SCM 486 exam 2

Another study reported similar findings from a Bain survey of large and medium-sized firms. They found that only ____ percent of the firms were highly satisfied with the costs they were saving, and nearly _____ percent failed to achieve cost savings expectations 5/44 6/60 10/75 10/50 12/50

10/50

A comprehensive JIT progress report indicates that supplier costs were reduced by ________ when they adopted the JIT system in cooperation with their customers. significant amounts 11 percent twenty fold 100 percent 10 percent

11 percent

According to the ________________________, export controls and restrictions may be imposed for a range of specific purposes including national security; protection of life, health, and the environment; and the preservation of national treasures. 2001 Fair Trade Act of the European Union Trade Protection Act of the European Communities 1992 Import and Export Protection Act 1991 Trade Policy Review of the European Communities 1998 Fair Trade and Tariffs Act of the EU

1991 Trade Policy Review of the European Communities

The JIT progress report mentioned in the textbook indicates that supplier quality improved by ______ percent since the JIT system was adopted. 26 16 36 6 46

26

Businesses that use reverse auctions, or e-auctions, have given testimonials of savings of more than ____ percent. 50 60 70 80 90

50

Global business process outsourcing alone has surpassed the US$________ mark. A recent Booz Allen report posits the expectation that U.S. business process outsourcing will continue to grow at about _____ percent per year in the near term. 9 trillion/12 5 trillion/9 4 trillion/11 6 trillion/8 6 trillion/10

6 trillion/10

The cost of raw materials has traditionally, been a serious concern of top management. Over the years, material cost as a proportion of total cost of the end product has risen sharply and is as high as ______ percent in some instances. 50 60 70 80 90

80

Utilizing pull based forecasting became widespread at the retail distribution center level in the 70's 80's 90's 21st century

90's

One model that explains supply chain relationship management includes which of the following behavioral dimensions? counterproductive (lose-lose) / competitive (win-lose) counter-cooperative (lose-win) / counter-collaborative (win-lose) collaborative (win-win) relationships / cooperative (win-win) All of the above. A and C only

A and C only

As EDI really takes hold and international EDI becomes more commonplace a major stumbling block will be overcoming the language barriers that now exist. The most widespread EDI language in the United States is _________________ EDIFACT standard EDIFACT X10 standard ANSA X12 standard ANSI X12 standard ODETTE

ANSI X12 standard

Many of the e-procurement software vendors fail to take into account __________________________ and getting suppliers to participate in the e-procurement system. the total cost of implementing these systems the difficulty of realizing savings during the development and deployment phases of the transition the cost of training employees All of the above. A and C only

All of the above.

The main elements of an EDI system are: computer hardware,software computer compatibility between the sender and receiver subscription to a common network All of the above. A and B only

All of the above.

The negotiated agreement between buyers and sellers includes the following terms: the type of material, ________________, stocking policy, and delivery requirements. scope of contract price billing policy All of the above. B and C only

All of the above.

_________ is the non monetary exchange of goods-for-goods. Barter Offsets Indirect offsets Coproduction Licensed production

Barter 6

Creating a Demand Based Supply Chain can help eliminate unpredictable overfilling and emptying of the supply chain. This effect is commonly referred to as the _______________ effect

Bullwhip

____________ relationships recognize the potential value of both organizations getting what they want and maximize the potential of having a long-term relationship. Competitive Collaborative Counterproductive Cooperative Counter-cooperative

Cooperative

____________ is a form of agreement that involves the purchaser being given a share in the manufacture of a foreign designed product. Offsets Indirect offsets Licensed production Sub-contractor production Coproduction

Coproduction

_______________ and ______________ are necessary in order to keep costs down and create trust with strategic suppliers. Quality circles / just-in-time delivery Regular meetings / continuous two way communications Cost reduction / continuous process improvement Management by objectives / two way communication Staff awareness / regular quality meetings

Cost reduction / continuous process improvement

___________ is the exchange of goods for goods in full or partial payment of a sales transaction. Progressive companies must participate in ____________ or risk losing market share. Exporting / exporting Exchange trading / exchange trading Market trading / market trading Import trading / importing Counter trade / counter trade

Counter trade / counter trade

__________ is when the seller exchanges products for compensatory amounts of commodities. Offsets Indirect offsets Coproduction Counter-purchase Licensed production

Counter-purchase

________________ relationships are those in which each organization (buying and supplying) is so focused on getting what is best for it that each puts the other at a disadvantage. Competitive Collaborative Counterproductive Counter-collaborative Cooperative

Counterproductive

Net negative inventory means that I sold the product to the _________________ before I had to pay the supplier for it.

Customer

__________ materials are directly related to the production of the finished goods. Raw Custom Finished Direct Indirect

Direct

______ is the direct computer transmission of orders and other transaction information. FDIC EDS EDI ESC DEI

EDI

There are some definite benefits to utilizing ______. The first major benefit is reduced labor. Higher information quality due to a reduction in data entry errors also can be attributed to ______ EDI / EDI EID / EID FDIC / FDIC RAF / RAF CSI / CSI

EDI / EDI

According to the JDA article, CPFR and other forecasting synchronization efforts have been a huge success. True False

False

All marketing strategies are compatible with the JIT system.

False

All of the benefit to building a demand based supply chain is to the retailer or wholesaler and there is little or no benefit to the supplier. True False

False

Any business or individual wanting to import goods into the United States will have to work with the Export Administration (EA) of the U.S. Department of Commerce. Several steps that (a company needs) to be aware of are the following: 1. Determine whether the item (s) in question is subject to the exclusive jurisdiction of a State agency. 2. Determine if the technology or software is privately available. 3. For an item in a foreign country, the cost of the item must be determined. 4. For items made in a foreign country, determine whether it is a decontrolled item in the US. 5. Determine whether the foreign made item is subject to selective prohibition. True False

False

As soon as cash registers were plugged in that tracked sales to the customer, we were on a Demand Based Supply Chain. True False

False

Generally speaking (in the grocery world anyway) retailers tend to be ahead of suppliers in their forecasting and replenishment techniques. True False

False

It is a good idea to implement e-procurement on systems that have a high supply risk and low profit impact, especially if there are a very limited number of suppliers to choose from. True False

False

Not all of the challenges associated with creating a Demand Based Supply Chain have a solution at this point in time. True False

False

One of the most important variables to consider is the exchange rate of currencies. Since predicting the fluctuation in currency markets is relatively easy, foreign purchases may actually cost less than negotiated depending on the length of the contract. True False

False

Ordering with a Telxon machine is a good example of utilizing data to build a Demand Based Supply Chain. True False

False

Single sourcing advocates may want to address the following issues regarding long-term impacts of single sourcing. In the long-run, if everyone reduces their supplier base, there will be fewer suppliers to deal with and overall competition will decrease as there are fewer suppliers. A supplier consolidation will give suppliers less power in the long run. True False

False

The certification criteria can be changed and updated as recertification may be required. Thus, the hurdle can be lowered until there are a few suppliers left. True False

False

The reason that suppliers have not yet successfully used demand based information to decide on levels to manufacture is because the are technologically far behind the retailers. True False

False

There is no way that you need to prepare your company for a Demand Based Supply Chain. You can just flip the switch on and everything should run smoothly! True False

False

There really aren't that many benefits to make it worth the effort of building a Demand Based Supply Chain. True False

False

Utilizing demand based data to replenish the supply chain is the most common methodology used today. True False

False

We should not use Demand Based methods in the winter because of the danger of a truck breaking down. True False

False

When it comes to negotiations Americans can assume that the English and American businesses operate in the same manner True False

False

When the dollar has a weak performance over the life of a contract, a firm can realize savings through the exchange rates True False

False

Downstream it's a _________ Upstream it's a ____________.

Forecast / Fact

In addition, large buying organizations increasingly are demanding that their suppliers become certified through third-party organizations, such as ____________ certification or _______________ National Quality Awards. ISO 0900 / Malcolm Jones UFO 1000 / Mayfield POS 2001 / Malcolm Baldrige ISO 9001 / Malcolm Baldrige ISO 9000 / Mae Baldrige

ISO 9001 / Malcolm Baldrige

The cost reduction must be significantly lower than the current direct operating costs in order for an outsourcing proposal to be attractive. The generic strategic benefits of outsourcing are listed below with one exception. Which one is not one of the strategic benefits? - Refocusing the organization to its core competencies is accomplished by focusing what the organization does best and/or transforming the business to focus on new products and services. - Increased market share and revenue is accomplished by assessing the providers network and accelerating expansion into new markets. -Cost minimization is accomplished by reducing direct operating costs, eliminating overhead costs, and transforming fixed costs into variable costs. - Improvement in the organization s core competencies by increasing productivity, reducing indirect operating expenses, lowering overhead, and expanding services. - Improvement in operating performance is accomplished by increasing quality, increasing productivity, and obtaining new capabilities technologies from external sources.

Improvement in the organization s core competencies by increasing productivity, reducing indirect operating expenses, lowering overhead, and expanding services.

A few countries, notably ______________, are often targeted as the ones that are displacing American workers by offering cheap labor. Japan and China South Korea and China South Korea and Taiwan India and Japan India and China

India and China

__________ materials are any commodity or service that is not directly involved in the production of finished goods. Raw Custom Finished Direct Indirect

Indirect

_______________ occur where products or services transferred in an offset arrangement are unrelated to the specific products referred to in the export agreement. Offsets Indirect offsets Coproduction Sub-contractor production Licensed production

Indirect offsets

By building a Demand Based Supply Chain I can expect a dramatic reduction in retail distribution center _________

Inventory

The transition to ______ has not necessarily been a smooth one for many companies in the United States. But this does not imply that switching from a pure ____ system to a __________ system was a mistake for most companies. JOT / MRI / JOT or hybrid JIT / MBO / JIT or hybrid JIT / MRP / JIT or hybrid JOT / MRP / JOT or matrix JIT / MRI / JIT or hybrid

JIT / MRP / JIT or hybrid

___________________ is when the recipient obtains a share of the production work for its own order. Offsets Indirect offsets Coproduction Sub-contractor production Licensed production

Licensed production

_____ purchasing is concerned with critical maintenance and replacement parts, highly engineered machine parts, and manufacturing equipment.. MRO ORM CCM MBO DOP

MRO

______ purchasing is a term used for purchasing office equipment, furniture, office supplies, forms, computers, travel services, maintenance services, light bulbs, janitorial supplies, and many other relatively low-cost items. MRO ORM CCM MBO DOP

ORM

_________ are commercial compensation practices required as a condition of purchase of goods and services. Offsets Indirect offsets Coproduction Sub-contractor production Licensed production

Offset!

___________ suppliers are those that are important to the buying firm, but alternative suppliers could be found with some effort. Standard Strategic Cooperative Competitive Preferred

Preferred

There are two main types of kanban: __________ signals the need to produce more parts. Each kanban is physically attached to a container. __________ signals the need to withdraw parts from one work center and deliver them to the next work center. Reorder kanban / Production kanban Withdrawal kanban / Production kanban Quality circle kanban / Withdrawal kanban Production kanban / Withdrawal kanban Production kanban / Zero defects kanban

Production kanban / Withdrawal kanban

Some of the more popular forms of counter trade are as follows with one exception. Which one is the exception? Offsets Indirect offsets Coproduction Production transfer Licensed production

Production transfer

__________ professionals are primarily charged with the responsibility for controlling the total cost of ownership (TCO). Accounting Purchasing Marketing Buying Operating

Purchasing

_____________________ is a universal term given to any technology that uses radio waves to identify and track items. Point of Sale, or POS Radio frequency identification, or RFID Telzon IBMR OASIS

Radio frequency identification, or RFID

__________ may not be the solution for all commodity buying. As an example, if there are too few sellers, ___________ will not yield the best price. Traditional auctions / traditional auctions Traditional auctions / reverse auctions Reverse auctions / traditional auctions Reverse auctions / reverse auctions

Reverse auctions / reverse auctions

_____________ involves a detailed analysis of what can be done to reduce or eliminate the probability and severity of adverse events while also considering the trade-offs involved. Contingency planning Risk mitigation Loss prevention Risk monitoring Risk assessment

Risk mitigation

______________ involves continuously evaluating supply chain conditions so that potential issues may be avoided or at least lessened by being more proactive. Contingency planning Risk mitigation Loss prevention Risk monitoring Risk assessment

Risk monitoring

Buying firm managers should focus their _____ implementation efforts on suppliers that exhibit commitment to the buying firm. Although the buying firm's perceptions of the supplier's commitment are inherently biased, it represents the best proxy for the supplier's commitment. MOD PODS SDP POS SOP

SDP

Lower levels of __________ contribute significantly to reduced working capital requirements for the firm. waste supplies materials safety stock inventory

Safety Stock

____________ is the sum of the actual and potential resources embedded within, available through, and derived from the network of relationships possessed by an individual or social unit. Political capital Operating capital Total assets Social Capital Cash flows

Social Capital

E-Procurement benefits by category are: Indirect, Direct, and __________ Centralized Decentralized Resourcing Sourcing Low cost

Sourcing

___________ suppliers are those that are most important to the buying firm. They supply the buying firm with essential materials and capabilities that are not easily replaced. Standard Preferred Strategic Competitive Collaborative

Strategic

_____________ is when a prime contractor substitutes an existing supplier with one located in the buying country. Offsets Sub-contractor production Indirect offsets Coproduction Licensed production

Sub-contractor production

___________________, one type of supplier development program (SDP), are an attempt to meet current and future business needs by improving supplier performance and capabilities. Supplier training Supplier evaluations Supplier workshops Supplier seminars Supplier discussions

Supplier evaluations

The _________ see little incentive in adopting the JIT approach when the primary benefits of the program go to the buyer. customers suppliers employees stockholders stakeholders

Suppliers

_________________ is a stockless inventory method for ordering and stocking MRO and related items. The use of ________________ will aid the firm in reducing ordering and inventory costs. Purchase Order Systems / Purchase Order Systems Systems procurement / systems procurement Materials contracting / materials contracting Systems contracting / systems contracting Contracting systems / contracting systems

Systems contracting / systems contracting

________________________ occur as a result of an offset are research and development agreements conducted in the buying country. Offsets Indirect offsets Technology transfers Coproduction Licensed production

Technology transfers

A crucial issue to be considered is the relevance of _________ in the successful implementation of the just-in-time system in a country. culture procedure communication style life styles policy

Tha Cultcher

__________ percent of the firms surveyed using JIT practices in the United States indicated that they had serious problems regarding lack of support from engineering. Nineteen Twenty-nine Sixty-nine Forty-nine Thirty-nine

Thirty-nine

___________ suppliers are those that can be easily replaced in a short time. Standard Transactional Preferred Cooperative Common

Transactional

Direct labor and materials costs, lead-time costs, transportation costs, and inventory costs are a part of both domestic and offshore sourcing. _________________ tend to be higher when sourcing globally. Transportation costs, inventory costs, and lead-time costs Transportation costs, materials costs, and lead-time costs Materials costs, transportation costs, and inventory costs Transportation costs and inventory costs (only) Transportation costs and lead-time costs (only)

Transportation costs, inventory costs, and lead-time costs

Anything that will immediately impact profits or bottleneck your operations is not a good place to experiment with a new electronic procurement system. True False

True

Building a Demand Based Supply Chain means basing all of your replenishment decisions off of the forecast that is created at retail, or the last leg of the supply chain if that leg is not retail True False

True

Buyers and sellers located on different continents can meet electronically. E-sourcing will also lead to higher transactional accuracy and cost reductions for the entire supply chain. E-sourcing creates value by : 1. Reducing the total cost of ownership. 2. Streamlining the purchasing process and 3. Business innovation True False

True

Demand Based Supply chain and warehouse automation are interdependent. True False

True

Depending on the performance and strength of the dollar, goods can cost American firms different amounts from what s expected. True False

True

Due to technical expertise, German negotiators are extremely cautious. The opponent should be well prepared on technical details. True False

True

E-purchasing has lead to significant cost saving and coordinated efficiency. True False

True

Forecasting raw materials needs and manufacturing production will be the hardest step in building a complete Demand Based Supply Chian because of the long lead time from the point of the final demand to the manufacturing site. True False

True

If a buying firm is to be effective with an offshore sourcing strategy, it must either hire experts or develop specialists that are assigned to offshore suppliers. Ideally, these individuals must have experience in purchasing management, quality control, and basic accounting. This cost also must be considered in the evaluation process. True False

True

It is well documented that JIT reduces physical inventory level. Reductions in physical inventory will also have a favorable impact on: Reduced insurance premiums associated with the storage of inventory, Reduced inventory holding costs, Reduced labor cost in store rooms and material handing costs, Reduced clerical and administrative costs, Reduced waste from the manufacturing process, Reduced obsolescence costs, Reduced deprecation of handling and storage equipment, Each of the cost savings will result in a leaner more profitable operation. True False

True

RFID tags can be read through snow, fog, ice, paint, and crusted grime, unlike the barcode system. The tag also can be programmed to hold information such as the item s serial number, color, size, manufacture date, and current price, as well as a list of all distribution points the item reaches as it moves before arriving at a store. True False

True

Replenishment decisions are made based on one of three methodologies: Very little to no data driven forecasting. Data driven forecasting based on what is pulled from the facility that we are forecasting for. Data driven forecasting based on a demand based supply chain. True False

True

Rule One (1) of the dual card kanban is: No parts are made unless there is a production kanban to authorize production. If no production kanban are in the in box at a work center, the process remains idle, and workers perform other assigned activities. This rule enforces the pull nature of the process control. True False

True

Side effects of massive reductions in inventory are actually one of the challenges that come along with building a demand based supply chain. True False

True

Some of the specific benefits of outsourcing are to reduce and control operating costs. Improve quality. Change company focus. Acquire external capabilities. Refocus scarce resources for alternative uses. Reduce cycle time. Obtain cash infusion. Reduce risks. Gain flexibility. Turn fixed costs into variable costs. True False

True

The advantages of multiple sourcing can be viewed as the disadvantages of single sourcing and vice versa. True False

True

The buying firm must spend the necessary time to correctly specify and articulate quality expectations. Then evaluation makes sure that the sample is from a legitimate production run. Prototypes/lab samples should not be analyzed. True False

True

The counterproductive relationship is undesirable because: 1) it does not promote a positive rapport between buying and supplying firms involved and 2) neither organization achieves its goals. True False

True

The distance between the buying and selling firm is significant in terms of time zones and physical location. Internet capabilities usually provide a partial solution. True False

True

The following are key mistakes in the make-versus-buy decision: 1) In most cases, businesses are not proficient at identifying their core capabilities. Buyers usually rationalize in-house decisions based on capacity capabilities. 2) Buying organizations wait too late to assess the value of consultants or strategic partners. 3)Buyers do not recognize that the product or service is approaching maturity. 4) There are always new competitors with new technology attacking the market. True False

True

The following practices are considered essential for a comprehensive JIT implementation: Regular maintenance, Diverse workforce, Supplier development, Kanban production control. True False

True

The following practices are considered essential for a comprehensive JIT implementation: Uniform production (also known as heijunka), Quick set times, Small lot sizes, Short lead times. True False

True

The kanban card contains the part number, the part description, the type of container, and various workstation information

True

The kanban production control system uses simple, visual signals to control the movement of materials between work centers as well as the production of new materials to replenish those sent downstream to the next work center.

True

The seven (7) steps to effectively implement e-procurement are: 1. Start with non-critical items. 2. Bring all internal stakeholders on board with your new procurement process to establish internal customer behavior. 3. Streamline, map, test, troubleshoot, and improve the process before expanding it to external suppliers. Work with a favored supplier to test the system. 4. Leverage your system once it s running. Exploit your full purchasing power by using reverse auctions. 5. Aggregate buyers within your organization to increase your purchasing power and gain better pricing. 6. Use an incremental approach to expand your system. 7. Once the bumps have been ironed out of the system, move on to the manufacturing operations. True False

True

To maintain trust and cooperation between buying and selling firms, reverse auctions should be used carefully. True False

True

Utilizing cash register systems that track sales to the customer and the first critical step of creating a Demand Based Supply Chain. True False

True

With a demand based supply chain, wholesale distribution centers are typically able to provide better service or fill-rate to the retail sites even though the have dramatically less inventory. True False

True

Forecasting once at retail supports the notion of a single version of the ______________________ .

Truth

According to the Lewin-Schein theory of change the change process consists of the following three steps: Unfreezing / Moving / Refreezing Unfreezing / Formulating / Refreezing Analyzing / Formulating / Freezing Unfreezing / Moving / Training Unfreezing / Training / Moving

Unfreezing / Moving / Refreezing

_____________ gives a firm more control over the part in question. However, the greater the percentage of internal parts an assembly firm produces, the greater their need to have ___________ in each of the areas involved. Horizontal integration / competence Vertical integration / competence Vertical integration / good people Horizontal integration / diversity Vertical integration / diversity

Vertical integration / competence

The use of outsourcing has quickly become _____________ for an increasing number of businesses. necessary a major strength an advantage a competitive weapon a way of operating

a competitive weapon

For long-term relationships to work, it initially requires _________________ from both parties. Although these longer term relationships can bear significant benefits for the customer and service provider, the road will not always be a smooth one. a strong commitment a strong communications system a good understanding of each other a meeting of the minds a pledge to work together

a strong commitment

During the transition period, firms incur additional costs related to internal staff providing _______________. There is usually lower efficiency and effectiveness at the beginning of the contract. additional resources advice and assistance additional support and duplicate resources duplicate services training and advice

additional support and duplicate resources

If suppliers fail to provide materials of _____________ on a regular basis, production slow-downs and stoppages will occur regularly. adequate quantity acceptable quantity adequate quality high quality

adequate quality

Effective development and implementation of the just-in-time system requires integration of important functional areas such as ______________________. (Choose the best answer) purchasing manufacturing quality production and transportation all of the above

all of the above

Exclusively foreign costs are those that would not be incurred if a domestic source were found. Examples of these costs are _________________. duty charges custom fees import fees currency exchange costs all of the above

all of the above

Most of the global risk issues are ____________________________. distance and communication time value of money and quality issues pipeline problems and staffing issues competition all of the above

all of the above

The associated qualitative risk profiles of _____________________ in some foreign countries must be evaluated. the impact of national interest the ethical consequences of sweat shop labor hazardous working conditions all of the above B and C only

all of the above

The costs of global sourcing include some of the same costs found in domestic sourcing; there are also costs that are different. These costs are grouped into the following categories: _________________. administrative foreign common all of the above

all of the above

There are many benefits to using EDI. For a smaller company, EDI may help ________ keep a valued trading partner or customer gain new customers or trading partners all of the above none of the above

all of the above

The buying firm must be highly skilled at ____________________________. specifying product attributes forecasting expected requirements ensuring the right quality at a reasonable price all the above A and C only

all the above

There are many benefits to using EDI. For larger firms, the main benefit(s) is (are) generally ________________ the cost savings to be known as a leading-edge company all the above none of the above

all the above

There are many ethical considerations that (companies) must learn in order to be successful. This is one reason that many companies hire _________ to do their sourcing. agents importers nationals brokers wholesalers

brokers

The general uncertainty associated with the ______________ makes offshore sourcing a risky proposition. government regulations business cycle exchange rate tariffs taxes

business cycle

In a recent study, executives categorized their outsourcing activities. Table 9.1 in the textbook illustrates the diverse set of outsourced activities that were reported on. Not surprisingly, information technology outsourcing (ITO) represented the largest number of responses at 25.8 percent. Approximately 35 percent of the responses represented the outsourcing of some type of manufacturing activity, with the remainder being _________________. business practices administration (BPA) business process outsourcing (BPO) business accounting technology (BAT) business owners administration (BOA) business technology administration (BTA)

business process outsourcing (BPO)

Relationships with strategic suppliers need to be closely managed. One way to keep up on supplier relationships is for a __________ organization is to compile ___________ for each strategic __________. supplier / buyer profiles / partner manufacturing / supplier standards / partner buying / supplier profiles / partner buying / supplier profiles / supplier partner / buyer profiles / supplier

buying / supplier profiles / supplier

Kanban is the Japanese word for _____________. card container computer program system

card

The __________ method involves categorizing each supplier s performance in specific areas defined by a list of relevant performance variables. performance-based process-based circular-ratio based categorical-ratio based categorical

categorical

The ____________ method s major disadvantage is its dependence on the judgment of its users. The system is largely dependent on the memories of personnel to explain what unsatisfactory or good means. With this method, there is no concrete supporting data. performance process categorical circular-ratio categorical-ratio

categorical

The advantages associated with implementing the ________________ evaluation program are that it can be implemented almost immediately and is the least expensive of the three evaluation systems discussed in the textbook. process-based procedure-based categorical circular-ratio performance

categorical

The three general types of supplier evaluation systems in use today are the _________________________. categorical method, the price-ratio method, and the circular averaging method categorical method, the cost-ratio method, and the linear averaging method circular method, the cost-ratio method, and the linear averaging method cost-ratio method, the gross margin method, and the linear averaging method categorical-ratio method, the quality-ratio method, and the linear averaging method

categorical method, the cost-ratio method, and the linear averaging method

Supplier ______________ are very useful tools to evaluate the quality capabilities of a supplier. certification programs negotiations evaluations bargaining programs review programs

certification programs

It takes time to ___________ of the workforce and _____________ relationships with suppliers. change habits / improve change attitudes / nurture long-term improve the attitudes / build change old habits / nurture long-term change attitudes / maintain short-term

change attitudes / nurture long-term

It appears clear that effective buyer supplier relationships should include a formalized procedure for ______________ the buyer's expectations and _____________ the supplier's performance. communicating / evaluating setting / monitoring establishing / evaluating communicating / changing establishing / changing

communicating / evaluating

A third problem companies face in global sourcing is ___________. Many times there are delays and confusion in translations. negotiating bargaining communication contracting understanding one another

communication

A ______________ relationship is almost required with transactional/tier-_______ suppliers and assumes that the buying firm can lower prices to help keep its competitive edge in the market. collaborative / two competitive / three cooperative / three competitive / five counterproductive / four

competitive / three

Outsourcing can be defined as the ___________ transfer of a business process that has been traditionally ________________ internally to an independently owned external service provider. partial / owned and supported complete / operated and managed first / supervised business / owned and managed process / owned and supervised

complete / operated and managed

Outsourcing is also sometimes thought to be similar to subcontracting, joint venturing, and contract manufacturing. Contracting is the purchasing of goods or services to facilitate a business process owned by the buyer. The outsourcing point of departure from these concepts is the ________________ of all associated internal business process activities. date of implementation agreement for the outsourcing need to reduce the costs desire to reduce the expenses complete transfer

complete transfer

Firms are increasingly considering more strategic capabilities for outsourcing, making the strategic evaluation much more complex. Firms are discouraged from making outsourcing decisions piecemeal, but rather encourage organizations to make them as part of a __________________. contingency plan strategic business plan outsourcing plan comprehensive production strategy comprehensive sourcing strategy

comprehensive sourcing strategy

As cooperation and relationships between suppliers and manufacturers build up in a JIT system, so do the opportunities to ______________________ and focus on ________________________. lower costs of materials and supplies / reducing waste and shrinkage conduct an extensive competitive analysis / reducing selling prices conduct an extensive value analysis / reducing the cost of parts purchased analyze competition / developing competitive strengths conduct cost analysis / reducing the costs of doing business

conduct an extensive value analysis / reducing the cost of parts purchased

The organization must have a set of ______________ that ensure survival in a competitive marketplace. values beliefs strategic plans contingency plans core capabilities

core capabilities

The concept of _______________ along with the resource-based view of the organization provides the basis for the assertion that in considering outsourcing, the decision making team must have a thorough understanding of _______________ capabilities and how they relate to an organization s competitive advantage. -PDF systems / PDF and non-PDF - RFD Systems / RFD and non-RFD -core competencies / core and non-core -advanced technologies / advanced and non-advanced technology -core technologies / core and non-core technology

core competencies / core and non-core

The __________________ is especially concerned with how to coordinate diverse production skills and integrate multiple streams of technology. lean production system PDF concept strength and weakness system RAP concept core competency concept

core competency concept

Only organizations that are diligent about understanding and avoiding the pitfalls of _______________ outsourcing and that apply total business-outcome-focused outsourcing will be successful. international external cost focused quality focused price reductions

cost focused

The ___________ method evaluates supplier performance by using standard cost analysis. price-cost-ratio cost-ratio performance process categorical

cost-ratio

Outsourcing initiatives must ___________. The type of management and relationship skills and capabilities must be developed through training and/or recruitment within the outsourcing organizations. create value create profits reduce costs improve quality create turnover

create value

If sourcing internally, firms must estimate the costs of ________ prevention, the costs of _____________, the cost of ___________, and the cost of ____________. - shrinkage / quantity appraisal / internal losses / external losses -defect / quality appraisal / internal failure / external failure -defect / quantity appraisal / internal problems / external problems -turnover / quality appraisal / internal problems / external problems -shrinkage / quality appraisal / internal losses / external failure

defect / quality appraisal / internal failure / external failure

It is virtually impossible to generalize why organizations outsource various business processes. The final outsourcing decision depends on whether the CEO, CFO, or CIO initiates the outsourcing proposal. Whichever executive initiates the outsourcing proposal, a reduction in __________________ is usually the primary driver. hidden costs indirect costs labor costs direct operating costs hidden operating costs

direct operating costs

In a reverse auction the competition between the sellers drives the price _______, instead of _______, so the buyer pays _________ at the expense of the seller. up / down / more down / down / less up / down / less up / up less down / up / less

down / up / less

In general, the guiding factors in determining which system is best are ____________ and _______________ of the system. quality / cost quality / cost of implementation ease of implementation / cost of implementation reliability / cost ease of implementation / overall reliability

ease of implementation / overall reliability

A commonly cited source of financial benefit from outsourcing is the vendor's better ______________. quality cost structure expertise and knowledge economies of scale quality and technology

economies of scale

It is crucial to treat _____________ both survivors of and those directly impacted by outsourcing with respect and dignity during the decision-making and implementation process. stakeholders employees managers managers and employees stockholders and stakeholders

employees

Failing to appreciate the ___________ concerns and proactively manage them will have an adverse impact on the outsourcing engagement. managers' stockholders' stakeholders' employees' bankers'

employees'

Equitable distribution of pain and gain will ultimately lead to __________ partnership performance. Along with having a contract that defines performance incentives by means of penalty and reward structures, the relationship also must be able to work through unforeseen conditions in a productive manner. reduced enhanced lower less equal

enhanced

The just-in-time (JIT) system is no longer a (n) _______________ in the manufacturing world today. In the face of intense global competition, many firms in the United States are looking at improved techniques to manage their manufacturing operations. manufacturing theory production concept management concept untried theory esoteric concept

esoteric concept

In general, one can think of __________ coordination costs as those overhead expenses incurred solely due to the decision to _________ source a product or service. internal / externally external / internally external / externally management / internally internal / internally

external / externally

The crafting of the business case is followed by implementing the ____________________ and, ultimately, managing the relationship with the provider. plan external sourcing model contract outsourcing model Internal sourcing model

external sourcing model

Based on the tagline that I just completed in the last question, it is best if I utilize data and forecasting as (fill in the blank) as possible. close to the point I am purchasing for far downstream in the supply chain far upstream in the supply chain far away from the point I am purchasing for

far downstream in the supply chain

The intense attention on the outflow of work to overseas locations has generated ________ about which jobs or professions will be outsourced next. fear concern stress interest joy

fear

The _____ step in the make-or-buy decision is to understand the strategic importance (value) of the activity or system. second fourth first fifth third

first

The ____________ is to provide a firm with component parts and raw materials. ____________ also must ensure that high-quality products are provided on time, at a reasonable price. manufacturing department / Manufacturing operations division / Operations function of purchasing / Purchasing procurement department / Operations buying function / Manufacturing

function of purchasing / Purchasing

The direct and indirect costs (discussed in the textbook) tend to add unexpected costs to purchased items. However, the significant benefits associated with offshore sourcing enable the buying firm to ______________ domestic suppliers gain leverage over compete effectively with reduce costs as compared to negotiate more effectively with reduce the number of

gain leverage over

Communication can be described as the _______ that holds together a sourcing relationship. substance lubricant glue process procedure

glue

Many of the exclusively foreign costs are established by ___________ and are very difficult to avoid. agreements suppliers governments negotiations international companies

governments

a 2005 study reported that, based on the experience of the global consulting firm Booz Allen Hamilton, they would estimate that approximately one in three outsourcing efforts fails to achieve outsourcing expectations. These anecdotal findings suggest that there is a troubling gap between expectations and reality; however, outsourcing is ____________. here to stay being revised being cut back here for the next couple of years fading out

here to stay

According to a recent Deloitte Consulting study, 64 percent of respondents indicated that they had brought outsourced services back in-house. Fifty percent of respondents identified ______________ as the primary problem encountered with outsourcing, while 44 percent _________ realize cost savings. contractual expenses / did relationships / did not hidden costs / did not relationships / did hidden costs / did

hidden costs / did not

Traditionally, long and infrequent production runs have in the past been considered beneficial for the overall productivity of a manufacturing organization. However, long production runs usually lead to ____________ of raw-material and finished-goods inventories. stable levels low levels steady flows intermittent flows high levels

high levels

The second group of methods used to reduce the number of suppliers a firm uses is what the textbook refers to as the _________ methods. You Answered matrix hurdle saddle barrier effectiveness

hurdle

A ________ approach can be used that is known as ____________. With this method, the supplier base is expanded without increasing the actual number of suppliers. multi / multiple-sourcing matrix / cross-sourcing hybrid / mono-sourcing solo / single-sourcing hybrid / cross-sourcing

hybrid / cross-sourcing

Potential outsourcing suppliers must be _____________ and ___________. recruited / interviewed identified / investigated interviewed / selected selected / qualified qualified / available

identified / investigated

Lead times and delivery times can create problems also. Longer times can _______________________. The extended lead time also might push back the date at which a firm is able to introduce new products to the market. increase inventory and drive down carrying costs increase inventory needs and drive up carrying costs reduce inventory needs and drive up ordering costs increase inventory needs and drive up ordering costs expand inventory and drive up production costs

increase inventory needs and drive up carrying costs

When doing business in France, (a buyer) will often go through a (n) _________ whose credentials are impeccable. (The) choice of __________ is important. banker / a banker exporter / an exporter chief export director / a CED intermediary contact / an intermediary secretary of exports / secretary

intermediary contact / an intermediary

While internal coordination costs are unique to external sourcing alternatives, they must be contrasted against the _______________ and ____________ associated with internally sourcing a product or service. management time / turnover costs internal coordination / overhead costs external coordination / implementing costs external coordination / expected benefits external coordination / overhead costs

internal coordination / overhead costs

JIT purchasing facilitates reduction in _____________ and the associated _____________ costs. the cost of materials / storage the cost of shipping / holding the cost of inventory / storage inventory levels / materials inventory levels / inventory holding

inventory levels / inventory holding

One of the most crucial elements of the ____________ system is small lot sizes. just-in-time management ordering and buying just-on-target purchasing computer ordering and buying

just-in-time

The role of the purchasing function in a manufacturing organization has become increasingly important. The _____________ production control system focuses on reducing both raw materials and work-in-process inventories. JUST-ON-TARGET MBO just-in-time strategic just-in-line

just-in-time

The ________ JIT production system has been erected based on the premise of minimizing _________________ (waste) by reducing or eliminating discrete batches. computer controlled/batches or lots computer controlled/inventories kanban-controlled/stock on hand kanban-controlled/work-in-process inventories computer controlled/stock on hand

kanban-controlled/work-in-process inventories

JIT is also referred to as _______ production. mass quality lean custom short run

lean

Since most offshore deals require the use of a ___________ the buying firm loses the use of funds when the ________ is established secured credit account / account letter of credit / letter wire transfer / transfer letter of recommendation / letter credit card / card

letter of credit / letter

The __________ method is probably the most commonly used evaluation method. cost averaging categorical performance process linear averaging

linear averaging

Very often, resistance is encountered because the employees are required to change their _____________, or because they interpret the new system as being _____________ jobs. long-standing work habits / a threat to their work stations / unnecessary to their job descriptions / an intrusion in their job standards / an evaluation of their personal work habits / a change in the expectations of their

long-standing work habits / a threat to their

China is now a _______ player in the world economy and accounts for more than 6 percent of world trade. This is remarkable for a developing economy. There has been strong import growth, both for processing trade and for domestic consumption relatively new minor major major-minor first class

major

It has long been recognized in both the strategy and operations literature that the most effective external sourcing relationships involve considerable _______________ and ____________. resources / time commitment / communication management time / coordination management effort / two-way communications management effort / relationship building

management time / coordination

One problem with indirect purchasing is the tendency for employees to intermittently buy indirect items off contract. This practice is referred to as ________________. local purchasing OC purchasing maverick purchasing MP IOC purchasing

maverick purchasing

The focus has been on a single aspect of outsourcing: the __________ of jobs, and, in particular, the outsourcing of ___________ jobs. reduction / blue-collar reduction / manufacturing migration / white-collar migration / service sector migration / service sector

migration / white-collar

In order to effectively cultivate the outsourcing relationship, the buying organization should be active in _______________ performance and ____________________. managing / identifying problems monitoring and evaluating / solving problems monitoring / ensuring quality evaluating / discussing problems managing quality / identifying problems

monitoring and evaluating / solving problems

Top management support has long been recognized as one of the _______ important ingredients necessary for the ___________ of any organizational change, and the same holds true for the ____________ of an EDI system. most / scheduling / implementation least / planning / designing most / planning / designing least / implementing / designing most / introduction / introduction

most / introduction / introduction

The main arguments for __________ sourcing are competition and assured supply. matrix multi mono multiple metro

multiple

Much debate has taken place concerning the number of suppliers a firm should use. One side of the debate is the _____________ side. This involves the use of two or more suppliers. The other side of the debate is the ____________ policy, in which only one supplier is used to supply a particular part. multiple-sources / single-source matrix-sources / hybrid-source metroplex / single-source tri-source / mono-source multi-source / mono-source

multiple-sources / single-source

Unlike the barcode-based tracking system, a radio frequency identification system offers a __________________________________ . - fully supported, efficient reading and tracking system. - no-contact, no-line-of-sight reading and tracking system. - cost effective, line-of-sight reading and tracking system. - contact, no-line-of-sight reading and ordering system. -point of sale reading and ordering system.

no-contact, no-line-of-sight reading and tracking system.

Buyers should be experts ___________ and in specific _____________. in the company / technologies in manufacturing processes / technologies on material and parts / manufacturing procedures on the industry / raw materials or component parts in engineering / design techniques

on the industry / raw materials or component parts

Collaboration or collaborative relationships, usually found with the buying firm s strategic/tier-______ suppliers, include the ___________ component that is missing in a cooperative relationship. three / team one / team two / communication one / communication five / team

one / team

Indirect purchasing can be divided into two categories: operations repair management and management of resources and operations organizational resources management and management of repairs and operations organizational repairs and maintenance / management of resources and organization organizational resource management / maintenance resources and operations operating resource management and maintenance repair and operations

operating resource management and maintenance repair and operations

The ____________ establish (es) the performance measures, deliverables, due dates, and the expected supplier requirements. Performance measurement is the cornerstone of the buyer supplier relationship. Without measurement there is no control. Without control there can be no relationship to manage. negotiating team original contract buying organization supplier buyer and supplier jointly

original contract

While a contract is required to legally protect one's interests, an extensive strategic assessment and a true commitment to a cooperative relationship with the service provider are both necessary to realize expected outsourcing benefits. These insights offer valuable guidance to __________________ in terms of where and how ______________ should be applied. business partners / outsourcing techniques outsourcing practitioners / outsourcing benefits business practitioners / sourcing techniques procurement departments / outsourcing benefits outsourcing practitioners / sourcing resources

outsourcing practitioners / sourcing resources

A complete transfer means that the ______________________________ and other assets are no longer maintained internally once the business process is outsourced. people, plants, warehouses, headquarters, facilities, equipment, machinery, people, facilities, equipment, people, facilities, equipment, technology, people, facilities, technology,

people, facilities, equipment, technology,

___________ inventory issues will always occur when a third party (the shipper) is involved. The problems become pronounced when offshore sourcing is used. Pipeline Back up Reserve Safety stock Supply

pipeline third party shipper

Outsourcing can be conceptualized as a _________ rather than simply an event. This __________ begins with the development of a strategic and financial business case for outsourcing. method / method strategy / strategy process / process practice / practice program / program

process / process

The _________ evaluation is an assessment of the supplier s production or service process. ______________ evaluations are based on objective measures of performance. process-based / Performance-based performance-based / Process-based procedure-based / Quality-based process-based / Quality-based quality-based / Performance-based

process-based / Performance-based

There are two main categories of supplier evaluations, ___________________. specification-based evaluations and quality-based evaluations procedure-based evaluations and quality-based evaluations process-based evaluations and quality-based evaluations quality-based evaluations and performance-based evaluations process-based evaluations and performance-based evaluations

process-based evaluations and performance-based evaluations

The major problems when doing business in China are the language barrier, business practices, and a fluid and diverse legal system. A well-specified _______________ is a basic requirement when buying from China. procurement strategy game plan policy and specification statement competitive strategy operational plan

procurement strategy

To extend the commitment to increasing productivity in all departments within a given facility, many companies have adopted the concept of __________. cost centers profit centers profit groups cost groups cost divisions

profit centers

Thus, a kanban system is referred to as a __________ because the kanban is used to ______ parts to the next production stage only when they are needed. push system / push pull system / pull traditional system / ship traditional system / transfer pull system / push

pull system / pull

In a ____________, removing an end item (or a fixed lot of end items) triggers the order release, by which the flow of materials or components is initiated. In contrast, ____________ allow for the production or material flow in anticipation of future demand. push system / pull systems pull system / push systems CIT system / CAM systems diverse system / traditional systems traditional system / push systems

pull system / push systems

The buying professional who is considering offshore sourcing must be prepared to fully analyze both the _______________ factors. financial and competitive competitive and cost quantitative and capacity capacity and quality qualitative and quantitative

qualitative and quantitative

he buying firm will need to ensure that proper mechanisms are in place to make sure that they are capable of detecting _____________ by an external source. delivery failures quantity failures safety failures cost failures quality failures

quality failures

Grade methods are those that are based on a score or grade given to the supplier by the buyer for some attribute. The most common attributes are _____________________. cost, reliability, and delivery quantity, quality, and reliability quality, price, and delivery quality, price, and terms effectiveness, cost, and terms

quality, price, and delivery

The buying and selling organizations must follow the specific roles outlined in the contract. The buying organization also must appoint a __________ manager. The __________ manager and the suppliers must merge their independent plans into one consensus plan. coordinating / coordinating relationship / relationship contract / contract purchasing / purchasing supply / supply

relationship / relationship

Some of the often hidden costs of outsourcing include training internal employees to become relationship managers rather than technical managers. The hidden costs also include ______________________________________ required to thwart labor disputes. golden parachutes, severance packages, temporary employees, and supervision retention bonuses, severance packages, employee turnover, and management time retention bonuses, employee training, redundant activities, and management time management time, severance packages, employee training, and golden parachutes performance bonuses, temporary employees, employee turnover, and employee training

retention bonuses, severance packages, employee turnover, and management time

A more devastating downside of ______________ is the buyer/seller relationship damage that may result from this method of buying. The buyer runs the risk of alienating both current and potential sources for the goods/services. traditional auctions silent auctions eBay Overstock.com reverse auctions

reverse auctions

With __________, conditions are somewhat different. First, the buying firm initializes the auction by submitting a description of the product or service. Sellers then place bids based on their offer to fulfill the buyer's needs. Amazon.com traditional auctions silent auctions reverse auctions eBay

reverse auctions

In addition to the supplier profiles, the buying organization should clearly establish expectations for the potential suppliers and discuss the __________ and the _________________ for the outsourcing activity. standards / employee training costs / delivery scope of work / appropriate pricing quality / quantity type of work / quality

scope of work / appropriate pricing

The major arguments in favor of _________ sourcing are that with the certainty of large volumes that the supplier can enjoy lower costs per unit and increased cooperation. single multi mono solo multiple

single

Because of ____________ and frequent delivery schedules, suppliers are in a position to receive quick feedback regarding any potential manufacturing or design problems. Also, manufacturing is in a position to implement engineering changes quicker because of the _________ inventory levels. large orders / increased computerization / flat smaller orders / increased computerized ordering systems / reduced smaller lot sizes / reduced

smaller lot sizes / reduced

Presumably, _______________ induces higher levels of many overhead administrative functions such as payroll, benefits management, utility expenses, IT expenses, and so forth. sourcing internally outsourcing sourcing externally sourcing alternative sourcing

sourcing internally

It is important to make sure that all ______________ feel as though their interests were represented and considered in making the decision. employees stockholders managers stakeholders union members

stakeholders

Initially, outsourcing decisions predominantly involved ___________, _______________, and activities of ____________ strategic value. - non-standard products / common processes / high - standardized processes / traditional products / relatively high -standardized processes / commoditized products / extremely low -standardized processes / commoditized products / extremely high - non-standardized processes / technology related products / extremely low

standardized processes / commoditized products / extremely low

Once the system is developed, it then forces the various functions in the buying firm to evaluate which suppliers truly add value. The rankings are aggregated to enable a ranking of all suppliers. The company will then categorize the suppliers into one of three categories: standard, preferred, or cooperative. standard, competitive, or preferred. strategic, preferred, or. transactional. preferred, critical, or transactional. strategic, competitive edge, or standard.

strategic, preferred, or. transactional.

Traditional purchasing professionals who act as little more than order placers are giving way to __________ involved ___________ managers who control vital inputs to the production process. strategically / analytical highly / participative strategically/ general highly / general highly/ operations

strategically / analytical

In collaboration, the two organizations truly realize the benefits of working together to optimize outcomes for both organizations. The two firms work together to develop a ___________ to deliver a high-quality product or service on time and under budget. process program strategy plan goal

strategy

In addition to the strategic _________ profiles, the buying firm should clearly establish expectations for the strategic _________ and discuss future product and _______ development plans; this is typically done with an annual review period. buyer / buyers / buyer s partner / partners / partner s buyer / suppliers / partner s supplier / suppliers / supplier supplier / buyers / partner s

supplier / suppliers / supplier

Buying firms select _____________ based on their capabilities, and not purely on the competitive process. employees materials the workforce managers and supervisors suppliers

suppliers

The _____________________ process is based on the idea of efficient resource coordination and teamwork. re-supply management supply chain management wholesale chain management supply chain assistance strategic chain management

supply chain management

Recognizing that purchase price is but one element of the total cost picture, the scope of ____________ goes far beyond the purchase price for any given item. contracting systems Purchase Order Systems systems contracting materials contracting

systems contracting

The _____________ process requires the use of a negotiated agreement between buyers and sellers. systems contracting systems procurement materials contracting contracting systems Purchase Order Systems

systems contracting

One of the most difficult aspects of doing computer assisted ordering at retail is tackling perpetual inventory finding a good software system accurately forecasting retail needs finding a cash register system that tracks sales

tackling perpetual inventory

Although it is a strong relationship, a cooperative alliance lacks the ___________ that is needed between the various buying and supplying firms in order to optimize the benefits for all of the members of the supply chain. teamwork resources communication cooperation commitment

teamwork

A final key element of an effective buyer supplier relationship is ____________________. the performance evaluation the monitoring of performance the control element the reward element the incentive to perform well.

the performance evaluation

Many firms report lack of support from __________ as being one of the major problems encountered in the implementation of JIT (Lean) purchasing. stakeholders their employees their stockholders their bankers their lender

their employees

The way in which the process of developing and implementing an EDI system is managed can greatly influence the success of implementation. Four key areas are: top manage support, knowledge of the project, evaluation, and institutionalization. top management support, commitment to the project, influence, and institutionalization. middle management support, commitment to the project, evaluation, and institutionalization. middle management support, knowledge of the project, influence, and institutionalization. top management support, knowledge of the project, commitment, and influence.

top management support, commitment to the project, influence, and institutionalization.

The FTC Act of 1934 created ___________ to encourage exports from foreign countries. The act allowed for the storage of goods within the U.S. boundaries without payment until the goods passed to the buying company. Bill Stowe's Hair tax-free zones transit zones trade zones free tariff zones

trade zones

Dunn and Bradstreet found that 20 to 25 percent of all outsourcing relationships fail within __________ and nearly half fail within ____ years. This implies that the likelihood of incurring these expenses again, or experiencing costs associated with re-internalizing an outsourced activity, is ___________. Another critical financial consideration with outsourcing is the impact on the ___________. two months / ten / relatively high / environment two years / eight / good / internal workforce two years / five / relatively high / internal workforce two years / five / somewhat low / environment two months / five / relatively high / internal workforce

two years / five / relatively high / internal workforce

Outsourcing risks include breaches in intellectual property, provider shirking, and opportunistic renegotiation. The combination of contractual incompleteness, asset specificity, and uncertainty gives rise to these risks when firms pursue external sourcing. Outsourcing organizations must have a clear _____________________. legally binding contract understanding of the contract understanding of true supplier intentions definition of supplier roles and responsibilities understanding of the supplier s role and responsibilities

understanding of true supplier intentions

One of the most influential factors in _______________ decisions is the coordination requirements. Perhaps nowhere is this more evident than when considering new product or service development. horizontal integration strategic alliance merger vertical integration acquisition

vertical integration

The relationship between higher levels of vertical integration and an increase in bureaucratic costs has been noted in the extant academic literature. Some firms have cast the decision to _____________ versus the decision to externally source as a comparison between the costs of bureaucracy and the cost of _____________. vertically integrate / external coordination horizontally integrate / internal coordination merge / management coordination expand horizontally / supervision vertically integrate / internal coordination

vertically integrate / external coordination

JIT is Toyota's manufacturing philosophy to minimize _______, and the JIT production system is a subsystem controlled by ________. costs / computer waste / kanban expenses / kanban costs / kanban waste / computer

waste / kanban