Question 1

Outsourcing is often a good choice when:

Accepted Answer

A) There are only a few suppliers. 
B) A product is in the mature phase of the life cycle. 
C) Technology is new. 
D) The product is critical to a firm's competitiveness. 
A) There are only a few suppliers. 
B) A product is in the mature phase of the life cycle. 
C) Technology is new. 
D) The product is critical to a firm's competitiveness. B

Question 2

Benefits of single sourcing include all of the following EXCEPT:

Accepted Answer

A) Quantity discounts. 
B) More consistent quality. 
C) Better supplier relationships. 
D) Less supply risk. 
A) Quantity discounts. 
B) More consistent quality. 
C) Better supplier relationships. 
D) Less supply risk. D

Question 3

Which of the following would NOT be a step in conducting an insourcing/outsourcing analysis?

Accepted Answer

A) Assessing quantitative costs of outsourcing 
B) Evaluating new suppliers who could make the SKU 
C) Assessing the relationship of the product to the firm's core competencies 
D) Conducting a detailed internal audit of purchasing practices 
A) Assessing quantitative costs of outsourcing 
B) Evaluating new suppliers who could make the SKU 
C) Assessing the relationship of the product to the firm's core competencies 
D) Conducting a detailed internal audit of purchasing practices D

Question 4

All of the following are supply management goals EXCEPT:

Accepted Answer

A) Ensure timely availability of resources. 
B) Purchase at the lowest price. 
C) Enhance quality. 
D) Assess technology and innovation. 
A) Ensure timely availability of resources. 
B) Purchase at the lowest price. 
C) Enhance quality. 
D) Assess technology and innovation.

Question 5

If you are evaluating whether a supplier's workforce is receiving fair wages,you are most likely doing a(n):

Accepted Answer

A) Spend analysis. 
B) Assessment of sustainability. 
C) ISO 9000 assessment. 
D) Total cost of ownership assessment. 
A) Spend analysis. 
B) Assessment of sustainability. 
C) ISO 9000 assessment. 
D) Total cost of ownership assessment.

Question 6

When you need to identify a supplier for a new purchase,the FIRST place that you should look is:

Accepted Answer

A) A local trade show. 
B) The list of your company's current suppliers. 
C) The list of suppliers that your company has used in the past. 
D) The websites of industry groups. 
A) A local trade show. 
B) The list of your company's current suppliers. 
C) The list of suppliers that your company has used in the past. 
D) The websites of industry groups.

Question 7

The Smith Manufacturing Co.uses a weighted-point model to evaluate new suppliers.Based on its competitive priorities,quality performance is weighted 60 percent,delivery performance is 25 percent,and cost is 15 percent.On a five-point scale,a supplier is rated 4 on quality,5 on delivery,and 5 on cost.What is its overall weighted score?

Accepted Answer

A) 14. 
B) 4.4. 
C) 4. 
D) 5. 
A) 14. 
B) 4.4. 
C) 4. 
D) 5.

Question 8

Local sourcing:

Accepted Answer

A) Reduces delivery costs. 
B) Is called "nearshoring." 
C) Is used when cost is the primary objective. 
D) Takes advantage of lower trade barriers from trade agreements. 
A) Reduces delivery costs. 
B) Is called "nearshoring." 
C) Is used when cost is the primary objective. 
D) Takes advantage of lower trade barriers from trade agreements.

Question 9

A relationship with a supplier that is characterized by high levels of distrust,little communication,and short-term transactions is called a(n):

Accepted Answer

A) Adversarial relationship. 
B) Arm's-length relationship. 
C) Acceptance of mutual goals. 
D) Full partnership. 
A) Adversarial relationship. 
B) Arm's-length relationship. 
C) Acceptance of mutual goals. 
D) Full partnership.

Question 10

Determining the right number of suppliers that a company should use is:

Accepted Answer

A) Spend analysis. 
B) Strategic sourcing. 
C) Supply base optimization. 
D) Supply chain resilience. 
A) Spend analysis. 
B) Strategic sourcing. 
C) Supply base optimization. 
D) Supply chain resilience.

Question 11

The process of understanding how a firm is spending its money and with which suppliers is called:

Accepted Answer

A) Strategic sourcing. 
B) Make or buy analysis. 
C) Market analysis. 
D) Spend analysis. 
A) Strategic sourcing. 
B) Make or buy analysis. 
C) Market analysis. 
D) Spend analysis.

Question 12

The identification,acquisition,positioning,and management of resources and capabilities that a firm needs to attain its strategic objectives is:

Accepted Answer

A) Sourcing. 
B) Supply management. 
C) Supply chain management. 
D) Spend analysis. 
A) Sourcing. 
B) Supply management. 
C) Supply chain management. 
D) Spend analysis.

Question 13

Supply management:

Accepted Answer

A) Only focuses on direct materials that are used in a company's products. 
B) Is essential for an organization to attain its strategic objectives. 
C) Is only involved with supplier selection. 
D) Should always strive for the lowest purchase price. 
A) Only focuses on direct materials that are used in a company's products. 
B) Is essential for an organization to attain its strategic objectives. 
C) Is only involved with supplier selection. 
D) Should always strive for the lowest purchase price.

Question 14

The type and level of assessment of suppliers during the selection process:

Accepted Answer

A) Should be the same for all of a company's purchases. 
B) Is always done by cross-functional teams. 
C) Depends upon factors such as the level of spend and type of relationship desired. 
D) Is normally very extensive for noncritical purchases. 
A) Should be the same for all of a company's purchases. 
B) Is always done by cross-functional teams. 
C) Depends upon factors such as the level of spend and type of relationship desired. 
D) Is normally very extensive for noncritical purchases.

Question 15

The most important stage in the negotiation process is:

Accepted Answer

A) Planning for the negotiation. 
B) The face-to-face meeting. 
C) When the contract is signed. 
D) Forming the negotiating team. 
A) Planning for the negotiation. 
B) The face-to-face meeting. 
C) When the contract is signed. 
D) Forming the negotiating team.

Question 16

All of the following can increase supply chain risk except:

Accepted Answer

A) Using a supplier that is having financial difficulty. 
B) Holding higher levels of inventory of critical materials. 
C) A company in Canada using suppliers in Thailand. 
D) Single sourcing. 
A) Using a supplier that is having financial difficulty. 
B) Holding higher levels of inventory of critical materials. 
C) A company in Canada using suppliers in Thailand. 
D) Single sourcing.

Question 17

Williams Inc.has acquired software to help manage interactions with its supply base.This suggests that Williams Inc.is involved in:

Accepted Answer

A) Vendor-managed inventory. 
B) Supplier relationship management. 
C) Online reverse auctions. 
D) Supplier auditing. 
A) Vendor-managed inventory. 
B) Supplier relationship management. 
C) Online reverse auctions. 
D) Supplier auditing.

Question 18

The Rodriguez Manufacturing Co.uses a weighted-point model to evaluate new suppliers.Based on its competitive priorities,quality performance is weighted 50 percent,delivery performance is 20 percent,and cost is 30 percent.On a five-point scale,a supplier is rated 3 on quality,2 on delivery,and 5 on cost.What is its overall weighted score?

Accepted Answer

A) 10. 
B) 3.4. 
C) 33. 
D) 3. 
A) 10. 
B) 3.4. 
C) 33. 
D) 3.

Question 19

Which of the following is not uncovered during an analysis of supply market intelligence?

Accepted Answer

A) The number of potential suppliers. 
B) Which of the company's current purchases are from which supplier. 
C) The number of other buyers. 
D) The potential level of supply chain risk. 
A) The number of potential suppliers. 
B) Which of the company's current purchases are from which supplier. 
C) The number of other buyers. 
D) The potential level of supply chain risk.

Question 20

Which of the following is true about the use of weighted scoring models for supplier selection?

Accepted Answer

A) Once developed,the model weights should never change. 
B) The supply management department should determine the weights. 
C) The highest-scoring supplier should always be selected to receive the business. 
D) There is a good deal of subjectivity in developing and using the model. 
A) Once developed,the model weights should never change. 
B) The supply management department should determine the weights. 
C) The highest-scoring supplier should always be selected to receive the business. 
D) There is a good deal of subjectivity in developing and using the model.

Outsourcing is often a good choice when:

Benefits of single sourcing include all of the following EXCEPT:

Which of the following would NOT be a step in conducting an insourcing/outsourcing analysis?

All of the following are supply management goals EXCEPT:

If you are evaluating whether a supplier's workforce is receiving fair wages,you are most likely doing a(n):

When you need to identify a supplier for a new purchase,the FIRST place that you should look is:

Local sourcing:

A relationship with a supplier that is characterized by high levels of distrust,little communication,and short-term transactions is called a(n):

Determining the right number of suppliers that a company should use is:

The process of understanding how a firm is spending its money and with which suppliers is called:

The identification,acquisition,positioning,and management of resources and capabilities that a firm needs to attain its strategic objectives is:

Supply management:

The type and level of assessment of suppliers during the selection process:

The most important stage in the negotiation process is:

All of the following can increase supply chain risk except:

Williams Inc.has acquired software to help manage interactions with its supply base.This suggests that Williams Inc.is involved in:

Which of the following is not uncovered during an analysis of supply market intelligence?

Which of the following is true about the use of weighted scoring models for supplier selection?

Introduction to Managing Operations Across the Supply Chain

Operations and Supply Chain Strategy

Managing Processes and Capacity

A: Process Mapping and Analysis

Productprocess Innovation

Manufacturing and Service Process Structures

Managing Quality

A: Quality Improvement Tools

Managing Inventories

Customer Service Management

Sourcing and Supply Management

Logistics Management

Demand Planning: Forecasting and Demand Management

Sales and Operations Planning

Materials and Resource Requirements Planning

Project Management

A: Advanced Methods for Project Scheduling

Sustainable Operations Management Preparing for the Future

Filters

Exam 8: Lean Systems

Outsourcing is often a good choice when:

Benefits of single sourcing include all of the following EXCEPT:

Which of the following would NOT be a step in conducting an insourcing/outsourcing analysis?

All of the following are supply management goals EXCEPT:

If you are evaluating whether a supplier's workforce is receiving fair wages,you are most likely doing a(n):

When you need to identify a supplier for a new purchase,the FIRST place that you should look is:

Local sourcing:

A relationship with a supplier that is characterized by high levels of distrust,little communication,and short-term transactions is called a(n):

Determining the right number of suppliers that a company should use is:

The process of understanding how a firm is spending its money and with which suppliers is called:

The identification,acquisition,positioning,and management of resources and capabilities that a firm needs to attain its strategic objectives is:

Supply management:

The type and level of assessment of suppliers during the selection process:

The most important stage in the negotiation process is:

All of the following can increase supply chain risk except:

Williams Inc.has acquired software to help manage interactions with its supply base.This suggests that Williams Inc.is involved in:

Which of the following is not uncovered during an analysis of supply market intelligence?

Which of the following is true about the use of weighted scoring models for supplier selection?

Introduction to Managing Operations Across the Supply Chain

Operations and Supply Chain Strategy

Managing Processes and Capacity

A: Process Mapping and Analysis

Productprocess Innovation

Manufacturing and Service Process Structures

Managing Quality

A: Quality Improvement Tools

Managing Inventories

Customer Service Management

Sourcing and Supply Management

Logistics Management

Demand Planning: Forecasting and Demand Management

Sales and Operations Planning

Materials and Resource Requirements Planning

Project Management

A: Advanced Methods for Project Scheduling

Sustainable Operations Management Preparing for the Future

Filters