Question 1

Companies that lack internal expertise in a specific functional area would likely consider insourcing.

Accepted Answer

A) True 
 B)False  False

Question 2

Which of the following is TRUE?

Accepted Answer

A)   VMI stands for Vertically Managed Inventory
B)   3PL stands for Third Party Leverage
C)   VMI stands for Vendor-Managed Inventory
D)   3PL stands for Three Point Logistics C

Question 3

Managing a firm's external resources in ways that support the long-term goals of the firm can be referred to as:

Accepted Answer

A)   Ethical souring
B)   Functional sourcing
C)   Strategic sourcing
D)   Hybrid Sourcing C

Question 4

What does 3PL stand for?
What do 3PLs offer a company?
Provide three examples of what a 3PL might do for a client.

Accepted Answer

The answer of What does 3PL stand for?
What do 3PLs...

Question 5

The primary benefits of ____ include costs savings and freeing up time for purchasing staff to concentrate on the firm's core activities.

Accepted Answer

A)   eProcurement
B)   Insourcing
C)   The Ethical Trade initiative
D)   Six Sigma

Question 6

Retail items,which would likely be found at a store like Target or Wal-Mart,like lamps,blankets,microwave ovens,and candy bars would be classified as functional products.

Accepted Answer

A) True 
 B)False

Question 7

According to the text,driving your suppliers to offer the lowest possible prices,which in turn will lower your cost of goods sold,could prove to be harmful to buyer-supplier relationships and may also decrease the quality levels of the items produced using your suppliers' low cost components.

Accepted Answer

A) True 
 B)False

Question 8

According to the textbook,Wal-Mart is perhaps the company that is most averse to implementing sustainable business practices.

Accepted Answer

A) True 
 B)False

Question 9

The organization you work for is characterized by the following:
•The organization was incorporated only 18 months ago
•Your end products are assembled using international components
•The organization competes in a high-tech industry
•The lifecycles for your products are relatively short
•The market for your products has seen a 30% growth rate in the last 12 months,and you expect to sustain growth rates of 30 to 50% over the next three years
All of these points lead to the conclusion that this is a relatively young organization that has grown quickly and will continue to experience considerable growth and change over the next few years.
In order to remain competitive the organization is looking to you to develop a plan in terms of establishing a sourcing strategy.Provide FOUR initiatives that you would suggest to management and describe why each is important.

Accepted Answer

The answer of The organization you work for is characterized...

Question 10

Purchasing departments can be seen as a primary designer and facilitator of important inward- and outward-facing sourcing policies.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is NOT a step suggested in the Supply Chain Sourcing Strategy Framework?

Accepted Answer

A)   Classify supplier items as either innovative or functional
B)   Define the goals of the supply chain and check for consistency with products and firm strategy
C)   Distribute free samples of all purchased products to the end-user for detailed evaluation and feedback on supply chain development
D)   Identify and evaluate the capabilities of suppliers and then identify areas which could be improved

Question 12

The influence of corporate sourcing decisions interacts with internal design,production,finance,marketing,and accounting.

Accepted Answer

A) True 
 B)False

Question 13

Some strategic supplier agreements reward the highest performing suppliers with a share of the cost reductions resulting from supplier improvements,additional purchasing contracts,or contract extensions on existing contracts.

Accepted Answer

A) True 
 B)False

Question 14

Sustainable sourcing is a rather common practice among firms in many industries.What are THREE possible benefits companies practicing sustainable sourcing seek to achieve:

Accepted Answer

The answer of Sustainable sourcing is a rather common practice...

Question 15

The purchasing managers at Sunnydale Corporation decide to intentionally increase purchases from small,women-owned suppliers.This decision can be considered:

Accepted Answer

A)   Illegal
B)   Unethical
C)   Ethical Sourcing
D)   Utilitarianism

Question 16

All of the following are reasons for the increasing use of ethical and sustainable sourcing practices EXCEPT:

Accepted Answer

A)   Global population growth
B)   Increasing environmental awareness
C)   Legislation requiring corporate ethical and sustainable sourcing
D)   Declining worldwide levels of natural resources

Question 17

Which of the following can be used as a punishment for suppliers that perform poorly?

Accepted Answer

A)   Elimination of future business with the focal firm
B)   Downgrade the supplier's status
C)   Billback penalty
D)   All of these

Question 18

Because internationally recognized certifications like ISO 9000 are becoming so common among suppliers,it is becoming more important that purchasing firms develop internal certification programs that are geared toward the specific needs of the purchasing organization.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following are considered outcomes of implementing a supplier evaluation and selection criteria?

Accepted Answer

A)   Allows firm to screen out poor performing suppliers in its present supplier base.
B)   Allows firm to screen out undesirable suppliers that they may be considering for future purchases.
C)   Allows firm and its suppliers to develop a better corporate relationship
D)   All of these

Question 20

Manufacturers typically have very little influence over second and third tier suppliers when compared to the influence they hold over first tier suppliers.

Accepted Answer

A) True 
 B)False

Exam 4: Ethical and Sustainable Sourcing

Companies that lack internal expertise in a specific functional area would likely consider insourcing.

Which of the following is TRUE?

Managing a firm's external resources in ways that support the long-term goals of the firm can be referred to as:

What does 3PL stand for? What do 3PLs offer a company? Provide three examples of what a 3PL might do for a client.

The primary benefits of ____ include costs savings and freeing up time for purchasing staff to concentrate on the firm's core activities.

Retail items,which would likely be found at a store like Target or Wal-Mart,like lamps,blankets,microwave ovens,and candy bars would be classified as functional products.

According to the text,driving your suppliers to offer the lowest possible prices,which in turn will lower your cost of goods sold,could prove to be harmful to buyer-supplier relationships and may also decrease the quality levels of the items produced using your suppliers' low cost components.

According to the textbook,Wal-Mart is perhaps the company that is most averse to implementing sustainable business practices.

Purchasing departments can be seen as a primary designer and facilitator of important inward- and outward-facing sourcing policies.

Which of the following is NOT a step suggested in the Supply Chain Sourcing Strategy Framework?

The influence of corporate sourcing decisions interacts with internal design,production,finance,marketing,and accounting.

Some strategic supplier agreements reward the highest performing suppliers with a share of the cost reductions resulting from supplier improvements,additional purchasing contracts,or contract extensions on existing contracts.

Sustainable sourcing is a rather common practice among firms in many industries.What are THREE possible benefits companies practicing sustainable sourcing seek to achieve:

The purchasing managers at Sunnydale Corporation decide to intentionally increase purchases from small,women-owned suppliers.This decision can be considered:

All of the following are reasons for the increasing use of ethical and sustainable sourcing practices EXCEPT:

Which of the following can be used as a punishment for suppliers that perform poorly?

Because internationally recognized certifications like ISO 9000 are becoming so common among suppliers,it is becoming more important that purchasing firms develop internal certification programs that are geared toward the specific needs of the purchasing organization.

Which of the following are considered outcomes of implementing a supplier evaluation and selection criteria?

Manufacturers typically have very little influence over second and third tier suppliers when compared to the influence they hold over first tier suppliers.