Question 1

There are numerous advantages when firms utilize fewer suppliers. Which of the following items would not be one of those advantages?

Accepted Answer

A)  Economies of scale. 
B)  Less regulatory oversight by governmental authorities. 
C)  Lower rates because of higher volumes. 
D)  Service level improvements. 
E)  Symbiotic relationships with just a few suppliers. 
A)  Economies of scale. 
B)  Less regulatory oversight by governmental authorities. 
C)  Lower rates because of higher volumes. 
D)  Service level improvements. 
E)  Symbiotic relationships with just a few suppliers.

Question 2

There are many types of e-sourcing. Web portals which offer an online store for buyers and suppliers to conduct transactions would be called:

Accepted Answer

A)  e-RFX 
B)  Electronic marketplaces. 
C)  Reverse auctions. 
D)  RTP applications. 
E)  Supplier catalogue sites. 
A)  e-RFX 
B)  Electronic marketplaces. 
C)  Reverse auctions. 
D)  RTP applications. 
E)  Supplier catalogue sites.

Question 3

Cost savings in procurement can occur from a lower cost for the item being procured, reductions in freight or warehousing costs, or greater efficiencies in the various aspects of purchasing and procurement.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following activities would be typically performed by a purchasing executive?

Accepted Answer

A)  Actual buying of materials 
B)  Receiving inbound materials 
C)  Reverse logistics 
D)  Traffic 
E)  Warehousing 
A)  Actual buying of materials 
B)  Receiving inbound materials 
C)  Reverse logistics 
D)  Traffic 
E)  Warehousing

Question 5

While many functions and processes are part of SCM, ultimate success begins with being able to optimize the sourcing activity.

Accepted Answer

A) True 
 B)False

Question 6

In an examination of the technologies employed in procurement, Deloitte Development LLC identified a number of mature and emerging technologies. Which of the following would be considered a mature technology

Accepted Answer

A)  Blockchain. 
B)  Crowdsourcing. 
C)  Cyber tracking. 
D)  Spatial analytics. 
E)  Virtual reality. 
A)  Blockchain. 
B)  Crowdsourcing. 
C)  Cyber tracking. 
D)  Spatial analytics. 
E)  Virtual reality.

Question 7

Blockchain is a cryptologic data structure that uses a trusted peer-to-peer network to create digital transaction ledgers which can verify and validate transactions.

Accepted Answer

A) True 
 B)False

Question 8

When supply routes become longer, suppliers located globally and shipping items longer distances, minimizing order cycle variability becomes more difficult.

Accepted Answer

A) True 
 B)False

Question 9

__________ spends more than US $30 billion annually for materials and has consolidated procurement across their multiple divisions. The firm has achieved a "top 10" ranking by Bloomberg Business Week in their annual listing of the most innovative companies in the world.

Accepted Answer

A)  Dell Computer 
B)  Ikea 
C)  LG Electronics 
D)  Monsanto 
E)  Procter and Gamble 
A)  Dell Computer 
B)  Ikea 
C)  LG Electronics 
D)  Monsanto 
E)  Procter and Gamble

Question 10

The use of core carriers and suppliers can provide many benefits to procurement organizations. However, when supply chain disruptions occur, significant problems can arise because the organization has few or no options available to them in the short term if their core carrier or supplier cannot perform their commitments.

Accepted Answer

A) True 
 B)False

Question 11

Sourcing savings from supply chain management efforts are usually over-reported by companies.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following would not be an example of a best practice metric in supplier or vendor collaboration?

Accepted Answer

A)  A performance management program has been developed with input from the suppliers. 
B)  Onsite supplier representatives are fully integrated into supply chain activities. 
C)  There is partnering with internal and external suppliers to increase replenishment speed and efficiency. 
D)  Supplier ratings are extended to include suppliers' collaborative ability and the dollar value or competitive advantage delivered by jointly executed improvement plans. 
E)  The supplier financial condition is monitored on a regular basis as a specific duty of procurement. 
A)  A performance management program has been developed with input from the suppliers. 
B)  Onsite supplier representatives are fully integrated into supply chain activities. 
C)  There is partnering with internal and external suppliers to increase replenishment speed and efficiency. 
D)  Supplier ratings are extended to include suppliers' collaborative ability and the dollar value or competitive advantage delivered by jointly executed improvement plans. 
E)  The supplier financial condition is monitored on a regular basis as a specific duty of procurement.

Question 13

Purchasing, in contrast to procurement, has a strategic role, is broad in scope, has a proactive culture, and measures performance using total cost and quality.

Accepted Answer

A) True 
 B)False

Question 14

The use of various technologies such as cloud computing, IoT, and robotics, will primarily replace employees that make long-term sourcing and procurement decisions, but will not replace people making day-to-day, repetitive purchasing and procurement decisions.

Accepted Answer

A) True 
 B)False

Question 15

The special relationship that can exist with other companies that have become allied or integrated with your organization can only be developed and fostered with a few suppliers.

Accepted Answer

A) True 
 B)False

Question 16

While instant communications access with supplier is important, geographical proximity is even more important in obtaining materials quickly.

Accepted Answer

A) True 
 B)False

Question 17

For a majority of companies, the sourcing cost components that are most important are the following:

Accepted Answer

A)  Acquisition costs, operating costs, and personnel costs. 
B)  Acquisition costs, obsolescence costs, and regulatory costs. 
C)  Obsolescence costs, regulatory costs, risk costs. 
D)  Operating costs, personnel costs, and regulatory costs. 
E)  Personnel costs, regulatory costs, and risk costs. 
A)  Acquisition costs, operating costs, and personnel costs. 
B)  Acquisition costs, obsolescence costs, and regulatory costs. 
C)  Obsolescence costs, regulatory costs, risk costs. 
D)  Operating costs, personnel costs, and regulatory costs. 
E)  Personnel costs, regulatory costs, and risk costs.

Question 18

"Supplier parks" are locations where suppliers are located very close to assembly plants, thus reducing transportation costs and providing higher levels of customer service to the plants that they support. In which industry are supplier parks being widely used?

Accepted Answer

A)  Automotive 
B)  Chemical 
C)  Computer 
D)  Food and beverage 
E)  Wholesale and retail 
A)  Automotive 
B)  Chemical 
C)  Computer 
D)  Food and beverage 
E)  Wholesale and retail

Question 19

A website that allows buyers to obtain information, search for products, place orders, pay for purchases, initiate product returns, and track orders would be called:

Accepted Answer

A)  e-RFX 
B)  Electronic marketplaces. 
C)  Reverse auctions. 
D)  RTP applications. 
E)  Supplier catalogue sites. 
A)  e-RFX 
B)  Electronic marketplaces. 
C)  Reverse auctions. 
D)  RTP applications. 
E)  Supplier catalogue sites.

Question 20

The development of metrics for evaluating and managing purchasing and procurement is fairly straightforward.

Accepted Answer

A) True 
 B)False

There are numerous advantages when firms utilize fewer suppliers. Which of the following items would not be one of those advantages?

There are many types of e-sourcing. Web portals which offer an online store for buyers and suppliers to conduct transactions would be called:

Cost savings in procurement can occur from a lower cost for the item being procured, reductions in freight or warehousing costs, or greater efficiencies in the various aspects of purchasing and procurement.

Which of the following activities would be typically performed by a purchasing executive?

While many functions and processes are part of SCM, ultimate success begins with being able to optimize the sourcing activity.

In an examination of the technologies employed in procurement, Deloitte Development LLC identified a number of mature and emerging technologies. Which of the following would be considered a mature technology

Blockchain is a cryptologic data structure that uses a trusted peer-to-peer network to create digital transaction ledgers which can verify and validate transactions.

When supply routes become longer, suppliers located globally and shipping items longer distances, minimizing order cycle variability becomes more difficult.

__________ spends more than US $30 billion annually for materials and has consolidated procurement across their multiple divisions. The firm has achieved a "top 10" ranking by Bloomberg Business Week in their annual listing of the most innovative companies in the world.

Sourcing savings from supply chain management efforts are usually over-reported by companies.

Which of the following would not be an example of a best practice metric in supplier or vendor collaboration?

Purchasing, in contrast to procurement, has a strategic role, is broad in scope, has a proactive culture, and measures performance using total cost and quality.

The use of various technologies such as cloud computing, IoT, and robotics, will primarily replace employees that make long-term sourcing and procurement decisions, but will not replace people making day-to-day, repetitive purchasing and procurement decisions.

The special relationship that can exist with other companies that have become allied or integrated with your organization can only be developed and fostered with a few suppliers.

While instant communications access with supplier is important, geographical proximity is even more important in obtaining materials quickly.

For a majority of companies, the sourcing cost components that are most important are the following:

"Supplier parks" are locations where suppliers are located very close to assembly plants, thus reducing transportation costs and providing higher levels of customer service to the plants that they support. In which industry are supplier parks being widely used?

A website that allows buyers to obtain information, search for products, place orders, pay for purchases, initiate product returns, and track orders would be called:

The development of metrics for evaluating and managing purchasing and procurement is fairly straightforward.

Supply Chain Management: Operations and Integration

Customer Service and Satisfaction

The Role of Information in Supply Chains

Sales Forecasting and Inventory Management

Transportation: Overview, Infrastructure, Measures, and Management

Warehouse Management

Materials Management and Handling in the Supply Chain

The Role of Manufacturing, Marketing and Finance in Supply Chains

Managing Relationships With Customers and Suppliers

Supply Chain Process Integration

Global Supply Chain Management

Managing Supply Chains in Global Markets

Strategic Supply Chain Network Design

Collaboration, Cooperation and Integration in the Supply Chain

Supply Chain Performance Measurement and Metrics

Filters

Exam 8: Sourcing and Procurement

There are numerous advantages when firms utilize fewer suppliers. Which of the following items would not be one of those advantages?

There are many types of e-sourcing. Web portals which offer an online store for buyers and suppliers to conduct transactions would be called:

Cost savings in procurement can occur from a lower cost for the item being procured, reductions in freight or warehousing costs, or greater efficiencies in the various aspects of purchasing and procurement.

Which of the following activities would be typically performed by a purchasing executive?

While many functions and processes are part of SCM, ultimate success begins with being able to optimize the sourcing activity.

In an examination of the technologies employed in procurement, Deloitte Development LLC identified a number of mature and emerging technologies. Which of the following would be considered a mature technology

Blockchain is a cryptologic data structure that uses a trusted peer-to-peer network to create digital transaction ledgers which can verify and validate transactions.

When supply routes become longer, suppliers located globally and shipping items longer distances, minimizing order cycle variability becomes more difficult.

__________ spends more than US $30 billion annually for materials and has consolidated procurement across their multiple divisions. The firm has achieved a "top 10" ranking by Bloomberg Business Week in their annual listing of the most innovative companies in the world.

Sourcing savings from supply chain management efforts are usually over-reported by companies.

Which of the following would not be an example of a best practice metric in supplier or vendor collaboration?

Purchasing, in contrast to procurement, has a strategic role, is broad in scope, has a proactive culture, and measures performance using total cost and quality.

The use of various technologies such as cloud computing, IoT, and robotics, will primarily replace employees that make long-term sourcing and procurement decisions, but will not replace people making day-to-day, repetitive purchasing and procurement decisions.

The special relationship that can exist with other companies that have become allied or integrated with your organization can only be developed and fostered with a few suppliers.

While instant communications access with supplier is important, geographical proximity is even more important in obtaining materials quickly.

For a majority of companies, the sourcing cost components that are most important are the following:

"Supplier parks" are locations where suppliers are located very close to assembly plants, thus reducing transportation costs and providing higher levels of customer service to the plants that they support. In which industry are supplier parks being widely used?

A website that allows buyers to obtain information, search for products, place orders, pay for purchases, initiate product returns, and track orders would be called:

The development of metrics for evaluating and managing purchasing and procurement is fairly straightforward.

Supply Chain Management: Operations and Integration

Customer Service and Satisfaction

The Role of Information in Supply Chains

Sales Forecasting and Inventory Management

Transportation: Overview, Infrastructure, Measures, and Management

Warehouse Management

Materials Management and Handling in the Supply Chain

The Role of Manufacturing, Marketing and Finance in Supply Chains

Managing Relationships With Customers and Suppliers

Supply Chain Process Integration

Global Supply Chain Management

Managing Supply Chains in Global Markets

Strategic Supply Chain Network Design

Collaboration, Cooperation and Integration in the Supply Chain

Supply Chain Performance Measurement and Metrics

Filters