Chapter 4 - practice

d. Ethical Sourcing

A firm decides to intentionally increase purchases from ethnic minority businesses. This decision can be considered: a. Unethical b. Illegal c. Unitarianism d. Ethical Sourcing

c. 92%

In a recent U.S. retailer survey, _____ of respondents claimed their organizations were either currently enhancing their ethical sourcing capabilities or planned to do so in the future. a. 80% b. 50% c. 92% d. 75%

a. Innovative products

The Amazon Kindle and Tesla's Model S automobile are two examples of: a. Innovative products b. Cyclical products c. Radio Frequency Identification (RFI) products d. Functional products

d. All of these choices are correct.

Which of the following can be a result of successful strategic supplier alliances? a. Access to new technologies and knowledge b. Higher return on investment c. Better market penetration d. All of these choices are correct.

a. Early supplier involvement

According to the text, which of the following is one of the most effective supply chain integrative techniques? a. Early supplier involvement b. Process integration c. Counterpurchasing d. Single integrator solution

a. Utilitarianism and rights & duties

According to the text, which of the following two approaches are used in deciding whether or not an action is ethical? a. Utilitarianism and rights & duties b. Supplier involvement and environmental performance c. Critical quality and corruption framework d. General Agreement on Tariffs & Trade (GATT) and leverage purchasing

a. The suppliers' greenhouse gas emissions

An important measurement used in supply base rationalization initiatives would include which of the following? a. The suppliers' greenhouse gas emissions b. The number of second-tier suppliers used by the supplier deliveries c. The number of trucks owned by the supplier d. The number of employees at the supplier

b. Identifying rogue suppliers before they can cause problems or disruptions in their supply chains

Environmental supplier certification programs can assist companies by doing which of the following? a. Identifying companies who are the most popular with consumers b. Identifying rogue suppliers before they can cause problems or disruptions in their supply chains c. Encouraging distributive negotiations in strategic alliance development d. Helping communities who are in jeopardy of plant closures

c. Monitoring the purchasing function's performance, helps firms to continuously improve their products and processes

Firms assess their sourcing capabilities because: a. They need to know the effect of external elements b. Doing the right social and environmental things make economic sense c. Monitoring the purchasing function's performance, helps firms to continuously improve their products and processes d. It allows them to maintain a variety of product options

c. Waste reduction

Green purchasing is a practice aimed at ensuring that purchased products or materials meet environmental objectives of the organization such as: a. Ride sharing b. Hedging inventories c. Waste reduction d. Aggregate planning

a. Ethical and sustainable sourcing

Identifying and selecting environmentally and socially conscious suppliers is one trend followed by firms utilizing: a. Ethical and sustainable sourcing b. Collaborative planning c. Cloud-based forecasting d. The continuous review system

c. Firms can learn through others experiences the methods and tools that work the best

One benefit from benchmarking sourcing practices is: a. Larger market for products, economies of scale in purchasing and production, and lower labor costs b. Savings in energy consumption and materials, lower distribution costs, and improved corporate image among regulators, customers and community c. Firms can learn through others experiences the methods and tools that work the best d. Lower prices of goods and services, use of fewer buyers and lower administrative costs

a. An alliance of organizations agreeing to implement the ETI Base Code.

The Ethical Trading Initiative (ETI) is: a. An alliance of organizations agreeing to implement the ETI Base Code. b. The largest and most visible international trade initiative dealing with the global rules of trade between nations. c. An agreement to remove trade and investment barriers among the U.S., Canada and Mexico. d. A group of organizations attempting to implement the SCOR model.

b. A practice where companies attempt to learn and apply the best practices of other companies

The term "benchmarking" as used in business firms is: a. A system of marking defective inbound inventory so it can quickly be identified for return to the supplier b. A practice where companies attempt to learn and apply the best practices of other companies c. A system of performance metrics that seeks to motivate suppliers to perform better d. A program where suppliers compete for contracts, but those companies who are outbid are provided advice for winning future contracts

b. The British vote to exit the EU

Which of the following hastened many organizations' plans to institute better supply chain strategies in the recent past? a. The ban on Muslim people from a select group of countries b. The British vote to exit the EU c. Volkswagen Group installing a secret device in cars that allows them to cheat on emissions tests d. Donald Trump being elected President of the U.S.

c. Procurement rationalization

Which of the following is NOT a key area to focus on, in order to establish sustainable sourcing, as identified by a U.K. Food Industry Group on Ethical Trade? a. Work within the finite limits of the planet's resources b. Respect human rights and reduce poverty by creating profitable trading c. Procurement rationalization d. Move towards a low carbon economy

a. Compare supplier prices based on the lowest cost bid.

Which of the following is NOT a step suggested in the Supply Chain Sourcing Strategy Framework? a. Compare supplier prices based on the lowest cost bid. b. Establish corporate ethical and sustainable sourcing policies. c. Prioritize items based on ethical and sustainability opportunities and ease of implementation. d. Expand focus to include other departments and customers.

d. Supplier managing inventory at customers' site

Which of the following is NOT a step used in maintaining a successful strategic alliance program? a. Reward suppliers as performance merits b. Facilitate the dissemination of information c. Provide continuous evaluation of alliance performance, visibility and support d. Supplier managing inventory at customers' site

b. Lowering inventory turnover rates

Which of the following should NOT be used as assessment criteria to evaluate the purchasing department's performance? a. Optimizing the supply base b. Lowering inventory turnover rates c. Contributing to new product developments d. Participating in value engineering/value analysis efforts

b. Utilitarianism

Which of the following terms refers to an act that creates the greatest good for the greatest number of people? a. Social sustainability b. Utilitarianism c. Multinational d. Corporate responsibility