Chapter 13 reading

True or false: Most suppliers accept all risk instead of the purchaser.

false

Under the 'who should do the buying' category, the organization decides on whether to outsource or make in-house.

false

This level of decisions mold the particular department and involve the allocation of internal resources.

function

As demonstrated in the reading, Steve Kiefer worked to improve relationships with supplier and benefited with

improved cost and quality

Organizational financial objectives can include

increase in return on assets. total budget size. total expected revenue.

The reputation of an organization is affected by the decisions and behavior of supply personnel; this includes communication that is both

internal and external

Where to buy involves decision trade-offs of local, regional, domestic, ___ or sources.

international

A quality certification program is almost always required when implementing a ___-___-___ system.

just in time

Supply chain risk planning focuses on

long term opportunities

An organization must ask the fundamental questions of

make or buy and insource or outsource

An effective quality assurance program helps prevent defective end-products and can help increase growth in

market share

How to buy goods and services include a vast array of questions around

technology systems. ethical acquisitions. systems contracts.

A supply strategy has ___ major categories to consider when developing strategic plans.

6

Where to buy decisions involve making strategic choices concerning

single versus multiple suppliers. small versus large suppliers. supplier certification.

Ensuring that an organization meets all of their environmental obligations falls under corporate ________ objectives.

sustainability

Which of the following are important in the formulation of a strategy?

Achieving the desired relationship(s) through efficient and effective allocation of resources Establishing long-term objectives Determining the relationship of the organization to its environment

Match the supply strategy category to the correct description.

Assurance of supply: Ensure future needs are met. Cost reduction: Reduce the prices of purchased supplies. Supply chain support: Better communication between buyers and sellers. Environmental change: Understand shifts in the environment and regulatory controls. Competitive edge: Exploiting market opportunities. Risk management: Ensuring adequate coverage of business needs.

What are the significant challenges supply managers face when setting objectives and strategies?

Choosing the appropriate plan to achieve goals. Identifying concerns from supply goals and giving feedback into the organizational objectives. Translating corporate objectives into supply objectives.

___ buying allows the supplier to maintain inventory inside the buyer's facility.

Consignment

___ level decisions answer the questions of what business we are in and how we will allocate resources among the businesses.

Corporate or organization

Supply chain operational risks can be separated into which two factors?

Events that are directly within the supplier's capability. Events that are beyond the supplier's control.

True or false: Supply chain risks will only occur once at a time, so supply chain managers will be able to focus their recovery efforts.

F

Which are considered financial risks that supply chain managers must take into account to prevent supply interruptions?

Increased duties and tariffs. Currency rate changes. Price change in raw materials.

Decide if the operational risk that caused a supply chain interruption was within the purchaser's control or outside of their control.

Outside: A massive wildfire caused the warehouse of the supplier of a critical component to burn, and production will be delayed while the supplier rebuilds Within: The supply chain purchaser ordered parts and had them delivered to the incorrect facility; the components must be redelivered.

Key strategy questions that supply managers use to guide "when" they purchase are?

Should forward buying be implemented? How much inventory is needed or wanted on hand?

Which of the following statements are true?

Standard items may be readily acquired in the marketplace. Custom-specified requirements provide a higher competitive edge.

Strategic planning provides organizations a way to

achieve specific long-term goals and objectives for an organization.

Some quality assurance programs ___ suppliers with quality requirements and implementation of programs to achieve the desired results.

assist

The three levels of strategic planning are

business unit. corporate. function.

Key strategic decisions that a supply chain manager must take into account when deciding who should conduct buying is

centralized or not. geographic location. how involved top management will be in acquisitions.

Under the quality ___ program, the supplier is depended upon to complete all quality checks, and the incoming inspection can be bypassed.

certification

Changes that happen within an organizations strategy will cause ___ within the supply strategy.

changes

An adequate supply strategy links ___ needs and markets to ___ needs and markets.

current and future

A cost-based strategy will require supply personnel to use the tools of

negotiation. value analysis. cost analysis.

Supply managers must decide ___ versus ___ when making purchases.

now vs later

The primary reason for supply strategy is to match ___ goals with ___ chain goals at the operational and strategic level.

organizational and supply

Key trade-offs an organization may face when deciding on pricing strategies are

premium price for additional benefits. low price for a cost advantage. standard price in line with the market.

Financial risks involve supply interruptions that are directly related to the changes in the ___ of a good or service.

price

Higher quality received from suppliers helps to reduce

production costs. in-house quality administrative costs.

Controlling spending within the supply chain can afford an organization the ability to

pursue specialized requirements. acquire a supplier through integration.

Suppliers and purchasers work to eliminate supply chain interruptions and

reduce level of inventory needed

Whereas physical loss can be covered by insurance, indirect damages such as ___ can be severe and take a long time to recover.

reputation

Supply chain management risks can be classified into categories of

reputation. financial. operational.

Identify each item as either risk avoidance techniques or increased risks to monitor.

risk avoidance: Carrying safety stock. increased risk: Regulatory changes that increase price of supplies.

Suppliers sometimes prefer to maintain an inventory of common finished goods that are used by more than one buyer because

the safety stock of all buyers combined is less than if managed individually.

Traditionally risks were controlled departmentally, but now they are assessed for ___ risk exposure to the organization as a whole.

total

True or false: How to buy options involve decisions on types of orders such as competitive bids, blanket orders, and open order systems

true