Supply Chain exam 1
A company using a weighted-criteria evaluation system has established these 5 categories and the appropriate weight in parentheses: Quality (0.25) Responsiveness (0.10) Delivery (0.15) Cost (0.15) Technology (0.30) Company X received the following ratings in each of the five categories: Quality(90), Responsiveness(90), Delivery(80), Cost(80), Technology(85). What is its total score?
81.0
Which of the following can happen as a result of the bullwhip effect?
Excess costs for each firm in a supply chain
It is illegal for corporations to provide their suppliers appreciation banquets to award performance.
False
Which of the following is NOT a typical strategy for firms to obtain benchmarking data about other companies?
Hiring former employees from other companies and assessing their knowledge
The use of environmental supplier certification programs assists companies by which of the following?
Identifying strategic alliance candidates
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
Which of the following is NOT a reason firms are expanding their supply bases to include foreign suppliers
Lower shipping rates due to lower tariffs
Blanket or open-end purchase orders are suitable for buying
Office supplies
Which of the following is TRUE?
Performance metrics and personal business relationships are both keys to building successful partnerships
When a product is purchased which is complicated or highly technical a ______________may be issued instead of a request for quotation.
Request for proposal
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
Firms can use total cost analysis to:
Select the most cost-effective supplier
The following strategy is usually employed by lean organizations in an effort to ensure continued quality compliance among suppliers and with internal production facilities:
Six Sigma
Which of the following is an advantage of a centralized purchasing department?
Specialization
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
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:
Supplier Relationship Management(SRM)
Which of the following activities allows buyers to assume the supplier will meet certain product quality and service requirements?
Supplier certification
Convincing your supplier to cutting back on packaging, fuel,or electricity is an example of:
Sustainable sourcing
Which of the following is a reason that single sourcing is considered risky/bad?
There could be supplier interruptions due to political instability
Which of the following is NOT a reason for supplier recognition programs?
To select the best suppliers
Which type of requisition is used for materials and standard parts that are requested on a recurring basis?
Traveling requisition
Criteria to evaluate a purchasing departments performance should include both quantitive and qualitative
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
The bullwhip effect causes an amplification of the variation in the demand pattern along the supply chain.
True
The primary goals of purchasing include all EXCEPT:
Ensure the highest quality raw materials are purchased
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
According to the textbook, Supplier Recognition Programs:
Encourage suppliers to keep their performance high
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
A fair price
Which of the following would be a good reason to outsource (buy) versus making?
A firm lacks the technology or expertise to produce an item
Which of the following would be considered a third party provider?
A firm that leases storage warehousing
When a particular item is in short supply accompanied by rising prices, a firm might find it beneficial to:
Align itself with one of the suppliers to ensure a continued supply of the scarce item.
Which of the following can be used as a punishment for suppliers that perform poorly?
All are correct
The main benefit(s) from benchmarking sourcing practices is/are:
Allows firms to leapfrog the experience-gaining stage by trying things that have worked well for companies
The following is an example of the bullwhip effect:
Barkley's incorrectly anticipates consumer demand resulting in stockouts at several popular retailers
Developed in the 1990's as a popular way of developing radically new business processes in an effort to reduce waste and increase performance is referred to as:
Business process reengineering
According to the textbook, conditions which must be present for successful supply chain management include:
Cooperation among firms
Which of the following activities would fall under the foundational element of operation?
Demand management