SCMN 3150 Exam 2

This process uses interchangeable parts which are added in a sequencal manner

Assembly Line Layout

This process follows a predetermined sequence of activities

Continuous Flow Layout

An institutional procurement process that continuously improves and re-evaluates the purchasing activities of a company.

Strategic Sourcing

According to "Strategic Sourcing: Building a Foundation for Success," this foundation building block integrates operations and establishing mutually beneficial programs with suppliers:

Supplier relationship management

Requests for quotes and direct negotiations with suppliers take place during which step in the procurement process?

Supplier selection

The identification, acquisition, access, positioning and management of resources and related capabilities the organization needs or potentially needs in the attainment of its strategic objectives.

Supply Management

If a company is just beginning its journey to becoming more strategic in its procurement activities, which strategy should it implement first?

Supply based optimization

The key roles of a warehouse include:

Support of just-in-time distribution Buffer against demand spikes Generate transport efficiencies

Which is the highest level and greatest impact performance improvement strategy that procurement professionals work toward?

TCO

The purchase cycle begins with identification and evaluation of needs. The more expensive and unique the goods, the more time and effort will be required.

True

While there are five modes of transportation, there are typically fewer logical options due to shipment size, origin and destination points, and product characteristics.

True

According to "Strategic Sourcing: Building a Foundation for Success" the most important component of a trading partner relationship is...

Trust

How are orders typically released to suppliers?

Via electronic methods

What type of logistics operation allows companies to receive, hold and process required level of inventory to meet customer needs in a cost efficient, timely manner?

Warehousing

This process provides high flexibility to produce a variety of products in a limited volume.

Workcenter

A batch production process focuses on creating a complete product before the next one is initiated. It relies on heavy automation and offers great customization opportunities.

False

According to "The Hidden Value in Reverse Logistics," better management of returns inventory will reduce asset turnover.

False

Fulfillment activities and facilities are always operated by the company that owns the product.

False

Organizations should go through a formal purchasing process for each product that they buy.

False

The mass customization manufacturing strategy focuses on reducing waste and problem solving by workers.

False

The order fulfillment cycle begins when a customer receives a product delivery.

False

The purpose of supplier relationship management software is to coordinate customer engagement in a very organized fashion.

False

When a company like Dell uses a mass customization strategy, they build products in anticipation of customer demand.

False

Which inventory model is event triggered?

Fixed order quantity

Which manufacturing objective focused on the ability to change and be adaptable?

Flexibility objective

Most after-sale support processes focus on which type of products?

High value products that have a warranty

What is the goal of a service parts logistics operation?

Improve service quality to reduce product downtime

Strategic sourcing focuses on all of the following:

Improving processes Increasing efficiency Improving product quality

Goods that are consumed as part of the production process but are not product components are called:

Indirect materials

In a production process, people, materials, and facilities are examples of:

Inputs

Where do the majority of fulfillment activities take place?

Inside a distribution center

Which transportation option improves global access, provides flexibility, and increases security through the use of transferable containers?

Intermodal transport

Why would a company choose to make products instead of buying them?

It has a core competency with the product.

Why would a company choose to keep production in-house instead of buying them from an external supplier?

It has internal expertise and capacity

What type of manufacturing flow focuses on customization, flexibility, and a project orientation?

Job production

What is the payoff of a lean production system?

Less variation in the process

Which of the following is NOT a major risk when outsourcing a product?

Lower purchase cost

What's the overriding goal in procurement?

Lowest total cost of ownership

The act of moving a firm's internal activities and decision responsibility to outside global providers is called:

Off-shoring

The purchase or a product, part, or component from an outside supplier versus manufacturing it in-house is called:

Outsourcing

What are the primary benefits of a centralized returns center?

Creates expertise in the returns process Avoids disruption of the forward product flows Increases control over the returns process

Which software tool helps a supplier align its resources with its customers in a manner that increases both customer satisfaction and supplier profits?

Customer relationship management

What type of inventory deployment model provides greater customer proximity to stock and lower transportation costs?

Decentralized model

To effectively use an adaptive manufacturing strategy, what requirement must be adopted?

Develop ability to sense and respond to demand

What is a challenge of managing a service parts logistics network?

Difficult to predict when and where products will be needed

Each of the following has contributed to the evolution of business logistics

Economic deregulation Customer orientation Technology advancements

Which software package controls the entire returns lifecycle, from return merchandise authorization creation through final product disposition with effective visibility of the reverse logistics process?

Enterprise returns management system

What type of production process will be used to build the new HD stadium screen at Jordan Hare Stadium?

Project

The production process takes place at the a fixed location of the product.

Project Layout

According to "Lean Principles," the key building blocks of a lean strategy include:

Pull system Visual controls Quick changeover

Which of the following are goals of production?

Quality - do things right Dependability - timely in meeting deadlines Flexibility - able to handle special requests

When dealing with product returns, your most preferred choice of action would be to:

Recondition the product and resell it

Who has the greatest power and influence in logistics channels today?

Retailers and consumers

__________ supports the overall repair and maintenance of equipment as it moves through its post-sales lifecycle.

Service parts logistics

During an interview, you are asked: "What is the ultimate goal of a lean production system?" If you want the job, you should respond:

To eliminate waste in the production process

Because companies spend more than half their revenue on purchases of goods and services, they should strategically manage key sources of supply to reduce the total cost of materials and services.

True

Given the potential benefits of operating efficiencies, greater control, higher quality, and lower costs, companies are taking a much more strategic focus toward procurement.

True

Innovative manufacturing strategies avoid mass production methods in favor of lean and mass customization capabilities so that products can be pulled to market by customer demand.

True

Service parts logistics deals with both the management and distribution of new inventory and the repair and refurbishment of major components.

True

Strategic sourcing is an organized and collaborative approach to leveraging targeted spend across locations with select suppliers that are best suited to create knowledge and value in the customer-supplier interface.

True

Supply chains connect multiple firms while logistics processes connect individual firms and their internal partners.

True

The goal of assembly line balancing is to create work stations that have similar workload levels.

True

The mission of call centers has broadened from order taking to caring for customer needs after the sale.

True