Supply chain Exam 2

Which one of the following is NOT one of the 12 steps in the basic Purchasing Process? A. Expediting B. Obtain authorization as necessary C. Fulfillment D. Analysis

A. Expediting

The concept which attempts bring about positive social change through organizational buying behavior, is known as? A. Business Ethics B. Ethical Sourcing C. Supplier Code of Conduct D. Sustainability

B. Ethical Sourcing

The process of taking a statistically significant representative sample to be measured against the quality acceptance standard, is known as? A. Kaizen B. Six Sigma C. Acceptance Sampling D. Lean Manufacturing

C. Acceptance Sampling

Buying materials and components from suppliers instead of making them in your company-owned operations, is known as? A. Insourcing B. Selective Sourcing C. Offshoring D. Outsourcing

D. Outsourcing

The e-Procurement process has many advantages. Which one of those listed below is NOT one of these advantages? A. Trackability B. Accuracy C. Mobility D. Segmentation

D. Segmentation

In which sourcing category would an item typically be classified, if it is considered to be high value, high risk, and there are few suppliers, but they are excellent? A. Non-Critical B. Strategic C. Leverage D. Bottleneck

B. Strategic

In which item category would the sourcing strategies of maintaining safety/strategic stocks, developing contingency plans, strengthening relationships, and searching for alternatives, be appropriate? A. Non-Critical Items B. Strategic Items C. Leverage Items D. Bottleneck Items

D. Bottleneck Items

The keys to developing successful supply partnerships include all of the following EXCEPT? A. Personal Relationships B. Mutual Benefits and Needs C. Performance Metrics D. Individualized Objectives

D. Individualized Objectives

A key supplier's activities to help the buyer's company reduce cost, improve quality and reduce new product development time beginning with the initial design phase, are known as? A. Supplier Recognition B. Early Supplier Involvement C. Supplier Development D. Value Engineering

D. Value Engineering

The goal of Six Sigma is the elimination of waste and the minimization of the amount of all resources (including time) used in the operation of a company. A. True B. False

B. False

Through collaborative negotiations both side work together to maximize the outcome or create a win-win result A. Ture B. False

B. False

A strong supplier partnership requires that both buyer and supplier adopt a strong tactical perspective. A. True B. False

B. False

An effective supplier certification program may increase the time spent on incoming inspections. A. True B. False

B. False

Award-winning suppliers serve as role models for other suppliers and may therefore be exempt from audits and certification programs A. True B. False

B. False

Lean 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 A. True B. False

B. 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. A. Ture B. False

B. False

While paperless transactions are now possible through e-procurement and Web-based services, these would NOT be considered sustainable business practices. A. True B. False

B. False

Benefits of implementing an effective supplier certification program include all of the following EXCEPT? A. Building long-term relationships B. Increasing the supplier base C. Reducing time spent on incoming inspections D. Recognizing excellence

B. Increasing the supplier base

Which one of the following is NOT part of the eight (8) wastes identified through LEAN Manufacturing? A. Non-Utilized Talent B. Insufficient Capacity C. Overproduction D. Extra-Processing

B. Insufficient Capacity

An organization's process for evaluating the quality systems of key suppliers in an effort to eliminate incoming inspections can be referred to as? A. Quality Systems Certification B. Supplier Certification C. Supply Management D. Supplier Inspection

B. Supplier Certification

Which of the following is NOT one of the drivers of Strategic Sourcing? A. Optimizing the number of global suppliers B. Focusing on the customer C. Increasing the selling price of the product D. Reducing the delivery lead times

C. Increasing the selling price of the product

Lean Manufacturing emphasizes all of the following EXCEPT? A. Synchronization of material flows B. Continuous improvement C. Large batch sizes D. Reduction of waste

C. Large batch sizes

Which one of the following is NOT an element of Lean Manufacturing? A. Small Batch Scheduling B. Waste Reduction C. Mass Customization D. Inventory, Setup Time, and Changeover Time Reduction

C. Mass Customization

The application of ethical principles in business situations is known as? A. Sustainability B. Business Ethics C. Corporate Social Responsibility D. Profit-Leverage Effect

B. Business Ethics

All of the following are reasons for Making an item in your own company operations, EXCEPT for which one? A. To control transportation and warehousing costs B. Due to insufficient capacity in your company operations C. To protect your proprietary technology D. There is no competent supplier available

B. Due to insufficient capacity in your company operations

Ethical sourcing policies should include such things as the reporting of supplier compliance to stakeholders, and detailing ethical sourcing expectations to suppliers. A. True B. False

A. True

In-sourcing is defined as reverting to in-house production when external quality, delivery, and services do not meet expectations. A. True B. False

A. True

Intermittent Production Processes are used to produce a large variety of products with different processing requirements in lower volumes A. True B. False

A. True

The practice of Supplier Co-location involves a supplier's employee being embedded in a buyer's purchasing department to forecast demand, monitor inventory and place orders for the item(s) provided by the supplier. A. True B. False

A. True

Which of the following is NOT one of the Seven Tools of Quality Control? A. Make-to-Stock B. Assemble-to-Order C. Engineer-to-Order D. Make-to-Order

A. Make-to-Stock

Which one of the following is NOT a reason to have a single supplier? A. To spread the risk of a supply disruption B. To achieve transportation economies C. To have less quality variability D. To establish a good relationship

A. To spread the risk of a supply disruption

"Supply Management" is a newer term that encompasses all acquisition activities beyond the simple purchase transaction. A. True B. False

A. True

In which item category would the sourcing strategies of consolidating volumes as a negotiation tool, using the competitive marketplace to reduce costs, and automating supplier interfaces to minimize process related costs, be appropriate? A. Bottleneck Items B. Leverage Items C. Strategic Items D. Non-Critical Items

B. Leverage Items

The term used to describe a debt secured by a bidder for the purpose of providing a guarantee that the successful bidder will accept the contract once awarded, is known as? A. Bid Bond B. Payment Bond C. James Bond D. Performance Bond

A. Bid Bond

In which sourcing category would an item typically be classified, if it is considered to be low value, low risk, and there are lots of potential suppliers? A. Non-Critical B. Strategic C. Bottleneck D. Leverage

A. Non-Critical

Which of the following is NOT one of the Seven Tools of Quality Control? A. Small Batch Scheduling B. Scatter Diagrams C. Histograms D. Control Charts

A. Small Batch Scheduling

A Supplier Code of Conduct is intended to inform suppliers of ethical sourcing expectations and is typically a condition for becoming an approved supplier. A. True B. False

A. True

A purchase order is legally binding only after it is accepted by the supplier. A. True B. False

A. True

Duties, taxes, or customs imposed by the host country for imported or exported goods, are known as Tariffs A. True B. False

A. True

Co-sourcing is the sharing of a process or function between internal staff and an external provider (i.e., a supplier). A. Ture B. False

A. Ture

The Profit-Leverage Effect states that a decrease in purchasing expenditures will directly increase profits. A. Ture B. False

A. Ture

Which quality expert is is widely considered to be the father of Total Quality Management? A. W. Edwards Demming B. Philip Crosby C. Joseph Juran D. Kaoru Ishikawa

A. W. Edwards Demming

Which one of the following is among the most important elements of the LEAN manufacturing philosophy? A. Waste reduction and continuous improvement B. Fully automated assembly lines and a large supplier base C. Large inventories and large batch sizes D. Quality inspections and a standardized product line

A. Waste reduction and continuous improvement

Forward Vertical Integration refers to a company acquiring one or more of their sources of supply. A. True B. False

B. False

ISO 14000 is a widely accepted management and quality certification standard. A. True B. False

B. False

In the context of Total Cost of Manufacturing (TCM), in general terms, procurement, manufacturing, inventory, warehousing, and transportation per unit costs each go down as volume goes up. A. True B. False

B. False

Strategic partnership with a supplier: A. Is a legal contract between a supplier and a buyer, binding them to certain financial obligations B. Is a commitment over an extended period to work together to the mutual benefit of both parties C. Is a significant benefit to the buyer, but may not be a significant benefit to the supplier D. Is the ultimate object, or the end goal, that a company should have with every supplier

B. Is a commitment over an extended period to work together to the mutual benefit of both parties

To make or process raw materials into finished products, especially by means of a large-scale industrial operation, is called what? A. Inventory Management B. Manufacturing C. Mass Customization D. Work-in-Process

B. Manufacturing

Managing a firm's external resources in ways that support the long-term goals of the firm can be referred to as? A. Ethical souring B. Strategic sourcing C. Hybrid sourcing D. Functional sourcing

B. Strategic sourcing

Which tool of quality control is used to study how a process changes over time? A. Cause and Effect Diagram B. Histogram C. Control Chart D. Scatter Diagram

C. Control Chart

Benefits derived from implementing an e-procurement system include all of the following EXCEPT? A. Time Savings B. Real Time Access C. Decentralizing Purchasing D. Trackability

C. Decentralizing Purchasing

The best supplier candidates for Supplier Relationship Management (SRM) include all of the following EXCEPT? A. Preferred Suppliers B. Suppliers that provide high volumes of products or services C. Developmental suppliers that need to make improvements D. Suppliers that provide lesser quantities of a crucial products/services

C. Developmental suppliers that need to make improvements

Which sourcing strategy would typically be used for items with low profit margins, relatively stable demand, and high levels of competition? A. Sole source B. Single source C. Multi-source

C. Multi-source

Which sourcing concept involves a supplier directly managing the buyer's inventories to reduce the buyer's inventory carrying costs and avoid stockouts? A. Supplier Co-Location B. Reverse Auction C. Vendor Managed Inventory D. Co-Managed Inventory

C. Vendor Managed Inventory

The quality management philosophy that focuses on improving the overall quality of process outputs by identifying and removing the causes of defects and minimizing variability in manufacturing and business processes, is known as? A. Lean Manufacturing B. Six Sigma C. Acceptance Sampling D. Kaizen

B. Six Sigma

Which of the following new technologies can improve supplier selection and increase the effectiveness of supplier relationship management? A. eFulfillment B. The Internet of Things C. Artificial Intelligence D. Blockchain

C. Artificial Intelligence

In which sourcing category would an item typically be classified, if it is considered to be low value, high risk, and there are a small number of alternative suppliers? A. Strategic B. Leverage C. Bottleneck D. Non-Critical

C. Bottleneck

Which element of Lean is described as a system based on making little changes on a regular basis, anywhere changes can be made, to reduce process, delivery, and quality problems? A. Lean Supply Chain Relationships B. Uniform Plant Loading C. Continuous Improvement D. Workforce Empowerment

C. Continuous Improvement

Which cost of quality category includes performing audits to confirm that the quality system is operating properly? A. Prevention Costs B. Internal Failure Costs C. External Failure Costs D. Appraisal Costs

D. Appraisal Costs

What is the term for starting the production of finished goods only after a customer's order is received? A. Economic Order Quantity B. Make-to-Stock C. Mass Customization D. Make-to-Order

D. Make-to-Order