Reference no: EM134038463

Questions

1. Which of the following is important in developing successful relationships in a partnership?

A. Commitment by top management

B. Interpersonal relationships between employees of the companies

C. Mutual/compatible needs that result in a win-win situation for the partners

D. All of these

2. Which of the following is NOT important in developing a successful strategic alliance?

A. Developing performance metrics

B. Developing efficient processes that will remain unchanged for the duration of the partnership

C. Investigating the capabilities and core competencies of the supplier

D. Open lines of communication that both promote sharing and secure confidentiality

3. Costs associated with supplier certification, investigating alternative suppliers, and investigating alternative delivery options can all be classified as:

A. Pre-transaction costs

B. Post-transaction costs

C. Transaction costs

D. All of these

4. Which of the following illustrates Forward Integration?

A. Microsoft starting a new division that designs and manufactures clothing

B. Ford automotive buying additional machines for production

C. Subway sandwich company buying a bakery to make the bread for their sandwiches.

D. Sony buying trucks to deliver their finished goods inventories to their customers' warehouses

5. Which of the following would be a good reason to outsource (buy) versus making?

A. A firm lacks the technology or expertise to produce an item

B. To utilize existing capacity within a company's own firm

C. To have more direct control over the design and production of an end item

D. No competent supplier presently produces the needed item

6. Which of the following statements is FALSE?

A. More than 50% of each sales dollar typically goes towards covering supply chain costs

B. Decentralized purchasing means not having any purchasing departments and allowing all employees to act as purchasing agents

C. Electronic procurement systems can aid a company in saving both time and money

D. If a firm lacks the technology to make a required component they will need to consider buying/outsourcing.

7. Which of the following is a reason that single sourcing is considered risky/bad?

A. The buyer's required ordering quantities are very low

B. Larger orders make quantity discounts more likely

C. The limited (finite) capacity of one supplier

D. Decreases the item to item quality variability of items purchased

8. If a distribution company that focused on warehousing and distribution of grocery items decided to purchase a chain of grocery stores, the distribution company would be exemplifying:

A. Backward vertical integration

B. Forward vertical integration

C. Backward horizontal integration

D. Forward horizontal integration

9. As firms seek to improve the products they offer to the market, companies are seeking help from their suppliers in new product design and development through:

A. Supplier certification programs

B. Manufacturer certification programs

C. Early supplier involvement

D. Total Cost of Ownership initiatives

10. Companies hold a supply of inventory for all of the following reasons EXCEPT:

A. meet variation in product demand

B. increase production change/setup costs

C. allow production scheduling flexibility

D. purchase in bulk to take advantage of quantity discounts

E. maintain independence of operations (Decoupling)

11. Which of the following is not an example of an ordering cost for products purchased from a supplier?

A. the cost of transmitting the order

B. the cost of receiving the product

C. the cost associated with processing the invoice

D. the opportunity cost of not ordering from a least cost supplier

E. the cost of handling the product

12. In the absence of demand and delivery lead time uncertainty, reorder point is the ____.

A. demand during lead time

B. safety stock

C. sum of demand during lead time and safety stock

D. economic order quantity

E. average inventory

13. In the presence of demand and delivery lead time uncertainty, reorder point is the ____.

A. demand during lead time

B. safety stock

c. sum of demand during lead time and safety stock

d. economic order quantity

e. average inventory

14. Which of the following is a disadvantage of excessive inventory?

a. It hides production and other problems.

b. It leads to higher inventory ordering cost. c. It leads to lower average inventory.

d. It eliminates cycle stock.

e. It reduces the need to conduct cycle count.

15. ____, such as lubricants for machine, are used in the production process, but do not become parts of the final products.

a. Raw materials

b. Work-in-process

c. Maintenance, repair and operating supplies d. Finished goods

e. Cycle stock

16. The purpose of materials management is to ______________.

a. obtain raw materials and component parts for the operations division

b. negotiate the best prices for raw materials and component parts

c. support the transformation of raw materials and component parts into shipped or finished goods

d. find and approve major suppliers of raw materials and parts

e. supervise the purchasing function

17. The delay between receipt of raw materials and the availability of the finished goods produced from them is _____________. For the whole system, ____ should be as short as possible.

a. production time (PT) / PT

b. regular time (RT) / RT

c. over time (OT) / OT

d. throughput time (TPT) / TPT e. tech time (TT) / TT

18. It is not necessary that all resource flows between components occur at the same time or in the same manner. This idea is called _______________ and is useful when designing supply-distribution systems.

a. supplier separation

b. source separation

c. channel separation

d. vendor separation

e. channel division

19. Each activity in the order cycle is a bundle of tasks. For example, the receipt of materials by the customer involves all of the following, with one exception. Which is the exception?

a. Physical receipt

b. Unloading

c. Unpacking

d. Storage location decision

e. Move to storage

20. The managers of integrated materials systems have two objectives:

a. Customer service and Maximum quality materials

b. Customer relations and Minimum total materials costs

c. Minimum total materials costs and Maximum flexibility in production

d. Customer satisfaction and Minimum total materials costs

e. None of the above

21. If a firm makes products to order, _____________ is measured by the degree to which products are completed and shipped ________.

a. quality / as ordered

b. delivery / on time

c. customer service / as promised

d. customer relations / within three days

e. customer service / within a week

22. Unfilled orders are processed in one of the following three ways:

a. Backorder, Cancellation, Suspension

b. Reorder, Substitution, or Backorder

c. Backorder, Substitution, or Cancellation

d. Substitution, Cancellation, or Requisition

e. Requisition, Substitution, or Cancellation

23. _________ is the extent to which a supplier can accommodate a customer's requests. Perhaps the request is for special processing, packaging, or shipment.

a. Flexibility

b. Customizing

c. Customer satisfaction

d. Customer service

e. Programming

24. When it comes to customer satisfaction customers want all of the following with one exception. Which is the exception?

a. Short lead time

b. Good quality

c. Low cost

d. Customized products

e. Post-sale service

25. Many parts can be purchased off the shelf. They are like commodities in the sense that they are standardized. In effect, they are _____________ according to specifications established by an industry, professional association, or independent testing organization.

a. made to standard

b. made to specifications

c. made to order

d. made to stock

e. made to design

26. Purchased inputs offer a potential source for helping a company develop _____________ against its competitors.

a. a competitive edge

b. a plan

c. a competitive strategy

d. leverage

e. a long term plan

27. In the formulation of purchasing strategy, the organization's ___________, the organization's ___________________, and the competitive environment must be considered.

a. market share / competitive strategy

b. competitive strategy / weaknesses

c. market share / strengths and weaknesses

d. competitive priorities / strengths and weaknesses

e. strengths / weaknesses

28. In dynamic business environments, __________________ is a major survival factor.

a. reducing costs

b. maintaining a competitive advantage

c. increasing sales

d. improving quality

e. controlling expenses

29. Supplier lead time affects a firm's flexibility and service to its own customers. Firms that compete in ________ markets and face rapidly changing ________________ require greater flexibility than firms competing in _______ markets.

a. volatile / consumer demands / stable

b. stable / product or technology / volatile

c. volatile / product or technology / stable

d. competitive / consumer demands / stable e. competitive / consumer demands / volatile

30. The ____________ there is in a vendor's lead times; the ____________ it is to manage the production process.

a. less uncertainty / less difficult

b. more uncertainty / more difficult

c. less uncertainty / more difficult

d. more uncertainty / less difficult

e. more certainty / more difficult