Deck 16: Other Supply Responsibilities

Question 1

The potential benefits of having accounts payable (AP)report to the same executive as supply include:

A)opportunities to reduce transaction costs,but increased headcount.
B)familiarity with the supplier and the order.
C)the ability for supply to ensure that payments for suppliers are made on time.
D)opportunities to reduce transaction costs,but increased headcount and the ability for supply to ensure that payments for suppliers are made on time.
E)familiarity with the supplier and the order and the ability for supply to ensure that payments for suppliers are made on time.

Answer 1

C

Question 2

The document used to identify activities in the first step in the internal supply chain is a(n):

A)inspection report.
B)receiving report.
C)supplier scorecard.
D)bill of lading.
E)packing slip.

Answer 2

B

Question 3

Supply can contribute to the organization's environmental management program by:

A)focusing on substitution of non-hazardous materials for hazardous materials.
B)encouraging and participating in designing products that do not use or generate hazardous waste.
C)developing sourcing and usage alternatives for hazardous materials.
D)focusing on substitution of non-hazardous materials for hazardous materials,and encouraging and participating in designing products that do not use or generate hazardous waste.
E)focusing on substitution of non-hazardous materials for hazardous materials,encouraging and participating in designing products that do not use or generate hazardous waste,and developing sourcing and usage alternatives for hazardous materials.

Answer 3

E

Question 4

A document that is produced by the supplier and provides a description of the goods and quantity,the customer's purchase order number,and often a tracking number,is called a:

A)bill of lading.
B)purchase order.
C)requisition.
D)packing slip.
E)bill of material.

Question 5

Which of the following provides the maximum return on the original investment:

A)use "as is" elsewhere in the firm.
B)return to the supplier for cash or credit.
C)sell through a broker.
D)reclaim materials for use elsewhere within the firm.
E)sell to a scrap dealer.

Question 6

A seller may include a protection clause stating that "the buyer agrees and warrants that the product will not be resold in its present form or for its original usage application" if it is:

A)rejected items that are trademarked or branded.
B)surplus product.
C)waste.
D)hazardous waste.
E)scrap metals.

Question 7

Reducing the obsolescence and waste of maintenance,repair,and operating (MRO)supplies through better materials and inventory management will:

A)increase the costs of disposing of MRO items that are obsolete or waste.
B)increase carrying cost by increasing inventory levels,especially of obsolete items.
C)improve environmental performance by increasing waste that goes into landfills or incinerators.
D)simultaneously reduce costs and improve environmental performance.
E)have little impact because MRO is a small percentage of annual spend and the items usually have low environmental impact.

Question 8

Investment recovery is often assigned to:

A)engineers who can suggest possible uses of the material within the organization.
B)financial analysts because they set the target return on all investments.
C)salespeople because they have contact with buyers who may use the material.
D)marketing managers because they have information on internal users.
E)supply managers because of their knowledge of supply markets and price trends.

Question 9

In order to return scrap to the manufacturer from whom it was purchased,either for cash or for credit toward future purchases:

A)there normally must be at least two suppliers.
B)the quantity involved must be small.
C)the material normally must be in short supply.
D)the firm is usually a large consumer.
E)there normally must be at least two suppliers and the material normally must be in short supply.

Question 10

One of the reasons why companies are paying more attention to the effective,efficient,and profitable recovery and disposal of scrap,surplus,obsolete,and waste materials is that:

A)consumers overwhelmingly demand environmental responsibility.
B)it is easy to administer and highly profitable.
C)disposal costs are rising and environmental legislation is strengthening.
D)most organizations generate little scrap,surplus,obsolete and waste materials.
E)disposal is a fairly simple problem that is easily resolved.