Deck 17: Supply Function Evaluation and Trends

Question 1

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

A) the team has strong leadership.
B) the team has total autonomy to decide objectives and set expectations.
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 1

A

Question 2

Trends in supply organization and leadership include:

A) more chief purchasing officers with extensive supply experience.
B) less emphasis on teams.
C) global projects requiring cross-cultural skills.
D) merging of strategic and tactical roles in supply.
E) emphasis on "hard skills" such as finance.

Answer 2

C

Question 3

The assessment of a supplier's financial capacity:

A) enables the development of risk minimization strategies.
B) predicts the probability of the supplier encountering financial problems.
C) is done primarily to ensure the supplier has the cash to pay its bills.
D) usually is unnecessary if the supplier has been in business for more than 5 years.
E) is required before a contract can be ratified.

Answer 3

A

Question 4

Industry benchmarking allows an individual company to compare itself to its major competitor.

Question 5

An efficiency-oriented performance metric:

A) evaluates the quality of supplier relationships.
B) measures end customer satisfaction.
C) measures direct contributions to profit.
D) calculates the average dollar cost of a purchase order.
E) measures number of defects caused by poor incoming quality.

Question 6

The supply planning process is initiated by the supply manager's assessment of the supply base.

Question 7

Value engineering is done on purchased items used in the ongoing production process, while value analysis is done in the design stage where items are being specified.

Question 8

In terms of measuring and validating supply savings:

A) information systems easily capture savings.
B) static markets, technologies, and volumes facilitate the process.
C) in many cases there is an inability to convert savings into profit.
D) management usually recognizes cumulative savings.
E) there is a universal definition of supply savings.

Question 9

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

Question 10

Financial efficiency is indicated by the asset and inventory turnover ratios.

Question 11

Supply management's contribution may be measured along three dimensions: revenue enhancement, asset management, and cost management.

Question 12

Internal validation of supply's financial contribution increases joint ownership of goals and outcomes.

Question 13

Supplier performance management systems should be designed to capture and communicate the failures of suppliers so penalties can be assessed.

Question 14

Supply can play a leadership role in corporate social responsibility CSR) by:

A) instituting third party workplace audits of suppliers in developing countries.
B) knowing the providence of products in the supply chain.
C) considering the organization's carbon footprint in supply decisions.
D) designing closed loop supply chains.
E) all of the above.

Question 15

Research on the supply management process focuses on:

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

Question 16

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

Question 17

The perceptions that non-supply managers have of supply are shaped by interactions with and observations of supply, tangible experiences with supply on a day-to-day basis, and the extent to which supply is seen as contributing to the firm's mission.

Question 18

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) materials purchase budget.
E) organizational budget.

Question 19

A comprehensive commodity study should result in an):

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