Supply chain exam 2

Which of the following is the best description of a Preferred Supplier?

A supplier who best meets all of your company's overall purchasing requirements

The term used to describe a debt secured by a bidder for the purpose of providing a guarantee that the successful bidder will accept the contract once awarded, is known as?

Bid bond

Which element of Lean is described as a system based on making little changes on a regular basis, anywhere changes can be made, to reduce process, delivery, and quality problems?

Continuous Improvement

Benefits of implementing an effective supplier certification program include all of the following EXCEPT?

Increasing the supplier base

Which one of the following is NOT an element of Lean Manufacturing?

Mass Customization

The quality management philosophy that focuses on improving the overall quality of process outputs by identifying and removing the causes of defects and minimizing variability in manufacturing and business processes, is known as?

Six Sigma

Buying materials and components from suppliers instead of making them in your company-owned operations, is known as?

outsourcing

Backward Vertical Integration refers to a company acquiring one or more of their sources of supply.

true

Duties, taxes, or customs imposed by the host country for imported or exported goods, are known as Tariffs

true

The best supplier candidates for Supplier Relationship Management (SRM) include all of the following EXCEPT?

Developmental suppliers that need to make improvements

When a company utilizes a "make to stock" strategy, the company is also said to be using a "pull" business model

False

When using a weighted-criteria evaluation system with five or more categories, suppliers should be ranked based on their score in only the two highest weighted categories.

False

A strategic partnership with a supplier:

Is a commitment over an extended period to work together to the mutual benefit of both parties

Which general sourcing category comprises commodity items where many alternatives of supply exist, and supply risk is low. Spend is high and there are potential procurement savings?

Leverage

The Weighted-Criteria Evaluation System is typically used to select a supplier or to evaluate the performance of a supplier?

True

The primary design objective of a Lean layout is to reduce wasted movements of workers and/or materials

True

The purchasing function is one of the most value-enhancing functions in any organization, however, it is still necessary to periodically monitor the purchasing function's performance against a set of standards or industry benchmarks.

True

A key supplier's activities to help the buyer's company reduce cost, improve quality and reduce new product development time beginning with the initial design phase, are known as?

Value Engineering

Which sourcing concept involves a supplier directly managing the buyer's inventories to reduce the buyer's inventory carrying costs and avoid stockouts?

Vendor Managed Inventory

Candidates for a Supplier Certification Program include suppliers who meet one or more of the following criteria, EXCEPT?

A supplier who has a minimal number of significant negative quality related incidents for a specified time period

Root Cause Analysis is a term that describes a wide range of approaches, tools, and techniques used to uncover causes of problems

True

The following term refers to an act that creates the greatest good for the greatest number of people?

Utilitarianism

Which cost of quality category includes performing audits to confirm that the quality system is operating properly?

Appraisal Cost

Industrial buyers purchase raw materials and other components for conversion into a finished product, but they do not purchase services or capital equipment.

false

A high Return on Assets (ROA) is an indication that a company has a high level/value of assets compared to a low profit margin.

false

Forward Vertical Integration refers to a company acquiring one or more of their sources of supply.

false

Which of the following new technologies can improve supplier selection and increase the effectiveness of supplier relationship management?

Artificial Intelligence

A strong supplier partnership requires that both buyer and supplier adopt a strong tactical perspective.

False

Which one of the following is NOT one of the Seven Tools of Quality Control?

Hysterical Charts

Which one of the following is NOT a reason to have a single supplier?

To spread the risk of a supply disruption

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

True

Why might a company decide to outsource (i.e., buy) a product that they currently make in their company-owned operations?

Because they don't have the capacity in their internal factory to meet demand

One of the main reasons to consider purchasing from an international global source is the opportunity to improve quality, cost, and delivery performance

true

ISO 14000 is a widely accepted management and quality certification standard.

False

Products with low profit margin, relatively stable demand, and high levels of competition, are known as Innovative Products.

False

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

False

The keys to developing successful supply partnerships include all of the following EXCEPT?

Individualized Objectives

Which quality expert is credited with introducing the concepts of zero defects?

Philip Crosby

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

True

Intermittent Production Processes are used to produce a large variety of products with different processing requirements in lower volumes

True