Materials Management Exam Review
Course Introduction
Materials Management focuses on the systematic planning, organizing, and control of the flow of materials from their initial purchase through internal operations to service points through distribution. The course explores key concepts such as purchasing, inventory management, materials handling, storage, and logistics, emphasizing the importance of ensuring that the right materials are available at the right time, in the right quantity, and at the right cost. Students will learn about various tools, techniques, and strategies for optimizing material flow and managing supply chain challenges within manufacturing and service organizations.
Recommended Textbook
Principles of Supply Chain Management A Balanced Approach 4th Edition by
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14 Chapters
822 Verified Questions
822 Flashcards
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Page 2
Joel D. Wisner
Chapter 1: Introduction to Supply Chain Management
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148 Verified Questions
148 Flashcards
Source URL: https://quizplus.com/quiz/60211
Sample Questions
Q1) Which of the following can be classified as a 3PL?
A)A company that offers warehousing services
B)A company that offers transportation services
C)A company that offers customs clearing services
D)All of these
Answer: D
Q2) A small LTL shipment that originates on a truck in Los Angeles and is moved from Los Angeles to Phoenix where it is unloaded and put onto another truck for final shipment to Denver would be considered an intermodal shipment since it utilizes more than one vehicle during shipment.
A)True
B)False
Answer: False
Q3) When a supplier provides a price quote to a buyer for supplies that includes transportation to the buyer's location this is known as FOB destination pricing,or free on board to the shipment's destination.
A)True
B)False
Answer: True
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Page 3
Chapter 2: Purchasing Management
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52 Verified Questions
52 Flashcards
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Sample Questions
Q1) 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
Answer: A
Q2) Procurement credit cards can be used for small purchases excluding meals,lodging,and travel expenses.
A)True
B)False Answer: True
Q3) Total Cost of Ownership does NOT consider which of the following factors?
A)Purchase order costs
B)Freight costs
C)Payment terms
D)Tooling costs
Answer: A
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Chapter 3: Creating and Managing Supplier Relationship
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52 Verified Questions
52 Flashcards
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Sample Questions
Q1) An effective supplier certification program will increase time spent on incoming inspections.
A)True
B)False
Answer: False
Q2) According to the textbook,which of the following companies utilizes a supplier development program called Supplier Continuous Quality Improvement (SQDI)focused on improving the quality of the goods and services purchased and minimize the time needed to inspect incoming products?
A)Target
B)Boeing
C)Intel
D)General Motors
Answer: C
Q3) Successful supplier relationships involve equal decision-making control.
A)True
B)False
Answer: True
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5
Chapter 4: Ethical and Sustainable Sourcing
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51 Verified Questions
51 Flashcards
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Sample Questions
Q1) Cutting back on packaging,fuel,or electricity is an example of:
A)Ethical sourcing
B)Sole sourcing
C)Sustainable sourcing
D)Global sourcing
Q2) According to the textbook,Wal-Mart is perhaps the company that is most averse to implementing sustainable business practices.
A)True
B)False
Q3) Successful strategic supplier alliances can result in which of the following?
A)Better market penetration.
B)Access to new technologies and knowledge
C)Higher return on investment
D)All of these
Q4) A "fair trade product" refers to manufactured products like clothing or electronics.
A)True
B)False
Q5) Describe THREE important steps in organizing and managing a successful strategic alliance program.
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Chapter 5: Demand Forecasting
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52 Verified Questions
52 Flashcards
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Sample Questions
Q1) Which of the following is NOT a benefit of CPFR?
A)Improved corporate image among regulators
B)Integrates planning, forecasting and logistics activities
C)Provides analysis of sales and order forecasts
D)Provide an analysis of key performance metrics
Q2) Some important steps involved in implementation of a CPFR process model include,seeking long-term holistic solutions,creating clear accountabilities,and reducing decision cycle time.
A)True
B)False
Q3) Explain the key challenges of CPFR implementation.
Q4) The exponential smoothing forecast has the same value as the naïve forecast when in the exponential smoothing model is equal to:
A)0
B)0.5
C)1
D)Insufficient information provided to determine answer
Q5) List and describe two types of qualitative forecasting methods.
Q6) List FOUR benefits that can be achieved by implementing a successful CPFR program.
Page 7
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Chapter 6: Resource Planning Systems
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52 Verified Questions
52 Flashcards
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Sample Questions
Q1) A Mixed Production Strategy uses a blend of chase and level strategies by striving to maintain a stable core workforce while using other means like temporary workers to manage short-term high demand.
A)True
B)False
Q2) System nervousness is when even small changes to upper-level production plans cause major changes in lower-level production plans.
A)True
B)False
Q3) While ERP is a relatively new technology,it has grown rapidly since the early 1990s.Which of the following is the reason that has contributed to its rapid growth?
A)The year 2000 millennium bug
B)The trend for companies to eliminate their supply chain partners
C)The increased use of email during the 1990's
D)All of these
Q4) Legacy systems were designed to perform a very specific operational function.
A)True
B)False
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Chapter 7: Inventory Management
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52 Verified Questions
52 Flashcards
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Sample Questions
Q1) List four assumptions of the EOQ model.
Q2) Dependent Demand must be forecasted based on market conditions.
A)True
B)False
Q3) The continuous review inventory system requires less safety stock compared to the periodic review inventory system.
A)True
B)False
Q4) Which of the following is a global RFID challenge?
A)Foreign firms are skeptical about sharing potentially confidential information with foreign businesses.
B)Globally, the RFID industry does not have its own UHF spectrum allocation.
C)UHF signals are reflected by metal and absorbed by water.
D)All of the above.
E)None of these.
Q5) Pareto Analysis is an inventory model used to determine the optimal order size that minimizes total annual inventory costs.
A)True
B)False
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Chapter 8: Process Management - Lean and Six Sigma in the Supply Chain
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52 Verified Questions
52 Flashcards
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Sample Questions
Q1) Calculate the inventory container size required given the following:Demand rate = 10 parts per hour,Safety stock required = 15%Number of containers = 14,Time to cycle through entire system = 6 hours
A)2 parts
B)3 parts
C)4 parts
D)5 parts
Q2) Efficient Consumer Response was initially developed in the 1990's for the following industry:
A)Fashion
B)Grocery
C)Small Electronics
D)Automobile
Q3) Deming's 14 points actually conflict with many Six Sigma concepts.
A)True
B)False
Q4) The term "lean production" essentially refers to the Toyota Production System in its entirety.
A)True
B)False
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Chapter 9: Domestic Usand Global Logistics
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52 Verified Questions
52 Flashcards
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Sample Questions
Q1) Suppose you have a shipment of products that needs to be transported.What type of service does each of the following intermediaries offer?
a.Freight forwarders
b.Transportation brokers
c.Shippers' Associations
Q2) Efficient supply chain management distribution requires that modern warehouses concentrate their efforts on a wide array of warehousing and distribution functions like storing purchases,work in progress inventories,and finished goods inventories,receiving shipments,breaking down shipments,repackaging,and the distribution of components.
A)True
B)False
Q3) What does LTL stand for in the transportation industry?
A)Logistical Train-car Lift
B)Less-Than-Truckload
C)Large Truck Leasing
D)Local Train Logistics carriers
Q4) Generally speaking,rail carriers are less expensive than motor carriers.
A)True
B)False
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Chapter 10: Customer Relationship Management
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51 Flashcards
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Sample Questions
Q1) The element of a CRM program involved with the use of data-mining software and customer behavior analytics is:
A)Segmenting customers
B)Predicting customer behaviors
C)Customer value determination
D)Customer preference determination
Q2) Safeguarding customer information is a legal and ethical responsibility for any company collecting,processing,and transmitting sensitive customer data.
A)True
B)False
Q3) Which of the following is a U.S.law which requires compliance by all firms engaged in handling customer information:
A)The Customer Loyalty Law
B)The Data Protection Act
C)The Internet Privacy Law
D)The U.S. Patriot Act
Q4) Data Security in CRM is a new trend.Briefly describe the issue and discuss why it is something important to monitor.
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Page 12
Chapter 11: Global Location Decisions
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52 Flashcards
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Sample Questions
Q1) If a country is seeking to attract foreign investment in the form of manufacturing related facilities,explain 3 things the government might do to increase the chances of this occurring.
Q2) Global location decisions are made to optimize the performance of the supply chain and be consistent with the firm's competitive strategy.
A)True
B)False
Q3) According to the text,when the location of a factory is dictated by low production costs,fairly developed infrastructure and availability of skilled workers the factory is referred to as a(n):
A)Offshore factory
B)Source factory
C)Server factory
D)Lead factory
Q4) The critical issues in sustainable development are energy consumption/production,air pollution and climate change.
A)True
B)False
Q5) What are the three levels of any location decision?
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Chapter 12: Service Response Logistics
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53 Verified Questions
53 Flashcards
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Sample Questions
Q1) The four primary activities of concern in service response logistics are the management of:
A)Distribution channels,service quality, reputation and waiting times
B)Service capacity, waiting times, distribution channels and service quality
C)Labor standards, distribution channels, waiting times and service quality
D)Service capacity, visual workplace, waiting times and distribution channels
Q2) As a manager of a queuing system,list five important system details you would like to know about in order to manage the system effectively?
Q3) Long-term customer satisfaction,especially in the face of service failures,requires organizations to empower front-line service personnel to identify problems and then provide solutions quickly and an empathetic way.
A)True
B)False
Q4) Service facilities are normally decentralized.
A)True
B)False
Q5) Queuing analysis includes arrival characteristics such as balking and reneging.
A)True
B)False
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Chapter 13: Supply Chain Process Integration
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51 Verified Questions
51 Flashcards
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Sample Questions
Q1) Building,maintaining and strengthening beneficial relationships with suppliers and customers is accomplished through the use of:
A)Data warehouses
B)Legacy systems
C)External process integration
D)Order batching
Q2) Passive RFID Tags are less expensive than active RFID tags,which have been used for healthcare and military applications.
A)True
B)False
Q3) Failing to see the big picture and acting only in regard to single firm in the supply chain can be referred to as:
A)Silo mentality
B)Balking
C)Biased decision making
D)Stockpiling
Q4) RFID technology seeks to minimize supply chain visibility.
A)True
B)False
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Chapter 14: Performance Measurement Along the Supply Chain
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52 Flashcards
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Sample Questions
Q1) In general,performance measurements systems are identical from company to company.
A)True
B)False
Q2) Briefly describe the FOUR primary perspectives of the balanced scorecard.
Q3) Which of the following is a traditional performance measure?
A)Average safety stock levels
B)Overall total productivity
C)Number of suppliers who are quality certified
D)Number of product return per units sold
Q4) The textbook described 7 supply chain specific performance measures adopted by supply chain trading partners to further align supply chain objectives.List FOUR of those metrics.
Q5) Which of the following supply chain performance metrics measures the average percentage of orders that arrive on time,complete and damage-free?
A)Total supply chain management costs
B)Supply chain perfect order fulfillment performance
C)Supply chain cash-to-cash cycle time
D)Supply chain delivery performance
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