Question 1

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

Accepted Answer

A) Improve effectiveness by focusing on what the firm does best. 
B) Improve flexibility to meet changing demand for products and services. 
C) Increase product and service value by improving response to customer needs. 
D) Improve credibility and image by associating with superior providers. 
E) All of these are organizationally driven reasons for outsourcing. 
A) Improve effectiveness by focusing on what the firm does best. 
B) Improve flexibility to meet changing demand for products and services. 
C) Increase product and service value by improving response to customer needs. 
D) Improve credibility and image by associating with superior providers. 
E) All of these are organizationally driven reasons for outsourcing. D

Question 2

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

Accepted Answer

A) True 
 B)False  False

Question 3

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. D

Question 4

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?

Accepted Answer

A) 60 
B) 10.4 
C) 2 
D) 0.5 
E) None of these 
A) 60 
B) 10.4 
C) 2 
D) 0.5 
E) None of these

Question 5

Outsourcing is the act of moving some of a firm's internal activities and decision responsibility to outside providers.

Accepted Answer

A) True 
 B)False

Question 6

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.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

Strategic sourcing is the development and management of supplier relationships to acquire goods and services in a way that aids in achieving the immediate needs of the business.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Acquisition costs include which of the following costs?

Accepted Answer

A) Quality costs 
B) Maintenance and repair costs 
C) Environmental costs 
D) Supply chain costs 
E) Customer dissatisfaction costs 
A) Quality costs 
B) Maintenance and repair costs 
C) Environmental costs 
D) Supply chain costs 
E) Customer dissatisfaction costs

Question 11

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 12

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 13

Which of the following of Fisher's 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

Which of the following is an organizationally driven reason for outsourcing?

Accepted Answer

A) Improve effectiveness by focusing on what the firm does best. 
B) Turn fixed costs into variable costs. 
C) Reduce costs through lowered cost structure and increased flexibility. 
D) Improve risk management. 
E) Improve credibility and image by associating with superior providers. 
A) Improve effectiveness by focusing on what the firm does best. 
B) Turn fixed costs into variable costs. 
C) Reduce costs through lowered cost structure and increased flexibility. 
D) Improve risk management. 
E) Improve credibility and image by associating with superior providers.

Question 15

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

Accepted Answer

A) Provide a press release to local (and perhaps national) media. 
B) Include members of environmental groups in the decision. 
C) Notify the state and federal environmental agencies of your plans. 
D) Perform an environmental impact study. 
E) Develop the sourcing strategy. 
A) Provide a press release to local (and perhaps national) media. 
B) Include members of environmental groups in the decision. 
C) Notify the state and federal environmental agencies of your plans. 
D) Perform an environmental impact study. 
E) Develop the sourcing strategy.

Question 16

First Among Best Solar Inc.announces that they will take back free of cost, all of their solar panels that are no longer useful.Till now, the cost of disposal was significant.This action reduces

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 17

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

Accepted Answer

A) Agile supply chain 
B) Efficient supply chain 
C) Risk-hedging supply chain 
D) Erratic supply chain 
E) Responsive supply chain 
A) Agile supply chain 
B) Efficient supply chain 
C) Risk-hedging supply chain 
D) Erratic supply chain 
E) Responsive supply chain

Question 18

A stable supply process is one where the manufacturing process and the underlying technology are mature and the supply base is well established.

Accepted Answer

A) True 
 B)False

Question 19

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 20

If the average aggregate inventory value is $100,000 and the cost of goods sold is $450,000, which of the following is inventory turnover?

Accepted Answer

A) 19.23 
B) 4.5 
C) 0.8654 
D) 0.2222 
E) None of these 
A) 19.23 
B) 4.5 
C) 0.8654 
D) 0.2222 
E) None of these

Exam 16: Global Sourcing and Procurement

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

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

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

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?

Outsourcing is the act of moving some of a firm's internal activities and decision responsibility to outside providers.

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.

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

Strategic sourcing is the development and management of supplier relationships to acquire goods and services in a way that aids in achieving the immediate needs of the business.

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

Acquisition costs include which of the following costs?

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

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?

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

Which of the following is an organizationally driven reason for outsourcing?

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

First Among Best Solar Inc.announces that they will take back free of cost, all of their solar panels that are no longer useful.Till now, the cost of disposal was significant.This action reduces

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

A stable supply process is one where the manufacturing process and the underlying technology are mature and the supply base is well established.

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

If the average aggregate inventory value is $100,000 and the cost of goods sold is $450,000, which of the following is inventory turnover?

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