MGT 375 Chapter 3

Co-locating supplier and buyers can improve productivity and A) increase firm competitiveness. B) develop customer relationships faster. C) decrease firm competitiveness. D) reduce supply chain requirements.

A

Match the area of responsibility with the activities: Overseeing the selection of carriers for inbound and outbound deliveries

Transportation

Organizations that move to a decentralized structure will most likely maintain some of the core supply capabilities at the ___________ level.

corporate

Departments like _______ and _________ must work together for strategic sourcing and media campaigns or special promotions.

marketing; supply

Hybrid models seek to operate under a model that is ____________ centralized or decentralized.

neither

Supply teams are used for a variety of functions and can be ________ oriented or ___________

project, ongoing

In most cases, __________ goods and services represent the most significant cost encountered by an organization

purchased

Involving supply and end customers can lead to delivering a great value in the ____________ cycle times.

short

Sourcing and commodity responsibilities can be further specialized by the ___________ of the commodity.

type

Specialization in supply functions allows the staff to develop ____________ in areas where they work.

expertise

An appliance company wants to design a new product that can take advantage of consumer's concern with rising electricity costs. A __________ product supply team should be formed to tackle this task.

new

True or false: Strategic supply decisions only involve tactical efforts

False-Strategic supply decisions are concerned with long-term strategical choices for survival and prosperity

True or false: Cross-functional sourcing teams that incorporate supplier participation are useful for teams assigned to evaluate suppliers.

False: Supplier participation teams are useful for developing supplier capabilities and improving supplier responsiveness.

Supplier council is an important forum and is useful for (multiple answers) A) agreeing on competitive delivery terms B) reducing admin costs C) identifying problems with the supply base early D) encourage internal continuous improvement

A, C

Benefits of corporate supply councils include (multiple answers) A) standardization of goods and services across all sites. B) communicate strategies with key suppliers. C) streamlining of materials processes. D) standardizing of purchasing processes.

A, C, D

Select the responsibilities of sourcing and commodity personnel. (multiple answers) A) supplier selection B) management of department budget C) creation of contracts D) supplier capabilities analysis

A, C, D

Decide if the example is an advantage or disadvantage of supply certification: All business units in the organization are governed under the same policies and procedures

Advantage

Decide if the example is an advantage or disadvantage of supply certification: Every business unit in the organization can use the same suppliers

Advantage

Decide if the example is an advantage or disadvantage of supply certification: There is one reporting line to request approval for new purchases

Advantage

A car manufacturer wishes to increase their customer focus on new car design, which team is beneficial for them to form to ensure they meet their goals? A) team involving a supply council B) team with customer participation C) team with co-location of supply D) team with supplier participation

B

Discrete goods from industries face challenges within the supply chain from consumer preferences, innovation, and A) purchases for resale B) short product life cycles C) long product life cycles D) retail sales purchases

B

Supplier participation teams face obstacles with (multiple answers) A) supplier capabilities B) confidentiality C) intellectual property concerns D) short cycle times

B, C

The four general categories of supply include (multiple answers) A) customer service requirements. B) involvement in corporate activities. C) what is acquired. D) supply chain activities.

B, C, D

Industry sector will influence supply responsibilities; industries can be divided into (multiple answers) A) supplier industry B) process industry C) resale industry D) discrete goods industry

B, D

When an organization moves towards supply centralization, a major concern is (multiple answers) A) that too many employees are overqualified within the organization. B) the availability of qualified personnel. C) the research to be conducted on alternative materials. D) the availability of information in regards to total corporate spend.

B, D

Decide if the example is an advantage or disadvantage of supply certification: Corporate decides on purchases and needs, sometimes without regard to unique needs of business units

Disadvantage

Decide if the example is an advantage or disadvantage of supply certification: Every business unit can use common suppliers, but often with different behaviors

Disadvantage

Match the area of responsibility with the activities: Generating contracts and purchase agreements for suppliers

Purchasing/Buying

Key success factors for successful supply teams include (multiple answers) A) Non-supportive organizational culture where structure and systems are complicated. B) Prepared for customer satisfaction rather than individual functional success. C) All functional areas involved in up-front preparation, mutual leadership roles, and role flexibility. D) Commitment to performance and completion with choices delegated to the correct level.

B, C, D

Supply manager contribute to the organization's competitive position by ensuring decisions contribute to (multiple answers) A) employee satisfaction B) asset management C) revenue enhancement D) cost reduction

B, C, D

Supply managers can bring valuable insight into corporate transactions that include (multiple answers) A) advertising of product development B) negotiation of deal structure C) execution of integration after the deal D) evaluation of deals

B, C, D

Match the area of responsibility with the activities: Managing supplier relationships and partnerships

Supply chain management

Supply decisions must be aligned with the ______________ structure and strategy.

corporate

Large supply organizations have four general specialized areas, these include sourcing and commodity, materials management, administration, and A) supply research B) supply management C) supply systems D) supply acquisitions

A

Organizations use supply councils to manage buyer-supplier relationships and A)encourage continuous improvement. B) increase supplier expertise. C) reduce sales cost. D) agree on competitive terms with suppliers.

A

Supply managers can add value to corporate decisions through (multiple answers) A) providing competitive intelligence. B) operational knowledge. C) the delivery of products on time. D) choosing the raw materials purchased.

A, B

An organization benefits from co-location of internal customers and supply through (multiple answers) A) greater awareness of organizational strategies. B) greater awareness of group challenges. C) greater awareness of organizational goals. D) greater awareness of raw material pricing.

A, B, C

Decentralized supply models often have the advantages of A) easier coordination with purchasing B) faster response time when requesting funding C) business units understand their unique needs D) better communication with other business units

A, B, C

Materials management personnel can have responsibilities in areas such as (multiple answers) A) inventory control B) scheduling and planning C) receiving inspection D) e-procurement systems

A, B, C

Materials that do not arrive on time can impact (multiple answers) A) revenues B) customer satisfaction C) production times D) cost of raw materials

A, B, C

What are some benefits of using cross-functional teams for supply functions? (multiple answers) A) technology management B) product development C) improvements in quality D) develop training for employees

A, B, C

Commodity management teams engage in activities such as (multiple answers) A) supply base reduction B) management of supplier relationships C) new product development D) management of deliveries

A, B, D

Identify the consequences of a substandard television that is sold and used by a consumer. (multiple answers) A) Cost for shipping the television back and delivery of the new one. B) The cost of replacement. C) Increased cost for the raw materials to build a new television. D) Lost revenue due to loss of future business.

A, B, D

Indirect spend should be monitored because: (multiple answers) A) there is a wide variety of goods and services sourcing. B) it can increase cost pressure C) these products must be quality to be included in the end product D) decentralized nature of spend gives control to individual units.

A, B, D

Cost of ownership includes the actual cost of goods and services but also includes (multiple answers) A) warranty costs B) inventory C) employee pay D) spare parts E) quality levels

A, B, D, E

Externally focused activities are either (multiple answers) A) supplier focused B) budget focused C) customer focused D) production focused

A, C

After a contract is signed, the direction for the flow of materials and services is overseen by A) sourcing personnel B) materials management personnel C) supply research personnel D) administrative personnel

B

Applying the skills of the supply group throughout the acquisition of nontraditional purchases A) does not affect the overall organizational annual spend. B) has significant opportunities for cost savings with annual spending. C) is only a focus with new business development. D) has little opportunities for cost savings with annual spending.

B

High performing teams offer benefits to the organization through lower costs, less time for completion of tasks, and A) improved production cycle times. B) greater stakeholder buy-in. C) better engineering design. D) less stakeholder buy-in

B

Locating buyers with internal customers to provide lowered costs and improved quality is known as? A) Customer participation B) Co-location with internal customers C) Supplier participation D) Co-location with suppliers

B

Organizations wishing to restructure with a decentralized plan may find they have a significant concern with A) locating qualified personnel. B) dismantling the centralized unit effectively. C) purchasing supplies for each unit. D) training new employees.

B

Supply decisions involve a balance to meet objectives and make trade-offs from both a A) human and machine perspective. B) tactical and strategic perspective. C) order and delivery perspective. D) situational and big picture perspective.

B

What is a form of collaborative purchasing used by both public and private sector organizations to deliver a wider range of services at a lower total cost? A) complexity B) purchasing consortia C) collaboration D) distribution channels

B

The three significant cross-functional supply teams are A) developing local leadership B) commodity management C) new product development D) sourcing

B, C, D

Within hybrid supply models many tasks are often handled at the corporate level to ensure business units are aligned, these can include (multiple answers) A) development of individual business unit supply strategies. B) common use item purchasing. C) policy and procedure establishment. D) training of employees. E) supply performance auditing.

B, C, D, E

In the service industry, a provider who utilizes standardization techniques can reduce their supply base, lower operating costs, and A) decrease quantity of services. B) lower customer service levels. C) offer lower prices. D) charge higher prices.

C

Purchased goods and services that are not a direct part of products or services delivered to customers is known as A) materials procurement B) direct spend C) indirect spend D) commodity purchasing

C

What are indicators that supply management is meaningfully involved? A) Supply positions will be more specialized and tasks will be distributed. B) All spend is from one location and authority and responsibility for supply related functions. C) One measure of meaningful involvement is the extent to which supply is expected to take part in major corporate activities. D) Keeping close relations with suppliers could be a challenge.

C

Benefits of co-locating suppliers inside the buyers firm include (multiple answers) A) add more work for the company employees. B) decreased process requirements. C) improved buyer-seller communication. D) reduction of administrative costs.

C, D

ABC Freight's CPO reports directly to the executive vice president, a senior executive in the organization, ABC Freight places a A) low degree of importance on supply functions. B) high degree of importance on organizational titles. C) low degree of importance on organizational titles. D) high degree of importance on supply functions.

D

Small or medium-sized businesses that have limited personnel and supply responsibilities are often A) not a concern until the organization grows larger. B) managed by the CEO. C) primary duties. D) secondary obligations.

D

Decide if the example is an advantage or disadvantage of supply certification: The organization operates with business unit silos and information is not shared freely

Disadvantage

Match the area of responsibility with the activities: Develop short, medium, and long term production requirements

Forecasting and planning

Product design is driven by __________requirements with design, ability to manufacture, and the ability to procure materials taken into consideration.

customer

A _______________ spend includes those goods that go into the end product or service.

direct

In most cases, ______________ goods and services represent the most significant cost encountered by an organization.

purchased

Suppliers who are selected for goods or services are expected to be ____________ and ____________

responsive, responsible

Primary motivations for participation in purchasing consortia are ___________ through price reductions.

savings

Moving towards a centralized supply organization requires employees with ______________ experience in areas.

specialized

__________ refers to an agreement with processes or specifications for products and services.

standardization

____________ refers to an agreement with processes or specifications for products and services.

standardization

Late materials can affect an organizations profits, production times, and customer satisfaction. These are also affected by ___________ and _________

supplies; services

Delivering the best value to the customer by overseeing activities within the supply functions is known as ______________ _____________

supply management

Lack of goal alignment between the ______________ department and the ______________ department can lead to conflicting behaviors.

supply; accounting

Departments like __________ and _____________ must work together for strategic sourcing and media campaigns or special promotions

supply; marketing

Operations and supply managers must work together to meet demand in producing and delivering goods, they both utilize __________ and ______________ skills to achieve objectives.

tactical; strategic