chapter quizzes- 5,6,7,8

leverage items

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?

bottleneck items

In which item category would the sourcing strategies of maintaining safety/strategic stocks, developing contingency plans, strengthening relationships, and searching for alternatives, be appropriate?

leverage

In which sourcing category would an item typically be classified, if it is considered to be high value, low risk, and there are multiple potential suppliers?

bottleneck

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?

true

T/F "Rationalizing the supplier base" would mean that the purchasing firm is attempting to reduce the number of suppliers in its supplier network.

true

T/F A Supplier Code of Conduct is intended to inform suppliers of ethical sourcing expectations and is typically a condition for becoming an approved supplier.

false

T/F ISO 14000 is a widely accepted management and quality certification standard.

true

T/F Products with short product life cycles, volatile demand, high-profit margins, and relatively little competition, are known as Innovative Products.

false

T/F a strong supplier partnership requires that both buyer and supplier adopt a strong tactical perspective

true

T/F in-sourcing is defined as reverting to in-house production when external quality, delivery, and services do not meet expectations

true

T/F root cause analysis is a term that describes a wide range of approaches tools and techniques used to uncover causes of problems

true

T/F successful supplier relationships involve equal decision-making control between both the buyer and supplier

true

T/F the profit-leverage effect states that a decrease in purchasing expenditures will directly increase profits

false

T/F total quality management is the term used in business to describe the in-depth process of capturing internal and external customer's expectations, preferences, likes and dislikes

individualized objectives

The keys to developing successful supply partnerships include all of the following EXCEPT?

plan, do, check, act

The process commonly utilized in continuous improvement is known as?

leverage

Which general sourcing category comprises commodity items where many alternatives of supply exist, and supply risk is low. Spend is high and there are potential procurement savings?

increasing the selling price of the product

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

multi-source

Which sourcing strategy would typically be used for items with low profit margins, relatively stable demand, and high levels of competition?

value engineering

a key suppliers activities to help the buyers company reduce cost, improve quality and reduce new product development time beginning with the initial design phase are known as?

bid

a proposal or quotation submitted in response to a solicitation from contracting authority is known as what?

is a commitment over an extended period to work together to the mutual benefit of both parties

a strategic partnership with a supplier

supplier certification

an organization's process for evaluating the quality systems of key suppliers in an effort to eliminate incoming inspections can be referred to as?

decreased need for supplier management

an outsourcing program can result in all of the following positive outcomes except? - gains in manufacturing flexibility - reducing staffing levels - cost reduction - decreased need for supplier management

decentralizing purchasing

benefits derived from implementing an e-procurement system include all of the following EXCEPT? - tractability - time savings - real time access - decentralizing Purchasing

appraisal costs

costs incurred in the process of finding or discovering defect which includes testing evaluating and inspecting quality are categorized as which of the following?

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

developmental suppliers that need to make improvements

the best supplier candidates for supplier relationship management include all of the following EXCEPT? - developmental suppliers that need to make improvements - supplier that provide lesser quantities of a crucial product/services -supplier that provide high volumes of products or services - preferred suppliers

obtain a price reduction on the items they are buying

the fastest or most immediate way that a purchasing person can directly impact the profit of their company is to:

understandable, easy to measure, and focused on real value-added results

the goal of good supplier performance evaluation system is to provide metrics that are:

engineer to order

the manufacturing strategy in which the product is designed, engineered, and built to specifications only after the order has been received is called what? it is used when products are unique and extensively customized for the specific needs of individual customers

manufacturing

to make or process raw materials into finished products especially

contracting

what is the term that is often used for the acquisition of services

continuous improvement

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?

job shop production process

which manufacturing process can be characterized as creating a custom product for each customer?

due to a lack /shortage of procurement personnel

which of the following is NOT a reason for buying or outsourcing? - to achieve a cost savings - take advantage of better quality - due to insufficient capacity to make the item internally in your company-owned operations - due to a lack of procurement personnel

purchase requisition

which of the following is an internal document that defines the need to purchase goods and/or services? this document does not constitute a contractual relationship with any external party

expediting

which one of the following is NOT one of the 12 steps in the basic purchasing process? - analysis - obtain authorization as necessary - expediting - fulfillment

waste reduction and continuous improvement

which one of the following is among the most important elements of the LEAN manufacturing philosophy?

philip crosby

which quality expert is credited with introducing the concepts of zero defects?