Question 1

Research on the supply management process focuses on:

Accepted Answer

A) increasing efficiency by eliminating unnecessary steps. 
B) improving buyer-seller relationships. 
C) conducting cost analysis to identify unnecessary costs. 
D) deciding whether to single or multiple source. 
E) developing a strategy to reduce cost or ensure supply. 
A) increasing efficiency by eliminating unnecessary steps. 
B) improving buyer-seller relationships. 
C) conducting cost analysis to identify unnecessary costs. 
D) deciding whether to single or multiple source. 
E) developing a strategy to reduce cost or ensure supply. B

Question 2

Performance benchmarking measures how an organization achieves results.

Accepted Answer

A) True 
 B)False  False

Question 3

Cost management categories that might be measured include: (1)cost savings, (2)cost reductions, (3)cost avoidance,and (4)process cost savings.

Accepted Answer

A) True 
 B)False  True

Question 4

Purchasing process benchmarking attempts to:

Accepted Answer

A) analyze a firm's own internal trends. 
B) provide industrywide standards for overall firm performance. 
C) determine how an organization achieves results in purchasing and supply. 
D) determine what results have been achieved by purchasing and supply activities. 
E) provide baseline metrics to compare companies' supply performance. 
A) analyze a firm's own internal trends. 
B) provide industrywide standards for overall firm performance. 
C) determine how an organization achieves results in purchasing and supply. 
D) determine what results have been achieved by purchasing and supply activities. 
E) provide baseline metrics to compare companies' supply performance.

Question 5

Value analysis compares the function performed by a purchase item with the cost.

Accepted Answer

A) True 
 B)False

Question 6

Industry benchmarking allows an individual company to compare itself to the average and range of performance data for all respondents in the aggregate.

Accepted Answer

A) True 
 B)False

Question 7

Efficiency metrics,which emphasize price,may lead to behavior that drives up total cost of ownership.

Accepted Answer

A) True 
 B)False

Question 8

Some North American companies are reexamining their global sourcing strategies,and favoring "reshoring" or sourcing at home because:

Accepted Answer

A) "Buy America" and "Buy Canada" legislation dictate the move. 
B) wages in China are the same as North America. 
C) lower energy costs in China are greatly offset by rapidly rising Chinese wages. 
D) transportation costs have increased and energy costs in North America have decreased. 
E) Western currencies have appreciated against the Chinese yuan. 
A) "Buy America" and "Buy Canada" legislation dictate the move. 
B) wages in China are the same as North America. 
C) lower energy costs in China are greatly offset by rapidly rising Chinese wages. 
D) transportation costs have increased and energy costs in North America have decreased. 
E) Western currencies have appreciated against the Chinese yuan.

Question 9

Supply management's contribution may be measured along three dimensions: reputational enhancement,process management,and price reductions.

Accepted Answer

A) True 
 B)False

Question 10

The supply function can play a central role in environmental sustainability in the following area(s):

Accepted Answer

A) gathering data and managing suppliers to support compliance with regulations. 
B) communicating environmental sustainability expectations to suppliers. 
C) measuring suppliers' environmental sustainability performance. 
D) gathering data and managing suppliers to support compliance with regulations and communicating environmental sustainability expectations to suppliers. 
E) gathering data and managing suppliers to support compliance with regulations,communicating environmental sustainability expectations to suppliers and measuring suppliers' environmental sustainability performance. 
A) gathering data and managing suppliers to support compliance with regulations. 
B) communicating environmental sustainability expectations to suppliers. 
C) measuring suppliers' environmental sustainability performance. 
D) gathering data and managing suppliers to support compliance with regulations and communicating environmental sustainability expectations to suppliers. 
E) gathering data and managing suppliers to support compliance with regulations,communicating environmental sustainability expectations to suppliers and measuring suppliers' environmental sustainability performance.

Question 11

When cross-functional teams are used to conduct research,it is best if:

Accepted Answer

A) no member is stronger than any other,and the leadership role is rotated. 
B) the team has total autonomy to decide objectives and set expectations. 
C) each member's job is rearranged to allocate time and resources for team work. 
D) team members are randomly selected from departments. 
E) performance evaluation and reward systems foster individual contributions. 
A) no member is stronger than any other,and the leadership role is rotated. 
B) the team has total autonomy to decide objectives and set expectations. 
C) each member's job is rearranged to allocate time and resources for team work. 
D) team members are randomly selected from departments. 
E) performance evaluation and reward systems foster individual contributions.

Question 12

Social sustainability issues in supply management include:

Accepted Answer

A) hazardous waste disposal. 
B) bribery of local government officials. 
C) worker safety. 
D) hazardous waste disposal and bribery of local government officials. 
E) hazardous waste disposal,bribery of local government officials and worker safety. 
A) hazardous waste disposal. 
B) bribery of local government officials. 
C) worker safety. 
D) hazardous waste disposal and bribery of local government officials. 
E) hazardous waste disposal,bribery of local government officials and worker safety.

Question 13

The assessment of a supplier's financial capacity enables the development of risk minimization strategies.

Accepted Answer

A) True 
 B)False

Question 14

Internal validation of supply's financial contribution is easy to achieve,but unlikely to happen in most organizations because the cost of assessment outweighs the benefits.

Accepted Answer

A) True 
 B)False

Question 15

Products that make the most sense to consider for sourcing and manufacturing in North America and Western Europe:

Accepted Answer

A) are low value and inexpensive to manufacture. 
B) require the use of complex equipment and skilled workers for manufacturing and assembly. 
C) are easy to transport. 
D) are low value and inexpensive to manufacture,and require the use of complex equipment and skilled workers for manufacturing and assembly. 
E) are low value and inexpensive to manufacture,require the use of complex equipment and skilled workers for manufacturing and assembly,and are low value and inexpensive to manufacture and require the use of complex equipment and skilled workers for manufacturing and assembly. 
A) are low value and inexpensive to manufacture. 
B) require the use of complex equipment and skilled workers for manufacturing and assembly. 
C) are easy to transport. 
D) are low value and inexpensive to manufacture,and require the use of complex equipment and skilled workers for manufacturing and assembly. 
E) are low value and inexpensive to manufacture,require the use of complex equipment and skilled workers for manufacturing and assembly,and are low value and inexpensive to manufacture and require the use of complex equipment and skilled workers for manufacturing and assembly.

Question 16

In most organizations,current supply performance metrics and evaluation methods are highly effective at validating supply's results and getting supply recognition as a major contributor to organizational success.

Accepted Answer

A) True 
 B)False

Question 17

Measurement challenges for internal validation of supply savings include:

Accepted Answer

A) inability to convert savings into profit. 
B) changes in markets,technologies and volumes. 
C) willingness to recognize cumulative savings. 
D) inability to convert savings into profit and changes in markets,technologies and volumes. 
E) inability to convert savings into profit,changes in markets,technologies and volumes and willingness to recognize cumulative savings. 
A) inability to convert savings into profit. 
B) changes in markets,technologies and volumes. 
C) willingness to recognize cumulative savings. 
D) inability to convert savings into profit and changes in markets,technologies and volumes. 
E) inability to convert savings into profit,changes in markets,technologies and volumes and willingness to recognize cumulative savings.

Question 18

Studies conducted in supply research include:

Accepted Answer

A) customers. 
B) competitors. 
C) supply processes. 
D) customers and competitors. 
E) customers,competitors and supply processes. 
A) customers. 
B) competitors. 
C) supply processes. 
D) customers and competitors. 
E) customers,competitors and supply processes.

Question 19

The cost of maintenance supplies are included in the capital budget.

Accepted Answer

A) True 
 B)False

Question 20

Trends in supply organization and leadership include:

Accepted Answer

A) more chief purchasing officers without previous supply experience. 
B) greater emphasis on teams and project-based work. 
C) greater differentiation between strategic and tactical supply roles. 
D) more chief purchasing officers without previous supply experience and greater emphasis on teams and project-based work. 
E) more chief purchasing officers without previous supply experience,greater emphasis on teams and project-based work,and greater differentiation between strategic and tactical supply roles. 
A) more chief purchasing officers without previous supply experience. 
B) greater emphasis on teams and project-based work. 
C) greater differentiation between strategic and tactical supply roles. 
D) more chief purchasing officers without previous supply experience and greater emphasis on teams and project-based work. 
E) more chief purchasing officers without previous supply experience,greater emphasis on teams and project-based work,and greater differentiation between strategic and tactical supply roles.

Research on the supply management process focuses on:

Performance benchmarking measures how an organization achieves results.

Cost management categories that might be measured include: (1)cost savings, (2)cost reductions, (3)cost avoidance,and (4)process cost savings.

Purchasing process benchmarking attempts to:

Value analysis compares the function performed by a purchase item with the cost.

Industry benchmarking allows an individual company to compare itself to the average and range of performance data for all respondents in the aggregate.

Efficiency metrics,which emphasize price,may lead to behavior that drives up total cost of ownership.

Some North American companies are reexamining their global sourcing strategies,and favoring "reshoring" or sourcing at home because:

Supply management's contribution may be measured along three dimensions: reputational enhancement,process management,and price reductions.

The supply function can play a central role in environmental sustainability in the following area(s):

When cross-functional teams are used to conduct research,it is best if:

Social sustainability issues in supply management include:

The assessment of a supplier's financial capacity enables the development of risk minimization strategies.

Internal validation of supply's financial contribution is easy to achieve,but unlikely to happen in most organizations because the cost of assessment outweighs the benefits.

Products that make the most sense to consider for sourcing and manufacturing in North America and Western Europe:

In most organizations,current supply performance metrics and evaluation methods are highly effective at validating supply's results and getting supply recognition as a major contributor to organizational success.

Measurement challenges for internal validation of supply savings include:

Studies conducted in supply research include:

The cost of maintenance supplies are included in the capital budget.

Trends in supply organization and leadership include:

Purchasing and Supply Management

Supply Strategy

Supply Organization

Supply Processes and Technology

Make or Buy,insourcing and Outsourcing

Need Identification and Specification

Quality

Quantity and Inventory

Delivery

Price

Cost Management

Supplier Selection

Supplier Evaluation and Supplier Relationships

Global Supply Management

Legal and Ethics

Other Supply Responsibilities

Filters

Exam 17: Supply Function Evaluation and Trends

Research on the supply management process focuses on:

Performance benchmarking measures how an organization achieves results.

Cost management categories that might be measured include: (1)cost savings, (2)cost reductions, (3)cost avoidance,and (4)process cost savings.

Purchasing process benchmarking attempts to:

Value analysis compares the function performed by a purchase item with the cost.

Industry benchmarking allows an individual company to compare itself to the average and range of performance data for all respondents in the aggregate.

Efficiency metrics,which emphasize price,may lead to behavior that drives up total cost of ownership.

Some North American companies are reexamining their global sourcing strategies,and favoring "reshoring" or sourcing at home because:

Supply management's contribution may be measured along three dimensions: reputational enhancement,process management,and price reductions.

The supply function can play a central role in environmental sustainability in the following area(s):

When cross-functional teams are used to conduct research,it is best if:

Social sustainability issues in supply management include:

The assessment of a supplier's financial capacity enables the development of risk minimization strategies.

Internal validation of supply's financial contribution is easy to achieve,but unlikely to happen in most organizations because the cost of assessment outweighs the benefits.

Products that make the most sense to consider for sourcing and manufacturing in North America and Western Europe:

In most organizations,current supply performance metrics and evaluation methods are highly effective at validating supply's results and getting supply recognition as a major contributor to organizational success.

Measurement challenges for internal validation of supply savings include:

Studies conducted in supply research include:

The cost of maintenance supplies are included in the capital budget.

Trends in supply organization and leadership include:

Purchasing and Supply Management

Supply Strategy

Supply Organization

Supply Processes and Technology

Make or Buy,insourcing and Outsourcing

Need Identification and Specification

Quality

Quantity and Inventory

Delivery

Price

Cost Management

Supplier Selection

Supplier Evaluation and Supplier Relationships

Global Supply Management

Legal and Ethics

Other Supply Responsibilities

Filters