Exam 2 Moser MKG 460

According to the text, the goal of a good performance evaluation system is to provide metrics that are:

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

In designing an ethical and sustainable strategy a firm might make use of which of the following?

Use of a performance metric to gauge the success of the firm's efforts.

Which of the following is TRUE?

VMI stands for Vendor-Managed Inventory

Direct benefits of ISO 14000 include:

Reduction of pollution emission

According to the text, one of the most basic and successful approaches to protecting trade secrets is:

Requiring employees and vendors to sign non-disclosure agreements

Streamlining the processes and communications between the buyer and supplier using software applications that enable these processes to be managed more efficiently and effectively can be referred to as:

SRM

Summers, Inc. needs to generate a list of good/services purchased per supplier. Which type software program can the manager consult to obtain this information?

SRM

When using a Weighted Criteria Evaluation System to evaluate suppliers, all of the following are true EXCEPT:

Select the key dimensions of performance based on what is important to the consumer

Before supplier relationship management (SRM), buyers typically spent 40% of their time on expediting orders. After SRM implementation buyers spent about:

10% of their time on expediting orders

Benchmarking is:

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

Which of the following is important in developing successful relationships in a partnership?

All of these

Which of the following is TRUE?

Continuous improvement and change management are both keys to building successful partnerships.

Which of the following is NOT important in developing a successful strategic alliance?

Developing efficient processes that will remain unchanged for the duration of the partnership

Which of the following is NOT a step suggested in the Supply Chain Sourcing Strategy Framework?

Distribute free samples of all purchased products to the end-user for detailed evaluation and feedback on supply chain development

The Ethical Trading Initiative (ETI) does NOT include which of the following:

Workers receive a 30 minute break for an 8 hour shift

A company using a weighted-criteria evaluation system has established these 3 categories and the appropriate weight in parentheses: Quality(0.30), Delivery(0.40), Cost(0.30). The scores for each category are shown below. Which of the following companies has the highest total score?

all companies scored the same

SRM software should be capable of:

all of these

Successful strategic supplier alliances can result in which of the following?

all of these

Which of the following can be used as a punishment for suppliers that perform poorly?

all of these

Which of the following could be an ethical and environmental certification requirement?

all of these

Which of the following is a trend in ethical and sustainable sourcing?

all of these

The main benefit(s) from benchmarking sourcing practices is/are:

allows firms to leapfrog the experience-gaining stage by trying things tat have wokred well fro other companies

Leading companies practicing sustainable sourcing and seeking to reduce costs would NOT use which of the following strategies?

backward integration to purchase suppliers

Field failures, loss of goodwill, a decreased reputation, and warranty costs can all be classified as:

post-transaction costs

A negotiation where both sides work together to maximize the joint outcome or to create a joint optimal result is referred to as:

collaborative negotiation

SRM software can automate procurement activities that lead to significant cost savings as purchasing professionals move toward:

collaborative planning

According to the textbook, Supplier Recognition Programs:

encourage supplies to keep their performance high

Promoting diversity by intentionally buying from small firms or ethnic minority businesses is an example of:

ethical sourcing

The purchasing department at Big Horn Sheep Corporation decided to intentionally increase purchases from small, underdeveloped nations. This decision can be considered:

ethical sourcing

The Hormel company awards their Hormel Food Corporation's No. 1 Award to their top supplier. How often do they give this award?

every 5 years

A fair trade product refers to one that is manufactured or grown by a disadvantaged producer in a developing country that receives for its goods.

fair trade product

Convincing your supplier to cutting back on packaging, fuel, or electricity is an example of:

green purchasing

The use of environmental supplier certification programs assists companies by which of the following?

identifying strategic alliance candidates

The benefits of implementing an effective supplier certification program include all of the following EXCEPT:

increasing supplier base

According to the text, key ingredients for developing successful supply partnerships include all of the following EXCEPT:

individualized objectives

Sustainability reporting is ______________ for American companies:

largely a voluntary effort

Which of the following is NOT a key tenant of an SRM system?

lean operations

All of the following are reasons for the increasing use of ethical and sustainable sourcing practices EXCEPT:

legislation requiring corporate ethical and sustainable sourcing

Which of the following should NOT be used as assessment criteria to evaluate the purchasing department's performance?

lowering inventory turnover rate

Costs associated with investigating alternative suppliers and investigating alternative delivery options can be classified as:

pre-transaction costs

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

One standard which is measured in environmental supplier certification is:

the suppliers' greenhouse gas emissions

Some businesses refer to sustainability in terms of supporting the three P's. This stands for:

the triple bottom line

Why do firms assess their sourcing capabilities?

they can gauge their success in improving their own value-enhancing contributions to the firm

Which of the following is NOT a reason for supplier recognition programs?

to select the best suppliers

What type of major cost category is considered in the cost associated with placing and receiving the order?

transaction cost

Which of the following terms refers to an act that creates the greatest good for the greatest number of people:

utilitarianism

A service where key customers ask suppliers to take on the job of store level replenishment planning is called:

vendor managed inventory (?)

In general, European companies prefer suppliers:

who have ISO 9001 certifications