When a particular item is in short supply accompanied by rising prices, a firm might find it beneficial to:

/ 1 pts
When a particular item is in short supply accompanied by rising prices, a firm might find it beneficial to:

All of these

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Align itself with one of the suppliers to ensure a continued supply of the scarce item.

Purchase the item from a manufacturer who cuts corners and provides a product below market price.

Discontinue buying the product and focus more on cheaper products.

Question 2

/ 1 pts
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

Selling and marketing products

Program evaluation and review techniques.

Human resources and job design

Question 3

/ 1 pts
According to the textbook, conditions which must be present for successful supply chain management include:

Vertical Integration

Corporate contracts regarding performance expectations

Cooperation among firms

Short-term company focused performance

Question 4

/ 1 pts
According to the text, the FOUR important elements of the supply chain are:

Supply, operations, manufacturing, distribution

Supply, operations, logistics, integration

Purchasing, manufacturing, logistics, transportation

Purchasing, manufacturing, transportation, retail stores

Question 5

/ 1 pts
Encouraging or helping a firm’s suppliers to perform in a desired fashion can be referred to as:

Supply chain performance management

Supplier management

Progressive procurement

Right-shoring

Question 6

/ 1 pts
Which of the following activities would fall under the foundational element of operation?

Supplier management

Distribution network

Third-party logistics services

Demand management

Question 7

/ 1 pts
One operational method for managing inventory is the implementation of a software system which can be referred to as:

Demand capacity tracking (DCT)

Demand process reengineering (DPR)

Inventory sourcing (IS)

Material requirements planning (MRP)

Question 8

/ 1 pts
Which of the following activities allows buyers to assume the supplier will meet certain product quality and service requirements?

Business process reengineering

Distribution network

Supplier certification

Right-shoring

Question 9

/ 1 pts
According to the textbook, the order of product & service flow is as follows:

Raw material supplier, component manufacturer, retailer, wholesale distributor, end product manufacturer, end-product consumer

Component manufacturer, raw material supplier, retailer, wholesale distributor, end product manufacturer, end-product consumer

Raw material supplier, retailer, component manufacturer, wholesale distributor, end product manufacturer, end-product consumer

Raw material supplier, component manufacturer, end product manufacturer, wholesale distributor, retailer, end-product consumer

Question 10

/ 1 pts
Which of the following is a reverse logistics activity:

Recycling products and components

Delivering finished goods to your customer

Managing the quality of products

Developing a collaborative relationship with your supplier

Question 11

/ 1 pts
Which of the following would be considered a third party provider?

An intermediate component manufacturer

A Raw materials supplier

A firm that leases storage warehousing

An end product manufacturer

Question 12

/ 1 pts
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

Service response logistics is the digital distribution of services

Purchasing is seen as the final and most difficult step in the supply chain

Question 13

/ 1 pts
Which of the following acronyms is NOT paired with its correct “translation?”

TLS: Third-party Logistics Services

JIT: Just-in-Time

ERP: Enterprise Resource Planning

TQM: Total Quality Management

Question 14

/ 1 pts
Lean production is typically associated with which of the following company’s production systems?

Proctor and Gamble

Toyota

Samsung

Kraft

Question 15

/ 1 pts
Customer relationship management, distribution network, transportation management, and service response logistics are all important issues that are most closely related to:

Manufacturing

Logistics

Integration

Purchasing

Question 16

/ 1 pts
The following strategy is usually employed by lean organizations in an effort to ensure continued quality compliance among suppliers and with internal production facilities:

CAPS

MRP II

3PL

Six Sigma

Question 17

/ 1 pts
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.”

Strategic partnerships

Reverse logistics

Enterprise resource planning

Sustainability

Question 18

/ 1 pts
According to the text, which of the following is considered a current trend in supply chain management?

Increasing supply chain visibility

Using supply chain analytics and increasing supply chain visibility

None of these

Using supply chain analytics

Question 19

/ 1 pts
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

Vertical integration

Process integration

Benchmarking

Question 20

/ 1 pts
An internal or external event that causes a disruption or failure of supply chain operations is an example of

Bull-whip effect

Supply chain risk

Back-shoring

Six Sigma quality management

Question 21

/ 1 pts
Which of the following can happen as a result of the bullwhip effect?

Increase in defective products

Quicker distribution to warehouses

Decreased levels of safety stock

Excess costs for each firm in a supply chain

Question 22

/ 1 pts
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:

Process integration

Supply chain management

Bullwhip effect

Back-shoring

Question 23

/ 1 pts
The following is an example of the bullwhip effect:

Barkley’s products are so successful that it adds a new retailer for distribution

Barkley’s produces a defective product and thus realizes an excessive increase in consumer returns

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 stockouts at several popular retailers

Question 24

/ 1 pts
The primary goals of purchasing include all EXCEPT:

Ensure the highest quality raw materials are purchased

Secure materials at the lowest cost

Improve the quality of finished goods produced

Maximize customer satisfaction

Question 25

/ 1 pts
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?

Break-Even Analysis

Leveraging Purchase Volume

Profit-Leverage Effect

Direct Offset

Question 26

/ 1 pts
When calculating Return on Investment, current assets include:

Equipment, Buildings, and Real Estate

Accounts Receivable, Equipment, and Real Estate

Cash, Accounts Receivable, and Inventory

Cash, Accounts Receivable, and Equipment

Question 27

/ 1 pts
Inventory Turnover can be calculated by:

Ratio of cost of goods sold over average inventory cost

Ratio of average inventory cost over cost of goods sold

Ratio of inventory days in stock over average inventory cost

Ratio of average inventory cost over inventory days in stock

Question 28

/ 1 pts
Which type of requisition is used for materials and standard parts that are requested on a recurring basis?

Recyclable requisition (Cyc-Rec)

Open requisition

Blanket requisition

Traveling requisition

Question 29

/ 1 pts
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:

Purchase requisition

Material requisition

Traveling requisition

Planned order release

Question 30

/ 1 pts
When a product is purchased which is complicated or highly technical a Request for proposal may be issued instead of a request for quotation.
Answer 1:

Request for proposal

Question 31

/ 1 pts
Benefits derived from implementing e-procurement systems include all of the following EXCEPT:

Creates numerous additional job opportunities in the purchasing department

Allows buyers to submit bids and suppliers to respond to those bids in real time

Increases the accuracy in communication between buyers and suppliers

Tracking bids and transactions is easier and faster

Question 32

/ 1 pts
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

Federal Code of Conduct for Procurement

Services and Materials Acquisition Act

Fair Standards and Equitable Purchases Act

Question 33

/ 1 pts
Petty cash is being phased out in favor of:

Score-carding

P-card

Hard cash

A blank check

Question 34

/ 1 pts
Blanket or open-end purchase orders are suitable for buying

Computers

Office supplies

Heavy equipment

Custom built components

Question 35

/ 1 pts
Which of the following is a reason small value purchases are handled differently?

To obtain a higher quality product

To give the buyer additional supplier choices

To control unnecessary administrative costs

To have better tracking of material usage

Question 36

/ 1 pts
Which of the following illustrates Forward Vertical Integration?

Ford automotive buying additional machines for production

Subway sandwich company buying a bakery to make the bread for their sandwiches.

Sony buying trucks to deliver their finished goods inventories to their customers’ warehouses

Microsoft starting a new division that designs and manufactures clothing

Question 37

/ 1 pts
Which of the following would be a good reason to outsource (buy) versus making?

No competent supplier presently produces the needed item

To utilize existing capacity within a company’s own firm

A firm lacks the technology or expertise to produce an item

To have more direct control over the design and production of an end item

Question 38

/ 1 pts
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:

Total Cost of Ownership initiatives

Manufacturer certification programs

Supplier certification programs

Early supplier involvement

Question 39

/ 1 pts
Firms can use total cost analysis to:

See how efficiently management is using its total assets to generate profits

Show how many times a firm’s inventory is utilized and replaced over an accounting period

Select the most cost-effective supplier

Brainstorm and isolate the causes of a problem

Question 40

/ 1 pts
Total Cost of Ownership does NOT consider which of the following factors?

Tooling costs

Payment terms

Purchase order costs

Freight costs

Question 41

/ 1 pts
Which of the following is a reason for favoring single sourcing?

Encourages competition among suppliers

Reduces variabilities in quality levels

Spreads the risk of supply interruption

Reduces information about new processing technologies

Question 42

/ 1 pts
Which of the following is a reason that single sourcing is considered risky/bad?

Decreases the item to item quality variability of items purchased

Larger orders make quantity discounts more likely

There could be supplier interruptions due to political instability

It could establish close relationships with the supplier

Question 43

/ 1 pts
Which of the following is an advantage of a centralized purchasing department?

More frequent shipments

Specialization

Less bureaucracy

Closer contact between buyer and user

Question 44

/ 1 pts
Which of the following statements is FALSE?

More than 50% of each sales dollar typically goes towards covering supply chain costs.

If a firm lacks the technology to make a required component they will need to consider buying/outsourcing.

Centralized purchasing is where individual, local purchasing departments, such as at the plant level, make their own purchasing decisions.

Electronic procurement systems can aid a company in saving both time and money.

Question 45

/ 1 pts
Which of the following is NOT a potential challenge for global sourcing?

Costs involved in selecting foreign suppliers

Long delivery lead times

Relaxed trade barriers

Labor and legal problems

Question 46

/ 1 pts
Which of the following is NOT a form of countertrade?

Barter

Kaizen blitz

Offset

Counterpurchase

Question 47

/ 1 pts
Which of the following NOT a reason firms are expanding their supply bases to include foreign suppliers?

Better product quality

Lower shipping rates due to lower tariffs

Overseas supplier holding the patent to the product

Lower product cost

Question 48

/ 1 pts
Which of the following is important in developing successful relationships in a partnership?

Interpersonal business relationships between employees of the companies

Commitment by top management

All of these

Mutual/compatible needs that result in a win-win situation for the partners

Question 49

/ 1 pts
Which of the following is NOT important in developing a successful strategic alliance?

Developing performance metrics

Open lines of communication that both promote sharing and secure confidentiality

Developing cross-functional team capabilities externally and within the company

Developing efficient processes that will remain unchanged for the duration of the partnership

Question 50

/ 1 pts
According to the text, key ingredients for developing successful supply partnerships include all of the following EXCEPT:

Individualized objectives

Mutual benefits and needs

Performance metrics

Personal relationships

Question 51

/ 1 pts
According to the text, one of the most basic and successful approaches to protecting trade secrets is:

Working with law makers to increase fines and sentences for those that steal trade secrets

Threat of litigation

Requiring employees and vendors to sign non-disclosure agreements

Requiring employees and partners to get ISO 9000 certified

Question 52

/ 1 pts
Field failures, loss of goodwill, a decreased reputation, and warranty costs can all be classified as:

All of these

Transaction costs

Pre-transaction costs

Post-transaction costs

Question 53

/ 1 pts
Which of the following is TRUE?

Performance metrics and personal business relationships are both keys to building successful partnerships.

The key to successful partnerships is developing performance measures with weights greater than 3.50.

ISO 75000 is the supplier award given to the highest rated supplier in Japan.

SRM software modules are very affordable (less than $50,000) and can be implemented with a week.

Question 54

/ 1 pts
According to the text, the goal of a good performance evaluation system is to provide metrics that are:

Understandable, quantitative, focused of cost-related results

Understandable, easy to measure, focused on value-added results

Understandable, quantitative, focused on quality-related results

Understandable, qualitative, focused on short-term results

Question 55

/ 1 pts
An organization’s process for evaluating the quality systems of key suppliers in an effort to eliminate incoming inspections can be referred to as:

Quality Systems Certification

Supplier Inspection

Supplier Certification

Supply Management

Question 56

/ 1 pts
The benefits of implementing an effective supplier certification program include all of the following EXCEPT:

Recognizing excellence

Increasing supplier base

Building long-term beneficial relationships

Improving responsiveness

Question 57

/ 1 pts
When using a Weighted Criteria Evaluation System to evaluate suppliers, all of the following are true EXCEPT:

Multiply the dimension ratings by their respective important weights and then sum to get an overall weighted score

Evaluate each of the performance measures on a rating between zero and one-hundred

The weights for all dimensions must sum to 1 or 100%

Select the key dimensions of performance based on what is important to the end consumer

Question 58

/ 1 pts
Direct benefits of ISO 14000 include:

Reduced defect rates

Reduction of pollution emissions

Improved on-time delivery rates

All of these

Question 59

/ 1 pts
In general, European companies prefer suppliers:

Whose headquarters are in a developing county

Who have ISO 9001 certifications

Who employ the most people

Who are in the United States

Question 60

/ 1 pts
Which of the following is NOT a reason for supplier recognition programs?

To reward suppliers for excellent performance

To select the best suppliers

To help suppliers’ reputation in the marketplace

To encourage suppliers to be more innovative

Question 61

/ 1 pts
According to the textbook, Supplier Recognition Programs:

Encourage suppliers to keep their performance high

Are generally not very effective

Are used by 90% of companies

Are difficult to implement

Question 62

/ 1 pts
Before supplier relationship management (SRM), buyers typically spent 40% of their time on expediting orders. After SRM implementation buyers spent about:

30% of their time on expediting orders

20% of their time on expediting orders

10% of their time on expediting orders

None of the these

Question 63

/ 1 pts
SRM software should be capable of:

Making information flow between partners more visible

All of these

Automating transactional processes

Integration of the supply chain making it possible to monitor multiple departments and processes both internally and externally

Question 64

/ 1 pts
Which of the following is NOT a key tenant of an SRM system?

Lean operations

Visibility

Automation

Integration

Question 65

/ 1 pts
SRM software can automate procurement activities that lead to significant cost savings as purchasing professionals move toward:

Expediting each order

Collaborative planning

Diversifying their hiring

Improving capacity