Operations Management Test #2

The purchasing and supply management function in the government and nonprofit sectors, such as educational institutions; hospitals; and federal, state, and local governments is called: a. public procurement b. transactional procurement c. public spending d. competitive buying

a. public procurement

Transactional SRM: a. tend to focus on short-term reporting and is event driven b. provides answers to questions such as: Which suppliers would make the company more profitable? c. helps organizations assess where they want to go in the future to meet their strategic purchasing goals d. focuses on long-term procurement strategies

a. tend to focus on short-term reporting and is event driven

According to the text, which of the following is one of the most effective supply chain integrative techniques? a. process integration b. counterpurchasing c. early supplier involvement d. single integrator solution

c. early supplier involvement

Which of the following is an advantage of decentralized purchasing departments? a. lower transportation costs b. avoids duplication c. use of common supply base d. better knowledge of unit requirements

d. better knowledge of unit requirements

Which of the following is NOT a key area to focus on, in order to establish sustainable sourcing, as identified by a U.K. Food Industry Group on Ethical Trade? a. procurement rationalization b. move towards a low carbon economy c. respect human rights and reduce poverty by creating profitable trading d. work within the finite limits of the planet's resources

a. procurement rationalization

Green purchasing is a practice aimed at ensuring that purchased products or materials meet environmental objectives of the organization such as: a. waste reduction b. aggregate planning c. hedging inventories d. ride sharing

a. waste reduction

In a recent U.S. retailer survey, ____ of respondents claimed their organizations were either currently enhancing their ethical sourcing or planned to do so in the future a. 75% b. 92% c. 80% d. 50%

b. 92%

Petty cash is being phased out in favor of: a. Kanban b. P-cards c. Bitcoin d. Venmo

b. P-cards

A program used to celebrate the achievements of the best suppliers is: a. The Top Quality Management Program (TQM) b. The Supplier Recognition Program c. The Supplier Development Program d. The Evaluation and Certification Program

b. The Supplier Recognition Program

Making all the purchasing decisions, including order quantity, pricing policy, contracting, negotiations, and supplier selection and evaluation are the key characteristics of a. single stage replenishment b. centralized purchasing c. logistics management d. decentralized purchasing

b. centralized purchasing

For continuous improvement to succeed, employees must first: a. be compensated for making suggestions b. identify areas that are working c. understand transaction costs d. identify areas that are not working

b. identify areas that are working

Environmental supplier certification programs can assist companies by doing which of the following? a. helping communities who are in jeopardy of plant closures b. identifying rogue suppliers before they can cause problems or disruptions in their supply chains c. encouraging distributive negotiations in strategic alliance development d. identifying companies who are the most popular with consumers

b. identifying rogue suppliers before they can cause problems or disruptions in their supply chains

____ involves streamlining the processes and communications between the buyer and supplier using software applications that enable these processes to be managed more efficiently and effectively. a. corporate social responsibility b. supplier relationship management c. performance measurement d. supplier certification program

b. supplier relationship management

which of the following do organizations use in supplier evaluation and certification processes? a. consumer sales b. tracking service quality c. inventory turnover ratio d. logistics

b. tracking service quality

Which of the following terms refers to an act that creates the greatest good for the greatest number of people? a. social sustainability b. corporate responsibility c. utilitarianism d. multinational

c. Utilitarianism

ISO 9000 certification is described best by which of the following? a. developed by the international organization for standardization for environmental compliance b. a series of purchasing standards developed by Toyota in the 1970s c. a series of management and quality assurance standards in design development, production, installation and services d. a prerequisite for obtaining ISO 14000 certification

c. a series of management and quality assurance standards in design development, production, installation and services

The Ethical Trading Initiative (ETI) is: a. an agreement to remove trade and investment barriers among the U.S., Canada, and Mexico b. the largest and most visible international trade initiative dealing with the global rules of trade between nations c. an alliance of organizations agreeing to implement the ETI Base Code d. A group of organizations attempting to implement the SCOR model

c. an alliance of organizations agreeing to implement the ETI Base Code

Which of the following is NOT a key factor for developing a successful supplier partnership a. information sharing and lines of communication b. shared vision and objectives c. personal relationships d. developing efficient processes that will remain unchanged for the duration of the partnership

d. developing efficient processes that will remain unchanged for the duration of the partnership

Which of the following is NOT a key factor for developing a successful supplier relationship? a. shared vision and objectives b. personal relationships c. information sharing and lines of communication d. developing efficient processes that will remain unchanged for the duration of the partnership

d. developing efficient processes that will remain unchanged for the duration of the partnership

One of the primary goals of purchasing is to: a. facilitate the processes of knowledge transfer between individuals and between organization b. maximize stockholder wealth c. help build the organization's public image and reputation d. ensure uninterrupted flows of raw materials at the lowest total cost

d. ensure uninterrupted flows of raw materials at the lowest total cost

Identifying and selecting environmentally and socially conscious suppliers is one trend followed by firms utilizing: a. collaborative planning b. cloud-based forecasting c. the continuous review system d. ethical and sustainable sourcing

d. ethical and sustainable sourcing

Purchasing activities include all of the following EXCEPT: a. negotiations b. contract administration c. logistics considerations d. franchising services

d. franchising services

Which of the following should NOT be used as assessment criteria to evaluate the purchasing department's performance? a. optimizing the supply base b. participating in value engineering/value analysis efforts c. contributing to new product developments d. lowering inventory turnover rates

d. lowering inventory turnover rates

Firms assess their sourcing capabilities because: a. doing the right social and environmental things make economic sense b. it allows them to maintain a variety of product options c. they need to know the effect of external elements d. monitoring the purchasing function's performance, helps firms to continuously improve their products and processes

d. monitoring the purchasing function's performance, helps firms to continuously improve their products and processes

Hormel Food Corporation's No. 1 Award program differ from other programs because: a. the award is given out bi-annually b. qualification for the award include green recovery criteria c. they provide cash incentives to the recipients d. the award is given out once every five years

d. the award is given out once every five years

A benefit to the firm for utilizing a supplier recognition program would be: a. suppliers are more likely to lower their product costs b. it will increase the supply base c. it will lead to the silo-effect d. the award recipients can serve as role models for a firm's other suppliers

d. the award recipients can serve as role models for a firm's other suppliers

According to the text, which of the following two approaches are used in deciding whether or not an action is ethical? a. critical quality and corruption framework b. general agreement on tariffs and trade (GATT) and leverage purchasing c. supplier involvement and environmental performance d. utilitarianism and rights & duties

d. utilitarianism and rights & duties

The term "benchmarking" as used in business firm is: a. a practice where companies attempt to learn and apply the best practices of other companies b. a system of performance metrics that seeks to motivate suppliers to perform better c. a program where suppliers compete for contracts, but those companies who are outbid are provided advice for winning future contracts d. a system of marking defective inbound inventory so it can quickly be identified for return to the supplier

a. a practice where companies attempt to learn and apply the best practices of other companies

A(n) _____ purchase order is negotiated for repeated supply over a fixed time period, such as quarterly or yearly a. Automatic b. Blanket c. Invitation for bid d. blank check

a. blanket

Which of the following is NOT a step suggested in the Supply Chain Sourcing Strategy Framework? a. compare supplier prices based on the lowest cost bid b. establish corporate ethical and sustainable sourcing policies c. expand focus to include other departments and customers d. prioritize items based on ethical and sustainability opportunities and ease of implementation

a. compare supplier prices based on the lowest cost bid

A firm decides to intentionally increase purchases from ethnic minority businesses. This decision can be considered: a. ethical sourcing b. illegal c. unethical d. unitarianism

a. ethical sourcing

All of the following are important capabilities offered by SRM software EXCEPT: a. human resource management b. visibility c. automation d. optimization

a. human resource management

A(n) ____ performs transactions for a fee, and does not take title to the goods. Instead, title passes directly from the seller to the buyer. a. import broker b. leverage buyer c. second-tier-supplier d. keiretsu

a. import broker

The Amazon Kindle and Tesla's Model S are two examples of: a. innovative products b. radio frequency identification (RFI) products c. functional products d. cyclical products

a. innovative products

Which of the following is NOT a reason for favoring multiple sourcing a. less quality variability b. increases information about new processing technologies c. encourages competition among suppliers d. spreads the risk of supply interruption

a. less quality variability

Which of the following is a criteria generally found in certification programs: a. no incoming nonproduct rejections over a specified time b. planned order releases c. no negative income d. non-disclosure agreements

a. no incoming nonproduct rejections over a specified time

Which of the following is NOT a factor to consider when selecting suppliers for important materials a. number of customers with which the supplier currently has contracts b. reliable product quality level c. supplier's willingness to share technologies d. supplier's distance from the manufacturing facility

a. number of customers with which the supplier currently has contracts

Which of the following is a reason that single sourcing is considered risky/bad? a. poor supplier performance could result in plant shutdowns b. volume of order may be too small c. it is easier to establish a mutually beneficial strategic alliance d. firms cannot take advantage of transportation economies

a. poor supplier performance could result in plant shutdowns

One benefit from benchmarking sourcing practice is: a. lower prices of goods and services, use of fewer buyers and lower administrative costs b. larger market for products, economies of scale in purchasing and production, and lower labor costs c. firms can learn through others experiences the methods and tools that work the best d. savings in energy consumption and materials, lower distribution costs, and improved image among regulators, customers and community

c. firms can learn through others experiences the methods and tools that work the best

More than a dozen presidential executive orders requiring federal purchasing officials to include environmental considerations and human wealth when making purchasing decisions can be attributed to a concept called: a. hybrid purchasing b. buy america act c. green purchasing d. counter purchasing

c. green purchasing

When evaluating supplier performance, the cost of certifying and training suppliers, is part of which major cost category a. post-transaction costs b. transaction costs c. pre-transaction costs d. all of these choices are correct

c. pre-transaction costs

When evaluating supplier performance, the cost of certifying and training suppliers, is part of which major cost category? a. Post-transaction costs b. transaction costs c. pre-transaction costs d. all of these choices are correct

c. pre-transaction costs

One of the most basic and successful approaches for protecting trade secrets is to: a. increase the supplier base b. contribute to innovations c. require employees and vendors to sign a nondisclosure agreement d. all of these choices are correct

c. require employees and vendors to sign a nondisclosure agreement

Which of the following is NOT a step used in maintaining a successful strategic alliance program? a. facilitate the dissemination of information b. provide continuous evaluation of alliance performance, visibility, and support c. supplier managing inventory at customers' site d. reward suppliers as performance merits

c. supplier managing inventory at customers' site

An important measurement used in supply base rationalization initiatives would include which of the following? a. the number of trucks owned by the supplier b. the number of second-tier suppliers used by the supplier deliveries c. the suppliers' greenhouse gas emissions d. the number of employees at the supplier

c. the suppliers' greenhouse gas emissions

In 2016, ____ was the leading market for U.S. exports. a. China b. Japan c. Mexico d. Canada

d. Canada

Customers and suppliers must develop stronger relationships and partnerships based on: a. a tactical perspective b. simplification c. the profit leverage effect d. a strategic perspective

d. a strategic perspective

According to the text, which of the following is TRUE? a. one of the most basic and successful approaches to protecting trade secrets is threat of litigation b. about 75% of companies recognize excellent performance with supplier award and appreciation banquets c. one result of an effective supplier certification program is an increase in the supplier base d. about 50% of companies recognize excellent performance with supplier award and appreciation banquets

d. about 50% of companies recognize excellent performance with supplier award and appreciation banquets

Benefits for organizations that successfully implement supplier relationship management can include: a. reduced costs b. improved quality c. increased speed to market d. all of these choices are correct

d. all of these choices are correct

Successful partnerships have the potential to: a. create a competitive advantage for the firm b. contribute to innovations c. improve material flows between buyers and suppliers d. all of these choices are correct

d. all of these choices are correct

Which of the following can result of successful strategic supplier alliances? a. better market penetration b. access to new technologies and knowledge c. higher return on investment d. all of these choices are correct

d. all of these choices are correct

Which of the following is an advantage to utilizing an e-procurement system? a. cost savings b. time savings c. mobility d. all of these choices are correct

d. all of these choices are correct

Which of the following is NOT important in developing a successful supplier partnership? a. mutual/compatible needs that result in a win-win situation for the partners b. creating value for all participants c. open communication and information exchange d. annual sales knowledge of the supplier

d. annual sales knowledge of the supplier

SRM software allows buyers to focus on more strategic and value-added activities such as: a. time utility b. risk pooling c. simplification d. collaborative planning

d. collaborative planning

ISO 9000 certification is described best by which of the following? a. a prerequisite for obtaining ISO 14000 certification b. a series of management and quality assurance standards in design development, production, installation and services c. a series of purchasing standards developed by Toyota in the 1970s d. developed by the international organization for standardization for environmental compliance

d. developed by the international organization for standardization for environmental compliance