Question 1

In the text example of radically different way of sourcing for subassemblies for Boeing, all except one of the following countries were mentioned.

Accepted Answer

A)  China 
B)  Italy 
C)  France 
D)  South Korea 
E)  Japan 
A)  China 
B)  Italy 
C)  France 
D)  South Korea 
E)  Japan

Question 2

An organizationally-driven reason for outsourcing is that it can improve effectiveness by focusing on what the firm does best.

Accepted Answer

A) True 
 B)False

Question 3

In conducting a total cost of ownership analysis, it is probably best to use a team representing the key functional areas.

Accepted Answer

A) True 
 B)False

Question 4

A financially-driven reason for outsourcing is that it can reduce costs through a lower cost structure.

Accepted Answer

A) True 
 B)False

Question 5

An improvement-driven reason for outsourcing is that it can increase product and service value, customer satisfaction, and shareholder value.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is not an improvement-driven reason to outsource?

Accepted Answer

A)  Improve risk management 
B)  Increase commitment in a noncore area 
C)  Shorten cycle time 
D)  Improve quality and productivity 
E)  Obtain expertise, skills and technologies that are otherwise not available 
A)  Improve risk management 
B)  Increase commitment in a noncore area 
C)  Shorten cycle time 
D)  Improve quality and productivity 
E)  Obtain expertise, skills and technologies that are otherwise not available

Question 7

Firms producing functional products are forced to introduce a steady stream of innovations in order to survive.

Accepted Answer

A) True 
 B)False

Question 8

Green sourcing is only about finding new environmentally friendly technologies and increasing the use of recyclable materials.

Accepted Answer

A) True 
 B)False

Question 9

When using the supply chain uncertainty framework to classify supply chains, a supply chain for functional products with an evolving supply process is called which of the following?

Accepted Answer

A)  Efficient 
B)  Forward looking 
C)  Agile 
D)  Risk hedging 
E)  Responsive 
A)  Efficient 
B)  Forward looking 
C)  Agile 
D)  Risk hedging 
E)  Responsive

Question 10

Functional products include staples that people buy in a wide range of retail outlets, such as grocery stores and gas stations.

Accepted Answer

A) True 
 B)False

Question 11

Warranty costs are part of (choose the most appropriate)

Accepted Answer

A)  Acquisition cost 
B)  Total cost of ownership 
C)  Post-ownership costs 
D)  B and C 
E)  None of the above 
A)  Acquisition cost 
B)  Total cost of ownership 
C)  Post-ownership costs 
D)  B and C 
E)  None of the above

Question 12

Other things remaining the same, if the average aggregate inventory value goes down, then

Accepted Answer

A)  inventory turnover ratio and weeks of supply will both go down. 
B)  inventory turnover ratio will go down, but the weeks of supply will stay the same. 
C)  inventory turnover ratio and weeks of supply will both go up. 
D)  inventory turnover ratio will go up, but weeks of supply will go down. 
E)  inventory turnover ratio stay the same, but weeks of supply will go down. 
A)  inventory turnover ratio and weeks of supply will both go down. 
B)  inventory turnover ratio will go down, but the weeks of supply will stay the same. 
C)  inventory turnover ratio and weeks of supply will both go up. 
D)  inventory turnover ratio will go up, but weeks of supply will go down. 
E)  inventory turnover ratio stay the same, but weeks of supply will go down.

Question 13

Which of the following product categories includes fashionable clothing, personal computers, and other products that typically have a very brief life cycle?

Accepted Answer

A)  Functional products 
B)  Dysfunctional products 
C)  Innovative products 
D)  Bullwhip products 
E)  Value density products 
A)  Functional products 
B)  Dysfunctional products 
C)  Innovative products 
D)  Bullwhip products 
E)  Value density products

Question 14

The phenomenon that magnifies the variability in order quantities for goods as orders move through the supply chain from the customer to the producer is called the bullwhip effect.

Accepted Answer

A) True 
 B)False

Question 15

Capability sourcing refers to outsourcing the functions that they do best to trusted key partners.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is one of the strategic characteristics to consider when deciding how supplier relationships should be structured on the continuum between vertical integration (do not outsource) to arm's length relationships (outsource)?

Accepted Answer

A)  Cost 
B)  Location 
C)  Investment 
D)  Coordination 
E)  Control 
A)  Cost 
B)  Location 
C)  Investment 
D)  Coordination 
E)  Control

Question 17

A financially-driven reason for outsourcing is that it can shorten cycle time.

Accepted Answer

A) True 
 B)False

Question 18

Two common measures to evaluate supply chain efficiency are the consumer price index and the beta flow system.

Accepted Answer

A) True 
 B)False

Question 19

Other things remaining the same, if the cost of goods sold decreases, then

Accepted Answer

A)  inventory turnover ratio and weeks of supply will both go up. 
B)  inventory turnover ratio will go down, but the weeks of supply will go up. 
C)  inventory turnover ratio and weeks of supply will both go down. 
D)  inventory turnover ratio will go up, but weeks of supply will go down. 
E)  inventory turnover ratio will stay the same, but weeks of supply will go down. 
A)  inventory turnover ratio and weeks of supply will both go up. 
B)  inventory turnover ratio will go down, but the weeks of supply will go up. 
C)  inventory turnover ratio and weeks of supply will both go down. 
D)  inventory turnover ratio will go up, but weeks of supply will go down. 
E)  inventory turnover ratio will stay the same, but weeks of supply will go down.

Question 20

In the six-step process for Green Sourcing the initial step is Assessing the Opportunity. Which of the following is not among the five most common areas of relevant costs to be taken into account?

Accepted Answer

A)  Energy 
B)  Packaging 
C)  Water 
D)  Engineering 
E)  Recycling 
A)  Energy 
B)  Packaging 
C)  Water 
D)  Engineering 
E)  Recycling

In the text example of radically different way of sourcing for subassemblies for Boeing, all except one of the following countries were mentioned.

An organizationally-driven reason for outsourcing is that it can improve effectiveness by focusing on what the firm does best.

In conducting a total cost of ownership analysis, it is probably best to use a team representing the key functional areas.

A financially-driven reason for outsourcing is that it can reduce costs through a lower cost structure.

An improvement-driven reason for outsourcing is that it can increase product and service value, customer satisfaction, and shareholder value.

Which of the following is not an improvement-driven reason to outsource?

Firms producing functional products are forced to introduce a steady stream of innovations in order to survive.

Green sourcing is only about finding new environmentally friendly technologies and increasing the use of recyclable materials.

When using the supply chain uncertainty framework to classify supply chains, a supply chain for functional products with an evolving supply process is called which of the following?

Functional products include staples that people buy in a wide range of retail outlets, such as grocery stores and gas stations.

Warranty costs are part of (choose the most appropriate)

Other things remaining the same, if the average aggregate inventory value goes down, then

Which of the following product categories includes fashionable clothing, personal computers, and other products that typically have a very brief life cycle?

The phenomenon that magnifies the variability in order quantities for goods as orders move through the supply chain from the customer to the producer is called the bullwhip effect.

Capability sourcing refers to outsourcing the functions that they do best to trusted key partners.

Which of the following is one of the strategic characteristics to consider when deciding how supplier relationships should be structured on the continuum between vertical integration (do not outsource) to arm's length relationships (outsource)?

A financially-driven reason for outsourcing is that it can shorten cycle time.

Two common measures to evaluate supply chain efficiency are the consumer price index and the beta flow system.

Other things remaining the same, if the cost of goods sold decreases, then

In the six-step process for Green Sourcing the initial step is Assessing the Opportunity. Which of the following is not among the five most common areas of relevant costs to be taken into account?

Operations and Supply Chain Management

Strategy and Sustainability

Forecasting

Strategic Capacity Management

Projects

Manufacturing Processes

Service Processes

Sales and Operations Planning

Material Requirements Planning

Quality Management and Six Sigma

Inventory Management

Lean Supply Chains

Location, Logistics, and Distribution

Filters

Exam 13: Global Sourcing and Procurement

In the text example of radically different way of sourcing for subassemblies for Boeing, all except one of the following countries were mentioned.

An organizationally-driven reason for outsourcing is that it can improve effectiveness by focusing on what the firm does best.

In conducting a total cost of ownership analysis, it is probably best to use a team representing the key functional areas.

A financially-driven reason for outsourcing is that it can reduce costs through a lower cost structure.

An improvement-driven reason for outsourcing is that it can increase product and service value, customer satisfaction, and shareholder value.

Which of the following is not an improvement-driven reason to outsource?

Firms producing functional products are forced to introduce a steady stream of innovations in order to survive.

Green sourcing is only about finding new environmentally friendly technologies and increasing the use of recyclable materials.

When using the supply chain uncertainty framework to classify supply chains, a supply chain for functional products with an evolving supply process is called which of the following?

Functional products include staples that people buy in a wide range of retail outlets, such as grocery stores and gas stations.

Warranty costs are part of (choose the most appropriate)

Other things remaining the same, if the average aggregate inventory value goes down, then

Which of the following product categories includes fashionable clothing, personal computers, and other products that typically have a very brief life cycle?

The phenomenon that magnifies the variability in order quantities for goods as orders move through the supply chain from the customer to the producer is called the bullwhip effect.

Capability sourcing refers to outsourcing the functions that they do best to trusted key partners.

Which of the following is one of the strategic characteristics to consider when deciding how supplier relationships should be structured on the continuum between vertical integration (do not outsource) to arm's length relationships (outsource)?

A financially-driven reason for outsourcing is that it can shorten cycle time.

Two common measures to evaluate supply chain efficiency are the consumer price index and the beta flow system.

Other things remaining the same, if the cost of goods sold decreases, then

In the six-step process for Green Sourcing the initial step is Assessing the Opportunity. Which of the following is not among the five most common areas of relevant costs to be taken into account?

Operations and Supply Chain Management

Strategy and Sustainability

Forecasting

Strategic Capacity Management

Projects

Manufacturing Processes

Service Processes

Sales and Operations Planning

Material Requirements Planning

Quality Management and Six Sigma

Inventory Management

Lean Supply Chains

Location, Logistics, and Distribution

Filters