Question 1

Specialization within the supply function:

Accepted Answer

A)  allows staff to develop expertise in particular areas. 
B)  is unnecessary because most tasks are transactional. 
C)  has no impact on talent management or organization within supply. 
D)  increases operating costs beyond the benefits of specialization. 
E)  is seldom required now that so many tasks are automated. 
A)  allows staff to develop expertise in particular areas. 
B)  is unnecessary because most tasks are transactional. 
C)  has no impact on talent management or organization within supply. 
D)  increases operating costs beyond the benefits of specialization. 
E)  is seldom required now that so many tasks are automated. A

Question 2

The organizational structure centralized, decentralized, or hybrid) of the supply function:

Accepted Answer

A)  has little influence on supply processes, internal cross-functional relationships, or the procedures and systems employed. 
B)  influences supply processes, internal cross-functional relationships, and the procedures and systems employed. 
C)  influences supply processes, but not internal cross-functional relationships, or the procedures and systems employed. 
D)  influences internal cross-functional relationships, and the procedures and systems employed, but not supply processes. 
E)  influences the procedures and systems employed, but not supply processes or internal cross-functional relationships. 
A)  has little influence on supply processes, internal cross-functional relationships, or the procedures and systems employed. 
B)  influences supply processes, internal cross-functional relationships, and the procedures and systems employed. 
C)  influences supply processes, but not internal cross-functional relationships, or the procedures and systems employed. 
D)  influences internal cross-functional relationships, and the procedures and systems employed, but not supply processes. 
E)  influences the procedures and systems employed, but not supply processes or internal cross-functional relationships. B

Question 3

Supply's contribution to the organization's competitive position depends on its ability to:

Accepted Answer

A)  reduce costs. 
B)  enhance revenues. 
C)  manage assets. 
D)  a and c 
E)  a, b and c 
A)  reduce costs. 
B)  enhance revenues. 
C)  manage assets. 
D)  a and c 
E)  a, b and c E

Question 4

Organizations commit resources to cross-functional team development to:

Accepted Answer

A)  give internal users ownership of tasks and problems. 
B)  achieve time, quality, or cost-reduction targets 
C)  promote diversity in the workplace. 
D)  give supply ownership of tasks and problems. 
E)  cross-train employees in case of downsizing. 
A)  give internal users ownership of tasks and problems. 
B)  achieve time, quality, or cost-reduction targets 
C)  promote diversity in the workplace. 
D)  give supply ownership of tasks and problems. 
E)  cross-train employees in case of downsizing.

Question 5

Supply should obtain needed goods and services at the lowest total cost of ownership meaning that other cost factors-such as quality levels, after-sales service, warranties, inventory and spare parts requirements, and downtime-must be considered even though in the long term these factors seldom have a cost impact greater than the original purchase price.

Accepted Answer

A) True 
 B)False

Question 6

A change in how supply is organized and structured is the result of:

Accepted Answer

A)  the changing preference of the Chief Purchasing Officer. 
B)  an assessment of the best purchasing structure given the supply base. 
C)  a change in the overall corporate organizational structure. 
D)  a determination of the easiest change to manage internally. 
E)  a consensus among the supply management professionals in the company. 
A)  the changing preference of the Chief Purchasing Officer. 
B)  an assessment of the best purchasing structure given the supply base. 
C)  a change in the overall corporate organizational structure. 
D)  a determination of the easiest change to manage internally. 
E)  a consensus among the supply management professionals in the company.

Question 7

The degree of centralization is reflected by the number of supply professionals working throughout all functional areas of the organization.

Accepted Answer

A) True 
 B)False

Question 8

Hybrid supply structures typically:

Accepted Answer

A)  amplify the disadvantages of centralization. 
B)  amplify the advantages of decentralization. 
C)  capture the benefits of both centralized and decentralized structures. 
D)  are used in small to medium-sized organizations. 
E)  are used in service organizations of all sizes. 
A)  amplify the disadvantages of centralization. 
B)  amplify the advantages of decentralization. 
C)  capture the benefits of both centralized and decentralized structures. 
D)  are used in small to medium-sized organizations. 
E)  are used in service organizations of all sizes.

Question 9

Which factors have a major influence on supply's level in the organization: a) the ratio of purchased material and services costs as a percentage of total costs or income. b) the size of the supply base. c) the nature of the products or services acquired. d) the extent to which supply and suppliers can provide competitive advantage. e) the credentials of the existing supply personnel.

Accepted Answer

A)  a and b 
B)  c and d 
C)  d and e 
D)  a, c and d 
E)  a, d and e 
A)  a and b 
B)  c and d 
C)  d and e 
D)  a, c and d 
E)  a, d and e

Question 10

Products, services and processes can be standardized and, if done effectively, will lower total cost of ownership.

Accepted Answer

A) True 
 B)False

Question 11

In a decentralized purchasing structure, those tasks which are more effectively handled at the business unit level include establishing policies, procedures, controls, and systems.

Accepted Answer

A) True 
 B)False

Question 12

Close to 70 percent of the value of any given requirement is established when needs are recognized and described. Therefore, the following functions should work together during need recognition and description:

Accepted Answer

A)  the primary user and specifier. 
B)  the primary user and supply. 
C)  the primary user, design engineering and supply. 
D)  the primary user, design engineering, supply and accounting. 
E)  the primary user, design engineering, supply and all other relevant functional areas such as accounting/finance, marketing and operations. 
A)  the primary user and specifier. 
B)  the primary user and supply. 
C)  the primary user, design engineering and supply. 
D)  the primary user, design engineering, supply and accounting. 
E)  the primary user, design engineering, supply and all other relevant functional areas such as accounting/finance, marketing and operations.

Question 13

A purchasing consortium:

Accepted Answer

A)  speeds up the purchasing process, but does not usually result in price concessions from suppliers. 
B)  consists of two or more independent organizations that combine requirements for materials, services and capital goods to gain better pricing, service and technology from suppliers. 
C)  results in price concessions from suppliers, but usually does not speed up the purchasing process. 
D)  consists of two or more divisions of the same organization that combine requirements for materials, services and capital goods to gain better pricing, service and technology from suppliers. 
E)  is a form of collaborative purchasing used only by the public sector to deliver a wider range of services at a lower total cost. 
A)  speeds up the purchasing process, but does not usually result in price concessions from suppliers. 
B)  consists of two or more independent organizations that combine requirements for materials, services and capital goods to gain better pricing, service and technology from suppliers. 
C)  results in price concessions from suppliers, but usually does not speed up the purchasing process. 
D)  consists of two or more divisions of the same organization that combine requirements for materials, services and capital goods to gain better pricing, service and technology from suppliers. 
E)  is a form of collaborative purchasing used only by the public sector to deliver a wider range of services at a lower total cost.

Question 14

Supply can provide an uninterrupted flow of materials, supplies and services by:

Accepted Answer

A)  holding large inventories. 
B)  holding small inventories. 
C)  standardizing capital equipment, materials, MRO and services. 
D)  b and c 
E)  a and c 
A)  holding large inventories. 
B)  holding small inventories. 
C)  standardizing capital equipment, materials, MRO and services. 
D)  b and c 
E)  a and c

Question 15

Some of the disadvantages of decentralization are narrow specialization and job boredom, lack of job flexibility, and a tendency to minimize legitimate differences in requirements.

Accepted Answer

A) True 
 B)False

Question 16

The supply process and structure for managing indirect spend is typically different than that for managing direct spend.

Accepted Answer

A) True 
 B)False

Question 17

There is an inherent conflict between supply's objective to provide an uninterrupted flow of materials, supplies and services required to operate the organization and the objective to keep inventory investment and loss at a minimum.

Accepted Answer

A) True 
 B)False

Question 18

Decentralization refers to a supply organization that is physically located at corporate headquarters from which all organizational spending decisions are made.

Accepted Answer

A) True 
 B)False

Question 19

Eliminating process inefficiencies is the best way to accomplish supply objectives at the lowest total operating costs.

Accepted Answer

A) True 
 B)False

Specialization within the supply function:

The organizational structure centralized, decentralized, or hybrid) of the supply function:

Supply's contribution to the organization's competitive position depends on its ability to:

Organizations commit resources to cross-functional team development to:

A change in how supply is organized and structured is the result of:

The degree of centralization is reflected by the number of supply professionals working throughout all functional areas of the organization.

Hybrid supply structures typically:

Products, services and processes can be standardized and, if done effectively, will lower total cost of ownership.

In a decentralized purchasing structure, those tasks which are more effectively handled at the business unit level include establishing policies, procedures, controls, and systems.

Close to 70 percent of the value of any given requirement is established when needs are recognized and described. Therefore, the following functions should work together during need recognition and description:

A purchasing consortium:

Supply can provide an uninterrupted flow of materials, supplies and services by:

Some of the disadvantages of decentralization are narrow specialization and job boredom, lack of job flexibility, and a tendency to minimize legitimate differences in requirements.

The supply process and structure for managing indirect spend is typically different than that for managing direct spend.

There is an inherent conflict between supply's objective to provide an uninterrupted flow of materials, supplies and services required to operate the organization and the objective to keep inventory investment and loss at a minimum.

Decentralization refers to a supply organization that is physically located at corporate headquarters from which all organizational spending decisions are made.

Eliminating process inefficiencies is the best way to accomplish supply objectives at the lowest total operating costs.

Purchasing and Supply Management

Supply Strategy

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

Other Supply Responsibilities

Supply Function Evaluation and Trends

Filters

Exam 3: Supply Organization

Specialization within the supply function:

The organizational structure centralized, decentralized, or hybrid) of the supply function:

Supply's contribution to the organization's competitive position depends on its ability to:

Organizations commit resources to cross-functional team development to:

A change in how supply is organized and structured is the result of:

The degree of centralization is reflected by the number of supply professionals working throughout all functional areas of the organization.

Hybrid supply structures typically:

Products, services and processes can be standardized and, if done effectively, will lower total cost of ownership.

In a decentralized purchasing structure, those tasks which are more effectively handled at the business unit level include establishing policies, procedures, controls, and systems.

Close to 70 percent of the value of any given requirement is established when needs are recognized and described. Therefore, the following functions should work together during need recognition and description:

A purchasing consortium:

Supply can provide an uninterrupted flow of materials, supplies and services by:

Some of the disadvantages of decentralization are narrow specialization and job boredom, lack of job flexibility, and a tendency to minimize legitimate differences in requirements.

The supply process and structure for managing indirect spend is typically different than that for managing direct spend.

There is an inherent conflict between supply's objective to provide an uninterrupted flow of materials, supplies and services required to operate the organization and the objective to keep inventory investment and loss at a minimum.

Decentralization refers to a supply organization that is physically located at corporate headquarters from which all organizational spending decisions are made.

Eliminating process inefficiencies is the best way to accomplish supply objectives at the lowest total operating costs.

Purchasing and Supply Management

Supply Strategy

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

Other Supply Responsibilities

Supply Function Evaluation and Trends

Filters