Question 1

What are the advantages and disadvantages of insourcing and outsourcing?

Accepted Answer

Insourcing gives a company a high degree

Question 2

What are the four sourcing strategies, how do they work, and what are the advantages of each?

Accepted Answer

The main sourcing strategies are single,

Question 3

For the average manufacturer, over 50 percent of the value of shipments comes from materials.

Accepted Answer

A) True 
 B)False

Question 4

Use of a single supplier for a part or service in part of the business and another supplier with the same capability for a different part or service in another area of the business is known as ________.

Accepted Answer

The answer of Use of a single supplier for a...

Question 5

Business partners that transfer payments between banks using an information system are using ________.

Accepted Answer

electronic

Question 6

Which of these is a direct cost associated with outsourcing?

Accepted Answer

A) direct material 
B) direct labor 
C) variable overhead 
D) price from invoice 
A) direct material 
B) direct labor 
C) variable overhead 
D) price from invoice

Question 7

What takes place in each step in the procure-to-pay cycle and which step is most critical?

Accepted Answer

Answers may vary on which step is most c

Question 8

The deans' suite hoped to cut costs and decided to perform a total cost analysis on its vodka supplier. Consumption was currently 6,000 bottles per semester and this was predicted to maintain that level for the next few years. Their current source, Byron's, charged $9.50 per bottle and packed 288 bottles in a crate. The cost to ship the crate was $15. Another potential source of vodkas was Pancho's, who charged $9.00 per bottle but could ship only 100 bottles in a crate and at a higher price, $20. Assume that a partial crate may be purchased. What is the total annual cost to supply vodka from Pancho's?

Accepted Answer

A) $54,000 
B) $55,200 
C) $57,000 
D) $57,312 
A) $54,000 
B) $55,200 
C) $57,000 
D) $57,312

Question 9

Horace Smithfield, Esq., was insistent that he pay a flat rate of $10,000,000 and not a penny more to transfer his inheritance through your checking account so he could move vast sums of cash out of his country. Sure, he had fallen out of favor with the government and the economy in his country was in a dire situation, but a deal was a deal and $10,000,000 was all he could afford to pay. This type of purchase contract was to be a(n)________ if you would kindly provide your account information.

Accepted Answer

fixed-pric

Question 10

Flingers Inc. reveals the following information in their annual report for FY 2018 $$\begin{array}{l}
\text { Earnings and Expenses }\
\begin{array} { | l | c | } 
\hline \text { Sales } & \$ 10,000,000 \
\hline \text { Cost of goods sold } & \$ 5,000,000 \
\hline \text { Pretaxearnings } & \$ 500,000 \
\hline & \
\hline \text { Selected Balance Sheet Items } & \
\hline \text { Merchandise inventory } & \$ 80,000 \
\hline \text { Total assets } & \$ 2,000,000 \
\hline
\end{array}
\end{array}$$ What is Flingers' profit margin?

Accepted Answer

A) 5% 
B) 16% 
C) 2% 
D) 4% 
A) 5% 
B) 16% 
C) 2% 
D) 4%

Question 11

Total cost analysis divides costs into direct (costs that are tied to the level of operations or supply chain activities)and indirect (costs that are not tied to the level of operations or supply chain activity).

Accepted Answer

A) True 
 B)False

Question 12

Portfolio analysis begins with assignment to a quadrant before a sourcing strategy is formulated.

Accepted Answer

A) True 
 B)False

Question 13

A description method used when a product or service is proprietary or when there is a perceived advantage to using a particular supplier's product or services is:

Accepted Answer

A) description by market grade. 
B) description by brand. 
C) description by specification. 
D) description by performance characteristics. 
A) description by market grade. 
B) description by brand. 
C) description by specification. 
D) description by performance characteristics.

Question 14

A company using portfolio analysis decides to streamline the purchasing process for a few items by use of EDI and automated requisitions to the greatest extent possible. The quadrant that these items fall in is most likely the:

Accepted Answer

A) bottleneck quadrant. 
B) critical quadrant. 
C) leverage quadrant. 
D) routine quadrant. 
A) bottleneck quadrant. 
B) critical quadrant. 
C) leverage quadrant. 
D) routine quadrant.

Question 15

Single sourcing is a better choice than multiple sourcing because of the following:

Accepted Answer

A) increased competition. 
B) ensuring that a supplier will not become complacent. 
C) spreading risk. 
D) gaining access to the supplier's design and engineering capabilities. 
A) increased competition. 
B) ensuring that a supplier will not become complacent. 
C) spreading risk. 
D) gaining access to the supplier's design and engineering capabilities.

Question 16

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 17

The deans' suite hoped to cut costs and decided to perform a total cost analysis on its vodka supplier. Consumption was currently 6,000 bottles per semester and this was predicted to maintain that level for the next few years. Their current source, Byron's, charged $9.50 per bottle and packed 288 bottles in a crate. The cost to ship the crate was $15. Another potential source of vodkas was Pancho's, who charged $9.00 per bottle but could ship only 100 bottles in a crate and at a higher price, $20. Assume that a partial crate may be purchased. What is the total annual cost to supply vodka from their current supplier?

Accepted Answer

A) $54,000 
B) $55,200 
C) $57,000 
D) $57,312 
A) $54,000 
B) $55,200 
C) $57,000 
D) $57,312

Question 18

Profit margin is the ratio of ________ to ________.

Accepted Answer

The answer of Profit margin is the ratio of ________...

Question 19

The purchasing team occasionally examined its spending patterns to identify irregularities as part of a(n)________.

Accepted Answer

The answer of The purchasing team occasionally examined its spending...

Question 20

This table contains the performance criteria and scores (larger numbers are better)for four potential suppliers to Los Pollos Hermanos. Evaluate the data and identify the BEST source for Los Pollos Hermanos. $$\begin{array} { | l | c | c | c | c | } 
\hline \text { Performance Dimension } & \text { Company W } & \text { Company P } & \text { Company D } & \text { Company G } \
\hline \text { Purity } ( \mathrm { W } = 0.5 ) & 5 & 4 & 2 & 5 \
\hline \text { Cost } ( \mathrm { W } = 0.2 ) & 4 & 3 & 5 & 2 \
\hline \text { Stability } ( \mathrm { W } = 0.2 ) & 2 & 1 & 4 & 5 \
\hline \text { Speed } ( \mathrm { W } = 0.1 ) & 3 & 5 & 5 & 2 \
\hline
\end{array}$$

Accepted Answer

A) Company W 
B) Company P 
C) Company G 
D) Company D 
A) Company W 
B) Company P 
C) Company G 
D) Company D

What are the advantages and disadvantages of insourcing and outsourcing?

What are the four sourcing strategies, how do they work, and what are the advantages of each?

For the average manufacturer, over 50 percent of the value of shipments comes from materials.

Use of a single supplier for a part or service in part of the business and another supplier with the same capability for a different part or service in another area of the business is known as ________.

Business partners that transfer payments between banks using an information system are using ________.

Which of these is a direct cost associated with outsourcing?

What takes place in each step in the procure-to-pay cycle and which step is most critical?

Flingers Inc. reveals the following information in their annual report for FY 2018 Earnings and Expenses Sales \ 10,000,000 Cost of goods sold \ 5,000,000 Pretaxearnings \ 500,000 Selected Balance Sheet Items Merchandise inventory \ 80,000 Total assets \ 2,000,000 What is Flingers' profit margin?

Total cost analysis divides costs into direct (costs that are tied to the level of operations or supply chain activities)and indirect (costs that are not tied to the level of operations or supply chain activity).

Portfolio analysis begins with assignment to a quadrant before a sourcing strategy is formulated.

A description method used when a product or service is proprietary or when there is a perceived advantage to using a particular supplier's product or services is:

A company using portfolio analysis decides to streamline the purchasing process for a few items by use of EDI and automated requisitions to the greatest extent possible. The quadrant that these items fall in is most likely the:

Single sourcing is a better choice than multiple sourcing because of the following:

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:

Profit margin is the ratio of to .

The purchasing team occasionally examined its spending patterns to identify irregularities as part of a(n)________.

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

S: 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

S: Supply Chain Information Systems

Jitlean Production

Managing Projects

Developing Products and Services

Filters

Exam 7: Supply Management

What are the advantages and disadvantages of insourcing and outsourcing?

What are the four sourcing strategies, how do they work, and what are the advantages of each?

For the average manufacturer, over 50 percent of the value of shipments comes from materials.

Use of a single supplier for a part or service in part of the business and another supplier with the same capability for a different part or service in another area of the business is known as ________.

Business partners that transfer payments between banks using an information system are using ________.

Which of these is a direct cost associated with outsourcing?

What takes place in each step in the procure-to-pay cycle and which step is most critical?

Flingers Inc. reveals the following information in their annual report for FY 2018 Earnings and Expenses Sales \ 10,000,000 Cost of goods sold \ 5,000,000 Pretaxearnings \ 500,000 Selected Balance Sheet Items Merchandise inventory \ 80,000 Total assets \ 2,000,000 What is Flingers' profit margin?

Total cost analysis divides costs into direct (costs that are tied to the level of operations or supply chain activities)and indirect (costs that are not tied to the level of operations or supply chain activity).

Portfolio analysis begins with assignment to a quadrant before a sourcing strategy is formulated.

A description method used when a product or service is proprietary or when there is a perceived advantage to using a particular supplier's product or services is:

A company using portfolio analysis decides to streamline the purchasing process for a few items by use of EDI and automated requisitions to the greatest extent possible. The quadrant that these items fall in is most likely the:

Single sourcing is a better choice than multiple sourcing because of the following:

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:

Profit margin is the ratio of ________ to ________.

The purchasing team occasionally examined its spending patterns to identify irregularities as part of a(n)________.

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

S: 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

S: Supply Chain Information Systems

Jitlean Production

Managing Projects

Developing Products and Services

Filters

Profit margin is the ratio of to .