MGT 375 Chapter 1

Which of the following supply decisions can lead to poor operational efficiency. (multiple answers) A) Raw materials that arrive late from the supplier. B) Parts that arrive to the facility that do not meet quality standards. C) Operation procedures that do not meet customers expectations. D) employees not arriving to work on time

A, B

In order to be effective supply management includes the acquisition of materials, services, and equipment: (multiple answers) A) at the right time B) in the right quantities C) at the right prices D) in the right geographical area

A, B, C

Public organizations have stricter policies than private to help (multiple answers) A) allow transparency and fairness to suppliers B) support disadvantaged groups C) allow for multiple bidders during supply acquisition D) support only government owned suppliers

A, B, C

Supply chain management focuses on cost saving opportunities like (multiple answers) A) reduction of inventories B) removal of waste throughout the supply chain C) shorter lead times D) adding more processes and outsourcing fewer processes

A, B, C

To be competitive an organization must (multiple answers) A) deliver goods that have a fair price to consumers B) deliver goods to consumers on time C) deliver goods that meet quality expectations D) deliver goods with lower quality to cut overhead costs

A, B, C

Information that is often provided by the supply function includes (multiple answers) A) new sources of supply B) new products C) new customers D) new technology

A, B, D

Some of the challenges the supply industry is facing include (multiple answers) A) risk management B) sustainability C) employee turnover D) technology

A, B, D

Suppliers and supply function are vital to (more than one answer) A) customer satisfaction B) comp advantage C) employee wellness D) an organization's success

A, B, D

Supply managers have room for growth and influence by being more involved in ares they have not traditionally been such as (multiple answers) A) consulting B) benefit programs C) writing employee work instructions D) real estate purchases

A, B, D

Which term(s) are used to describe related functions within an organization that provides effective and efficient materials and services management? (multiple answers) A) purchasing B) supply management C) sourcing D) procurement

A, B, D

To be an effective member of the organization, supply must contribute (multiple answers) A) operationally and strategically B) only in areas that involve direct purchase of raw materials C) directly and indirectly D) only when asked to

A, C

*Supply chain technology has allowed organizations to (multiple answers) A) reduce transaction costs B) reduce the amount of info shared C) reduce inventory costs D) improve customer service

A, C, D

Allowing managers to make decisions under pressure while training supply functions carries which benefits? (multiple answers) A) evaluation of the individual's ability to make sound decisions B) the individual's ability to make friends with fellow coworkers C) evaluation of the managers willingness to make sound decisions D) the individual's capacity to take responsibility for decisions that are made

A, C, D

Supply managers have to focus on strategies when making supply decisions, these include (multiple answers) A) social responsibility B) corporate geographical location C) innovation D) transparency E) employee health

A, C, D

Valuable contributors that give supply managers leverage when selecting quality suppliers are (multiple answers) A) a strong corporate image B) product innovation C) employee satisfaction D) reputation

A, D

Determine if the supply contribution scenario is operational or strategic. Remain aware of purchasing trends and be able to choose the ones that best fit your company's goals

Strategic

Determine if the supply contribution scenario is operational or strategic. Using purchasing power to take advantage of the best values in the marketplace of suppliers

Strategic

Profit-leverage effect and ROA express supply savings that are ____________ A) operational B) direct C) indirect D) positive

direct

*A manufacturers largest expenditure is _______________ requirements while a service provider spends more on ___________________ requirements.

direct, resale

Corporate image is the responsibility of ____________ employee.

every

Private organizations have ________________ restrictions with supplier selection compared to public organizations.

fewer

Strict regulatory requirements regarding _______ processes and policies are one way public organizations differ from private organizations. A) health B) acquisition C) security D) facilities

B

When making decisions supply managers must balance A) sales and stockouts B) risk and reward C) geographical location and risk D) location and sustainability

B

Supply functions that are mismanaged can lead to which types of org risks? (multiple answers) A) consumer B) reputation C) financial D) strategic

B, C

What are some opportunities to explore when integrating supply management with business processes? (multiple answers) A) reduce the number of purchasing agents B) increase quality of products C) increase a products speed to market D) reduce costs throughout businesses processes

B, C, D

ISM launched the Certified Professional in Supply Management (CPSM) program in A) December 1919 B) May 1930 C) May 2008 D) June 1915

C

If supply decisions lead to parts ordered that are of poor quality can negatively impact production by A) leading to a lower scrap rate on production parts B) leading to innovation of new products C) leading to issues that necessitate higher direct labor costs D) leading to issues that have a lower direct labor cost

C

Accurate supply measurements will give managers the ability (multiple answers) A) to provide less information to upper management B) to eliminate all waste throughout the supply chain C) to compare results of various supply experiments D) to see supply's contribution

C, D

An organization with strong financial strength has ________ buying power.

greater

True or false: The supply industry uses the same types of measurements throughout every industry to measure supply contribution.

False: Not one set of measurements works for all supply organizations; the most appropriate for each organization should be considered carefully.

*True or false: The supply function often contributes directly to the organization through information exchanges with suppliers and consumers.

False: The supply function indirectly contributes to the organization through information exchanges with suppliers and consumers.

Manufacturer, Service Provider, or Combo? An organization that produces a cellphone and keeps it in stock, prior to the customer purchasing

Manufacturer

*Match the stages of supply chain involvement (none, documentary, professional, meaningful) true team member status

Meaningful

Indirect supply contributions are often considered "soft" or ___________ contributions making them challenging to measure.

intangible

Small organization supply chains do not have the same _______________ as larger organizations.

luxuries

The Institute for Supply Management releases the monthly "ISM Report on Business" for the ___________ sector.

manufacturing

Inventory reduction and purchasing savings are direct contributions that are _____________ and tangible.

measurable

Key drivers for an organizations supply decisions are __________, _____________, and ____________

mission, vision, strategy

Organizations must meet strategic goals by placing importance on _______________ and knowledge management.

process

Supply managers should gain ____________ from other peers to contribute fully to the organizations success.

recognition

Many organizations allocate the number of _________________ for the supply department based on the amount of dollars spent on supplies.

resources

_________________ is a financial ratio that shows the percentage of profit a company earns in relation to its overall resources. A) supply function report B) asset profit return C) return on assets (ROA) D) Inventory profit loss

return on assets

Organizations where unethical supply decisions are made can have an increase in reputation ____________

risk

The most critical issues supply chain managers face, are supply chain _______________ and supply chain ______________

risks, disruptions

*The primary purpose of increasing supply growth and influence throughout an organization is to increase the _______________ of contributions.

value

Supply management focuses on the _________________ process while taking into account organizational goals and strategies.

acquisition

Sustainability efforts of supply managers involve effective capture and disposition of products ________________ customers have used them.

after

What are the seven standard steps of the procurement process?

1. Recognition of need 2. Translation of need into commercially equivalent description 3. search for potential suppliers 4. selection of a suitable source 5. agreement on the contract details 6. delivery of the products or services 7. payment of suppliers

Who defines logistics management as that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverses flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers' requirements? A) CSCMP B) IWLA C) NAEP D) APICS

A

A decrease in purchasing expenditures that directly increase profits before taxes (assuming no reduction in quality or buying total cost) is known as ___________________ A) the profit-leverage effect B) the sales game effect C) the supply attention effect D) the profit and loss effect

A

Organizational success relies considerably on effective purchasing and A) supply management B) employee benefits C) geographical location of suppliers D) the size of the organization

A

Purchasers who have the means and readiness to pay has _______________ A) valuable bargaining strength B) the ability to refuse to pay C) the flexibility to demand unfair prices from the supplier D) to pay higher premiums for higher quality goods

A

Supply function growth and influence is represented in four areas including total spend of the organization, the span of supply chain activities, supply chain responsibilities including acquisitions, and A) corporate activity involvement B) decreased responsibilities of supply managers C) decreased corporate involvement D) human resource hiring plans

A

Manufacturer, Service Provider, or Combo? An electronics producer who service their products after sales as required by customers

Combo

Although there have been many technological advances in supply chains, there are still many opportunities for new product development, better internal and external collaboration, and A) increases in supply chain risks B) increases in waste C) increasing manufacturers inventories D) waste elimination

D

Companies must increase revenue, decrease costs, or do both to A) decrease long-term shareholder value B) increase long-term supplier value C) increase long-term technology investments D) increase long-term shareholder value

D

Logistics includes which types of movements of goods, services, and related information? A) outbound and external B) inbound, outbound, and external C) inbound and internal D) inbound, outbound, internal, and external

D

Organizations with multiple sites face additional concerns with regards to A) the price of supplies B) the number of suppliers used to purchased parts C) the currency used to purchase goods D) transportation and storage issues

D

Private organizations have custom requirements as a form of A) financial security B) standardization C) generalization D) competitive advantage

D

Providing training to new managers in supply functions can help them A) get to know employees on a personal level B) learn what quality standards they can deviate C) become familiar with the unwritten rules of behavior D) quickly grasp organizational goals and needs

D

Return on assets (ROA) is an indicator of A) the increase of sales per quarter B) the quality of receivable goods C) the effect of supply savings on overall revenue D) how profitable a company is relative to its total assets

D

Supply functions can increase customer satisfaction by A) securing suppliers that offer speedy delivery times with lower quality. B) securing suppliers who offer better quality, have slower delivery times, and with a premium price. C) securing suppliers that offer lower quality and low prices. D) securing suppliers who deliver better quality, faster, and with a better price.

D

Supply sustainability efforts of the future will be A) to maintain profitability regardless of supply costs B) only to use expensive biodegradable packaging C) to use more energy consumption D) to identify solutions

D

When the supply function can provide information about new advertising techniques and distribution systems, this may be useful to A) training dept B) quality dept C) HR dept D) Marketing dept

D

*Match the stages of supply chain involvement (none, documentary, professional, meaningful) Transactionary involvement only

Documentary

True or false: A college degree in supply chain management is required for all entry-level positions.

False

*Match the stages of supply chain involvement (none, documentary, professional, meaningful) The lowest level of involvement

None

Determine if the supply contribution scenario is operational or strategic. Keep certain frequently used items in stock to ensure that production is not halted

Operational

Determine if the supply contribution scenario is operational or strategic. Negotiate with a supplier to create a product with higher quality

Operational

___________ supply decisions are the day-to-day decisions that allow management to focus on their strategic contribution. _________ choices, however, focus on new and innovative solutions and supply challenges.

Operational, Strategic

*Match the stages of supply chain involvement (none, documentary, professional, meaningful) Personnel use expertise to assess acquisition decisions

Professional

Manufacturer, Service Provider, or Combo? A facility that repairs television products at a consumers request

Service Provider

Manufacturer, Service Provider, or Combo? A massage therapist who's clients book as they need

Service provider

True or False: Negotiating with a supplier to create a product with higher quality is considered to be an operational perspective.

True

True or false: Dollars spent on supplier costs compared to total revenues is a good indicator of supply's performance for an organization.

True

True or false: While objectives are great, reputation is fostered through action and results.

True

True or false: Organizations of the future will focus on aggressive strategies to achieve organizational goals.

True: In the past organizations took defensive strategies, where now most take imaginative approaches.