increase in profit). Correct 75 percent (sales increase of 75 percent would be required to achieve the same percentage increase in profit).

60 percent (sales increase of 60 percent would be required to achieve the same percentage increase in profit).

Which of the following is not a benefit that is offered by advanced planning and scheduling (APS)? Multiple Choice Improved customer service with lower inventory. Improved forecast accuracy. Better utilization of existing capacity. Better relationships with suppliers.

improved forecast strategy

The use of the concepts of purchasing, procurement, supply, and supply chain management will vary from organization to organization depending on: Multiple Choice the organization's stage of development and/or sophistication. the industry in which they operate. the organization's competitive position. the organization's stage of development and/or sophistication, the industry in which they operate and the organization's competitive position. the organization's stage of development and/or sophistication and the industry in which they operate.

industry in which they operate and the organization's competitive position.

Evidence of the growth and influence of supply management in an organization includes: Multiple Choice fewer activities under the management or span of control of supply. meaningful involvement at the operational level. involvement in strategic planning. executive status of the chief supply officer. involvement in strategic planning and executive status of the chief supply officer.

involvement in strategic planning and executive status of the chief supply officer

On average, the dollars spent with suppliers as a percent of revenues: Multiple Choice is greater in manufacturing organizations than in service organizations. Correct is about equal in service and manufacturing organizations. is greater in service organizations than in manufacturing organizations. depends on the type of manufacturing process.

is greater in manufacturing organizations than in service organizations