Question 1

Supply strategies that are based on changes in demand and supply are known as:

Accepted Answer

A)  risk-management strategies. 
B)  assurance-of-supply strategies. 
C)  cost-reduction strategies. 
D)  environmental-change strategies. 
E)  supply chain support strategies. 
A)  risk-management strategies. 
B)  assurance-of-supply strategies. 
C)  cost-reduction strategies. 
D)  environmental-change strategies. 
E)  supply chain support strategies. B

Question 2

The three levels of strategic planning are: function, unit, and corporate.

Accepted Answer

A) True 
 B)False  True

Question 3

An effective supply strategy primarily focuses on linking:

Accepted Answer

A)  current needs to current markets. 
B)  future needs to future markets. 
C)  current needs to future markets. 
D)  future needs to current markets. 
E)  current and future needs to current and future markets. 
A)  current needs to current markets. 
B)  future needs to future markets. 
C)  current needs to future markets. 
D)  future needs to current markets. 
E)  current and future needs to current and future markets. E

Question 4

Assurance-of-supply strategies emphasize quality over all other considerations.

Accepted Answer

A) True 
 B)False

Question 5

Seldom do the actions of supply managers impact the organization's reputation either positively or negatively.

Accepted Answer

A) True 
 B)False

Question 6

There is a growing emphasis on strategic supply management processes and less on purchase transactions.

Accepted Answer

A) True 
 B)False

Question 7

Risks in the supply chain can be classified into three main categories: 1) operational, 2) financial, and 3) strategic.

Accepted Answer

A) True 
 B)False

Question 8

Supply managers may be able to provide information to identify risks to the organization and they can develop strategies to mitigate those risks.

Accepted Answer

A) True 
 B)False

Question 9

Organizational objectives and supply objectives typically are expressed:

Accepted Answer

A)  differently, making it difficult to translate organizational objectives into supply objectives. 
B)  differently, providing the supply manager multiple opportunities to tap into organizational resources. 
C)  the same survival, growth, financial, and environmental), making it easy to translate organizational objectives into supply objectives. 
D)  the same factors quality, quantity, price, delivery and service), but long-term at the organizational level and short-term at the supply level. 
E)  in ways that are very specific to the organization, making it difficult to convey objectives to suppliers. 
A)  differently, making it difficult to translate organizational objectives into supply objectives. 
B)  differently, providing the supply manager multiple opportunities to tap into organizational resources. 
C)  the same survival, growth, financial, and environmental), making it easy to translate organizational objectives into supply objectives. 
D)  the same factors quality, quantity, price, delivery and service), but long-term at the organizational level and short-term at the supply level. 
E)  in ways that are very specific to the organization, making it difficult to convey objectives to suppliers.

Question 10

To effectively manage supply risks, the supply manager must:

Accepted Answer

A)  inform the corporate risk officer of a potential risk, await instructions, and implement the directive. 
B)  seek input from senior executives in other functional areas, propose a risk mitigation plan, and await instructions from senior management. 
C)  identify and classify risks, assess the potential impact, and develop a risk mitigation strategy. 
D)  review the commodity strategy, revise it as needed, and implement the strategy revision. 
E)  confer with the organization's management consultant, provide all requested data, and implement the consultant's plan. 
A)  inform the corporate risk officer of a potential risk, await instructions, and implement the directive. 
B)  seek input from senior executives in other functional areas, propose a risk mitigation plan, and await instructions from senior management. 
C)  identify and classify risks, assess the potential impact, and develop a risk mitigation strategy. 
D)  review the commodity strategy, revise it as needed, and implement the strategy revision. 
E)  confer with the organization's management consultant, provide all requested data, and implement the consultant's plan.

Question 11

Even if a supply manager identifies and eliminates the causes of uncertainty and risk in the supply chain, the organization may still need to carry the same amount of inventory.

Accepted Answer

A) True 
 B)False

Question 12

The most fundamental question facing an organization is whether to make or buy.

Accepted Answer

A) True 
 B)False

Question 13

The key question in strategic supply management is:

Accepted Answer

A)  How can supply strategy be kept separate from and equal to organizational strategy? 
B)  How can first tier suppliers contribute to the buying organization's objectives and strategy? 
C)  How can first, second, third- and subsequent tiers of suppliers contribute to the buying organization's objectives and strategy? 
D)  How can the supply manager develop a network of suppliers that contribute to the buying organization's strategies and goals? 
E)  How can supply and the supply chain contribute effectively to organizational objectives and strategy? 
A)  How can supply strategy be kept separate from and equal to organizational strategy? 
B)  How can first tier suppliers contribute to the buying organization's objectives and strategy? 
C)  How can first, second, third- and subsequent tiers of suppliers contribute to the buying organization's objectives and strategy? 
D)  How can the supply manager develop a network of suppliers that contribute to the buying organization's strategies and goals? 
E)  How can supply and the supply chain contribute effectively to organizational objectives and strategy?

Question 14

Strategic planning can be defined as:

Accepted Answer

A)  how each functional area will achieve its specific goals and objectives. 
B)  a procedure for allocating resources to appropriate functions in the organization. 
C)  taking big risks to maximize current period benefits. 
D)  an action plan to achieve specific long-term goals and objectives. 
E)  an action plan to achieve specific operational and tactical goals. 
A)  how each functional area will achieve its specific goals and objectives. 
B)  a procedure for allocating resources to appropriate functions in the organization. 
C)  taking big risks to maximize current period benefits. 
D)  an action plan to achieve specific long-term goals and objectives. 
E)  an action plan to achieve specific operational and tactical goals.

Question 15

Linking supply strategy to corporate strategy is:

Accepted Answer

A)  essential only in manufacturing, and most have the mechanisms to link them.. 
B)  essential only in the service sector, and most lack the mechanisms to link them. 
C)  essential in all organizations, and most have the mechanisms to link them. 
D)  essential in all organizations, and many lack the mechanisms to link them. 
E)  non-essential in most types of organizations. 
A)  essential only in manufacturing, and most have the mechanisms to link them.. 
B)  essential only in the service sector, and most lack the mechanisms to link them. 
C)  essential in all organizations, and most have the mechanisms to link them. 
D)  essential in all organizations, and many lack the mechanisms to link them. 
E)  non-essential in most types of organizations.

Question 16

Environmental-change strategies are designed to anticipate and recognize shifts in the natural world that affect supply availability.

Accepted Answer

A) True 
 B)False

Question 17

Three major challenges exist when setting supply objectives and strategies:

Accepted Answer

A)  adopting efficient electronic transaction systems, designing effective strategic supply processes, and increasing internal compliance with both. 
B)  effectively interpreting corporate and supply objectives, selecting appropriate actions to achieve objectives, and integrating supply information into organizational strategies. 
C)  hiring professionals educated specifically in supply management, providing them with technical expertise, and developing leadership skills for the long-term. 
D)  emphasizing strategic cost management, involving key suppliers early in the process, and measuring the reduction in total cost of ownership. 
E)  identifying internal stakeholders, building consensus among these stakeholders, and selling top management on the results. 
A)  adopting efficient electronic transaction systems, designing effective strategic supply processes, and increasing internal compliance with both. 
B)  effectively interpreting corporate and supply objectives, selecting appropriate actions to achieve objectives, and integrating supply information into organizational strategies. 
C)  hiring professionals educated specifically in supply management, providing them with technical expertise, and developing leadership skills for the long-term. 
D)  emphasizing strategic cost management, involving key suppliers early in the process, and measuring the reduction in total cost of ownership. 
E)  identifying internal stakeholders, building consensus among these stakeholders, and selling top management on the results.

Question 18

A corporate risk management group headed by a chief risk officer has emerged in many organizations to assess total risk exposure and develop strategies to best manage all risks.

Accepted Answer

A) True 
 B)False

Question 19

Which one of the following is NOT one of the six major supply strategy areas:

Accepted Answer

A)  competitive-edge strategies. 
B)  environmental-change strategies. 
C)  new-product design strategies. 
D)  risk-management strategies. 
E)  cost-reduction strategies. 
A)  competitive-edge strategies. 
B)  environmental-change strategies. 
C)  new-product design strategies. 
D)  risk-management strategies. 
E)  cost-reduction strategies.

Supply strategies that are based on changes in demand and supply are known as:

The three levels of strategic planning are: function, unit, and corporate.

An effective supply strategy primarily focuses on linking:

Assurance-of-supply strategies emphasize quality over all other considerations.

Seldom do the actions of supply managers impact the organization's reputation either positively or negatively.

There is a growing emphasis on strategic supply management processes and less on purchase transactions.

Risks in the supply chain can be classified into three main categories: 1) operational, 2) financial, and 3) strategic.

Supply managers may be able to provide information to identify risks to the organization and they can develop strategies to mitigate those risks.

Organizational objectives and supply objectives typically are expressed:

To effectively manage supply risks, the supply manager must:

Even if a supply manager identifies and eliminates the causes of uncertainty and risk in the supply chain, the organization may still need to carry the same amount of inventory.

The most fundamental question facing an organization is whether to make or buy.

The key question in strategic supply management is:

Strategic planning can be defined as:

Linking supply strategy to corporate strategy is:

Environmental-change strategies are designed to anticipate and recognize shifts in the natural world that affect supply availability.

Three major challenges exist when setting supply objectives and strategies:

A corporate risk management group headed by a chief risk officer has emerged in many organizations to assess total risk exposure and develop strategies to best manage all risks.

Which one of the following is NOT one of the six major supply strategy areas:

Purchasing and Supply Management

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

Other Supply Responsibilities

Supply Function Evaluation and Trends

Filters

Exam 2: Supply Strategy

Supply strategies that are based on changes in demand and supply are known as:

The three levels of strategic planning are: function, unit, and corporate.

An effective supply strategy primarily focuses on linking:

Assurance-of-supply strategies emphasize quality over all other considerations.

Seldom do the actions of supply managers impact the organization's reputation either positively or negatively.

There is a growing emphasis on strategic supply management processes and less on purchase transactions.

Risks in the supply chain can be classified into three main categories: 1) operational, 2) financial, and 3) strategic.

Supply managers may be able to provide information to identify risks to the organization and they can develop strategies to mitigate those risks.

Organizational objectives and supply objectives typically are expressed:

To effectively manage supply risks, the supply manager must:

Even if a supply manager identifies and eliminates the causes of uncertainty and risk in the supply chain, the organization may still need to carry the same amount of inventory.

The most fundamental question facing an organization is whether to make or buy.

The key question in strategic supply management is:

Strategic planning can be defined as:

Linking supply strategy to corporate strategy is:

Environmental-change strategies are designed to anticipate and recognize shifts in the natural world that affect supply availability.

Three major challenges exist when setting supply objectives and strategies:

A corporate risk management group headed by a chief risk officer has emerged in many organizations to assess total risk exposure and develop strategies to best manage all risks.

Which one of the following is NOT one of the six major supply strategy areas:

Purchasing and Supply Management

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

Other Supply Responsibilities

Supply Function Evaluation and Trends

Filters