OPP MAN HW Questions
Green purchasing is a practice aimed at ensuring that purchased products or materials meet environmental objectives of the organization such as:
Waste reduction
A benefit to the firm for utilizing a supplier recognition program would be:
b. The award recipients can serve as role models for a firm's other suppliers
The purchasing and supply management function in the government and nonprofit sectors, such as educational institutions; hospitals; and federal, state, and local governments is called:
public procurement
Which of the following terms refers to an act that creates the greatest good for the greatest number of people?
utilitairianism
Which of the following is NOT a reason for favoring multiple sourcing?
Less quality variability
The impact of poor communication and inaccurate forecasts along the supply chain can cause:
MATERIAL SHORTAGES
Too much inventory creates:
b. Excess carrying cost.
The real value of CPFR comes from:
b. Firms exchanging forecasting information
Which of the following is NOT a benefit of better forecasts?
b. Improved corporate image among regulators
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?
b. Procurement rationalization
According to the text, which of the following is NOT one of the top three challenges for CPFR?
b. Sophisticated forecasting algorithms
Which of the following hastened many organizations' plans to institute better supply chain strategies in the recent past?
b. The British vote to exit the EU
Successful partnerships have the potential to:
-Improve material flows between buyers and suppliers -Create a competitive advantage for the firm - Contribute to innovations
Benefits for organizations that successfully implement supplier relationship management can include:
-improved quality -increased speed to market -reduced costs
One of the most basic and successful approaches for protecting trade secrets is to:
. Require employees and vendors to sign a nondisclosure agreement
If annual demand = 2000, order cost = $50, annual holding cost rate = 15%, and the purchase price = $25 for orders of less than 1000 units, or $15 for orders of 1000 units or more, should you take the discount? Also, what is the minimum total cost?
. Yes -- $31,225
Data Set A1 Period Actual Sales Volume 1 10,000 2 11,400 3 14,550 4 15,050 5 17,250 6 18,500 7 15,700 8 19,500 9 22,200 10 21,550 Using Data Set A1, what would be the forecast for period 5 using the exponential smoothing method? Assume the forecast for period 4 is 14000. Use a smoothing constant of α = 0.4
14420
Data Set A1 Period Actual Sales Volume 1 10,000 2 11,400 3 14,550 4 15,050 5 17,250 6 18,500 7 15,700 8 19,500 9 22,200 10 21,550 Using Data Set A1, what would be the forecast for period 6 using a four period simple moving average? (Choose the closest answer.)
14563
Given the following information, find the break-even quantity using Break-even Analysis. Cost Make Option Buy Option Fixed Cost $100,000 $5,000 Variable Cost $12 $15
31,667
If the cost of an item is $500, the carrying cost rate is 20%, the order cost is $75, annual demand is for 1,000 units, calculate the economic order quantity. Round off to the next highest unit. a. 26
39
Using the actual demand shown in the table below, what is the forecast for June (round to whole number) using a 3-month weighted moving average and the weights 0.2, 0.3, 0.5 (remember how to apply them)? Dec. Jan. Feb. Mar. Apr. May 39 36 40 44 48 50
48
If actual demand for a period was 108 and the forecast for that period was 103, what is the forecast error for the period?
5
The demand for an item is normally distributed with an average annual demand of 8000 units, and with a standard deviation of demand during the lead time of 6 units. The lead time for this item is a constant 3 days. Calculate the reorder point using a 95 percent in-stock probability (Z = 1.65) and assuming 365 days per year. Round off to the nearest whole unit.
76
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.
92%
ISO 9000 certification is described best by which of the following?
A series of management and quality assurance standards in design development, production, installation and services
Customers and suppliers must develop stronger relationships and partnerships based on:
A strategic perspective
The two types of RFID tag are:
Active Passive
Which forecasting method would use the size of the advertising budget as a variable in the forecasting technique?
CAUSE-AND-EFFECT FORECASTING
Which of the following is an advantage of decentralized purchasing departments?
Better knowledge of unit requirements
A(n) ____________ purchase order is negotiated for repeated supply over a fixed time period, such as quarterly or yearly
Blanket
A company is conducting forecasting that revolves around the global recession and real estate crises. This type of forecasting can be referred to as what component of a time series?
CYCLICAL VARIATIONS
In 2016, ___________ was the leading market for U.S. exports
Canada
Making all the purchasing decisions, including order quantity, pricing policy, contracting, negotiations, and supplier selection and evaluation are the key characteristics of
Centralized Purchasing
Which of the following is a potential challenge for global sourcing?
Dealing with duties, Political problems, Currency exchange
CPFR relies heavily on?
FIRMS SHARING INFORMATION
Two methods have been used to produce the following forecasts over the past four months. Which forecast is the best one? Demand Forecast AForecast B 150 130 180 200 170 180 220 184 180 190 195 180
FORECAST A
Purchasing activities include all the following EXCEPT:
Franchising services
Which of the following is NOT used to calculate total transportation cost when using the Total Cost of Ownership concept?
Gas pricing
More than a dozen presidential executive orders requiring federal purchasing officials to include environmental considerations and human health when making purchasing decisions can be attributed to a concept called:
Green Purchasing
Which of the following can be a result of successful strategic supplier alliances?
Higher return on investment, Better market penetration, Access to new technologies and knowledge
or continuous improvement to succeed, employees must first:
Identify areas that are working
Which one of the following is NOT a type of qualitative forecasting?
NAIVE METHOD
Which of the following is NOT a factor to consider when selecting suppliers for important materials?
Number of customers with which the supplier currently has contracts
Petty cash is being phased out in favor of:
P-cards
Which of the following is a reason that single sourcing is considered risky/bad?
Poor supplier performance could result in plant shutdowns
When evaluating supplier performance, the cost of certifying and training suppliers, is part of which major cost category?
Pre-transaction cost
If a firm manages to lower its purchase spend on materials by $10,000 then:
Profits before taxes increase by $10,000
Which type of forecasting technique would a firm likely use when launching a new product and historical data does not exist?
QUALITATIVE
involves streamlining the processes and communications between the buyer and supplier using software applications that enable these processes to be managed more efficiently and effectively.
SUpplier relationship management
The total cost of ownership for Supplier 1 is $1,670,000. The total cost of ownership for Supplier 2 is $1,750,000. The total cost of ownership for Supplier 3 is $1,690,000. Using Total Cost Analysis, it will be more cost-effective to use
Supplier 1
What component of a time series is based on increasing or decreasing movements over many years and are due to factors such as population growth, population shifts, cultural changes, and income shifts?
TREND VARIATION
transactional SRM
Tends to focus on short-term reporting and is event driven
Which of the following do organizations use in supplier evaluation and certification processes
Tracking service quality
The Ethical Trading Initiative (ETI) is:
a. An alliance of organizations agreeing to implement the ETI Base Code.
Which of the following is NOT important in developing a successful supplier partnership?
a. Annual sales knowledge of the supplier
When General Motors purchases tires for their automobiles, this can be classified as:
a. Dependent demand
In forecasting, a tracking signal is used to:
a. Determine if the forecast bias is within the acceptable control limits
When using the continuous review system, stockouts can occur:
a. During the delivery lead time
If the EOQ assumptions hold, and if a firm orders the EOQ, the average inventory level over time should be
a. Half the EOQ.
The Economic Manufacturing Quantity (EMQ) model relaxes which assumption of the classical EOQ model?
a. Instantaneous replenishment
The categories of inventory are raw materials, work-in-process, finished goods and _______.
a. Maintenance, repair and operating supplies
Cycle counting can be described as:
a. Physically counting inventory on a periodic basis.
A program used to celebrate the achievements of the best suppliers is:
a. The Supplier Recognition Program
An important measurement used in supply base rationalization initiatives would include which of the following?
a. The suppliers' greenhouse gas emissions
The term "benchmarking" as used in business firms is:
b. A practice where companies attempt to learn and apply the best practices of other companies
Proper demand forecasting enables _____________________ for businesses to be competitive.
b. Better planning and utilization of resources
Which of the following is NOT a step suggested in the Supply Chain Sourcing Strategy Framework?
b. Compare supplier prices based on the lowest cost bid.
According to the text, which of the following two approaches are used in deciding whether or not an action is ethical?
b. Utilitarianism and rights & duties
According to the text, which of the following is TRUE?
c. About 50% of companies recognize excellent performance with supplier awards and appreciation banquets
SRM software allows buyers to focus on more strategic and value-added activities such as:
c. Collaborative planning
According to the text, for long-term forecasts, it is recommended that which type of forecasts be used?
c. Combination of both qualitative and quantitative
One of the primary goals of purchasing is to:
c. Ensure uninterrupted flows of raw materials at the lowest total cost
One benefit from benchmarking sourcing practices is:
c. Firms can learn through others experiences the methods and tools that work the best
Environmental supplier certification programs can assist companies by doing which of the following?
c. Identifying rogue suppliers before they can cause problems or disruptions in their supply chains
Which of the following is NOT a benefit of CPFR?
c. Improved corporate image among regulators
The Amazon Kindle and Tesla's Model S automobile are two examples of:
c. Innovative products
Which of the following is not a dependent demand item?
c. Retail goods at a department store
Which of the following is an advantage to utilizing an e-procurement system?
cost saving, mobility, and time saving
When using the ABC Inventory Classification, A items typically account for about:
d. 80% of the annual dollar usage.
The formula for forecast error is calculated by using the equation:
d. Actual demand for period t minus the forecasted demand for period t
Which of the following is NOT a key factor for developing a successful supplier partnership?
d. Developing efficient processes that will remain unchanged for the duration of the partnership
According to the text, which of the following is one of the most effective supply chain integrative techniques?
d. Early supplier involvement
Identifying and selecting environmentally and socially conscious suppliers is one trend followed by firms utilizing:
d. Ethical and sustainable sourcing
All of the following are important capabilities offered by SRM software EXCEPT:
d. Human Resource Management
Which of the following should NOT be used as assessment criteria to evaluate the purchasing department's performance?
d. Lowering inventory turnover rates
Firms assess their sourcing capabilities because:
d. Monitoring the purchasing function's performance, helps firms to continuously improve their products and processes
Which of the following is a criteria generally found in certification programs:
d. No incoming nonproduct rejections over a specified time
Which of the following is NOT a step used in maintaining a successful strategic alliance program?
d. Supplier managing inventory at customers' site
Hormel Food Corporation's No. 1 Award program differs from other programs because:
d. The award is given out once every five years
The quantity discount model is used when:
d. The purchase price varies.
An RFID system consists of:
d. The tag, reader, communication network, and software.
Use of the periodic review system is characterized by:
d. Variable order quantities at constant time intervals.
Each unit produced contains $1.25 in materials. This is an example of:
direct cost
A firm decides to intentionally increase purchases from ethnic minority businesses. This decision can be considered:
ethical sourcing
Completed items ready for shipment are classified as:
finished goods inventory
A(n) _______________ performs transactions for a fee, and does not take title to the goods. Instead, title passes directly from the seller to the buyer.
import broker
