Supply Chain: Chapter 6 Questions

The sourcing strategies including; maintaining safety and/or strategic stocks, developing contingency plans, strengthening relationships, and searching for alternatives, are appropriate for which item category? A) Non-critcal B) Bottleneck items C) Leverage D) Strategic

B) Bottleneck Items

An outsourcing program can result in all of the following positive outcomes, except? A) Reducing static levels B) Decreased need for supplier management C) Cost reduction D) Gains in manufacturing flexibility

B) Decreased need for supplier management

Managing a firm's external resources in ways that support the long-term goals of the firm can be referred to as? A) Ethical Sourcing B) Functional Sourcing C) Strategic Sourcing D) Hybrid Sourcing

C) Strategic Sourcing

The following term refers to an act that creates the greatest good for the greatest number of people? A) Rights and Duties B) Corporate Responsibility C) Utilitarianism D) Social sustainability

C) Utilitarianism

Which of the following is TRUE? A) VMI stands for Vertically Managed Inventory B) 3PL stands for Third Party Leverage C) VMI stands for Vendor-Managed Inventory D) 3PL stands for Three Point Logistics

C) VMI stands for Vendor-Managed Inventory

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

False

The concept of Distributive Negotiations refers to both sides work together to maximize the outcome or create a win-win result. A) True B) False

False

While paperless transactions are now possible through e-procurement and Web-based services, these would NOT be considered sustainable business practices. A) True B) False

False

"Rationalizing the supplier base" would mean that the purchasing firm is attempting to reduce the number of suppliers in its supplier network. A) True B) False

True

A Supplier Code of Conduct is intended to inform suppliers of ethical sourcing expectations and is typically a condition for becoming an approved supplier. A) True B) False

True

Pain and Gain Share contract provisions are associated with supplier rewards and recognition programs. A) True B) False

True