GLOBAL SUPPLY CHAIN CH2
Which of the following statements is FALSE? a. Electronic procurement systems can aid a company in saving both time and money. b. If a firm lacks the technology to make a required component they will need to consider buying/outsourcing. c. More than 50% of each sales dollar typically goes towards covering supply chain costs. d. Centralized purchasing is where individual, local purchasing departments, such as at the plant level, make their own purchasing decisions.
. Centralized purchasing is where individual, local purchasing departments, such as at the plant level, make their own purchasing decisions.
The primary goals of purchasing include all EXCEPT: a. Improve the quality of finished goods produced b. Ensure the highest quality raw materials are purchased c. Maximize customer satisfaction d. Secure materials at the lowest cost
Ensure the highest quality raw materials are purchased
While most public procurement is focused on goals like those of purchasing departments in the private sector, U.S. federal government purchases must comply with the: a. Federal Acquisition Regulation b. Services and Materials Acquisition Act c. Federal Code of Conduct for Procurement d. Fair Standards and Equitable Purchases Act
Federal Acquisition Regulation
A reason for making items instead of buying them would include better quality control. TRUE OR FALSE
TRUE
Decentralized purchasing is the practice where individual, local purchasing departments throughout a single corporation make their own, individual purchasing decisions to fulfill their individual local needs. TRUE OR FALSE
TRUE
Which of the following would be a good reason to outsource (buy) versus making? a. No competent supplier presently produces the needed item b. To have more direct control over the design and production of an end item c. To utilize existing capacity within a company's own firm d. A firm lacks the technology or expertise to produce an item
d. A firm lacks the technology or expertise to produce an item
Which of the following is NOT a form of countertrade? a. Counterpurchase b. Kaizen blitz c. Barter d. Offset
Kaizen blitz
Which of the following NOT a reason firms are expanding their supply bases to include foreign suppliers? a. Lower shipping rates due to lower tariffs b. Lower product cost c. Overseas supplier holding the patent to the product d. Better product quality
Lower shipping rates due to lower tariffs
Blanket or open-end purchase orders are suitable for buying a. Custom built components b. Computers c. Office supplies d. Heavy equipment
Office supplies
Petty cash is being phased out in favor of:a. P-card b. Hard cash c. A blank check d. Score-carding
P-card
Which of the following refers to the measurement of the impact of change in purchase spend on a firm's profit before taxes, assuming gross sales and other expenses remain unchanged? a. Leveraging Purchase Volume b. Direct Offset c. Break-Even Analysis d. Profit-Leverage Effect
Profit-Leverage Effect
Total Cost of Ownership does NOT consider which of the following factors? a. Tooling costs b. Freight costs c. Purchase order costs d. Payment terms
Purchase order costs
Inventory Turnover can be calculated by: a. Ratio of average inventory cost over cost of goods sold b. Ratio of average inventory cost over inventory days in stock c. Ratio of cost of goods sold over average inventory cost d. Ratio of inventory days in stock over average inventory cost
Ratio of cost of goods sold over average inventory cost
When a product is purchased which is complicated or highly technical a ______________may be issued instead of a request for quotation. a. Request for proposal b. Sales order c. Purchase order d. Contract for sale
Request for proposal
Firms can use total cost analysis to: a. Select the most cost-effective supplier b. Show how many times a firm's inventory is utilized and replaced over an accounting period c. See how efficiently management is using its total assets to generate profits d. Brainstorm and isolate the causes of a problem
Select the most cost-effective supplier
The total cost of ownership for Supplier A is $2,670,000. The total cost of ownership for Supplier B is $1,750,000. The total cost of ownership for Supplier C is $2,990,000. Using Total Cost Analysis, it will be more cost-effective to use a. Supplier A b. Supplier C c. Supplier B d. Cannot be determined.
Supplier B
Which of the following is a reason that single sourcing is considered risky/bad? a. Larger orders make quantity discounts more likely b. There could be supplier interruptions due to political instability c. It could establish close relationships with the supplier d. Decreases the item to item quality variability of items purchased Hide Feedback
There could be supplier interruptions due to political instability
Which type of requisition is used for materials and standard parts that are requested on a recurring basis? a. Blanket requisition b. Recyclable requisition (Cyc-Rec) c. Traveling requisition d. Open requisition
Traveling requisition
