Question 1

If material has been declared surplus, the only option is to sell it.

Accepted Answer

A) True 
 B)False  False

Question 2

To ensure maximum return for its investment, the process and procedures for selling scrap and surplus must cover a broad range of activities including segregation and storage, weighing and measuring, delivery, negotiation, supplier selection, and payment.

Accepted Answer

A) True 
 B)False  True

Question 3

The total cost of hazardous waste for a company does not include the costs of new plant and equipment to reduce waste and deal with contaminated plants.

Accepted Answer

A) True 
 B)False  False

Question 4

Supply can contribute to the organization's environmental management program by:

Accepted Answer

A)  developing sourcing and usage alternatives for hazardous materials. 
B)  focusing on substitution of non-hazardous materials for hazardous materials. 
C)  encouraging and participating in designing products that do not use or generate hazardous waste. 
D)  a and b 
E)  a, b and c 
A)  developing sourcing and usage alternatives for hazardous materials. 
B)  focusing on substitution of non-hazardous materials for hazardous materials. 
C)  encouraging and participating in designing products that do not use or generate hazardous waste. 
D)  a and b 
E)  a, b and c

Question 5

As more people come to believe that it makes economic sense to practice environmentally sound operations, business and government may be able to work together for common goals.

Accepted Answer

A) True 
 B)False

Question 6

Investment recovery is often assigned to:

Accepted Answer

A)  supply managers because they have knowledge supply markets and price trends. 
B)  salespeople because they have contact with buyers who may use the material. 
C)  marketing managers because they have information on internal users. 
D)  engineers who can suggest possible uses of the material within the organization. 
E)  financial analysts because they set the target return on all investments. 
A)  supply managers because they have knowledge supply markets and price trends. 
B)  salespeople because they have contact with buyers who may use the material. 
C)  marketing managers because they have information on internal users. 
D)  engineers who can suggest possible uses of the material within the organization. 
E)  financial analysts because they set the target return on all investments.

Question 7

An organization's Enterprise Resource Planning ERP) system may be used to develop a national or global database for company personnel at different locations to post and purchase spare parts, obsolete materials, and surplus.

Accepted Answer

A) True 
 B)False

Question 8

Reducing the obsolescence and waste of maintenance, repair, and operating MRO) supplies through better materials and inventory management will:

Accepted Answer

A)  reduce the costs of disposing of MRO items that are obsolete or waste. 
B)  reduce carrying cost by lowering inventory levels, especially of obsolete items. 
C)  improve environmental performance by reducing waste that goes into landfills or incinerators. 
D)  simultaneously reduce costs and improve environmental performance. 
E)  have little impact because MRO is a small percentage of annual spend and the items usually have low environmental low-impact. 
A)  reduce the costs of disposing of MRO items that are obsolete or waste. 
B)  reduce carrying cost by lowering inventory levels, especially of obsolete items. 
C)  improve environmental performance by reducing waste that goes into landfills or incinerators. 
D)  simultaneously reduce costs and improve environmental performance. 
E)  have little impact because MRO is a small percentage of annual spend and the items usually have low environmental low-impact.

Question 9

It makes no sense to assign responsibility for disposal to the supply management function because the personnel usually have no selling experience.

Accepted Answer

A) True 
 B)False

Question 10

Coordinating inbound and outbound transportation:

Accepted Answer

A)  has little application in an effective and efficient supply organization. 
B)  is done by cross-functional teams in most organizations. 
C)  helps to reduce costs and improve utilization of related assets and resources. 
D)  provides the basic elements of a global supply network. 
E)  is used extensively in Europe, but has not migrated to the U.S. 
A)  has little application in an effective and efficient supply organization. 
B)  is done by cross-functional teams in most organizations. 
C)  helps to reduce costs and improve utilization of related assets and resources. 
D)  provides the basic elements of a global supply network. 
E)  is used extensively in Europe, but has not migrated to the U.S.

Question 11

The role and importance of investment recovery in an organization is driven in large part by the:

Accepted Answer

A)  CEO's perspective on environmental issues. 
B)  Chief Purchasing Officer's clout or leverage with other executives. 
C)  projected dollar value of the potential revenue recovery or cost reduction. 
D)  salespeople who encourage the inclusion of buy-back programs of key materials. 
E)  internal level of knowledge about disposal channels and suppliers. 
A)  CEO's perspective on environmental issues. 
B)  Chief Purchasing Officer's clout or leverage with other executives. 
C)  projected dollar value of the potential revenue recovery or cost reduction. 
D)  salespeople who encourage the inclusion of buy-back programs of key materials. 
E)  internal level of knowledge about disposal channels and suppliers.

Question 12

The potential benefits of having accounts payable report to the same executive as supply include:

Accepted Answer

A)  familiarity with the supplier 
B)  familiarity with the order. 
C)  opportunities to reduce transaction costs and headcount. 
D)  the ability for supply to ensure that payments for suppliers are made on time. 
E)  all of the above. 
A)  familiarity with the supplier 
B)  familiarity with the order. 
C)  opportunities to reduce transaction costs and headcount. 
D)  the ability for supply to ensure that payments for suppliers are made on time. 
E)  all of the above.

Question 13

Obsolete is in the eyes of the beholder. Something that has been declared obsolete in one organization may be perfectly acceptable and useable in another.

Accepted Answer

A) True 
 B)False

Question 14

Escalator clauses in contracts for scrap disposal are necessary because the prices of primary metals fluctuate.

Accepted Answer

A) True 
 B)False

Question 15

Waste is created when a change in the production process occurs, or when a better material is substituted for the material originally used.

Accepted Answer

A) True 
 B)False

Question 16

Warehousing and inventory storage:

Accepted Answer

A)  can either be an internal function or outsourced to a third-party logistics firm. 
B)  typically has little communication with supply management. 
C)  may have direct responsibility for organizational purchasing decisions. 
D)  outsourcing decisions typically are made by the finance department. 
E)  is seldom outsourced. 
A)  can either be an internal function or outsourced to a third-party logistics firm. 
B)  typically has little communication with supply management. 
C)  may have direct responsibility for organizational purchasing decisions. 
D)  outsourcing decisions typically are made by the finance department. 
E)  is seldom outsourced.

Question 17

Production planning:

Accepted Answer

A)  focuses on long-term schedules to control inventory and production. 
B)  requires coordinating the delivery and storage of key raw materials. 
C)  cannot involve supply because of fears of undue influence from suppliers. 
D)  relies heavily on forecasts from purchasing and supply management. 
E)  is a discrete activity with little coordination with other functions. 
A)  focuses on long-term schedules to control inventory and production. 
B)  requires coordinating the delivery and storage of key raw materials. 
C)  cannot involve supply because of fears of undue influence from suppliers. 
D)  relies heavily on forecasts from purchasing and supply management. 
E)  is a discrete activity with little coordination with other functions.

Question 18

Production planning relies heavily on forecasts from operations to anticipate demand for products and services..

Accepted Answer

A) True 
 B)False

Question 19

One of the reasons why companies are paying more attention to the effective, efficient, and profitable recovery and disposal of scrap, surplus, obsolete, and waste materials is that:

Accepted Answer

A)  consumers overwhelmingly demand environmental responsibility. 
B)  it is easy to administer and highly profitable. 
C)  most organizations generate little scrap, surplus, obsolete and waste materials. 
D)  disposal costs are rising and environmental legislation is strengthening. 
E)  disposal is a fairly simple problem that is easily resolved. 
A)  consumers overwhelmingly demand environmental responsibility. 
B)  it is easy to administer and highly profitable. 
C)  most organizations generate little scrap, surplus, obsolete and waste materials. 
D)  disposal costs are rising and environmental legislation is strengthening. 
E)  disposal is a fairly simple problem that is easily resolved.

If material has been declared surplus, the only option is to sell it.

To ensure maximum return for its investment, the process and procedures for selling scrap and surplus must cover a broad range of activities including segregation and storage, weighing and measuring, delivery, negotiation, supplier selection, and payment.

The total cost of hazardous waste for a company does not include the costs of new plant and equipment to reduce waste and deal with contaminated plants.

Supply can contribute to the organization's environmental management program by:

As more people come to believe that it makes economic sense to practice environmentally sound operations, business and government may be able to work together for common goals.

Investment recovery is often assigned to:

An organization's Enterprise Resource Planning ERP) system may be used to develop a national or global database for company personnel at different locations to post and purchase spare parts, obsolete materials, and surplus.

Reducing the obsolescence and waste of maintenance, repair, and operating MRO) supplies through better materials and inventory management will:

It makes no sense to assign responsibility for disposal to the supply management function because the personnel usually have no selling experience.

Coordinating inbound and outbound transportation:

The role and importance of investment recovery in an organization is driven in large part by the:

The potential benefits of having accounts payable report to the same executive as supply include:

Obsolete is in the eyes of the beholder. Something that has been declared obsolete in one organization may be perfectly acceptable and useable in another.

Escalator clauses in contracts for scrap disposal are necessary because the prices of primary metals fluctuate.

Waste is created when a change in the production process occurs, or when a better material is substituted for the material originally used.

Warehousing and inventory storage:

Production planning:

Production planning relies heavily on forecasts from operations to anticipate demand for products and services..

One of the reasons why companies are paying more attention to the effective, efficient, and profitable recovery and disposal of scrap, surplus, obsolete, and waste materials is that:

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 Relations

Global Supply Management

Legal and Ethics

Supply Function Evaluation and Trends

Filters

Exam 16: Other Supply Responsibilities

If material has been declared surplus, the only option is to sell it.

To ensure maximum return for its investment, the process and procedures for selling scrap and surplus must cover a broad range of activities including segregation and storage, weighing and measuring, delivery, negotiation, supplier selection, and payment.

The total cost of hazardous waste for a company does not include the costs of new plant and equipment to reduce waste and deal with contaminated plants.

Supply can contribute to the organization's environmental management program by:

As more people come to believe that it makes economic sense to practice environmentally sound operations, business and government may be able to work together for common goals.

Investment recovery is often assigned to:

An organization's Enterprise Resource Planning ERP) system may be used to develop a national or global database for company personnel at different locations to post and purchase spare parts, obsolete materials, and surplus.

Reducing the obsolescence and waste of maintenance, repair, and operating MRO) supplies through better materials and inventory management will:

It makes no sense to assign responsibility for disposal to the supply management function because the personnel usually have no selling experience.

Coordinating inbound and outbound transportation:

The role and importance of investment recovery in an organization is driven in large part by the:

The potential benefits of having accounts payable report to the same executive as supply include:

Obsolete is in the eyes of the beholder. Something that has been declared obsolete in one organization may be perfectly acceptable and useable in another.

Escalator clauses in contracts for scrap disposal are necessary because the prices of primary metals fluctuate.

Waste is created when a change in the production process occurs, or when a better material is substituted for the material originally used.

Warehousing and inventory storage:

Production planning:

Production planning relies heavily on forecasts from operations to anticipate demand for products and services..

One of the reasons why companies are paying more attention to the effective, efficient, and profitable recovery and disposal of scrap, surplus, obsolete, and waste materials is that:

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 Relations

Global Supply Management

Legal and Ethics

Supply Function Evaluation and Trends

Filters