Question 1

One important objective of purchasing is to:

Accepted Answer

A)  set quality standards for purchased items. 
B)  be knowledgeable about new products. 
C)  maintain numerous sources of supply. 
D)  obtain the lowest prices on all purchased items. 
E)  determine the processes that should be used. 
A)  set quality standards for purchased items. 
B)  be knowledgeable about new products. 
C)  maintain numerous sources of supply. 
D)  obtain the lowest prices on all purchased items. 
E)  determine the processes that should be used. B

Question 2

Vendor analysis is the process that evaluates the source of supply in terms of price, quality, reputation, and service.

Accepted Answer

A) True 
 B)False  True

Question 3

RFID eliminates the need for counting and bar-code scanning.

Accepted Answer

A) True 
 B)False  True

Question 4

Which of the following is not an application of E-business?

Accepted Answer

A)  Internet buying and selling 
B)  e-mail 
C)  order and shipment tracking 
D)  electronic data interchange (EDI) 
E)  universal product codes 
A)  Internet buying and selling 
B)  e-mail 
C)  order and shipment tracking 
D)  electronic data interchange (EDI) 
E)  universal product codes

Question 5

A given inventory item has a per-year holding cost of $500. One method of shipping this item is three days faster than the other, but it is $2.50 more per unit. Using the slower method would be __________ more expensive overall than using the faster method.

Accepted Answer

A)  $1.08 
B)  $1.16 
C)  $2.37 
D)  $2.73 
E)  $1.61 
A)  $1.08 
B)  $1.16 
C)  $2.37 
D)  $2.73 
E)  $1.61

Question 6

Price is the primary determining factor in choosing a vendor since most products are essentially the same.

Accepted Answer

A) True 
 B)False

Question 7

Forming strategic partnerships is beneficial for two or more business organizations that have the same products or services.

Accepted Answer

A) True 
 B)False

Question 8

Which of these aspects of supply chain management are especially concerning to small business?
(I) customer reliability
(II) inventory management
(III) purchasing costs
(IV) risk management
(V) international trade

Accepted Answer

A)  III, IV, and V only 
B)  I, II, and III only 
C)  I, III, and IV only 
D)  I and II only 
E)  II, IV, and V only 
A)  III, IV, and V only 
B)  I, II, and III only 
C)  I, III, and IV only 
D)  I and II only 
E)  II, IV, and V only

Question 9

The two types of decisions that are relevant to supply chain management are:

Accepted Answer

A)  short- and long-term. 
B)  domestic and international. 
C)  location and layout. 
D)  in-sourcing and outsourcing. 
E)  tactical and operational. 
A)  short- and long-term. 
B)  domestic and international. 
C)  location and layout. 
D)  in-sourcing and outsourcing. 
E)  tactical and operational.

Question 10

The more __________ a company's supply chain, the more difficult it is to ensure that the supply chain is managed ethically.

Accepted Answer

A)  interconnected 
B)  global 
C)  visible 
D)  shortened 
E)  competitive 
A)  interconnected 
B)  global 
C)  visible 
D)  shortened 
E)  competitive

Question 11

The purchasing cycle begins with:

Accepted Answer

A)  selecting a supplier. 
B)  placing an order. 
C)  evaluating potential vendors. 
D)  conducting a value analysis. 
E)  receiving a requisition. 
A)  selecting a supplier. 
B)  placing an order. 
C)  evaluating potential vendors. 
D)  conducting a value analysis. 
E)  receiving a requisition.

Question 12

Managing supply chain visibility involves making sure that potential supply chain partners are aware of your organization's needs.

Accepted Answer

A) True 
 B)False

Question 13

To avoid temporary storage in a warehouse, cross-docking can be used.

Accepted Answer

A) True 
 B)False

Question 14

The activity which begins with a request from within the organization is:

Accepted Answer

A)  outsourcing search. 
B)  purchasing cycle. 
C)  supplier selection. 
D)  order receipt. 
E)  supply chain management. 
A)  outsourcing search. 
B)  purchasing cycle. 
C)  supplier selection. 
D)  order receipt. 
E)  supply chain management.

Question 15

Centralized or decentralized purchasing is directly related to the size of an organization.

Accepted Answer

A) True 
 B)False

Question 16

The purchasing perspective of the supplier as a partner is characterized by:

Accepted Answer

A)  an emphasis on low prices. 
B)  one or a few suppliers. 
C)  low flexibility. 
D)  100 percent inspection for quality. 
E)  low volume. 
A)  an emphasis on low prices. 
B)  one or a few suppliers. 
C)  low flexibility. 
D)  100 percent inspection for quality. 
E)  low volume.

Question 17

Which of the following is not a benefit of effective supply chain management?

Accepted Answer

A)  lower inventory costs 
B)  higher productivity 
C)  shorter lead times 
D)  greater customer loyalty 
E)  larger number of suppliers 
A)  lower inventory costs 
B)  higher productivity 
C)  shorter lead times 
D)  greater customer loyalty 
E)  larger number of suppliers

Question 18

The automatic identification of material is part of/facilitated by:

Accepted Answer

A)  holding costs. 
B)  RFID. 
C)  working capital reduction. 
D)  net present value calculations. 
E)  vendor analysis. 
A)  holding costs. 
B)  RFID. 
C)  working capital reduction. 
D)  net present value calculations. 
E)  vendor analysis.

Question 19

Starting with the final customer and moving backward through the supply chain, batch sizes and the level of safety stock tend to decrease.

Accepted Answer

A) True 
 B)False

Question 20

The need for supply chain management increases as globalization increases.

Accepted Answer

A) True 
 B)False

Exam 15: Supply Chain Management

One important objective of purchasing is to:

Vendor analysis is the process that evaluates the source of supply in terms of price, quality, reputation, and service.

RFID eliminates the need for counting and bar-code scanning.

Which of the following is not an application of E-business?

A given inventory item has a per-year holding cost of $500. One method of shipping this item is three days faster than the other, but it is $2.50 more per unit. Using the slower method would be __________ more expensive overall than using the faster method.

Price is the primary determining factor in choosing a vendor since most products are essentially the same.

Forming strategic partnerships is beneficial for two or more business organizations that have the same products or services.

Which of these aspects of supply chain management are especially concerning to small business? (I) customer reliability (II) inventory management (III) purchasing costs (IV) risk management (V) international trade

The two types of decisions that are relevant to supply chain management are:

The more __________ a company's supply chain, the more difficult it is to ensure that the supply chain is managed ethically.

The purchasing cycle begins with:

Managing supply chain visibility involves making sure that potential supply chain partners are aware of your organization's needs.

To avoid temporary storage in a warehouse, cross-docking can be used.

The activity which begins with a request from within the organization is:

Centralized or decentralized purchasing is directly related to the size of an organization.

The purchasing perspective of the supplier as a partner is characterized by:

Which of the following is not a benefit of effective supply chain management?

The automatic identification of material is part of/facilitated by:

Starting with the final customer and moving backward through the supply chain, batch sizes and the level of safety stock tend to decrease.

The need for supply chain management increases as globalization increases.

Introduction to Operations Management

Competitiveness, Strategy, and Productivity

Forecasting

Product and Service Design

Extension: Reliability

Strategic Capacity Planning for Products and Services

Extension: Decision Theory

Process Selection and Facility Layout

Work Design and Measurement

Extension: Learning Curves

Location Planning and Analysis

Extension: The Transportation Model

Management of Quality

Quality Control

Extension: Acceptance Sampling

Aggregate Planning and Master Scheduling

MRP and ERP

Inventory Management

Jit and Lean Operations

Extension: Maintenance

Scheduling

Project Management

Management of Waiting Lines

Linear Programming

Filters