Procurement and Sourcing Final Exam
Course Introduction
This course provides an in-depth exploration of procurement and sourcing strategies essential for effective supply chain management in modern organizations. Students will learn about the end-to-end procurement cycle, supplier evaluation and selection, contract negotiation, global sourcing, ethical considerations, risk management, and the use of technology in procurement processes. Through case studies and real-world examples, the course emphasizes cost management, quality assurance, and relationship building to optimize value and gain a competitive advantage. By the end of the course, students will have developed the skills needed to manage procurement functions and source goods and services efficiently in a dynamic business environment.
Recommended Textbook
Supply Chain Management A Logistics Perspective 10th Edition by John J. Coyle
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15 Chapters
547 Verified Questions
547 Flashcards
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Chapter 1: Supply Chain Management: an Overview
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34 Verified Questions
34 Flashcards
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Sample Questions
Q1) A key element in Wal-Mart's ability to discount brand name products was an understanding of the criticality of efficiency in its logistics and supply chain system.
A)True
B)False
Answer: True
Q2) Supply chain managers no longer need to worry about suboptimization in light of today's technology.
A)True
B)False
Answer: False
Q3) The world economy still favors the United States and European countries, even though China and India can participate in the global economy much more readily.
A)True
B)False
Answer: False
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3
Chapter 2: Global Dimensions of Supply Chains
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36 Verified Questions
36 Flashcards
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Sample Questions
Q1) Which country is not one of the three top recipients of exports from the United States?
A) China
B) Mexico
C) Canada
D) India
Answer: D
Q2) The central theme behind the theory of Comparative Advantage is that if one country has an advantage (lower cost) in the production of two products, they should focus on the production of both so that they gain the greatest advantage and trade when compared to other countries that may have a lesser advantage.
A)True
B)False
Answer: False
Q3) MFN stands for Many Foreign Nationals.
A)True
B)False
Answer: False
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Chapter 3: Role of Logistics in Supply Chains
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36 Verified Questions
36 Flashcards
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Sample Questions
Q1) The value that is added to goods through a manufacturing or assembly process is:
A) form utility.
B) place utility.
C) time utility.
D) possession utility.
Answer: A
Q2) The product's dollar value typically affects the cost of logistics activities. Which is not one of these costs?
A) Warehousing costs
B) Transportation costs
C) Promotion costs
D) Packaging costs
Answer: C
Q3) Time utility depends on:
A) when the carrier picks up the shipment.
B) transportation companies delivering on time.
C) proper forecasting.
D) having the product available when the user wants it.
Answer: D
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Page 5
Chapter 4: Distribution and Omni Channel Network Design
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38 Verified Questions
38 Flashcards
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Sample Questions
Q1) Distinguish between the locational determinants of labor climate, and quality of life.
Q2) Application of the grid technique to the location of a city warehouse:
A) is no different from applying it in any other situation.
B) incorporates a blanket rate structure that applies the same rate from an origin to any point within the city or commercial zone.
C) considers the costs of moving raw materials into the facility, and moving finished goods to the customers.
D) accounts for information like highway access and facility availability within the grid coordinates.
Q3) As the number of stocking points (DCs) is decreased in a distribution network, fixed costs will _____ and variable costs will _____.
A) decrease; decrease
B) decrease; increase
C) increase; increase
D) increase; decrease
Q4) The grid technique determines the highest cost facility location in an area.
A)True
B)False
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Chapter 5: Sourcing Materials and Services
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36 Verified Questions
36 Flashcards
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Sample Questions
Q1) Strategic sourcing is almost the same as procurement.
A)True
B)False
Q2) There are three definitions to aid understanding of some of the similarities, differences, and linkages between purchasing, procurement, and strategic sourcing. Define them, and discuss the differences between the three.
Q3) Commodities are items or services that are low in risk but high in value.
A)True
B)False
Q4) Some firms are moving towards increasing their number of suppliers in order to encourage competition and lower procurement costs.
A)True
B)False
Q5) Procurement serves as a critical link between members of the supply chain. A)True B)False
Q6) There are seven steps in the Strategic Sourcing Methodology. A)True
B)False
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Chapter 6: Operations Producing Goods and Services
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37 Verified Questions
37 Flashcards
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Sample Questions
Q1) Machine flexibility provides the ability to produce different types of products as well as change the order of operations executed on a product.
A)True
B)False
Q2) A newly launched twenty-first century addition to production strategy which leverages lean manufacturing strategies, Six Sigma best practices, and real-time actionable intelligence from the factory floor is called:
A) just-in-time inventory.
B) adaptive manufacturing.
C) machine flexibility.
D) capacity requirements planning.
Q3) The materials requirement plan (MRP) is a long-range materials plan that converts information regarding end-items in the MPS into a set of time-phased component and part requirements.
A)True
B)False
Q4) What is the "bullwhip effect," and how does it affect manufacturing?
Q5) Discuss the challenges facing production managers.
Q6) Discuss the role of packaging from a logistics perspective.
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Chapter 7: Demand Management
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34 Verified Questions
34 Flashcards
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Sample Questions
Q1) There are at least three forecasting methods. Name them and choose one to discuss in more detail, including advantages and disadvantages.
Q2) A process that organizations can use to arrive at a consensus forecast is called Sales and Operations Planning. Discuss the five steps used to implement this process.
Q3) A sales and operations planning process (S&OP) can produce a forecast internally that all functional areas agree upon and can execute.
A)True
B)False
Q4) Four types of forecast error measures can be used. Which one of the following is not one of the four types?
A) Cumulative sum of forecast errors
B) Exponential smoothing for trends
C) Mean squared error
D) Mean absolute deviation
Q5) Materials management and physical supply are terms that cannot be used interchangeably.
A)True B)False
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Chapter 8: Order Management and Customer Service
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36 Verified Questions
36 Flashcards
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Sample Questions
Q1) "Order to cash" and "order cycle" are the same.
A)True
B)False
Q2) Define and discuss the Order Management System.
Q3) Describe the two approaches to order management. How are they different? How are they related?
Q4) There are two parts to the order management process. The first is _____ and the second is _____.
A) managing the order after it is received; influencing how the customer orders
B) shipping the order; taking the order
C) influencing how the customer orders; managing the order after it is received
D) the Internet model; the traditional model
Q5) Which is NOT part of dependability?
A) Cycle time
B) Safe delivery
C) Correct orders
D) Consistent pricing
Q6) Define and discuss Activity Based Costing, including its impact on profitability.
Q7) Define and discuss the Marketing/Logistics interface.
Page 10
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Chapter 9: Managing Inventory in the Supply Chain
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37 Verified Questions
37 Flashcards
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Sample Questions
Q1) The fixed order interval EOQ model is best used for SKUs with:
A) variable demand.
B) stable demand.
C) unknown demand.
D) seasonal demand.
Q2) Discuss how seasonality can affect inventory.
Q3) Storage space costs are not variable.
A)True
B)False
Q4) Inventory as an asset on the balance sheet and a _____ on the income statement.
A) liability
B) footnote
C) statement
D) variable expense
Q5) MRPII will not allow an organization to integrate financial planning with operations and logistics.
A)True
B)False
Q6) What is Vendor Managed Inventory?
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Q7) Discuss capital cost and include both the hurdle rate and WACC in your answer.
Chapter 10: Distribution
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38 Verified Questions
38 Flashcards
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Sample Questions
Q1) Customers use distribution KPIs to objectively assess the speed of service provided by the distribution operation.
A)True
B)False
Q2) The first facility consideration is to determine:
A) how close to the source it should be.
B) the size of each operation within the network.
C) how close to the customer it should be.
D) where competitors are located.
Q3) The primary tradeoffs and relationships between resources include the following:
A) space vs. equipment.
B) equipment vs. people.
C) people vs. space.
D) all of these answers.
Q4) One of the primary tradeoffs at the facility level is space versus equipment.
A)True
B)False
Q5) Distribution operations help organizations overcome challenges, support other processes, and take advantage of economies of scale. Name and briefly discuss five roles that these operations play.
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Chapter 11: Transportation
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38 Verified Questions
38 Flashcards
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Sample Questions
Q1) Which of the following modes of transportation is considered the most "capable"?
A) Air
B) Motor
C) Ocean
D) Rail
E) Pipe
Q2) Economic deregulation sparked competition among carriers in several areas. Which of these is not an area of competition?
A) Accessibility
B) Pricing
C) Performance
D) Services
Q3) Transportation efficiency promotes _____ in the supply chain.
A) intermodal demand
B) KPIs
C) capacity
D) competition
Q4) A key requirement for service quality monitoring is information.
A)True
B)False
Page 13
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Chapter 12: Aligning Supply Chains
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35 Flashcards
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Sample Questions
Q1) Approximately two-thirds of 3PL customers think their providers supply:
A) tactical or operational services.
B) strategic or integrative services.
C) trucking and warehouse services.
D) a firm that can supply a competency that is not core to the firm.
Q2) What are the basic types of 3PL firms, and which are in most prevalent use?
Q3) How would you distinguish between a vendor, a partner, and a strategic alliance? What conditions would favor the use of each?
Q4) How would you distinguish between the following terms: alignment, relationships, and collaboration?
Q5) The first stage in the process model for forming and sustaining supply chain relationships involves the process by which a manufacturer becomes fully aware of its logistics and supply chain needs.
A)True
B)False
Q6) Define and discuss the term "4PL."
Q7) Describe the steps in the process model for forming and implementing successful supply chain relationships. What step(s) do you feel is (are) most critical?
Page 14
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Chapter 13: Supply Chain Performance Measurement and Financial Analysis
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36 Verified Questions
36 Flashcards
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Sample Questions
Q1) Discuss the differences between the terms metric, measure, and index.
Q2) There are four major categories that provide a useful way for examining logistics and supply chain performance. They are time, _____, cost, and supporting metrics.
A) delivery
B) KPIs
C) competition
D) quality
Q3) Evaluating current or potential supply chain performance metrics is not important to a sound logistics program.
A)True
B)False
Q4) A metric and a measure are the same.
A)True
B)False
Q5) Effective order management can have an impact on:
A) reducing supply chain costs.
B) increasing revenues.
C) improving ROA.
D) all of these answers.
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Chapter 14: Supply Chain Technology
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41 Flashcards
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Sample Questions
Q1) The _____ of demand, customer orders, delivery status, inventory stock levels, and production schedules provides managers with the knowledge needed to make effective situational assessments and develop appropriate responses.
A) visibility
B) availability
C) accuracy
D) accountability
Q2) Business intelligence applications are being used to gather information on competitors and their suppliers.
A)True
B)False
Q3) Web-enabled SCIS allows managers to monitor sourcing, transportation, and inventory data at the order and item level.
A)True
B)False
Q4) What is the role of enterprise resource planning systems in SCM?
Q5) Why would companies choose to use on-demand software versus licensed software?
Q6) How will the Internet of Things, mobile connectivity, and automation drive change in a supply chain?
Page 16
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Chapter 15: Strategic Challenges and Change for Supply Chains
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35 Flashcards
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Sample Questions
Q1) Which of the following does not belong in the list of the seven principles of supply chain management?
A) Segment customers based on service needs
B) Differentiate products closer to the customer
C) Develop an outsourcing strategy to maximize asset utilization
D) Adopt channel-spanning performance measures
Q2) Which one is not one of the four requirements for cognitive systems?
A) Adaptive
B) Interactive
C) Iterative
D) Contextual
E) Conducive
Q3) The fourth principle of supply chain management is to differentiate products closer to the customer.
A)True
B)False
Q4) IBM Watson is a prescriptive analytics system that can help to understand data, learn from it, and reason through it.
A)True
B)False
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