Exam 16: Global Sourcing and Procurement

In Hau Lee's uncertainty framework to classify supply chains, a supply chain for innovative products with an evolving supply process is called which of the following?

A financially driven reason for outsourcing is that it can turn fixed costs into variable costs.

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

The optimal strategy for innovative products is to use an efficient supply chain.

Which is the most challenging kind of supply chain to manage according to Hau Lee?

Which of the following is not an improvement-driven reason for outsourcing?

The optimal strategy for functional products is to use a responsive supply chain.

Logistics is a term that refers to the management functions that support the complete cycle of material flow, from the purchase and internal control of production materials; to the planning and control of work-in-process; to the purchasing, shipping, and distribution of the finished product.

The effect of the lack of synchronization among supply chain members is referred to as which of the following?

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

If the average aggregate inventory value is $45,000 and the cost of goods sold is $10,000, which of the following is weeks of supply?

The total cost of ownership (TCO) can be categorized into three areas: acquisition costs, ownership costs, and post-ownership costs.

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) and arm's length relationships (outsource)?

Theonly optimal strategy for functional products is to use an efficient supply chain.

Vendor-managed inventory is a program for automatically supplying groups of items to a customer on a regular basis.

These are supply chains where the risks of supply shortages or disruptions are hedged by pooling inventory and other capacity resources.

If the average aggregate inventory value is $1,200,000 and the cost of goods sold is $600,000, which of the following is inventory turnover?

An important opportunity in green sourcing is waste reduction opportunities.

Inventory turnover and weeks of supply are mathematically the inverse of one another.

The six-step process for green sourcing includes which of the following?