Question 1

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. C

Question 2

Triple bottom line reporting refers to an organization's social, environmental, and political performance.

Accepted Answer

A) True 
 B)False  False

Question 3

Supply metrics can be grouped into two broad categories: efficiency and effectiveness.

Accepted Answer

A) True 
 B)False  True

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

The goal of research on purchased materials, products or services is to:

Accepted Answer

A)  rationalize the supply base by thoroughly reviewing all sources. 
B)  increase competitiveness by redesigning, standardizing or substituting. 
C)  reduce price by reviewing past predictions and variances from actual prices. 
D)  analyze volume trends over time compared to forecasted availability. 
E)  assess performance of the commodity manager to make internal improvements. 
A)  rationalize the supply base by thoroughly reviewing all sources. 
B)  increase competitiveness by redesigning, standardizing or substituting. 
C)  reduce price by reviewing past predictions and variances from actual prices. 
D)  analyze volume trends over time compared to forecasted availability. 
E)  assess performance of the commodity manager to make internal improvements.

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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 8

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 9

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 10

Supply management's role in sustainability initiatives includes:

Accepted Answer

A)  substituting renewable energy for carbon-based energy. 
B)  accountability for the social practices of their suppliers, including worker safety, payment of living wages, and child labor. 
C)  eliminating waste anywhere in the supply chain. 
D)  setting clear standards for suppliers related to social conditions in their plants and subcontracting facilities. 
E)  substituting renewable energy for carbon-based energy, accountability for the social practices of their suppliers, including worker safety, payment of living wages, and child labor, eliminating waste anywhere in the supply chain and setting clear standards for suppliers related to social conditions in their plants and subcontracting facilities. 
A)  substituting renewable energy for carbon-based energy. 
B)  accountability for the social practices of their suppliers, including worker safety, payment of living wages, and child labor. 
C)  eliminating waste anywhere in the supply chain. 
D)  setting clear standards for suppliers related to social conditions in their plants and subcontracting facilities. 
E)  substituting renewable energy for carbon-based energy, accountability for the social practices of their suppliers, including worker safety, payment of living wages, and child labor, eliminating waste anywhere in the supply chain and setting clear standards for suppliers related to social conditions in their plants and subcontracting facilities.

Question 11

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 12

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.

Question 13

Supply availability is the most common criterion used to decide where organizations direct their supply research efforts.

Accepted Answer

A) True 
 B)False

Question 14

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 15

An example of an effectiveness-oriented metric of supply management performance:

Accepted Answer

A)  measures direct and indirect contributions to final customer satisfaction. 
B)  calculates operating cost as a percentage of total dollar volume of purchases. 
C)  calculates the average dollar cost of a purchase order. 
D)  calculates operating cost as a percentage of sales. 
E)  measures price reductions from the previous contract. 
A)  measures direct and indirect contributions to final customer satisfaction. 
B)  calculates operating cost as a percentage of total dollar volume of purchases. 
C)  calculates the average dollar cost of a purchase order. 
D)  calculates operating cost as a percentage of sales. 
E)  measures price reductions from the previous contract.

Question 16

The principle(s) underlying blockchain technology include:

Accepted Answer

A)  a distributed database. 
B)  peer-to-peer transmission. 
C)  transparency with pseudonymity. 
D)  irreversibility of records. 
E)  a distributed database, peer-to-peer transmission, transparency with pseudonymity and irreversibility of records. 
A)  a distributed database. 
B)  peer-to-peer transmission. 
C)  transparency with pseudonymity. 
D)  irreversibility of records. 
E)  a distributed database, peer-to-peer transmission, transparency with pseudonymity and irreversibility of records.

Question 17

Supplier performance management systems should be designed to capture and communicate supplier performance data to improve future performance and future decisions.

Accepted Answer

A) True 
 B)False

Question 18

Performance benchmarking measures how an organization achieves results.

Accepted Answer

A) True 
 B)False

Question 19

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 20

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

Accepted Answer

A) True 
 B)False

Social sustainability issues in supply management include:

Triple bottom line reporting refers to an organization's social, environmental, and political performance.

Supply metrics can be grouped into two broad categories: efficiency and effectiveness.

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

The goal of research on purchased materials, products or services is to:

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

Measurement challenges for internal validation of supply savings include:

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

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

Supply management's role in sustainability initiatives includes:

Purchasing process benchmarking attempts to:

Research on the supply management process focuses on:

Supply availability is the most common criterion used to decide where organizations direct their supply research efforts.

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

An example of an effectiveness-oriented metric of supply management performance:

The principle(s) underlying blockchain technology include:

Supplier performance management systems should be designed to capture and communicate supplier performance data to improve future performance and future decisions.

Performance benchmarking measures how an organization achieves results.

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.

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

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

Social sustainability issues in supply management include:

Triple bottom line reporting refers to an organization's social, environmental, and political performance.

Supply metrics can be grouped into two broad categories: efficiency and effectiveness.

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

The goal of research on purchased materials, products or services is to:

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

Measurement challenges for internal validation of supply savings include:

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

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

Supply management's role in sustainability initiatives includes:

Purchasing process benchmarking attempts to:

Research on the supply management process focuses on:

Supply availability is the most common criterion used to decide where organizations direct their supply research efforts.

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

An example of an effectiveness-oriented metric of supply management performance:

The principle(s) underlying blockchain technology include:

Supplier performance management systems should be designed to capture and communicate supplier performance data to improve future performance and future decisions.

Performance benchmarking measures how an organization achieves results.

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.

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

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