Question 1

In a cost-based contract,the stated price does not change,regardless of fluctuations in the general overall economic conditions.

Accepted Answer

A) True 
 B)False

Question 2

Identify the major trends in supply management and their impact from a strategic perspective.

Accepted Answer

The trends in supply management identifi

Question 3

Dusty is evaluating three bids to supply fence hardware for the 5 acres of pasture that need to be fenced.Breezy submits a bid of $40 per unit with a defect rate of 3%; Lady's bid is $50 per unit with a defect rate of 0.5%; and Spike's bid is $30 per unit with a defect rate of 5%.If a section of fence fails,it costs an average of $500 in losses and herding costs to round up all of the capybaras.Dusty believes it will take 500 units to fence in this pasture configuration; which supplier should win the business?

Accepted Answer

A)  Spike 
B)  Breezy 
C)  Lady 
D)  no difference between Breezy and Spike 
A)  Spike 
B)  Breezy 
C)  Lady 
D)  no difference between Breezy and Spike

Question 4

In the description of the purchasing process,the product should be described only by brand or specification.

Accepted Answer

A) True 
 B)False

Question 5

One advantage of outsourcing is that it:

Accepted Answer

A)  gives the company a high degree of control over its operations. 
B)  increases the company's access to state-of-the-art products and processes. 
C)  protects the company's proprietary designs and processes. 
D)  discourages the development of the company's core competencies. 
A)  gives the company a high degree of control over its operations. 
B)  increases the company's access to state-of-the-art products and processes. 
C)  protects the company's proprietary designs and processes. 
D)  discourages the development of the company's core competencies.

Question 6

Dusty is evaluating three bids to supply fence hardware for the 5 acres of pasture that need to be fenced.Breezy submits a bid of $40 per unit with a defect rate of 2%; Lady's bid is $50 per unit with a defect rate of 0.5%; and Spike's bid is $30 per unit with a defect rate of 5%.If a section of fence fails,it costs an average of $500 in losses and herding costs to round up all of the capybaras.Dusty believes it will take 1000 units to fence in this pasture configuration; what is the BEST choice for supplier?

Accepted Answer

Total cost is a combination of

Question 7

The first step of the purchasing process is to select the supplier.

Accepted Answer

A) True 
 B)False

Question 8

Flingers Inc.reveals the following information in their annual report for FY 2014.   Every dollar Flingers saves in purchasing has the same impact as what amount of increased sales?

Accepted Answer

A)  $10 
B)  $14 
C)  $17 
D)  $20 
A)  $10 
B)  $14 
C)  $17 
D)  $20

Question 9

When compared with single sourcing,multiple sourcing has the advantage of:

Accepted Answer

A)  spreading risk. 
B)  volume leveraging. 
C)  lower transportation costs. 
D)  reduced quality variability. 
A)  spreading risk. 
B)  volume leveraging. 
C)  lower transportation costs. 
D)  reduced quality variability.

Question 10

________ are high level,often strategic decisions regarding which products or services will be provided internally and which will be provided by external supply chain members.

Accepted Answer

The answer of ________ are high level,often strategic decisions regarding...

Question 11

A recent survey of executives at Global 1000 companies uncovered what fear?

Accepted Answer

A)  the fear of a supply chain disruption 
B)  the fear of the unknown 
C)  the fear of improperly weighting performance dimensions 
D)  the fear of misclassifying direct and indirect costs 
A)  the fear of a supply chain disruption 
B)  the fear of the unknown 
C)  the fear of improperly weighting performance dimensions 
D)  the fear of misclassifying direct and indirect costs

Question 12

The phenomenon that a dollar in cost savings increases pretax profits by a dollar,while a dollar increase in sales increases pretax profits only by the dollar multiplied by the pretax profit margin is known as the:

Accepted Answer

A)  profit margin. 
B)  return on assets. 
C)  saving to spending ratio. 
D)  profit leverage effect. 
A)  profit margin. 
B)  return on assets. 
C)  saving to spending ratio. 
D)  profit leverage effect.

Question 13

Maverick spending is often promoted by top management as a way to improve the bottom line and break out of a purchasing cycle.

Accepted Answer

A) True 
 B)False

Question 14

Money is automatically drawn from the buyer's account and deposited into the supplier's account in an electronic funds transfer (EFT).

Accepted Answer

A) True 
 B)False

Question 15

Flingers Inc.reveals the following information in their annual report for FY 2014.   Upper management plans to cut cost of goods sold by 5% for the coming year but retain the same sales.What will Flingers' profit leverage effect be for 2015?

Accepted Answer

A)  $13.33 
B)  $14.71 
C)  $17.50 
D)  $18.50 
A)  $13.33 
B)  $14.71 
C)  $17.50 
D)  $18.50

Question 16

________ is a purchasing description method that focuses attention on the outcomes the customer wants.

Accepted Answer

Descriptio

Question 17

Dusty is evaluating two bids to supply fence hardware for the 5 acres of pasture that need to be fenced.Breezy submits a bid of $40 per unit with a defect rate of 3%; Lady's bid is $50 per unit and their product manager estimates the defect rate to be around 0.5%.If a section of fence fails,it costs an average of $500 in losses and herding costs to round up all of the capybaras.Dusty believes it will take 500 units to fence in this pasture configuration.The product manager's uncertainty has Dusty concerned; what defect rate for Lady would make Dusty indifferent between the two suppliers as far as total cost is concerned?

Accepted Answer

A)  1% 
B)  0.5% 
C)  0.33% 
D)  0% 
A)  1% 
B)  0.5% 
C)  0.33% 
D)  0%

Question 18

Top executives name ________ as a significant threat to their companies' revenue streams.

Accepted Answer

(supply ch

Question 19

A company that uses portfolio analysis would probably classify things like office supplies in the Bottleneck quadrant.

Accepted Answer

A) True 
 B)False

Question 20

Flingers Inc.reveals the following information in their annual report for FY 2014.
   Calculate Flingers' profit margin,return on assets,and leverage effect

Accepted Answer

Profit margin = @#IMG-DLM& = @#IMG-DLM&

In a cost-based contract,the stated price does not change,regardless of fluctuations in the general overall economic conditions.

Identify the major trends in supply management and their impact from a strategic perspective.

In the description of the purchasing process,the product should be described only by brand or specification.

One advantage of outsourcing is that it:

The first step of the purchasing process is to select the supplier.

Flingers Inc.reveals the following information in their annual report for FY 2014. Every dollar Flingers saves in purchasing has the same impact as what amount of increased sales?

When compared with single sourcing,multiple sourcing has the advantage of:

________ are high level,often strategic decisions regarding which products or services will be provided internally and which will be provided by external supply chain members.

A recent survey of executives at Global 1000 companies uncovered what fear?

The phenomenon that a dollar in cost savings increases pretax profits by a dollar,while a dollar increase in sales increases pretax profits only by the dollar multiplied by the pretax profit margin is known as the:

Maverick spending is often promoted by top management as a way to improve the bottom line and break out of a purchasing cycle.

Money is automatically drawn from the buyer's account and deposited into the supplier's account in an electronic funds transfer (EFT).

Flingers Inc.reveals the following information in their annual report for FY 2014. Upper management plans to cut cost of goods sold by 5% for the coming year but retain the same sales.What will Flingers' profit leverage effect be for 2015?

________ is a purchasing description method that focuses attention on the outcomes the customer wants.

Top executives name ________ as a significant threat to their companies' revenue streams.

A company that uses portfolio analysis would probably classify things like office supplies in the Bottleneck quadrant.

Flingers Inc.reveals the following information in their annual report for FY 2014. Calculate Flingers' profit margin,return on assets,and leverage effect

Introduction to Operations and Supply Chain Management

Operations and Supply Chain Strategies

Process Choice and Layout Decisions in Manufacturing and Services

Business Processes

Managing Quality

Managing Capacity

A: Advanced Waiting Line Theory and Simulation Modeling

Logistics

Forecasting

Sales and Operations Planning Aggregate Planning

Managing Inventory Throughout the Supply Chain

Managing Production Across the Supply Chain

A: Supply Chain Information Systems

Jitlean Production

Managing Projects

Developing Products and Services

Filters

Exam 7: Supply Management

In a cost-based contract,the stated price does not change,regardless of fluctuations in the general overall economic conditions.

Identify the major trends in supply management and their impact from a strategic perspective.

In the description of the purchasing process,the product should be described only by brand or specification.

One advantage of outsourcing is that it:

The first step of the purchasing process is to select the supplier.

Flingers Inc.reveals the following information in their annual report for FY 2014. Every dollar Flingers saves in purchasing has the same impact as what amount of increased sales?

When compared with single sourcing,multiple sourcing has the advantage of:

________ are high level,often strategic decisions regarding which products or services will be provided internally and which will be provided by external supply chain members.

A recent survey of executives at Global 1000 companies uncovered what fear?

The phenomenon that a dollar in cost savings increases pretax profits by a dollar,while a dollar increase in sales increases pretax profits only by the dollar multiplied by the pretax profit margin is known as the:

Maverick spending is often promoted by top management as a way to improve the bottom line and break out of a purchasing cycle.

Money is automatically drawn from the buyer's account and deposited into the supplier's account in an electronic funds transfer (EFT).

Flingers Inc.reveals the following information in their annual report for FY 2014. Upper management plans to cut cost of goods sold by 5% for the coming year but retain the same sales.What will Flingers' profit leverage effect be for 2015?

________ is a purchasing description method that focuses attention on the outcomes the customer wants.

Top executives name ________ as a significant threat to their companies' revenue streams.

A company that uses portfolio analysis would probably classify things like office supplies in the Bottleneck quadrant.

Flingers Inc.reveals the following information in their annual report for FY 2014. Calculate Flingers' profit margin,return on assets,and leverage effect

Introduction to Operations and Supply Chain Management

Operations and Supply Chain Strategies

Process Choice and Layout Decisions in Manufacturing and Services

Business Processes

Managing Quality

Managing Capacity

A: Advanced Waiting Line Theory and Simulation Modeling

Logistics

Forecasting

Sales and Operations Planning Aggregate Planning

Managing Inventory Throughout the Supply Chain

Managing Production Across the Supply Chain

A: Supply Chain Information Systems

Jitlean Production

Managing Projects

Developing Products and Services

Filters