Question 1

The interface between the firm and its suppliers is:

Accepted Answer

A)  purchasing. 
B)  production. 
C)  distribution. 
D)  engineering. 
E)  accounting. 
A)  purchasing. 
B)  production. 
C)  distribution. 
D)  engineering. 
E)  accounting.

Question 2

The importance of purchasing relates only to the cost of parts and materials purchased, which is often 60 percent or more of the cost of finished goods.

Accepted Answer

A) True 
 B)False

Question 3

Some firms have structured their procurement function to include both centralized and decentralized purchasing.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is not true of vendor analysis?

Accepted Answer

A)  It involves an examination of the function of purchased parts or raw materials. 
B)  Its purpose is to reduce costs and/or improve performance of purchased goods or services. 
C)  It is usually performed only periodically. 
D)  Representatives from design and operations may work with purchasing. 
E)  If improvements are identified, purchasing implements those that purchasing agrees are justified. 
A)  It involves an examination of the function of purchased parts or raw materials. 
B)  Its purpose is to reduce costs and/or improve performance of purchased goods or services. 
C)  It is usually performed only periodically. 
D)  Representatives from design and operations may work with purchasing. 
E)  If improvements are identified, purchasing implements those that purchasing agrees are justified.

Question 5

Which of the following is not a goal of supply chain management?

Accepted Answer

A)  fewer suppliers and long-term relationships 
B)  small lot sizes 
C)  on-time deliveries 
D)  lowest possible transportation costs 
E)  delivery often to the place of use 
A)  fewer suppliers and long-term relationships 
B)  small lot sizes 
C)  on-time deliveries 
D)  lowest possible transportation costs 
E)  delivery often to the place of use

Question 6

Event management is the advanced planning required for major performances such as concerts or conferences.

Accepted Answer

A) True 
 B)False

Question 7

The service function of purchasing interfaces with many areas, including legal, accounting, and engineering functions.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following would not usually be a main factor in selecting a vendor?

Accepted Answer

A)  location 
B)  price 
C)  quality 
D)  inventory turnover 
E)  vendor services 
A)  location 
B)  price 
C)  quality 
D)  inventory turnover 
E)  vendor services

Question 9

Strategic partnering is encouraged when two or more business organizations have complementary products or services that would benefit the others.

Accepted Answer

A) True 
 B)False

Question 10

Global supply chains make purchasing easier because there are more options.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is not a measure of the reliability of the supply chain?

Accepted Answer

A)  supply chain response time 
B)  on-time delivery 
C)  fill rate 
D)  lead time variability 
E)  improving e-fulfillment statistics 
A)  supply chain response time 
B)  on-time delivery 
C)  fill rate 
D)  lead time variability 
E)  improving e-fulfillment statistics

Question 12

Vendor analysis examines the function of purchased parts and materials with a view toward improvement or cost reduction.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is a principle required for ethical behavior in purchasing?
(I) loyalty to employer
(II) justice to those you deal with
(III) faith in your profession

Accepted Answer

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

Question 14

E-commerce involves business-to-business (B2B) interaction only.

Accepted Answer

A) True 
 B)False

Question 15

A company's supply chain involves the flow of materials and information from suppliers, through production, to the end users.

Accepted Answer

A) True 
 B)False

Question 16

Creating an effective supply chain requires linking the marketing, distribution, and supplier channels.

Accepted Answer

A) True 
 B)False

Question 17

A 30 percent reduction in product and service variety will not affect the efficiency of a supply chain.

Accepted Answer

A) True 
 B)False

Question 18

Strategies to address supply chain risks include:
(I) risk avoidance.
(II) risk reduction.
(III) risk projection.
(IV) risk sharing.

Accepted Answer

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

Question 19

Inventory velocity refers to the average speed (in miles/hour) of material handling equipment in a warehouse.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is a barrier to the integration of separate organizations in the supply chain?
(I) conflicting objectives of the companies in the chain
(II) different capacity levels of the companies in the chain
(III) reluctance of the organizations in the chain to allow other organizations access to their data

Accepted Answer

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

Exam 15: Supply Chain Management

The interface between the firm and its suppliers is:

The importance of purchasing relates only to the cost of parts and materials purchased, which is often 60 percent or more of the cost of finished goods.

Some firms have structured their procurement function to include both centralized and decentralized purchasing.

Which of the following is not true of vendor analysis?

Which of the following is not a goal of supply chain management?

Event management is the advanced planning required for major performances such as concerts or conferences.

The service function of purchasing interfaces with many areas, including legal, accounting, and engineering functions.

Which of the following would not usually be a main factor in selecting a vendor?

Strategic partnering is encouraged when two or more business organizations have complementary products or services that would benefit the others.

Global supply chains make purchasing easier because there are more options.

Which of the following is not a measure of the reliability of the supply chain?

Vendor analysis examines the function of purchased parts and materials with a view toward improvement or cost reduction.

Which of the following is a principle required for ethical behavior in purchasing? (I) loyalty to employer (II) justice to those you deal with (III) faith in your profession

E-commerce involves business-to-business (B2B) interaction only.

A company's supply chain involves the flow of materials and information from suppliers, through production, to the end users.

Creating an effective supply chain requires linking the marketing, distribution, and supplier channels.

A 30 percent reduction in product and service variety will not affect the efficiency of a supply chain.

Strategies to address supply chain risks include: (I) risk avoidance. (II) risk reduction. (III) risk projection. (IV) risk sharing.

Inventory velocity refers to the average speed (in miles/hour) of material handling equipment in a warehouse.

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