5-8 TF
The sourcing strategies including; maintaining safety and/or strategic stocks, developing contingency plans, strengthening relationships, and searching for alternatives, are appropriate for which item category?
Bottleneck Items
The best supplier candidates for Supplier Relationship Management (SRM) include all of the following EXCEPT?
Developmental suppliers that need to make improvements
An effective supplier certification program may increase the time spent on incoming inspections
False
The keys to developing successful supply partnerships include all of the following EXCEPT?
Individualized Objectives
What company originated the concept of Six Sigma?
Motorola
An organization's process for evaluating the quality systems of key suppliers in an effort to eliminate incoming inspections can be referred to as?
Supplier Certification
The sum of all costs associated with every activity in the supply stream of a product, is referred to as?
Total Cost of Ownership
Outsourcing allows a firm to concentrate on core capabilities and reduce staffing levels
True
Successful supplier relationships involve equal decision-making control between both the buyer and the supplier.
True
Which one of the following is among the most important elements of the LEAN manufacturing philosophy?
Waste reduction and continuous improvement
Which of the following would be a good reason to outsource (buy) versus make an item?
A firm lacks the technology or expertise to produce an item
What is the term that is often used for the acquisition of services?
Contracting
Benefits derived from implementing an e-procurement system include all of the following EXCEPT:
De-centrilizing Purchasing
A purchase order is legally binding once issued by the buyer.
False
A strong supplier partnership requires that both buyer and supplier adopt a strong tactical perspective
False
Award-winning suppliers serve as role models for other suppliers and may therefore be exempt from audits and certification programs
False
ISO 14000 is a widely accepted management and quality certification standard
False
LEAN production is an operating philosophy or mindset that attempts to minimize the impact of supply variability and flaws in forecasting through the use of safety stock inventories.
False
The Profit-Leverage Effect states that a decrease in purchasing expenditures will directly decrease profit
False
The concept of Distributive Negotiations refers to both sides work together to maximize the outcome or create a win-win result.
False
The purchasing function is one of the most value-enhancing functions in any organization, and therefore, it is not necessary to periodically monitor the purchasing function's performance against a set of standards or industry benchmarks.
False
Which of the following is NOT one of the primary goals of Purchasing?
Increase Supplier base
LEAN regularly results in: the following benefits EXCEPT?
Increased Inventory
Benefits of implementing an effective supplier certification program include all of the following EXCEPT?
Increasing the supplier base
7 Total Cost of Manufacturing include the following EXCEPT:
Manufacturing and Procurement activities Inventory and Warehousing activities Transportation activities
All of the following are included in the eight wastes EXCEPT?
Overspending
The process commonly utilized in continuous improvement is known as?
Plan, Do, Check, Act
Buyer-supplier partnerships are easier to manage with a rationalized supply base, and they can result in
Reduced purchase prices Fewer supplier management problems Closer and more frequent interaction between buyer and supplier Greater levels of quality and delivery reliability
Which of the following is NOT one of the "Seven Tools of Quality Control"
Small batch Scheduling
Managing a firm's external resources in ways that support the long-term goals of the firm can be referred to as?
Strategic Sourcing
A management philosophy based on the principle that every employee must be committed to maintaining high standards of work in every aspect of a company's operations is called ?
Total Quality Management
"Rationalizing the supplier base" would mean that the purchasing firm is attempting to reduce the number of suppliers in its supplier network.
True
A Supplier Code of Conduct is intended to inform suppliers of ethical sourcing expectations and is typically a condition for becoming an approved supplier.
True
Duties, taxes, or customs imposed by the host country for imported or exported goods, are known as Tariffs
True
Pain and Gain Share contract provisions are associated with supplier rewards and recognition programs.
True
The primary design objective of a LEAN layout is to reduce wasted movements of workers and/or materials.
True
The following term refers to an act that creates the greatest good for the greatest number of people?
Utilitarianism
Which of the following is TRUE?
VMI stands for Vendor-Managed Inventory
Term used in business to describe the in-depth process of capturing internal and external customer's expectations, preferences, likes, and dislikes
Voice of Customer
Collaborative Negotiations - Both sides work together to maximize the outcome or create a win-win result. Requires open discussions and a free-flow of information between parties.
true
