Question 1

Which one of the following statements is TRUE about purchasing?

Accepted Answer

A)  Purchasing's primary role is to negotiate prices and delivery dates. 
B)  Purchasing must satisfy the firm's long- term supply needs. 
C)  Purchasing's primary role is to negotiate lower prices. 
D)  Purchasing's primary role should be placing and tracking orders. 
A)  Purchasing's primary role is to negotiate prices and delivery dates. 
B)  Purchasing must satisfy the firm's long- term supply needs. 
C)  Purchasing's primary role is to negotiate lower prices. 
D)  Purchasing's primary role should be placing and tracking orders.

Question 2

The most used form of e- purchasing today is electronic data interchange.

Accepted Answer

A) True 
 B)False

Question 3

Compare and contrast competitive orientation versus cooperative orientation for suppler relations.

Accepted Answer

Competitive orientation is where supplie

Question 4

The general tendency toward increasing variation in demand and inventory levels as we move further away from the end customer in the supply chain is referred to as

Accepted Answer

A)  bull- whip effect. 
B)  internally generated shortages. 
C)  capacity cushions. 
D)  continuous replenishment. 
A)  bull- whip effect. 
B)  internally generated shortages. 
C)  capacity cushions. 
D)  continuous replenishment.

Question 5

A firm in the higher echelon of an efficient supply chain is likely to have

Accepted Answer

A)  low inventory turns. 
B)  a flexible flow process. 
C)  high- capacity utilization. 
D)  high- capacity cushions. 
A)  low inventory turns. 
B)  a flexible flow process. 
C)  high- capacity utilization. 
D)  high- capacity cushions.

Question 6

One of the benefits of a cooperative orientation in supplier relationships is

Accepted Answer

A)  the supplier implements its own quality standards. 
B)  the supplier has complete freedom in choosing the delivery time. 
C)  the buyer sometimes suggests ways to improve the supplier's operations. 
D)  the buyer does not have to share much information with the supplier. 
A)  the supplier implements its own quality standards. 
B)  the supplier has complete freedom in choosing the delivery time. 
C)  the buyer sometimes suggests ways to improve the supplier's operations. 
D)  the buyer does not have to share much information with the supplier.

Question 7

Which one of the following statements regarding supplier selection criteria is TRUE?

Accepted Answer

A)  Suppliers should be selected primarily on the basis of the shortest lead time because higher lead time increases the cost of inventory. 
B)  Suppliers should be selected on the basis of quality because quality is always the most important characteristic of a product. 
C)  Suppliers should be selected on the basis of quality, price, and delivery. 
D)  Suppliers should be selected on the basis of price only because the cost of materials is a significant portion of total product cost. 
A)  Suppliers should be selected primarily on the basis of the shortest lead time because higher lead time increases the cost of inventory. 
B)  Suppliers should be selected on the basis of quality because quality is always the most important characteristic of a product. 
C)  Suppliers should be selected on the basis of quality, price, and delivery. 
D)  Suppliers should be selected on the basis of price only because the cost of materials is a significant portion of total product cost.

Question 8

Of the following measures of supply chain performance, which is likely to have the most direct and measurable impact on a company's financial performance based on the reduction in the level of working capital required?

Accepted Answer

A)  percentage of suppliers' deliveries received on time 
B)  customer satisfaction with the order- fulfillment process 
C)  percentage of incomplete orders shipped 
D)  time required to fulfill orders 
A)  percentage of suppliers' deliveries received on time 
B)  customer satisfaction with the order- fulfillment process 
C)  percentage of incomplete orders shipped 
D)  time required to fulfill orders

Question 9

For improving the efficiency and productivity of a complex supply chain, a company should do which of the following?

Accepted Answer

A)  Never adopt backward vertical integration. 
B)  Adopt backward vertical integration or enter into agreements with first- tier suppliers. 
C)  Adopt backward vertical integration, but avoid writing agreements with first- tier suppliers. 
D)  Enter into agreements with first- tier suppliers, and let them manage their suppliers. 
A)  Never adopt backward vertical integration. 
B)  Adopt backward vertical integration or enter into agreements with first- tier suppliers. 
C)  Adopt backward vertical integration, but avoid writing agreements with first- tier suppliers. 
D)  Enter into agreements with first- tier suppliers, and let them manage their suppliers.

Question 10

It is recommended that a firm in the higher echelon of an efficient supply chain have

Accepted Answer

A)  low inventory investments. 
B)  low- capacity utilization. 
C)  delivery by air. 
D)  high- capacity cushions. 
A)  low inventory investments. 
B)  low- capacity utilization. 
C)  delivery by air. 
D)  high- capacity cushions.

Question 11

What is the purpose of carrying safety stock?

Accepted Answer

Additional inventory

Question 12

Responsive supply chains work best with predictable demand.

Accepted Answer

A) True 
 B)False

Question 13

What term do we use for a company arranging payments to suppliers and distributors to provide needed services and materials in order to perform those processes the organization does not perform itself?

Accepted Answer

A)  forward integration 
B)  backward integration 
C)  outsourcing 
D)  system design 
A)  forward integration 
B)  backward integration 
C)  outsourcing 
D)  system design

Question 14

The______  process produces and delivers the service or product to the firm's
customers.

Accepted Answer

The answer of The______  process produces and delivers the...

Question 15

Discuss the principal advantages and potential disadvantages of having more centralized rather than localized buying.

Accepted Answer

Centralized buying has the advantage of

Question 16

Describe green purchasing.

Accepted Answer

Using environmental criteria i

Question 17

power determines the clout that a firm has.

Accepted Answer

The answer of power determines the clout that a firm...

Question 18

Can an organization's plans for vertical integration be supported by the tools of make- or- buy analysis? Explain; provide an example

Accepted Answer

Yes; the decision to acquire the provide

Question 19

One source of disruption caused by the internal supply chain is

Accepted Answer

A)  late deliveries. 
B)  forecast error. 
C)  volume changes. 
D)  underfilled shipments. 
A)  late deliveries. 
B)  forecast error. 
C)  volume changes. 
D)  underfilled shipments.

Question 20

How are outsourcing and vertical integration related? Can a single firm successfully do both?

Accepted Answer

Outsourcing transfers what were traditio

Which one of the following statements is TRUE about purchasing?

The most used form of e- purchasing today is electronic data interchange.

Compare and contrast competitive orientation versus cooperative orientation for suppler relations.

The general tendency toward increasing variation in demand and inventory levels as we move further away from the end customer in the supply chain is referred to as

A firm in the higher echelon of an efficient supply chain is likely to have

One of the benefits of a cooperative orientation in supplier relationships is

Which one of the following statements regarding supplier selection criteria is TRUE?

Of the following measures of supply chain performance, which is likely to have the most direct and measurable impact on a company's financial performance based on the reduction in the level of working capital required?

For improving the efficiency and productivity of a complex supply chain, a company should do which of the following?

It is recommended that a firm in the higher echelon of an efficient supply chain have

What is the purpose of carrying safety stock?

Responsive supply chains work best with predictable demand.

What term do we use for a company arranging payments to suppliers and distributors to provide needed services and materials in order to perform those processes the organization does not perform itself?

The______ process produces and delivers the service or product to the firm's customers.

Discuss the principal advantages and potential disadvantages of having more centralized rather than localized buying.

Describe green purchasing.

power determines the clout that a firm has.

Can an organization's plans for vertical integration be supported by the tools of make- or- buy analysis? Explain; provide an example

One source of disruption caused by the internal supply chain is

How are outsourcing and vertical integration related? Can a single firm successfully do both?

Creating Customer Value

Supply Chain Sustainability and Humanitarian Logistics

Process Configuration

Capacity

Waiting Lines

Inventory Management

Quality and Process Improvement

Lean Systems

Location and Layout

Managing Demand and Forecasting

Operations Planning and Scheduling

Resource Planning

Filters

Exam 2: Supply Chain Management

Which one of the following statements is TRUE about purchasing?

The most used form of e- purchasing today is electronic data interchange.

Compare and contrast competitive orientation versus cooperative orientation for suppler relations.

The general tendency toward increasing variation in demand and inventory levels as we move further away from the end customer in the supply chain is referred to as

A firm in the higher echelon of an efficient supply chain is likely to have

One of the benefits of a cooperative orientation in supplier relationships is

Which one of the following statements regarding supplier selection criteria is TRUE?

Of the following measures of supply chain performance, which is likely to have the most direct and measurable impact on a company's financial performance based on the reduction in the level of working capital required?

For improving the efficiency and productivity of a complex supply chain, a company should do which of the following?

It is recommended that a firm in the higher echelon of an efficient supply chain have

What is the purpose of carrying safety stock?

Responsive supply chains work best with predictable demand.

What term do we use for a company arranging payments to suppliers and distributors to provide needed services and materials in order to perform those processes the organization does not perform itself?

The______ process produces and delivers the service or product to the firm's customers.

Discuss the principal advantages and potential disadvantages of having more centralized rather than localized buying.

Describe green purchasing.

power determines the clout that a firm has.

Can an organization's plans for vertical integration be supported by the tools of make- or- buy analysis? Explain; provide an example

One source of disruption caused by the internal supply chain is

How are outsourcing and vertical integration related? Can a single firm successfully do both?

Creating Customer Value

Supply Chain Sustainability and Humanitarian Logistics

Process Configuration

Capacity

Waiting Lines

Inventory Management

Quality and Process Improvement

Lean Systems

Location and Layout

Managing Demand and Forecasting

Operations Planning and Scheduling

Resource Planning

Filters