Question 1

Firms often engage in supply base rationalization. What is the advantage of engaging in this technique?

Accepted Answer

Rationalization fosters buyer-supplier relationships, with the objective to increase performance and value of suppliers. This occurs by reducing the number of suppliers to focus on top-performing ones.

Question 2

A strategic-alliance-based approach to controlling inventory and reducing costs is referred to as VMI.

Accepted Answer

A) True 
 B)False  True

Question 3

Disposal cost is what type of total cost of ownership cash flow?

Accepted Answer

A)  Acquisition 
B)  Ownership 
C)  End of life 
D)  Disposal cost is not a type of total cost of ownership cash flow 
A)  Acquisition 
B)  Ownership 
C)  End of life 
D)  Disposal cost is not a type of total cost of ownership cash flow C

Question 4

If no suppliers are available, this is an example of what reason for producing in-house?

Accepted Answer

A)  No competent supplier 
B)  Better quality control 
C)  Use of idle capacity 
D)  Protect proprietary technologies 
A)  No competent supplier 
B)  Better quality control 
C)  Use of idle capacity 
D)  Protect proprietary technologies

Question 5

Exchanging goods or services for goods and services and also possibly foreign currency is an example of a countertrade.

Accepted Answer

A) True 
 B)False

Question 6

A strategic-alliance-based approach to controlling inventory and reducing costs is _______.

Accepted Answer

A)  VMI 
B)  VPI 
C)  VIM 
D)  VIP 
A)  VMI 
B)  VPI 
C)  VIM 
D)  VIP

Question 7

The primary trade agreement affecting the United States, Canada, and Mexico is _______.

Accepted Answer

A)  NAFTA 
B)  EU 
C)  COMESA 
D)  ASEAN 
A)  NAFTA 
B)  EU 
C)  COMESA 
D)  ASEAN

Question 8

A supplier scorecard may include the following EXCEPT this:

Accepted Answer

A)  Product and service quality 
B)  Marketing efforts 
C)  Total cost performance 
D)  Customer service and support 
A)  Product and service quality 
B)  Marketing efforts 
C)  Total cost performance 
D)  Customer service and support

Question 9

In the purchasing cycle, how many steps are involved with preparing for the acquisition of goods and services?

Accepted Answer

A)  1 
B)  3 
C)  4 
D)  6 
A)  1 
B)  3 
C)  4 
D)  6

Question 10

The fifth step in the purchasing cycle is

Accepted Answer

A)  Developing the sourcing strategy 
B)  Soliciting and evaluating bids 
C)  Notifying the selected supplier and implementing the contract 
D)  Collecting supplier information 
A)  Developing the sourcing strategy 
B)  Soliciting and evaluating bids 
C)  Notifying the selected supplier and implementing the contract 
D)  Collecting supplier information

Question 11

Evaluating a firm based on their product and service quality and other factors may involve the use of a _______..

Accepted Answer

A)  supplier evaluation form 
B)  supplier worksheet 
C)  supplier scorecard 
D)  supplier nomination 
A)  supplier evaluation form 
B)  supplier worksheet 
C)  supplier scorecard 
D)  supplier nomination

Question 12

An employee hired to ensure that resources are properly positioned within an organization is likely performing which function?

Accepted Answer

A)  Supply management 
B)  Procurement 
C)  Sourcing 
D)  Purchasing 
A)  Supply management 
B)  Procurement 
C)  Sourcing 
D)  Purchasing

Question 13

Decreasing purchases from marginal or poor-performing suppliers while increasing purchases from more desirable, top-performing suppliers is referred to as _______.

Accepted Answer

supply base rational

Question 14

SRM refers to _______.

Accepted Answer

A)  supplier recurrence management 
B)  supplier renovation management 
C)  supplier relationship management 
D)  supplier returns management 
A)  supplier recurrence management 
B)  supplier renovation management 
C)  supplier relationship management 
D)  supplier returns management

Question 15

Which of the following is a formal request for pricing, services, and plans?

Accepted Answer

A)  RFI 
B)  RFP 
C)  IFB 
D)  Verbal quotes 
A)  RFI 
B)  RFP 
C)  IFB 
D)  Verbal quotes

Question 16

Which of the following is used when purchasing specifications can be clearly stated (for relatively small purchases)?

Accepted Answer

A)  RFI 
B)  RFQ 
C)  IFB 
D)  Verbal quotes 
A)  RFI 
B)  RFQ 
C)  IFB 
D)  Verbal quotes

Question 17

An alternative name for insourcing is _______.

Accepted Answer

A)  clearsourcing 
B)  nearsourcing 
C)  frontsourcing 
D)  backsourcing 
A)  clearsourcing 
B)  nearsourcing 
C)  frontsourcing 
D)  backsourcing

Question 18

Using internal resources to make goods and services that were previously outsourced is referred to as _______.

Accepted Answer

A)  crowdsourcing 
B)  insourcing 
C)  offshoring 
D)  inshoring 
A)  crowdsourcing 
B)  insourcing 
C)  offshoring 
D)  inshoring

Question 19

A manager that is able to reduce a company's purchasing costs by 10% is likely practicing which function?

Accepted Answer

A)  Yield management 
B)  Cross-function management 
C)  Spend management 
D)  Revenue management 
A)  Yield management 
B)  Cross-function management 
C)  Spend management 
D)  Revenue management

Question 20

A supplier might need to receive what before being allowed to quote prices or receive an order from a firm?

Accepted Answer

A)  Purchaser qualification 
B)  Supply requisitions 
C)  Procurement permissions 
D)  Supplier certification 
A)  Purchaser qualification 
B)  Supply requisitions 
C)  Procurement permissions 
D)  Supplier certification

Firms often engage in supply base rationalization. What is the advantage of engaging in this technique?

A strategic-alliance-based approach to controlling inventory and reducing costs is referred to as VMI.

Disposal cost is what type of total cost of ownership cash flow?

If no suppliers are available, this is an example of what reason for producing in-house?

Exchanging goods or services for goods and services and also possibly foreign currency is an example of a countertrade.

A strategic-alliance-based approach to controlling inventory and reducing costs is _______.

The primary trade agreement affecting the United States, Canada, and Mexico is _______.

A supplier scorecard may include the following EXCEPT this:

In the purchasing cycle, how many steps are involved with preparing for the acquisition of goods and services?

The fifth step in the purchasing cycle is

Evaluating a firm based on their product and service quality and other factors may involve the use of a _______..

An employee hired to ensure that resources are properly positioned within an organization is likely performing which function?

Decreasing purchases from marginal or poor-performing suppliers while increasing purchases from more desirable, top-performing suppliers is referred to as _______.

SRM refers to _______.

Which of the following is a formal request for pricing, services, and plans?

Which of the following is used when purchasing specifications can be clearly stated (for relatively small purchases)?

An alternative name for insourcing is _______.

Using internal resources to make goods and services that were previously outsourced is referred to as _______.

A manager that is able to reduce a company's purchasing costs by 10% is likely practicing which function?

A supplier might need to receive what before being allowed to quote prices or receive an order from a firm?

Operations Management, Processes, and Supply Chain Management

Corporate Strategy, Performance, and Sustainability

Product Design and Development

Process Design and Capacity Management

Customer Relationships and Customer Service

Demand Management, Forecasting, and Aggregate Planning

Independent Demand Inventory Management

Material Flow Analysis and Facility Layouts

Supplement: Job Scheduling and Vehicle Routing

Lean Systems

Managing Customer and Work Flows

Managing Information Flowsmrp and Erp

Managing Projects

Six Sigma Quality Management

Supplement: Statistical Quality Control

Location, Logistics, and Product Returns

Integrating Processes Along the Supply Chain

Filters

Exam 14: Global Supply Management

Firms often engage in supply base rationalization. What is the advantage of engaging in this technique?

A strategic-alliance-based approach to controlling inventory and reducing costs is referred to as VMI.

Disposal cost is what type of total cost of ownership cash flow?

If no suppliers are available, this is an example of what reason for producing in-house?

Exchanging goods or services for goods and services and also possibly foreign currency is an example of a countertrade.

A strategic-alliance-based approach to controlling inventory and reducing costs is _______.

The primary trade agreement affecting the United States, Canada, and Mexico is _______.

A supplier scorecard may include the following EXCEPT this:

In the purchasing cycle, how many steps are involved with preparing for the acquisition of goods and services?

The fifth step in the purchasing cycle is

Evaluating a firm based on their product and service quality and other factors may involve the use of a _______..

An employee hired to ensure that resources are properly positioned within an organization is likely performing which function?

Decreasing purchases from marginal or poor-performing suppliers while increasing purchases from more desirable, top-performing suppliers is referred to as _______.

SRM refers to _______.

Which of the following is a formal request for pricing, services, and plans?

Which of the following is used when purchasing specifications can be clearly stated (for relatively small purchases)?

An alternative name for insourcing is _______.

Using internal resources to make goods and services that were previously outsourced is referred to as _______.

A manager that is able to reduce a company's purchasing costs by 10% is likely practicing which function?

A supplier might need to receive what before being allowed to quote prices or receive an order from a firm?

Operations Management, Processes, and Supply Chain Management

Corporate Strategy, Performance, and Sustainability

Product Design and Development

Process Design and Capacity Management

Customer Relationships and Customer Service

Demand Management, Forecasting, and Aggregate Planning

Independent Demand Inventory Management

Material Flow Analysis and Facility Layouts

Supplement: Job Scheduling and Vehicle Routing

Lean Systems

Managing Customer and Work Flows

Managing Information Flowsmrp and Erp

Managing Projects

Six Sigma Quality Management

Supplement: Statistical Quality Control

Location, Logistics, and Product Returns

Integrating Processes Along the Supply Chain

Filters