Chapters 7-9 Supply Chain Questions

Candidates for a Supplier Certification Program include suppliers who meet one or more of the following criteria, EXCEPT?

A supplier who has a minimal number of significant negative quality related incidents for a specified time period

The process of taking a statistically significant representative sample to be measured against the quality acceptance standard, is known as?

Acceptance Sampling

Which Transportation Company Classification is described as a person or company who transports freight for a fee and can be hired by anyone to transport goods?

Common Carrier

Which tool of quality control is used to study how a process changes over time?

Control Chart

Total Quality Management (TQM) is an integrated organizational effort to improve quality at every level. Which one of the following is NOT part of TQM?

Customer Segmentation

The best supplier candidates for Supplier Relationship Management (SRM) include all of the following EXCEPT?

Developmental suppliers that need to make improvements

A 4PL, commonly referred to as a lead logistics provider, is a trucking company that also provides tracking services

False

FOB Origin requires that the supplier legally retain ownership of the product being shipped until it reaches the destination

False

ISO 14000 certification is a series of management and quality standards in design, development, production, installation, and service

False

In the context of Total Cost of Manufacturing (TCM), in general terms, procurement, manufacturing, inventory, warehousing, and transportation per unit costs each go up as volume goes up.

False

Owning a private warehouse provides a manufacturing company with control and flexibility without presenting a financial risk.

False

Supplier Relationship Management is a comprehensive approach for locating and sourcing key suppliers, so that an organization can leverage its consolidated purchasing power to find the best possible values in the marketplace

False

The process to evaluate a supplier's capabilities, and their capacity to supply a product or service to the buyer, is known as Supplier Certification.

False

The role of workers in Lean is to create the cultural change needed for Lean to succeed

False

The transportation industry continues to be heavily regulated to protect consumers from monopoly pricing, provide safety, and hold carriers liable for their actions

False

Third-party logistics providers are used extensively by companies in the domestic market and rarely ever used for international business.

False

Total Quality Management is the term used in business to describe the in-depth process of capturing internal and external customer's expectations, preferences, likes, and dislikes

False

When using a weighted-criteria evaluation system with five or more categories, suppliers should be ranked based on their score in only the two highest weighted categories.

False

The keys to developing successful supply partnerships include all of the following EXCEPT?

Individualized Objectives

A strategic partnership with a supplier:

Is a commitment over an extended period to work together to the mutual benefit of both parties

The term for a visual signal that authorizes production or the movement of materials to the next workstations is?

Kanban

The operating philosophy that is used to help manage operations in the supply chain.

LEAN Supply Chain Management

What is the term for starting the production of finished goods only after a customer's order is received?

Make-to-Order

The two manufacturing strategies that are most aligned with batch manufacturing

Make-to-Order and Assemble-to-Order

To make or process raw materials into finished products, especially by means of a large-scale industrial operation, is called what?

Manufacturing

Withdrawing components from stock to make assemblies or finished goods, or to ship to a customer, is known as?

Picking

Which transportation mode has the lowest per unit cost?

Pipeline

Which one of the following carrier types generally transports goods for the company that owns the carrier?

Private carrier

Which warehouse location strategy would most likely be used if a company has many more suppliers than customers?

Product Positioned Strategy

The mode of transportation that has the most capability is

Rail

What are the five R's of Reverse Logistics?

Recalls Repairs Returns Repackaging Recycling

The quality management process

Six Sigma

Which of the following is NOT one of the Seven Tools of Quality Control?

Small Batch Scheduling

Performance Measures should be S.M.A.R.T. which is an acronym that means?

Specific, Measurable, Achievable, Relevant, Time-oriented

What is Cross-Docking?

The practice of unloading materials from an incoming truck or rail core and loading them onto outbound trucks or railcars, with barely any storage in between to reduce inventory investment and storage space requirements.

The goal of a good supplier performance evaluation system is to provide metrics that are:

Understandable, easy to measure, and focused on real value-added results

What is Make-to-Stock?

the manufacturing strategy that has the shortest / fastest lead time (i.e., the manufacturing strategy that will provide product to customers the quickest