Question 1

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

Accepted Answer

A) 1,040 
B) 606 
C) 104 
D) 60.6 
E) 2.0 
A) 1,040 
B) 606 
C) 104 
D) 60.6 
E) 2.0 C

Question 2

The best strategy for innovative products is to use either a responsive or an agile supply chain.

Accepted Answer

A) True 
 B)False  True

Question 3

The acronym RFP stands for: ________________________

Accepted Answer

request for proposal
Explanation: A request for proposal (RFP) is commonly used for purchasing items that are more complex or expensive and where there may be a number of potential vendors.

Question 4

In Hau Lee's uncertainty framework to classify supply chains, a supply chain for functional products with a stable 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 5

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 6

A stable supply process is one where product volumes are high, demand is predictable, and there is a long product life.

Accepted Answer

A) True 
 B)False

Question 7

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 8

If the average aggregate inventory value is $4,000 and the cost of goods sold is $104,000, what is the weeks of supply? _______________________

Accepted Answer

The answer of If the average aggregate inventory value is...

Question 9

The total cost of ownership (TCO) is an estimate of the cost of an item that includes all the costs related to the procurement and use of an item, but it does not include any of the costs related to disposing of the item after it is no longer useful.

Accepted Answer

A) True 
 B)False

Question 10

The step in the six-step process for green sourcing where a set of metrics against which the supplier will be measured for the contract's duration is developed is called: _____________________.

Accepted Answer

institutionalize the sourcing strategy
E

Question 11

Capability sourcing refers to outsourcing the functions that a company does best to trusted key partners.

Accepted Answer

A) True 
 B)False

Question 12

The six-step process for green sourcing does not include which of the following?

Accepted Answer

A) Assess the opportunity. 
B) Assess the supply base. 
C) Confer with environmental groups. 
D) Engage sourcing agents. 
E) Institutionalize the sourcing strategy. 
A) Assess the opportunity. 
B) Assess the supply base. 
C) Confer with environmental groups. 
D) Engage sourcing agents. 
E) Institutionalize the sourcing strategy.

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

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 15

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

Accepted Answer

A) True 
 B)False

Question 16

An important opportunity in green sourcing is waste reduction opportunities.

Accepted Answer

A) True 
 B)False

Question 17

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?

Accepted Answer

A) 45,000 
B) 234 
C) 120 
D) 23.4 
E) 4.5 
A) 45,000 
B) 234 
C) 120 
D) 23.4 
E) 4.5

Question 18

In Hau Lee's uncertainty framework to classify supply chains, a supply chain for innovative products with a stable 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 19

Outsourcing allows a firm to achieve an improved focus on its core competencies.

Accepted Answer

A) True 
 B)False

Question 20

Two common measures to evaluate supply chain efficiency are the Consumer Price Index and the beta flow system.

Accepted Answer

A) True 
 B)False

Exam 16: Global Sourcing and Procurement

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

The best strategy for innovative products is to use either a responsive or an agile supply chain.

The acronym RFP stands for: ________________________

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

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.

A stable supply process is one where product volumes are high, demand is predictable, and there is a long product life.

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

If the average aggregate inventory value is $4,000 and the cost of goods sold is $104,000, what is the weeks of supply? _______________________

The total cost of ownership (TCO) is an estimate of the cost of an item that includes all the costs related to the procurement and use of an item, but it does not include any of the costs related to disposing of the item after it is no longer useful.

The step in the six-step process for green sourcing where a set of metrics against which the supplier will be measured for the contract's duration is developed is called: _____________________.

Capability sourcing refers to outsourcing the functions that a company does best to trusted key partners.

The six-step process for green sourcing does not include which of the following?

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

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

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

An important opportunity in green sourcing is waste reduction opportunities.

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?

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

Outsourcing allows a firm to achieve an improved focus on its core competencies.

Two common measures to evaluate supply chain efficiency are the Consumer Price Index and the beta flow system.

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