SCM CH 9
According to ISM, _____ is defined as the ability to meet current needs without hindering the ability to meet the needs of future generations in terms of economic, environmental, and social challenges. a. Sustainability b. Scenario analysis c. Social responsibility d. Supply chain risk management e. Standardization
A
In _____, a buyer selects or develops suppliers with multiple or redundant capabilities. a. single sourcing b. cross-sourcing c. global sourcing d. strategic sourcing e. sole sourcing
B
In overcoming the barriers to supplier development, which of the following is not one of the approaches typically used? a. Direct-involvement activities. b. Single sourcing. c. Incentives and rewards. d. Warnings and penalties. e. All of the above are typical approaches.
B
All of the following are possible risks of maintaining fewer suppliers except _____. a. supplier dependency b. supply disruption c. overaggressive supply reduction d. maintaining an all-foreign supply base e. absence of competition
D
All of the following are advantages of a categorical supplier evaluation system except _____. a. easy to implement b. requires minimal data c. different personnel can contribute d. low-cost system e. greatest potential for long-range improvement
E
The _____ requires the systematic evaluation of the performance of individual suppliers and ultimate placement into one of three categories. a. twenty/eighty rule b. competency staircase approach c. "improve or else" approach d. triage approach e. zero defects approach
D
_____ is any activity undertaken by a buyer to improve a supplier's performance or capabilities to meet the buyer's short- and long-term supply needs. a. Supply base rationalization b. The twenty/eighty rule c. Supply base optimization d. Supplier development e. Six Sigma
D
All of the following are common contingency management tools that can be effectively used at the tactical level to assist the supply manager in identifying, analyzing, reducing, and monitoring supply base risk except _____. a. single sourcing b. inventory c. automated visibility and early warning systems d. use of third party intermediaries e. scenario analysis
A
Which of the following is not one of the advantages of a rationalized and optimized supply base? a. Longer lead-times. b. Use of full-service suppliers. c. Lower total product cost. d. Ability to pursue complex supply management strategies. e. Buying from world-class suppliers.
A
Which of the following is not a supplier-specific barrier to supplier development? a. No immediate benefit to supplier development is evident in the buying organization. b. Lack of commitment on the part of supplier's management. c. Supplier's management agrees to improvements but fails to implement the proposals. d. Supplier lacks engineering resources to implement solutions. e. Supplier lacks employee skill base to implement solutions.
A
The _____ provides all suppliers, regardless of their performance history, a chance to remain in the supply base. a. "improve or else" approach b. triage approach c. competency staircase approach d. twenty/eighty rule e. Six Sigma approach
A
The supplier performance index (SPI) equals (_____ plus _____) divided by _____. a. Total Purchases....Nonperformance Costs....Total Purchases b. Nonperformance Costs....Total Purchases....Nonperformance Costs c. Total Purchases....Appraisal Costs....External Failure Costs d. External Failure Costs....Internal Failure Costs....Total Purchases e. TransportationCosts....Appraisal Costs....Prevention Costs
A
Which of the following is a disadvantage of a weighted-point supplier evaluation system? a. Tends to focus on unit price. b. Most complex, so implementation costs are high. c. Most subjective. d. Least reliable. e. Cost accounting system required.
A
_____ involves a detailed analysis of the supply base to ensure that only the most capable and highest performing suppliers are kept in the supply base after it is rationalized. a. Supply base optimization b. Outsourcing c. Strategic sourcing d. Supply base reduction e. Supply base management
A
_____ is the process of identifying how many and which suppliers a buyer will maintain. a. Supply base optimization b. Supply base rationalization c. Six Sigma d. Zero defects e. Strategic sourcing
B
If a/an _____ currency is utilized, the _____ bears the currency risk and is likely to build in additional contingency costs to cover its unknown risk. a. supplier's...supplier b. buyer's...supplier c. buyer's...buyer d. supplier's...buyer e. Regardless of the currency chosen, both parties share the currency risk equally.
B
The _____ requires suppliers to successfully navigate a successive series of performance milestones or hurdles in order to remain in the supply base. a. triage approach b. competency staircase approach c. M*A*S*H approach d. "improve or else" approach e. twenty/eighty rule
B
Which of the following is a disadvantage of a categorical supplier evaluation system? a. Least reliable. b. Cost accounting system required. c. Less frequent generation of evaluations. d. Most subjective. e. Usually manual.
B
Which of the following is a disadvantage of a cost-based supplier evaluation system? a. Least reliable. b. Most complex so implementation costs are high. c. Less frequent generation of evaluations. d. Most subjective. e. Tends to focus on unit price.
B
All of the following are elements of market risk in a supply base except _____. a. the number of buyers competing for the same goods or source of supply b. increasingly shorter product life cycles c. regional political risk d. threat of emerging, often disruptive, technologies e. protecting and maintaining trade secrets and intellectual properties from misuse or misappropriation by suppliers, particularly those located overseas
C
The _____ is a normalization factor for the supplier performance index (SPI) that eliminates high-dollar lot bias. a. Cp b. MRO c. Q adjustment factor d. Cpk e. Rfx
C
The _____ supplier evaluation system seeks to identify and quantify the total cost of doing business with a given supplier, as the lowest purchase price may not always result in the lowest total cost for an item or service. a. Six Sigma b. zero defects c. cost-based d. categorical e. weighted-point
C
Which of the following is not a typical qualitative service factor in a supplier performance measurement system? a. Problem resolution ability. b. Technical ability. c. Process capability. d. Ongoing progress reporting. e. Wavelength.
C
Which of the following is not a typical supplier development activity? a. Providing incentives to suppliers for improved performance. b. Promoting competition among suppliers. c. Raising prices paid for purchased goods and services. d. Directly involving buyer personnel with suppliers. e. Conducting training and process improvement initiatives.
C
Which of the following is not one of the formal approaches to supply base rationalization? a. Twenty/eighty rule. b. "Improve or else" approach. c. Global sourcing. d. Triage approach. e. Competency staircase approach.
C
According to ISM, _____ is a framework of measurable corporate policies and procedures and resulting behavior designed to benefit the workplace and, by extension, the individual, the organization, and the community. a. supply chain risk management b. sustainability c. ISO 9000:2008 d. social responsibility e. supplier development
D
All of the following are advantages of a weighted-point supplier evaluation system except _____. a. flexible system b. supplier ranking allowed c. moderate implementation costs d. total cost approach e. quantitative and qualitative factors combined into a single system
D
Which of the following is not one of the management uses for the data derived from a comprehensive cost-base supplier evaluation system? a. Such a system provides the necessary information that allows a buyer to justify buying from a preferred supplier despite a higher unit price. b. The system allows a buyer to communicate the cost of specific nonperformance events to the originating supplier, which then helps identify improvement opportunities. c. Quantifying nonconformance costs can result in a chargeback to the offending supplier for unplanned costs. d. The system allows customized assignment of cost accounting codes depending on how much money is left in the annual budget. e. A buyer can use this data to identify longer-term sources of supply based on a supplier's total cost performance history.
D
Which of the following is not one of the typical uses of supplier measurement data? a. Supporting supply base rationalization and optimization. b. Identifying those highly capable suppliers that may qualify for consideration of longer-term partnerships or designation as preferred suppliers. c. Identifying those suppliers that are not performing at expected levels so that appropriate remedial or development actions can be taken. d. Deciding where to locate supplier facilities. e. Determining a supplier's future purchase volume based on its past performance.
D
_____ allows a buying organization to react more quickly when supply chain risk events occur by already having previously prepared plans and proposed responses in place in advance of the actual risk event. a. Hedging b. Use of third party intermediaries c. Multiple sourcing d. Scenario analysis e. None of the above.
D
_____ can be defined as how supply chain members communicate and collaborate regarding sources of risk, utilizing risk management tools to mitigate and minimize risk and uncertainty across the supply chain. a. PERT/CPM b. Scenario analysis c. Hedging d. SCRM e. None of the above.
D
_____ in a supply base consists of such factors as: country stability, regional stability, political and governmental stability, levels of official corruption, dissimilarities regarding contract law and intellectual property rights, elections, military actions, civil disturbances, terrorism, trade balance issues, and customs duties and tariffs. a. Financial risk b. Market risk c. Supplier company risk d. Political risk e. Sourcing risk
D
In supplier measurement, the basic logic of the _____ is built around the calculation of a/an _____. a. categorical system...supplier performance index b. cost-based system...process capability index c. weighted-point system...Q adjustment factor d. weighted-point system...cost accounting system e. cost-based system...supplier performance index (SPI)
E
All of the following are advantages of a cost-based supplier evaluation system except _____. a. total cost approach b. specific areas of supplier nonperformance identified c. objective supplier ranking d. greatest potential for long-range improvement e. good for firms with limited resources
E
All of the following are general categories of supply base risk except _____. a. political risk b. market risk c. sourcing risk d. financial risk e. employee hiring risk
E
The _____ identifies those 20 percent of suppliers receiving the bulk of purchase spend or that minority of suppliers that cause the most quality problems. a. "improve or else" approach b. triage approach c. strategic sourcing approach d. competency staircase approach e. twenty/eighty rule
E
Which of the following is not a buyer-specific barrier to supplier development? a. The buying company's purchase volume from the supplier does not justify development investment b. No immediate benefit to supplier development is evident to the buying organization. c. Lack of executive support within the buying organization for supplier development. d. Importance of purchased item does not justify development efforts. e. Supplier's management agrees to improvement but fails to implement the proposals.
E
Which of the following is not one of the advantages of a rationalized and optimized supply base? a. Buying from world-class suppliers. b. Use of full-service suppliers. c. Lower supply base administrative costs. d. Reduction of supply base risk. e. Absence of competition.
E
Which of the following is not one of the elements of financial risk in a supply base? a. Inventory carrying costs. b. Currency exchange rates. c. INCOTERMS d. Hard vs. soft currencies. e. Legal systems.
E
