Procurement and Sourcing Test Questions
Course Introduction
This course provides a comprehensive overview of procurement and sourcing strategies within modern organizations. Students will explore the principles and practices involved in identifying, evaluating, and engaging suppliers for goods and services. The curriculum covers sourcing techniques, supplier relationship management, negotiation skills, cost and value analysis, contract management, and the impact of globalization and ethics on procurement decisions. Through case studies and practical assignments, students will learn how to optimize supply chain operations, mitigate risks, and create value through effective procurement processes, preparing them for critical roles in supply chain and operations management.
Recommended Textbook Operations and Supply Chain Management The Core 4th Edition by F. Robert Jacobs
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16 Chapters
1083 Verified Questions
1083 Flashcards
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Chapter 1: Operations and Supply Chain Management
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71 Verified Questions
71 Flashcards
Source URL: https://quizplus.com/quiz/48331
Sample Questions
Q1) Just in time (JIT)production was a major breakthrough in manufacturing philosophy pioneered by the Japanese.
A)True
B)False
Answer: True
Q2) supply chain manager is an OSCM job while a purchasing manager is not.
A)True
B)False
Answer: False
Q3) Sustainability is the ability to maintain profits in a system.
A)True
B)False
Answer: False
Q4) Effectiveness means doing the right things to create the most value for the company.
A)True
B)False
Answer: True
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Page 3
Chapter 2: Strategy and Sustainability
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48 Verified Questions
48 Flashcards
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Sample Questions
Q1) One of the competitive dimensions that form the competitive position of a company when planning their strategies is making the best trade-off.
A)True
B)False
Answer: False
Q2) Infrastructure decisions within operations strategy include the selection of the logic associated with the planning and control systems
A)True
B)False
Answer: True
Q3) In a multifactor measure of productivity the numerator of the ratio would include all resources used or all inputs.
A)True
B)False
Answer: False
Q4) Productivity is a relative measure.
A)True
B)False Answer: True
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Chapter 3: Forecasting
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90 Verified Questions
90 Flashcards
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Sample Questions
Q1) In most cases,demand for products or services can be broken down into several components.Which of the following is not considered a component of demand?
A)Average demand for a period
B)A trend
C)Seasonal elements
D)Past data
E)Autocorrelation
Answer: D
Q2) Which of the following is the portion of observations you would expect to see lying within a plus or minus 3 MAD range?
A)57.05 percent
B)88.95 percent
C)98.36 percent
D)99.85 percent
E)100 percent
Answer: C
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Chapter 4: Strategic Capacity Management
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55 Verified Questions
55 Flashcards
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Sample Questions
Q1) Long-range capacity planning requires top management participation.
A)True
B)False
Q2) The objective of strategic capacity planning is to provide an approach for determining the overall capacity level of labor-intensive resources.
A)True
B)False
Q3) The basic notion of economies of scale is that as a plant gets larger and volume increases,the average cost per unit of output drops.
A)True
B)False
Q4) Because services cannot be stored for later use,service managers consider time as one of their supplies or resources.
A)True
B)False
Q5) capacity cushion is the amount of capacity less than expected demand.
A)True
B)False
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Chapter 4: PART-A: Learning Curves
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49 Verified Questions
49 Flashcards
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Sample Questions
Q1) company can produce a small lot of products the first time at a cost of $2,000.If their 85 percent learning curve allows them to reduce their costs on each lot,what is the total cost of producing 5 lots?
A)$10,000.00
B)$9,376.50
C)$8,062.00
D)$4,031.00
E)$1,191.20
Q2) If a person performing a task has been achieving a 75 percent learning curve and you know that the task will end after the 80<sup>th</sup> unit,the last unit produced will take 17.12 percent as much time as the first unit.
A)True
B)False
Q3) On a learning curve plot,the time per unit is usually displayed on the vertical axis.
A)True
B)False
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7
Chapter 5: Projects Manufacturing and Service Processes
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72 Verified Questions
72 Flashcards
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Sample Questions
Q1) An event unit package is a subdivision of a project.
A)True
B)False
Q2) In the Time-Cost CPM model,cost is assumed to be a linear function of time.
A)True
B)False
Q3) The activity direct costs associated with a project might include giving workers overtime to complete a project in less than the expected time.
A)True
B)False
Q4) project starts out as which of the following?
A)A Statement of Work
B)Critical Path Method (CPM)
C)A series of milestones
D)A Gantt chart
E)A latest-start-time estimate
Q5) The critical path in a CPM analysis is found by locating the activities times with zero slack.
A)True
B)False
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Chapter 6: Manufacturing Processes
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56 Verified Questions
56 Flashcards
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Sample Questions
Q1) Assembling-to-order means moving the customer order decoupling point from finished goods to components.
A)True
B)False
Q2) Process selection refers to the strategic decision of selecting which kind of production processes to use to produce a product or provide a service.
A)True
B)False
Q3) The term "assembly line" refers to progressive assembly linked by some material handling device.
A)True
B)False
Q4) In balancing an assembly line,workstation cycle time has to be less than the time between successive units coming off the end of the line.
A)True B)False
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Chapter 6: PART-A: Break-Even Analysis
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9 Verified Questions
9 Flashcards
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Sample Questions
Q1) Assume a fixed cost for a process of $10,000.The variable cost to produce each unit of product is $30,and the selling price for the finished product is $50.Ignoring inventory,how many units must the firm sell to break even?
A)200 units
B)300 units
C)400 units
D)500 units
E)600 units
Q2) Break-Even Analysis can be used to help decide whether to perform a task with a special purpose machine or with a general purpose machine.
A)True
B)False
Q3) general purpose machine is less capable than a special purpose machine in certain tasks but can perform a broader variety of tasks.
A)True
B)False
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Chapter 7: Service Processes
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76 Verified Questions
76 Flashcards
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Sample Questions
Q1) The demand on a hospital's emergency medical services is considered a controllable arrival pattern of the calling population.
A)True
B)False
Q2) Assume the service rate for a queue in a truck-loading operation is 2 trucks per hour.Using the infinite queuing notion for the models presented in the textbook,which of the following is the average service time?
A)2 hours
B)1 hour
C)0.5 hours
D)0.25 hours
E)None of these
Q3) Poka-Yoke is roughly translated from Japanese as "Avoid Mistakes."
A)True
B)False
Q4) Arrival characteristics in a queuing problem analysis include the length of the queue.
A)True B)False
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Chapter 8: Sales and Operations Planning
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58 Verified Questions
58 Flashcards
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Sample Questions
Q1) The main purpose of aggregate operations planning is to specify the optimal combination of which of the following?
A)Workforce levels and inventory on hand
B)Inventory on hand and financing costs for that inventory
C)The strategic plan and the products available for sale
D)The workforce level and the degree of automation
E)Operational costs and the cash flow to support operations
Q2) From an operational perspective yield management is least effective under which of the following circumstances?
A)Demand can be segmented by customer
B)The product can be sold in advance
C)Demand is highly variable
D)Fixed costs are high and variable costs are low
E)Demand is stable and close to capacity
Q3) Accurate medium-range planning increases the likelihood of operating within the limits of a budget.
A)True
B)False
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Chapter 9: Material Requirements Planning
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81 Verified Questions
81 Flashcards
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Sample Questions
Q1) Which of the following is a dynamic lot-sizing technique that calculates the order quantity by comparing the carrying cost and the setup (or ordering)costs for various lot sizes and then selects the lot in which these are most nearly equal?
A)Economic Order Quantity
B)Lot for lot
C)Least total cost
D)Least unit cost
E)ABC analysis
Q2) modular bill of materials includes items with fractional options.
A)True
B)False
Q3) The MRP program performs its analysis from the bottom up of the product structure trees,imploding requirements level by level.
A)True
B)False
Q4) Generally,determining lot sizes in MRP systems is simple.
A)True
B)False
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13
Chapter 10: Quality Management and Six-Sigma Supply
Chain Processes and Analytics
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129 Verified Questions
129 Flashcards
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Sample Questions
Q1) You want to determine the upper control line for a "p" chart for quality control purposes.You take several samples of a size of 100 items in your production process.From the samples you determine the fraction defective is 0.05 and the standard deviation is 0.01.If the desired confidence level is 99.7 percent,which of the following is the resulting UCL value for the line?
A)0.39
B)0.08
C)0.06
D)0.05
E)None of these
Q2) Looking outside the organization to examine what industry competitors and excellent performers outside of your industry are doing in a particular process is called:
A)Industrial espionage
B)Unethical
C)External benchmarking
D)Hiring an outside expert
E)Reverse engineering
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Chapter 11: Inventory Management
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100 Verified Questions
100 Flashcards
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Sample Questions
Q1) Using the ABC classification system for inventory,which of the following is a true statement?
A)The "C" items are of moderate dollar volume
B)You should allocate about 50% of the dollar volume to "B" items
C)The "A" items are of low dollar volume
D)The "A" items are of high dollar volume
E)Inexpensive and low usage items are classified as "C" no matter how critical
Q2) If annual demand is 12,000 units,the ordering cost is $6 per order,and the holding cost is $2.50 per unit per year,which of the following is the optimal order quantity using the fixed-order quantity model?
A)576
B)240
C)120.4
D)60.56
E)56.03
Q3) One of the drivers of the direct-to-store (direct distribution)approach is the increase in global sourcing.
A)True
B)False
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Page 15
Chapter 12: Lean Supply Chains
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71 Verified Questions
71 Flashcards
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Sample Questions
Q1) Subcontractor networks are not very important in Japanese manufacturing.
A)True
B)False
Q2) One of the many lean techniques that have been successfully applied in service firms is the eliminating of unnecessary activities.
A)True
B)False
Q3) To implement lean production schedules a firm would do which of the following?
A)Have excess capacity
B)Force demand
C)Hire a consultant
D)Bottom-up management
E)Implement kanban groups
Q4) Applying lean concepts in manufacturing balances increases in cost with quality improvement.
A)True
B)False
Q5) The goal of JIT production is to drive all inventory queues lower.
A)True
B)False
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Chapter 13: Global Sourcing and Procurement
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64 Verified Questions
64 Flashcards
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Sample Questions
Q1) financially-driven reason for outsourcing is that it can reduce costs through a lower cost structure.
A)True
B)False
Q2) If the average aggregate inventory value is $1,200,000 and the cost of goods sold is $600,000,which of the following is weeks of supply?
A)1,040
B)606
C)104
D)60.6
E)2.0
Q3) The total cost of ownership (TCO)can be categorized into three areas: acquisition costs,ownership costs,and post-ownership costs.
A)True
B)False
Q4) An organizationally-driven reason for outsourcing is that it can transform the organization.
A)True B)False
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Chapter 14: Location, Logistics and Distribution
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54 Verified Questions
54 Flashcards
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Sample Questions
Q1) favorable business climate in facility location decision making might include local government providing basic skill training for prospective members of the workforce.
A)True
B)False
Q2) One of the objectives of facility location analysis is to select a site with the lowest total cost.Which of the following costs should be excluded from the analysis?
A)Historical costs
B)Inbound distribution costs
C)Land
D)Construction
E)Regional costs
Q3) In facility location decision making matching the educational and skill levels of the labor pool to a company's needs is even more important than the labor pool's willingness and ability to learn.
A)True
B)False
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