Supply Chain exam 1 (quizzes from cengage), MKG 360 Exam 1 Ch 2, intro to SCM chapter 1, MKG MOSER FIRST EXAM, Chapter 1: Introduction to Supply Chain Management : Chapter 1: Test, test 1 questions supply chain, Chapter 1: Operations and Supply Chain...
The term "benchmarking" as used in business firms is:
A practice where companies attempt to learn and apply the best practices of other companies
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.
A company using a weighted-criteria evaluation system has established these 3 categories and the appropriate weight in parentheses: Quality(0.30), Delivery(0.40), Cost(0.30).The scores for each category are shown below. Which of the following companies has the highest total score?
All companies scored the same.
Which of the following statements is false?
Decentralized purchasing means not having purchasing departments
Blanket or open-end purchase orders are suitable for buying:
Office supplies
According to the textbook, the order of product & service flow is as follows
Raw material supplier, component manufacturer, end product manufacturer, wholesale distributor, retailer, end-product consumer
Up stream information
Recycling and returns Capacity
The acronym SRM refers to:
Supplier Relationship Management
An internal or external event that causes a disruption or failure of supply chain operations is an example of
Supply chain risk
An internal or external event that causes a disruption or failure of supply chain operations is an example of:
Supply chain risk
According to the text, FOUR important elements of the supply chain are:
Supply, operations, logistics, integration
Which of the following can be defined as "The ability to meet the needs of current supply chain members without hindering the ability to meet the needs of future generations".
Sustainability
Which of the following acronyms is NOT paired with its correct "translation?" a. TQM - Total Quality Management b. TLS - Third-party Logistics Services c. ERP - Enterprise Resource Planning d. JIT - Just-in-Time
TLS - Third-party Logistics Services
The bullwhip effect causes an amplification of the variation in the demand pattern along the supply chain. True or False
True
Which of the following is NOT a potential challenge for global sourcing? a) Long delivery lead times b) Costs involved in selecting foreign suppliers c) Relaxed trade barriers d) Labor and legal problems e) None of the above are correct
c) Relaxed trade barriers
When calculating Return on Investment, current assets include
cash, accounts receivable, and inventory
According to the textbook, conditions which must be present for successful supply chain management include:
cooperation among firms
Benefits derived from implementing e-procurement systems include all of the following EXCEPT
creates numerous additional jobs
Which of the following activities would fall under the foundational element of operation?
demand mangement
Supply chain responsiveness includes the ability to do which of the following? a) Respond to wide ranges of quantities demanded b) Meet short lead times c) Handle a large variety of products d) Meet a very high service level e) All of the above are correct
e) All of the above are correct
Which of the following is NOT one of the four main elements of supply chain strategy? a) Managerial focus b) Industry framework c) Organization's unique value proposal d) Internal processes e) All of the above are elements of strategy
e) All of the above are elements of strategy
______________ considers the public consequences of organizational buying.
ethical sourcing
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
federal acquisition regulaiton
Convincing your supplier to cutting back on packaging, fuel, or electricity is an example of:
green purchasing
Today large firms are moving away from vertical integration toward horizontal integration specifically in the logistics area because...
high cost and difficulty managing diverse units
Successful supply chain management requires...
high levels of trust, cooperation, collaboration, and honest, accurate communications - all participants in the supply chain benefit - boundaries are dynamic and extend from "the firm's suppliers' suppliers to its customers' customers - supply chains also include reverse logistics activities to handle returned products, warranty repairs, and recycling
The use of environmental supplier certification programs assists companies by which of the following?
identifying strategic alliance candidates
which of the following is not a form of countertrade?
incoterming
The benefits of implementing an effective supplier certification program include all of the following EXCEPT:
increasing supplier base
According to the text, key ingredients for developing successful supply partnerships include all of the following EXCEPT:
individualized objectives
petty cash is being phased out by
p-cards
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
Sustainable sourcing policies should include which of the following?
use of renewable energy
Which of the following terms refers to an act that creates the greatest good for the greatest number of people:
utilitarianism
In general, European companies prefer suppliers:
who have ISO 9001 certifications
1980-1990s intense global competition led US manufacturers to adopt
- Supply Chain Management - Just-In-Time - Total Quality Management - Business Process Reengineering - Customer Relationship Management
Before supplier relationship management (SRM), buyers typically spent 40% of their time on expediting orders. After SRM implementation buyers spent about:
10% of their time on expediting orders
Given the following make-buy information, what would be the break-even point? Make Option Buy Option Fixed Costs $7500 $1500 Variable Costs $ 4 $ 9
1200 Units
When did U.S. manufacturers begin to use mass production techniques to reduce costs and improve productivity?
1950s
The term Supply Chain Management and the field of study it represents today seems to have emerged in the
1980's
The term Supply Chain Management and the field of study it represents today seems to have emerged in the:
1980's
Given the following make-buy information, what would be the break-even point? Make Option Buy Option Fixed Costs $15000 $1250 Variable Costs $ 5 $ 10
2750 Units
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
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 (0.20) Cost (0.25) Technology (0.20) Company X received the following ratings in each of the five categories: Quality(90), Responsiveness(90), Delivery(80), Cost(80), Technology(90). What is their total score?
85.5
A company using a weighted-criteria evaluation system has established these 5 categories and the appropriate weight in parentheses: Quality (0.30) Responsiveness (0.20) Delivery (0.20) Cost (0.20) Technology (0.10 )Company X received the following ratings in each of the five categories: Quality(90), Responsiveness(80), Delivery(80), Cost(90), Technology(90). What is their total score?
86.0
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%
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 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
Benchmarking is:
A practice where companies attempt to learn and apply the best practices of other companies.
Customers and suppliers must develop stronger relationships and partnerships based on:
A strategic perspective
According to the text, which of the following is TRUE?
About 50% of companies recognize excellent performance with supplier awards and appreciation banquets
Which of the following is TRUE of many large firms today?
All of these
Which of the following is an illustration of a company that has vertically integrated?
All of these
Which of the following is important in developing successful relationships in a partnership?
All of these
The hybrid purchasing system, such as the one utilized by Harrah's, includes many benefits. In such a system the regional office preserves four fundamental purchasing rights. Which of the following is NOT one of those rights?
Allow suppliers to bid for each purchase
Which company is experimenting with the management of the final mile of delivery in some markets, using small aerial drones to deliver shoebox-size packages from fulfillment centers?
Amazon
The following is an example of the bullwhip effect: a. Barkley's products are so successful that it adds a new retailer for distribution b. Barkley's incorrectly anticipates consumer demand resulting in stock outs at several popular retailers c. Barkley's produces a defective product and thus realizes an excessive increase in consumer returns d. Barkley's is unhappy with the performance of a distributor which causes a chain-reaction of replacements to companies involved in its supply chain
Barkley's incorrectly anticipates consumer demand resulting in stock outs at several popular retailers
. The following is an example of the bullwhip effect
Barkley's incorrectly anticipates consumer demand resulting in stockouts at several popular retailers
The following is an example of the bullwhip effect:
Barkley's incorrectly anticipates consumer demand resulting in stockouts at several popular retailers
According to the text, which of the following is considered a current trend in supply chain management?
Both "Using supply chain analytics" and "Increasing supply chain visibility"
According to the text, which of the following is considered a current trend in supply chain management
Both A and B Using supply chain analytics Increasing supply chain visibility
Which of the following is a system that aids in controlling inventory?
Both MRP and ERP
The continuing cycle of erratic demand causing forecasts to include safety stock which in turn magnify supplier forecasts and cause production planning problems is known as:
Bullwhip effect
Which of the following terms describes an amplification of the variation in the demand pattern along the supply chain?
Bullwhip effect
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
Which of the following was a popular way in the 1990's of developing radically new business processes in an effort to reduce waste and increase performance?
Business process reengineering
. Inventory Turnover can be calculated by
COGS/ average inventory
In 2016, ___________ was the leading market for U.S. exports.
Canada
When calculating Return on Investment, current assets include:
Cash, Accounts Receivable, and Inventory
Making all the purchasing decisions, including order quantity, pricing policy, contracting, negotiations, and supplier selection and evaluation are the key characteristics of
Centralized Purchasing
SRM software allows buyers to focus on more strategic and value-added activities such as:
Collaborative planning
A factor that encourages and enables firms to work together more effectively than ever before is
Communication technologies make partnerships much easier than ever before
A company using a weighted-criteria evaluation system has established these 3 categories and the appropriate weight in parentheses: Quality(0.30), Delivery(0.20), Cost(0.50).The scores for each category are shown below. Which of the following companies has the highest total score?
Company B: Quality(70), Delivery(90), Cost(80)
A certain supply chain is made up of: 1. Raw Materials Supplier 2. Components Manufacturer 3. A firm that manufacturers Sub-assemblies 4. End Item Manufacturer 5. Wholesale Distributor 6. Local Retail Chain Warehouse Who is considered the End Item Manufacturer's second tier supplier?
Components Manufacturer
A supply chain is connected by - and integrated through -
Connected by transportation (logistics) and storage activities, and integrated through information, planning, and integration activities
Which of the following is TRUE?
Continuous improvement and change management are both keys to building successful partnerships.
Which of the following is TRUE?-
Continuous improvement and change management are both keys to building successful partnerships.
Right-shoring refers to:
Contraction activities within the supply chain
Supply chain management includes the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. It also includes:
Coordination and collaboration with channel partners
which of the following statements is TRUE? Consumers buy products based on a combination of:
Cost, quality, availability, maintainability, and reputation
Benefits derived from implementing e-procurement systems include all of the following EXCEPT:
Creates numerous additional job opportunities in the purchasing department
Which of the following is a reverse logistics activity?
Customer returning a car to the dealer for warranty repair
Benefits derived from implementing an e-procurement system include all EXCEPT:
Decentralized Purchasing
Which of the following statements is FALSE?
Decentralized purchasing means not having any purchasing departments and allowing all employees to act as purchasing agents
Which one of the following is NOT one of the four Foundations of Supply Chain Management? Logistics Management Operations Management Demand Management Supply Management Integration
Demand Management
Which of the following activities would fall under the foundational element of operation? a. Supplier management b. Distribution network c. Third-party logistics services d. Demand management
Demand management
Which of the following is NOT a key factor for developing a successful supplier partnership?
Developing efficient processes that will remain unchanged for the duration of the partnership
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
Which of the following is NOT a step suggested in the Supply Chain Sourcing Strategy Framework?
Distribute free samples of all purchased products to the end-user for detailed evaluation and feedback on supply chain development
According to the text, which of the following is one of the most effective supply chain integrative techniques?
Early supplier involvement
As firms seek to improve the products they offer to the market, companies are seeking help from their suppliers in new product design and development through:
Early supplier involvement
The primary goals of purchasing include all EXCEPT:
Ensure the highest quality raw materials are purchased
Which of the following can happen as a result of the bullwhip effect? a. Quicker distribution to warehouses b. Increase in defective products c. Decreased levels of safety stock d. Excess costs for each firm in a supply chain
Excess costs for each firm in a supply chain
Service firms offer intangible products (meaning products that cannot be physically touched), therefore, they do not have a supply chain. T/F
FALSE
The goal of Supply Chain Management is to increase customer service by increasing inventory and reducing costs. T/F
FALSE
Trends in supply chain management include expansion of the supply chain and decreasing supply chain visibility. True 0r False?
False
While most public procurement is focused on goals similar to those of purchasing departments in the private sector, U.S. federal government purchases must comply with the:
Federal Acquisition Regulation
If a distribution company that focused on warehousing and distribution of grocery items decided to purchase a chain of grocery stores, the distribution company would be exemplifying:
Forward vertical integration
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 prices
All of the following are important capabilities offered by SRM software EXCEPT:
Human Resource Management
According to the textbook, the Las Vegas division of Harrah's Entertainment utilizes which of the following purchasing structures?
Hybrid (centralized-decentralized)
Which third party certification was adopted by the European Union in 1992 that caused US suppliers wanting to stay competitive in European Union countries to get certified?
ISO 9000
Environmental supplier certification programs can assist companies by doing which of the following?
Identifying rogue suppliers before they can cause problems or disruptions in their supply chains
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
Which of the following is NOT a form of countertrade
Incoterming
Which of the following is NOT a form of countertrade?
Incoterming
Benefits of implementing an effective supplier certification program include all or the following EXCEPT:
Increasing supplier base
The Amazon Kindle and Tesla's Model S automobile are two examples of:
Innovative products
Firms with --- system inventories gain the most from successful supply chain management, why?
Large - lower purchasing (buy larger quantities) & carrying costs (inventory costs) - better product quality - higher customer service levels - increased sales and profits
A form of inventory management (also referred to just-in-time) is accomplished through use of a:
Lean production system
Which of the following is NOT a reason for favoring multiple sourcing?
Less quality variability
Customer relationship management, distribution network, transportation management, and services response logistics are all important issues that are more closely related to
Logistics
Designing and building a distribution network to ensure successful product delivery is part of which foundation element?
Logistics
The Uniform Commercial Code governs the purchase and sale of goods in the US except in the state of:
Louisiana
A value-enhancing benefit from supply chain management efforts would be:
Lower purchasing and inventory carrying costs
blanket or open-ended purchase orders are suitable for buying
MRO supplies and office equipment
Which of the following acronyms is NOT paired with its correct "translation
MRP- Manufacturing Responsiveness and Planning
One operational method for managing inventory is the implementation of a software system which can be referred to as
MRP- Material Requirements Planning
The following supply chain concept was introduced in the 1990's in an attempt to reduce waste and increase performance:
Material Requirement Planning
An operational method for managing inventory is the implementation of a software system which can be referred to as:
Material requirements planning (MRP)
One operational method for controlling and managing inventory is the implementation of a software system which can be referred to as:
Material requirements planning (MRP)
Which of the following is a software system that can be used for managing inventory, purchases, and production schedules?
Material requirements planning (MRP)
1960s-1970s, introduction of new computer technologies lead to development of
Materials Requirements Planning (MRP) and Manufacturing Resource Planning (MRPII) to coordinate inventory management and improve internal communication
Firms assess their sourcing capabilities because:
Monitoring the purchasing function's performance, helps firms to continuously improve their products and processes
Assembly or production of finished products, producing the right amount of product, and ensuring that finished products meet specific quality, cost, and customer service requirements are all important issues that are most closely related to:
Operations
Which of the following NOT a reason firms are expanding their supply bases to include foreign suppliers?
Overseas supplier holding the patent to the product.
Which of the following can happen because of the bullwhip effect?
Oversupply of goods leading to increased inventory costs
The term vertical integration means to:
Own/buy your suppliers and/or customers
Petty cash is being phased out in favor of:
P-cards
A form of purchasing that is placed directly to the supplier and suitable when firms use the same components to make standard goods over a relatively long period of time is referred to as:
Planned Order Release
Costs associated with investigating alternative suppliers and investigating alternative delivery options can be classified as:
Pre-transaction costs
The process of certifying a new supplier is considered what type of major cost category?
Pretransaction Cost
Down stream information
Product and service flow How much is produced and delivered
The measurement of the impact of change in purchase spend on a firm profit before taxes, assuming gross sales and other expenses remain unchanged, is referred to as:
Profit-Leverage Effect
Which of the following documents is considered the buyer's offer to purchase products or services from a supplier, is legally binding once the supplier accepts it, and usually has the terms and conditions of purchase preprinted on the back of the document?
Purchase Order
According to the text, the FOUR important elements of the supply chain are:
Purchasing, operations, logistics, integration
According to the SCM profile Honda ___________ based on a supplier relations index developed by Planning Perspectives.
Ranked near the top in 2015
Inventory Turnover can be calculated by:
Ratio of cost of goods sold over average inventory cost
A certain supply chain is made up of: 1. Raw Materials Supplier 2. Components Manufacturer 3. A firm that manufacturers Sub-assemblies 4. End Item Manufacturer 5. Wholesale Distributor 6. Local Retail Chain Warehouse Who is considered the second tier supplier of the firm that manufacturers Sub-assemblies?
Raw Materials Supplier
According to the textbook, the order of product & service flow is as follows:
Raw material supplier component manufacturer retailer end product manufacturer wholesale distributor retailer end product consumer
Which of the following is a revers logistics activity:
Recycling products and components
Which of the following is a reverse logistics activity:
Recycling products and components
Which of the following is a reverse logistics activity: a. Managing the quality of products b. Developing a collaborative relationship with your supplier c. Recycling products and components d. Delivering finished goods to your customer
Recycling products and components
Direct benefits of ISO 14000 include:
Reduction of pollution emission
When a material is not available in the warehouse and there is no current supplier for the item, the buyer must identify a pool of suppliers and issue a:
Request for Quotation
When a product is purchased which is complicated or highly technical a ______________may be issued instead of a request for quotation
Request for proposal (RFP)
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
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:
SRM
Summers, Inc. needs to generate a list of good/services purchased per supplier. Which type software program can the manager consult to obtain the information?
SRM
Summers, Inc. needs to generate a list of good/services purchased per supplier. Which type software program can the manager consult to obtain this information?
SRM
When using a Weighted Criteria Evaluation System to evaluate suppliers, all of the following are true EXCEPT:
Select the key dimensions of performance based on what is important to the consumer
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 strategy 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 illustrates Forward Vertical Integration
Sony buying trucks to deliver their finished goods inventories to their customers' warehouses
Which of the following illustrates Forward Vertical Integration?
Sony buying trucks to deliver their finished goods inventories to their customers' warehouses
Which of the following statements is TRUE?
Strategic partnerships are seen as one of the foundations of supply chain management
Which of the following statements is true?
Strategic partnerships are seens as one of the foundations of supply chain 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
Encouraging or helping a firm's suppliers to perform in a desired fashion can be referred to as:
Supplier Management
Which of the following activities allows buyers to assume the supplier will meet certain product quality and service requirements? a. Distribution network b. Right-shoring c. Supplier certification d. Business process re engineering
Supplier certification
On occasion, firms assist suppliers, new or old, to improve their processing capabilities, product or service quality, delivery effectiveness, and cost performance by providing the required technical and financial assistance. This is referred to as:
Supplier development
A program used to celebrate the achievements of the best suppliers is:
The Supplier Recognition Program
Hormel Food Corporation's No. 1 Award program differs from other programs because:
The award is given out once every five years
Which of the following is a reason that single sourcing is considered risky/bad?
The limited (finite) capacity of one supplier
Successful modern supply chain management typically includes the practice of:
The sharing of information between supply chain partners
The one true source of income for all supply chain organizations is
The supply chain's end customer
The combination of the purchase price of a good and additional costs incurred before or after product delivery can be referred to as:
Total cost of ownership
Lean production is typically associated with which of the following company's production systems?
Toyota
Lean production is typically associated with which of the following company's production systems? a. Kraft b. Proctor and Gamble c. Toyota d. Samsung
Toyota
A pre-printed order form for purchasing materials and standard parts that are requested on a recurring basis is referred to as:
Traveling Requisition
Which type of requisition is used for materials and standard parts that are requested on a recurring basis?
Traveling requisition
According to the text, the goal of a good performance evaluation system is to provide metrics that are:
Understandable, easy to measure, focused on value-added results
In designing an ethical and sustainable strategy a firm might make use of which of the following?
Use of a performance metric to gauge the success of the firm's efforts.
All nodes or links are converted by _____ and _____.
Warehousing and transportation
Green purchasing is a practice aimed at ensuring that purchased products or materials meet environmental objectives of the organization such as:
Waste reduction
The Ethical Trading Initiative (ETI) does NOT include which of the following:
Workers receive a 30 minute break for an 8 hour shift
triple bottom line
a business strategy that includes social, economic, and environmental criteria
Which theory regarding strategic thinking conceptualizes the relationship between a changing environment, managerial decision-making, and performance? a) Contingency b) Industrial organization c) Resource-based d) Business model e) None of the above are correct
a) Contingency
Benefits for organizations that successfully implement supplier relationship management can include:
a. Increased speed to market b. Reduced costs c. Improved quality
Which of the following strategies might help eliminate the bullwhip effect?
a. Reduction of safety stock b. Manufacturers knowing its customers' purchase plans c. Reduction in the number of suppliers All of these choices are correct.
A company using a weighted-criteria evaluation system has established these 3 categories and the appropriate weight in parentheses: Quality(0.30), Delivery(0.40), Cost(0.30). The scores for each category are shown below. Which of the following companies has the highest total score?
all companies scored the same
SRM software should be capable of:
all of these
Successful strategic supplier alliances can result in which of the following?
all of these
Which of the following can be classified as a 3PL?
all of these
Which of the following can be used as a punishment for suppliers that perform poorly?
all of these
Which of the following could be an ethical and environmental certification requirement?
all of these
Which of the following is a trend in ethical and sustainable sourcing?
all of these
The main benefit(s) from benchmarking sourcing practices is/are:
allows firms to leapfrog the experience-gaining stage by trying things tat have wokred well fro other companies
The primary goals of purchasing include all EXCEPT: a) Secure materials at the lowest cost b) Ensure the highest quality raw materials are purchased c) Improve the quality of finished goods produced d) Maximize customer satisfaction) None of the above are correct
b) Ensure the highest quality raw materials are purchased
Leading companies practicing sustainable sourcing and seeking to reduce costs would NOT use which of the following strategies?
backward integration to purchase suppliers
The continuing cycle of erratic demand causing forecasts to include safety stock which in turn magnify supplier forecasts and cause production planning problems is known as
bullwhip effect
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 a
business process reengineering
The following is an example of the bullwhip effect: a) Barkley's produces a defective product and thus realizes an excessive increase in consumer returns b) Barkley's products are so successful that it adds a new retailer for distribution c) Barkley's incorrectly anticipates consumer demand resulting in stockouts at several popular retailers d) Barkley's is unhappy with the performance of a distributor which causes a chain-reaction of replacements to companies involved in its supply chain e) None of the above are correct
c) Barkley's incorrectly anticipates consumer demand resulting in stockouts at several popular retailers
A negotiation where both sides work together to maximize the joint outcome or to create a joint optimal result is referred to as:
collaborative negotiation
SRM software can automate procurement activities that lead to significant cost savings as purchasing professionals move toward:
collaborative planning
Supply chain
consists of the flow of products and services from: - raw materials manufacturers - component and intermediate manufacturers - final product manufacturers - wholesalers and distributors and - retailers
Which of the following is not a major driver of supply chain performance? a) Facilities b) Inventory c) Transportation d) Information e) All of the above are major drivers of supply chain performance
e) All of the above are major drivers of supply chain performance
Which of the following is NOT one of the tools adopted by firms in 80s and 90s to address increased competition? a) Supply Chain Management (SCM) b) Just-In-Time (JIT) c) Total Quality Management (TQM) d) Business Process Reengineering (BPR) e) All of the above were adopted
e) All of the above were adopted
As firms seek to improve the products they offer to the market, companies are seeking help from their suppliers in new product design and development through
early supplier involvement
Traditional organizational cultures
emphasized short-term company focused performance can conflict with the objectives of supply chain management
According to the textbook, Supplier Recognition Programs:
encourage supplies to keep their performance high
The primary goals of purchasing include all except
ensure the highest quality raw materials are purchased
Reduced Bullwhip Effect
erratic demand forecasts causing excess safety stocks, which cause production planning problems
Promoting diversity by intentionally buying from small firms or ethnic minority businesses is an example of:
ethical sourcing
The purchasing department at Big Horn Sheep Corporation decided to intentionally increase purchases from small, underdeveloped nations. This decision can be considered:
ethical sourcing
The Hormel company awards their Hormel Food Corporation's No. 1 Award to their top supplier. How often do they give this award?
every 5 years
The Hormel company awards their Hormel Food Corporation's No. 1 Award to their top supplier. How often to the give this award?
every 5 years
Which of the following can happen as a result of the bullwhip effect?
excess costs for each firm in a supply chain
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.
fair trade product
ISO 14000 may play a role in a firm's.
help organizations minimize how their operations negatively affect the environment; comply with applicable laws, regulations, and other environmentally oriented requirements; and continually improve in the above
According to the textbook, which of the following companies utilizes a supplier development program called Supplier Continuous Quality Improvement (SQDI) focused on improving the quality of the goods and services purchased and minimize the time needed to inspect incoming products?
intel
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
All of the following are reasons for the increasing use of ethical and sustainable sourcing practices EXCEPT:
legislation requiring corporate ethical and sustainable sourcing
Transportation management, customer relationship management, network design, and service response logistics are all important issues that are most closely related to:
logistics
Which of the following should NOT be used as assessment criteria to evaluate the purchasing department's performance?
lowering inventory turnover rate
A form of purchasing that is placed directly to the supplier and suitable when firms use the same components to make standard goods over a relatively long period of time is referred to as
planned order release
Field failures, loss of goodwill, a decreased reputation, and warranty costs can all be classified as:
post-transaction costs
What type of major cost category is considered in the cost associated with placing and receiving the order?
pre-transaction costs
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
profit leverage effect
Total Cost of Ownership does NOT consider which of the following factors
purchase order costs
Total cost of ownership does not consider which of the following factors?
purchase order costs
Which of the following is an advantage of a centralized purchasing department
quality discounts
Which of the following is an advantage of a centralized purchasing department?:
quantity discounts
Which of the following is a reverse logistics activity
recycling products and components
Which of the following is a reason for favoring single sourcing
reduces variabilities in quality levels
Which of the following is a reason for favoring single sourcing?
reduces variabilities in quality levels
Which of the following is NOT a potential challenge for global sourcing?
relaxed trade barriers
Firms can use total cost analysis to
select the most cost-efficient 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
supplier b
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
sustainability
the ability to meet current resource needs without compromising the ability of future generations to meet their needs
Supply chain management
the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities this includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third party service providers, and customers aka this integrates supply and demand management within and across companies
One standard which is measured in environmental supplier certification is:
the suppliers' greenhouse gas emissions
Some businesses refer to sustainability in terms of supporting the three P's. This stands for:
the triple bottom line
Why do firms assess their sourcing capabilities?
they can gauge their success in improving their own value-enhancing contributions to the firm
Which of the following is a reason small value purchases are handled differently?
to control unnecessary administrative costs
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
A service where key customers ask suppliers to take on the job of store level replenishment planning is called:
vendor managed inventory (?)
Which of the following terms refers to an act that creates the greatest good for the greatest number of people?
Utilitarianism
According to the text, which of the following two approaches are used in deciding whether or not an action is ethical?
Utilitarianism and rights & duties
Which of the following is NOT a potential challenge for global sourcing?:
Relaxed trade barriers
Transactional SRM:
Tends to focus on short-term reporting and is event driven
Examining raw supply chain data and then reaching conclusions or making predictions with the information is sometimes referred to as:
Supply chain analytics
The primary goals of purchasing include...
1. ensure uninterrupted flows of raw materials at the lowest cost possible. 2. improve quality of finished goods produced 3. maximize customer satisfaction
. 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 hastened many organizations' plans to institute better supply chain strategies in the recent past?
The British vote to exit the EU
Given the following information, find the break-even quantity using Break-even Analysis. Costs Make Option Buy Option Fixed Cost $100,000 $5,000 Variable Cost $12 $15
31,667 units
Given the following make-buy information, what would be the break-even point? Make Option Buy Option Fixed Costs $5,500 $1,500 Variable Costs $4 $9
800 units
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
81.0
Which of the following is an advantage of decentralized purchasing departments?
Advantages of Decentralization include: 1) Better knowledge of unit requirements 2) Local sourcing 3) Less bureaucracy.
According to the textbook, which of the following conditions need NOT be present for successful supply chain management:
Adversarial relationships
The Ethical Trading Initiative (ETI) is:
An alliance of organizations agreeing to implement the ETI Base Code.
Which of the following is NOT important in developing a successful supplier partnership?
Annual sales knowledge of the supplier
When evaluating supplier performance, the cost of certifying and training suppliers, is part of which major cost category?
Pre-transaction cost
Supply chain management starts with understanding the flow. T/F
TRUE
A(n) ____________ purchase order is negotiated for repeated supply over a fixed time period, such as quarterly or yearly.
Blanket
Which one of the following is NOT a common mode of transportation in the supply chain? Air Bus Pipeline Rail Truck Water
Bus
Which of the following terms is described as rethinking and redesigning of business processes to reduce waste and increase performance?
Business process reengineering
Successful modern supply chain management typically includes the practice of? A.Keeping high inventories throughout the supply chain B.Always purchasing materials with the lowest per unit cost C.Collaborating and sharing information between supply chain partners D.Issuing ultimatums to your supply chain partner
C.Collaborating and sharing information between supply chain partners
identifies the Manufacturer's Tier 1 supply chain partner(s)? supplierA->supplierB->supplierC->Manufacturer->CustomerC->CustomerB->CustomerA
Supplier C and Customer C (correct)
One of the primary goals of purchasing is to:
Ensure uninterrupted flows of raw materials at the lowest total cost
A firm decides to intentionally increase purchases from ethnic minority businesses. This decision can be considered:
Ethical Sourcing
Identifying and selecting environmentally and socially conscious suppliers is one trend followed by firms utilizing:
Ethical and sustainable sourcing
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:
Federal Acquisition Regulation
One benefit from benchmarking sourcing practices is:
Firms can learn through others experiences the methods and tools that work the best
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 All of these choices are correct.
For continuous improvement to succeed, employees must first:
Identify areas that are working
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
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?
Procurement rationalization
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?
Profit-Leverage Effect
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
One of the most basic and successful approaches for protecting trade secrets is to:
Require employees and vendors to sign a nondisclosure agreement
Which of the following statements is TRUE? Supply chain management was invented by the auto manufacturing industry Strategic partnerships are seen as one of the foundations of supply chain management Purchasing is seen as the final and most difficult step in the supply chain Logistics and Supply Chain Management are synonymous terms (i.e., they mean the same thing).
Strategic partnerships are seen as one of the foundations of supply chain management
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
Supplier B
One of the more crucial issues within supply management involves encouraging or helping the firm's suppliers to perform in some desired fashion. The term for this is _______________.
Supplier Management
____________ 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
Which of the following activities allows buyers to assume the supplier will meet certain product quality and service requirements?
Supplier certification
Meeting the needs of current supply chain members without hindering the ability to meet the needs of future generations refers to:
Supply chain sustainability
It was intense global competition that led manufactures to adopt Supply Chain Management (SCM) and other practices such as Just-in-Time (JIT). T/F
TRUE
A benefit to the firm for utilizing a supplier recognition program would be:
The award recipients can serve as role models for a firm's other suppliers
Which of the following is NOT a step used in maintaining a successful strategic alliance program?
The steps used to maintain a successful strategic alliance program should include: 1) Determine the key strategic parameters to organize around. 2) Facilitate the dissemination of information. 3) Elevate the importance of the strategic alliance program. 4) Provide continuous evaluation of alliance performance, visibility, and support. 5) Reward suppliers as performance merits.
An important measurement used in supply base rationalization initiatives would include which of the following?
The suppliers' greenhouse gas emissions
Which of the following statements is NOT true of many large firms today?
Use of vertical integration is much more common due to the low cost and ease in managing diverse business units
ISO 9000 certification is described best by which of the following?
a family of standards for quality management systems published by the International Organization for Standardization (ISO) that is designed to help organizations better meet the needs of their customers and other stakeholders
Successful partnerships have the potential to:
a. Contribute to innovations b. Create a competitive advantage for the firm c. Improve material flows between buyers and suppliers All of these choices are correct.
Which of the following is a potential challenge for global sourcing?
a. Currency exchange b. Dealing with duties c. Political problems All of these choices are correct.
Which of the following is an advantage to utilizing an e-procurement system?
a. Time savings b. Cost savings c. Mobility All of these choices are correct.
According to the textbook, conditions which must be present for successful supply chain management include
cooperation among firms
sell product to customer-> create SC->buy materials to produce products->manufacture product->deliever products to customer
not a push business model
