Global Supply Chain Management
Test Bank
Course Introduction
Global Supply Chain Management examines the strategic and operational aspects of managing supply chains in an increasingly interconnected world. The course covers topics such as sourcing and procurement, logistics, inventory control, transportation, and risk management from a global perspective. Through case studies and real-world examples, students learn how companies coordinate production, distribution, and information flows across international borders. Emphasis is placed on the challenges of managing cultural differences, compliance with shifting regulations, and leveraging technology for efficient and sustainable global operations. By the end of the course, students will be equipped to make informed decisions that enhance supply chain effectiveness in a complex global marketplace.
Recommended Textbook
Purchasing and Supply Chain Management 6th Edition by Robert M. Monczka
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20 Chapters
1518 Verified Questions
1518 Flashcards
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Chapter 1: Introduction to Purchasing and Supply Chain Management
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46 Verified Questions
46 Flashcards
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Sample Questions
Q1) Which of the following is not one of the factors driving an emphasis on supply chain management?
A) An increasing emphasis on domestic sourcing due to the longer lead times and higher levels of pipeline inventories associated with global sourcing.
B) The cost and availability of information resources among entities in the supply chain that allow easy linkages that eliminate time delays in the network.
C) The level of competition in both domestic and international markets requires organizations to be fast, agile, and flexible.
D) Customer expectations and requirements that are becoming much more demanding.
E) The ability of an organization's supply chain to identify and mitigate risk minimizes disruptions in both supply and downstream product or services to mitigate the impact on lost sales.
Answer: A
Q2) The key to the success of any company is the quality of its employees.
A)True
B)False
Answer: True
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Chapter 2: The Purchasing Process
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79 Verified Questions
79 Flashcards
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Sample Questions
Q1) Almost all firms establish blanket purchase orders with their suppliers.
A)True
B)False
Answer: True
Q2) Most companies spend too much time and too many resources managing the ordering of goods and services, particularly lower-value items.
A)True
B)False
Answer: True
Q3) It is a common and preferred current practice for suppliers to arrange shipment to a purchaser and simply include the transportation cost as part of the purchase cost.
A)True
B)False
Answer: False
Q4) Historically, most organizations have paid minimal attention to MRO items.
A)True
B)False
Answer: True
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Chapter 3: Purchasing Policy and Procedures
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28 Verified Questions
28 Flashcards
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Sample Questions
Q1) Which of the following is not True concerning the purposes of a procedure manual?
A) The manual outlines the broad set of purposes, principles, and rules of action that guide an organization.
B) The manual is a reference guide for purchasing personnel and is especially valuable to new employees who require training in how to accomplish different activities or assignments.
C) For experienced personnel, the manual provides clarification or simply reinforces knowledge about different topics.
D) The manual provides consistency and order by documenting the steps and activities required to perform a task.
E) The manual may specify industry best practices to follow that are identified through benchmarking comparisons with leading firms.
Answer: A
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Chapter 4: Supply Management Integration for Competitive Advantage
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67 Verified Questions
67 Flashcards
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Sample Questions
Q1) _____ is a function of the professional's ability to translate supply market data into compelling insights that solve business problems and to enable organizational connections and networking that accelerate business success.
A) SRM
B) Groupthink
C) Reciprocity
D) Process gain
E) Relationship capital
Q2) External relationship management begins with internal relationship management: internal alignment is key.
A)True
B)False
Q3) Many supply management groups are recruiting commodity managers with very strong technical backgrounds, who are able to talk the talk and walk the walk alongside their engineering counterparts.
A)True
B)False
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Page 6
Chapter 5: Purchasing and Supply Management Organization
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73 Flashcards
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Sample Questions
Q1) Spend analysis involves using systems software to identify items purchased in common among divisions or business units.
A)True B)False
Q2) Center-led organizations have the same total authority that purely centralized units do.
A)True
B)False
Q3) Few of the tasks that qualify as operational support are being streamlined or automated, especially with the advent of e-purchasing systems.
A)True
B)False
Q4) The ability to respond quickly to user and customer requirements has always been a major justification for centralized purchasing authority.
A)True B)False
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Chapter 6: Category Strategy Development
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80 Verified Questions
80 Flashcards
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Sample Questions
Q1) A preferred supplier designation indicates that the selected supplier should receive the business for a critical commodity under all possible conditions.
A)True
B)False
Q2) All of the following are examples of factors in Porter's market internal competition force except _____.
A) speed of industry growth
B) buyer propensity to substitute
C) exit barriers
D) switching costs
E) capacity utilization
Q3) The problem with secondary data is that they are often outdated and may not provide the specific information for which the team is looking.
A)True
B)False
Q4) Supply base optimization usually refers to increasing the number of suppliers used.
A)True
B)False
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Page 8
Chapter 7: Supplier Evaluation and Selection
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78 Verified Questions
78 Flashcards
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Sample Questions
Q1) Trade shows are seldom an ineffective way to gain exposure to a large number of suppliers at one time.
A)True B)False
Q2) The supplier's selection of a production process does little to define its required technology, human resource skills, and capital equipment requirements.
A)True B)False
Q3) The degree of effort associated with supplier selection is inversely related to the importance of the required good or service.
A)True
B)False
Q4) A well-defined supplier evaluation scoring systems takes criteria that may be highly subjective and develops a quantitative scale for measurement.
A)True B)False
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Chapter 8: Supplier Quality Management
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94 Verified Questions
94 Flashcards
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Sample Questions
Q1) In _____, there is an intense focus on identifying and eliminating common causes of waste that add cost, time, and effort to the product or service while not adding value to the customer.
A) supplier evaluation and selection process
B) the MBNQA
C) SIO 14000:2004
D) the Honda BP process
E) None of the above.
Q2) Which of the following is one of the dimensions used in developing a clear understanding of the buyer's expectations and requirements?
A) The ability of the buyer to succinctly identify, define, quantify, or specify its technical and sourcing requirements.
B) The seller's ability to effectively communicate its requirements.
C) How compatible the buyer's and supplier's respective corporate cultures are.
D) The ability of the selling company to succinctly identify, clearly define, quantify, or specify its technical and sourcing requirements.
E) None of the above.
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Chapter 9: Supplier Management and Development:
Creating a World-Class Supply Base
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84 Verified Questions
84 Flashcards
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Sample Questions
Q1) Which of the following is not one of the management uses for the data derived from a comprehensive cost-base supplier evaluation system?
A) Such a system provides the necessary information that allows a buyer to justify buying from a preferred supplier despite a higher unit price.
B) The system allows a buyer to communicate the cost of specific nonperformance events to the originating supplier, which then helps identify improvement opportunities.
C) Quantifying nonconformance costs can result in a chargeback to the offending supplier for unplanned costs.
D) The system allows customized assignment of cost accounting codes depending on how much money is left in the annual budget.
E) A buyer can use this data to identify longer-term sources of supply based on a supplier's total cost performance history.
Q2) All buyers are encouraged to engage in currency hedging activities, regardless of their level of experience.
A)True
B)False
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Chapter 10: Worldwide Sourcing
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87 Verified Questions
87 Flashcards
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Sample Questions
Q1) All of the following are examples of why organizations source worldwide except _____.
A) cost/price benefits
B) access to product and process technology
C) quality
D) introduce competition to domestic suppliers
E) ability to influence domestic consumers
Q2) Which of the following is not one of the usual roles of an international purchasing office (IPO)?
A) Identify potential suppliers.
B) Solicit quotes or proposals..
C) Obtain product samples.
D) Manage countertrade requirements.
E) Conduct overseas sales and marketing-related activities.
Q3) U.S. purchasers stuck with domestic suppliers that produce poor quality often begin to source offshore components with the hope of improving end-product quality.
A)True
B)False
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12
Chapter 11: Strategic Cost Management
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83 Flashcards
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Sample Questions
Q1) In should-cost modeling, _____ refers to the integrity and transparency of the cost model created.
A) direct cost
B) value stream maps
C) make-or-buy analysis
D) fixed cost
E) auditability
Q2) Identification of all costs provides the basis for establishing joint improvement targets.
A)True
B)False
Q3) In TCO for a service, _____ include all costs associated with the performance of the service that are not included in the purchase price.
A) invoice costs
B) usage costs
C) acquisition costs
D) end of life costsend of life costs
E) interest costs
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13
Chapter 12: Purchasing and Supply Chain Analysis: Tools and Techniques
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67 Verified Questions
67 Flashcards
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Sample Questions
Q1) In a PERT network, the difference between the _____ and the _____ is slack.
A) late finish .early finish
B) late start .late finish
C) early finish .late start
D) early start .early finish
E) None of the above.
Q2) A _____ visually displays the tasks and times associated with a project and consists of a horizontal bar chart with activities listed vertically and times or dates displayed horizontally.
A) PERT tool
B) Gantt chart
C) CPM tool
D) TCO chart
E) networking tool
Q3) The advantage of a Gantt chart is that for larger projects, it can be easy to use and keep up to date.
A)True
B)False
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Chapter 13: Negotiation and Conflict Management
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98 Verified Questions
98 Flashcards
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Sample Questions
Q1) Many negotiators fail to prepare adequately before entering into a formal negotiation oftentimes because of a very short timeframe in which to make a deal.
A)True
B)False
Q2) In win-win negotiation, if one party gains, it is only at the expense of the other party.
A)True
B)False
Q3) A win-lose negotiation approach works best for items or services that are important to the buyer's products or business or when the item involves high-dollar items or services where cost control is critical.
A)True
B)False
Q4) The purchasing cycle begins with identifying (or anticipating) a specific need or requirement for a part component, raw material, subassembly, service, piece of equipment, or finished good to be sourced to conduct or support organizational operations.
A)True
B)False
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Chapter 14: Contract Management
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109 Verified Questions
109 Flashcards
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Sample Questions
Q1) Taking a dispute into the jurisprudence system should be an automatic step in resolving the dispute, and not viewed as a last resort.
A)True
B)False
Q2) As the total dollar value/unit cost of the contract decreases, purchasers must spend more effort creating effective pricing mechanisms.
A)True
B)False
Q3) It is often easy to go back and negotiate what contractual terms actually mean once the contract has been signed and a period of time has passed.
A)True
B)False
Q4) Long-term contracts can help the buyer to gain exclusive access to proprietary supplier technology, and blocking competitor access can result in a short-term competitive advantage.
A)True
B)False
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Chapter 15: Purchasing Law and Ethics
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107 Verified Questions
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Sample Questions
Q1) Betty goes into Mimi's Wholesale Video Store and says to Mimi, "I want to buy 500 DVDs of the Last Vegas movie from you. I will pay you $10 for each DVD." This is an example of [a/an] _____.
A) acceptance
B) breach
C) offer
D) due diligence
E) conditional offer
Q2) The purchasing agency relationship is created between the employer and employee when the company hires an individual to perform the purchasing job.
A)True
B)False
Q3) The _____ is an attempt by the United Nations to facilitate international trade by removing legal barriers.
A) U.C.C.
B) CISG
C) FCPA
D) FTCA
E) UNICEF
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Page 17
Chapter 16: Lean Supply Chain Management
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Sample Questions
Q1) The underlying emphases of lean- to eliminate all forms of uncertainty and wasteare relevant to all organizations, regardless of the specific planning and control tools that are used.
A)True
B)False
Q2) _____ inventory includes the items used to support production and operations and are not physically part of a finished product.
A) Raw materials
B) WIP
C) Semifinished items
D) MRO
E) Pipeline/in-transit
Q3) Suppliers that cannot meet delivery schedules create delivery uncertainty.
A)True
B)False
Q4) Lean is an easy approach to implement.
A)True
B)False
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Page 18
Chapter 17: Purchasing Services
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98 Verified Questions
98 Flashcards
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Sample Questions
Q1) _____ refers to a mode's or carrier's ability to provide service over a geographic area.
A) Speed
B) Capability
C) Total cost
D) Accessibility
E) Reliability
Q2) In purchasing professional services, it is not important for a standard contract template or format to be developed by the organization's legal department because there are so many types of professional services and providers.
A)True
B)False
Q3) Centralization of professional service procurement can increase the accountability of outside consultants to the buyer by increasing the monitoring and auditing of services provided.
A)True
B)False
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Chapter 18: Supply Chain Information Systems and Electronic Sourcing
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Sample Questions
Q1) The dangers of poor execution of supply chain processes include increased lead and cycle times, higher costs, and less-informed decision making.
A)True
B)False
Q2) The goal of DRP systems is to integrate all business function planning and processing, and to avoid data interruption to make better business decisions and run the business more effectively and efficiently.
A)True
B)False
Q3) _____ within the supply chain is the process of sharing critical data required to manage the flow of products, services, and information in real time between suppliers and customers.
A) Information visibility
B) Tweeting
C) EDI
D) SRM
E) CRM
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Page 20
Chapter 19: Performance Measurement and Evaluation
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Sample Questions
Q1) The problem with measuring behavior is that there is no guarantee the behavior will lead to desired results.
A)True
B)False
Q2) A/An _____ demonstrates the impact of purchasing and supply strategies and actions on revenues of the firm.
A) income measure
B) target cost
C) revenue measure
D) target price
E) cost avoidance measure
Q3) Historical data provide substantial insight about the performance capabilities of competitors or other leading firms.
A)True
B)False
Q4) Supply managers should emphasize purchasing efficiency over purchasing effectiveness as a strict measure of performance.
A)True
B)False
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Chapter 20: Purchasing and Supply Strategy Trends
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Sample Questions
Q1) Cross-functional teams will continue to be important to supply management strategy.
A)True
B)False
Q2) Competition is no longer between fast and agile and slow firms but between big and small firms.
A)True B)False
Q3) Technology and supplier selection discussion during new-product development have minimal effect on cost, quality, and product/service launch, as well as future production.
A)True
B)False
Q4) Overall, future purchasing and supply mission and goals will be narrower and less aligned with the strategic objectives of the firm.
A)True
B)False
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