Deck 17: Supply Function Evaluation and Trends

Question 1

Value analysis compares:

A)value to cost.
B)function to value.
C)function to cost.
D)value to quality.
E)cost to quality.

Answer 1

C

Question 2

Industry performance benchmark studies typically provide:

A)industry reference points for an individual company to compare itself to.
B)an analysis of a company's own internal trends to identify improvements.
C)a comparison of a company's current performance to past performance.
D)specific financial data about individual companies.
E)data so that an individual company can compare itself to its major competitor.

Answer 2

A

Question 3

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

A)the team has total autonomy to decide on objectives and set expectations.
B)the team has strong leadership.
C)team members are randomly selected from departments.
D)performance evaluation and reward systems foster individual contributions.
E)each team member develops time management skills to handle the assignment.

Answer 3

B

Question 4

The assessment of a supplier's financial situation:

A)is best left up to finance experts.
B)is done primarily to ensure the supplier has the cash to pay its bills.
C)usually is unnecessary if the supplier has been in business for more than five years.
D)enables the development of risk minimization strategies.
E)is required before a contract can be ratified.

Question 5

The budget which begins with an estimate of expected operations,based on sales forecasts and plans,is called the:

A)operating budget.
B)capital budget.
C)cash flow budget.
D)organizational budget.
E)operations purchase budget.

Question 6

A comprehensive commodity study should result in a(n):

A)thorough analysis of sources used over time.
B)review of past predictions and variances from actual prices paid.
C)assessment of the performance of the commodity manager.
D)trend analysis of volume requirements over time.
E)strategy to lower cost and assure supply.

Question 7

Purchasing performance benchmarking attempts to:

A)determine what results have been achieved by purchasing and supply activities.
B)determine how an organization achieves results in purchasing and supply.
C)analyze a firm's own internal trends.
D)provide industrywide standards for overall firm performance.
E)provide baseline metrics to compare companies' supply performance.

Question 8

Target costing starts with the:

A)price the supplier wants to charge for goods or services.
B)price the buyer wants to pay for a good or service.
C)cost of materials to make an end product.
D)price of a final product or service.
E)total cost of doing business with a supplier.

Question 9

Research dollars will most likely be allocated to the:

A)most unprofitable end-product or service.
B)most profitable end-product or service.
C)product or service with the highest current or projected dollar value.
D)most likely candidate for a successful new product or service rollout.
E)supplier with the poorest performance record.

Question 10

Research on the supply management process focuses on:

A)developing a strategy to reduce cost or ensure supply.
B)increasing efficiency by automating wherever possible.
C)deciding whether to single or multiple source.
D)improving buyer-seller relationships.
E)conducting cost analysis to identify unnecessary costs.