CH 5 SCM
The _____ group includes the activities supporting the day-to-day operations of the purchasing or materials function. a. material handling b. market intelligence and research c. administration and data management d. operational support and follow-up e. sourcing, negotiation, and contract management
D
Which of the following is an example of an operational activity? a. Manage relationships with critical suppliers. b. Generate and forward material releases and expedite. c. Develop electronic purchasing systems. d. Negotiate company-wide supply contracts. e. Manage critical commodities.
B
Which of the following is not a common organizational mechanism to enable center-led organization design? a. Lead division buying. b. Restricted use of procurement cards. c. Regional buying council. d. Global sourcing council. e. Consortiums and group purchasing organizations.
B
By definition, _____ is a broad term describing the purchase of raw materials, components, finished goods, or services from suppliers, some of whom can be another operating unit within the organization. a. expediting b. negotiating c. insourcing d. value analysis e. buying
E
All of the following are major areas of the scope of purchasing and supply management jobs in larger organizations except _____. a. material handling b. sourcing, negotiation, and contract management c. market intelligence and research d. operational support and follow-up e. administration and data management
A
The _____ function monitors the day-to-day management of purchased and in-process inventory at each using location. a. inventory control b. buying c. material handling d. expediting e. transportation
A
The _____ group is responsible for developing the policies and procedures that purchasing personnel follow, administering and maintaining the purchasing information system and database, determining required staffing levels, developing department plans, organizing training and seminars for buyers, and developing measurement systems to evaluate purchasing performance. a. administration and data management b. tactical buying c. sourcing, negotiation, and contract management d. operational support and follow-up e. market intelligence and research
A
Use of a _____ is most advantageous where geographic concentration exists within a company. a. regional buying group b. business unit leader c. corporate purchasing council d. corporate steering committee e. None of the above.
A
When a key commodity is purchased by many major business units, use of [a] _____ is beneficial. a. joint global strategy b. purchasing cards c. decentralized purchasing structure d. corporate purchasing council e. lead division buying
A
Which of the following is not an advantage of centralized or center-led purchasing structures? a. Enhanced product development support at the business unit level. b. Leverage purchase volumes. c. Coordination of purchasing strategies and plans. d. Development of specialized expertise. e. Reduced duplication of purchasing effort.
A
A _____ is a voluntary group where buyers are in the same industry and conduct business with many of the same suppliers. a. group purchasing organization b. consortium c. lead division buying group d. global sourcing council e. strategic sourcing group
B
Used under the right conditions, teams provide all of the following benefits to organizations except _____. a. synergies gained from a wider range of knowledge through collaboration b. guaranteed success when using a team c. better decision making d. creation of a more involved workforce e. facilitation of improved products and services
B
Which of the following is not one of the broad features of the ideal future procurement organizational model? a. A flatter hierarchy for faster decision making and freer flow of ideas along with joint ventures and alliances with key supply chain members. b. Requirement of having cost accounting personnel present on all cross-functional teams. c. Increased use of center-led structures that enable consolidation of common purchases coupled with decentralization of unique and transactional buying activities. d. Co-location of purchasing personnel with internal customers that will provide lower costs and improved service. e. Rotation of business managers across business units and functional groups.
B
Which of the following is not one of the factors to be considered when implementing an organization's supply structure? a. The firm's overall business strategy. b. What foreign competitors are doing. c. The similarity of purchases. d. Total purchase dollar expenditures. e. The overall philosophy of management.
B
Which of the following is not one of the hurdles that can affect how well an organization uses teams? a. Many organizations form teams using functional group employees as part-time members. b. There are increased requirements for the use of social networks. c. Many organizations fail to recognize and reward the effort team members put forth towards their assignments. d. It is not the nature of our individualistic national culture, except perhaps for sporting events, to be group or team focused. e. All of the above are hurdles that affect how well an organization uses teams.
B
_____ involves a systematic monitoring of the supply environment to assure a continual economic supply of goods and services. a. Operational support and follow-up b. Market intelligence c. Administration and data management d. Material handling e. Sourcing, negotiation, and contract management
B
All of the following should be included in detailed short- and long-term purchasing plans except _____. a. historical and projected future usage of the purchased item b. purchase objectives c. assignment of the proper cost accounting code d. assessment of the supply market e. cost/price analysis
C
In rapidly changing industries or those where purchased goods and services comprise a _____ portion of product or service costs, management usually recognizes the need to place purchasing in a _____ position in the organizational hierarchy. a. smaller....higher b. larger....lower c. larger....higher d. median....lower e. There is no relationship between the level of purchases and the placement of purchasing in the organizational hierarchy.
C
Which of the following is an example of a strategic activity? a. Manage transactions with suppliers. b. Source items that are unique to the operating unit. c. Manage risk monitoring programs. d. Generate and forward material releases and expedite. e. Provide supplier performance feedback.
C
[A] _____ is comprised of group of buyers who purchase similar items at various facilities. a. decentralized purchasing structure b. lead division buying c. corporate purchasing council d. corporate steering committee e. There is no such group.
C
_____ refers to the process of assessing and selecting the structure and formal system of communication, division of labor, coordination, control, authority, and responsibility required to achieve organizational goals and objectives, including supply management objectives. a. Cross-functional teaming b. Reciprocity c. Organizational design d. Purchasing authority e. Supply chain integration
C
All of the following are advantages of decentralized purchasing except _____. a. ownership of decisions affecting purchases b. understanding unique operational requirements c. speed and responsiveness d. reduced duplication of purchasing effort e. new-product development support
D
The _____ task involves identifying company spend and matching to the best potential suppliers, negotiating with selected suppliers, and finally managing the contract. a. market intelligence and research b. operational support and follow-up c. administration and data management d. sourcing, negotiation, and contract management e. material handling
D
_____ is the process of personally or electronically contacting suppliers to determine the status of past-due or near-past-due shipments. a. Buying b. Negotiating c. Outsourcing d. Expediting e. Insourcing
D
If purchasing authority for the majority of purchase expenditures is at the divisional, business unit, or site level, then a firm has a more _____ structure. a. center-led b. centralized c. globalized d. decentralized e. Organizational structure has no relationship with the location of purchasing authority.
D
In the use of [a] _____, a group of operating units buys common items, typically because they produce common products. a. procurement cards b. regional buying council c. global sourcing council d. lead division buying e. corporate purchasing council
D
[A] _____ is similar to [a] _____ except that they tend to be more advisory in nature. a. strategic sourcing group....lead division buying b. corporate steering committee....lead division buying c. lead division buying....corporate steering committee d. corporate steering committee....corporate purchasing council e. There is no difference between the two entities.
D
All of the following are factors affecting purchasing's position in the organizational hierarchy except _____. a. history b. type of industry c. total spend on goods and services d. the founder's philosophy e. the number of decentralized purchasing personnel
E
_____ refers to the assumption that local personnel understand and support the objectives of the business unit or division and feel a personal commitment to a particular operation a. Centralization of purchasing authority b. Hybrid structure c. Correlation d. Specialization e. Ownership
E
A/An _____ organizational structure combines a centralized approach for purchased items common to several business units and a decentralized approach to unique requirements. a. centralized b. focused c. decentralized d. outsourcing e. center-led
E
_____ is the organized study of an item's function as it relates to value and cost. a. Buying b. Purchasing intelligence c. New product development d. Inventory control e. Value analysis
E