Intro to Supply Chain Management (Chapter 5, 6, 7

Benefits derived from implementing an e-procurement system include all of the following except Time savings Real Time Access Trackability Decentralizing Purchasing

Decentralizing Purchasing

An outsourcing program can result in all of the following positive outcomes, except? reducing staffing levels decreased need for supplier management cost reduction gains in manufacturing flexibility

Decreased need for supplier management

Award-winning suppliers serve as role models for other suppliers and may therefore be exempt from audits and certification programs

False

The purchasing function is one of the most value-enhancing function in any organization, and therefore, it is NOT necessary to periodically monitor the purchasing function's performance against a set of standards or industry benchmarks (True or False)

False

Which sourcing strategy would typically be used for items with low profit margins, relatively stable demand, and high levels of competition?

Functional product -> multi source

Which of the following is NOT one of the primary goals of purchasing? Ensure the uninterrupted flow of materials and services at the lowest total cost Improve the quality of the finished goods produced Increase the supplier base Optimize customer satisfaction

Increase the supplier base

LEAN manufacturing emphasizes all of the following EXCEPT Continuous improvement Large batch sizes Reduction of waste Synchronization of material flows

Large batch sizes

High value, low risk, and there are multiple potential suppliers

Leverage

managing a company's external resources in ways that support the long-term goals of the company can be referred to as?

Strategic sourcing

A purchase order is only legally binding once approved by....

The seller

The sum of all costs associated with every activity in the supply chain of a product, is referred to as?

Total Cost of Ownership

Outsourcing allows a firm to concentrate on core capabilities and reduce staffing levels (True or False)

True

Pain and Gain Share contract provisions are associated with the supplier rewards and recognition programs

True

Successful supplier relationship involve equal decision-making control between both the buyer and the supplier

True

Low value, high risk, and there are a small number or alternative suppliers

Bottleneck

Which statistical tool of Six Sigma is used to determines the frequency of specific problems?

Check Sheet

What is the term that is often used for the acquisition of services?

Contracting

The best supplier candidates for Supplier Relationship Management (SRM) include all of the following EXCEPT? Preferred suppliers Developmental suppliers that need to make improvements Suppliers that provide lesser quantities of a crucial products/services Suppliers that provide high volumes of products or services

Developmental suppliers that need to make improvements

LEAN production is an operating philosophy or mindset that attempts to minimize the impact of supply variability and flaws in forecasting through the use of safety stock inventories

False

The Profit-Leverage Effect states that a decrease in purchasing expenditures will directly decrease profit (True or False)

False

Low value, low risk, and there are lots of potential suppliers

Non-Critical

The process commonly utilized in continuous improvement is known as

Plan, do, check, act

High value, high risk, and there are few suppliers, but they are excellent

Strategic

An organization's process for evaluating the quality systems of key suppliers in an effort to eliminate income inspections can be referred to as?

Supplier certification

Which of the following would be a good reason to outsource (buy) versus make an item? The company lacks the technology or expertise to produce an item To utilize existing capacity within a company's own operations To have more direct control over the design and production of an end item No competent supplier presently produces the needed item

The company lacks the technology or expertise to produce an item

Duties, taxes, or customs imposed by the host country for imported or exported goods, are known as Tarrifs (True or False)

True