Strategic Sourcing and Procurement
Test Questions
Course Introduction
Strategic Sourcing and Procurement explores the critical processes, strategies, and technologies involved in sourcing goods and services within organizations. The course examines how procurement decisions influence overall supply chain efficiency, cost management, and value creation. Topics include supplier evaluation and selection, contract negotiation, risk management, ethical sourcing, global sourcing strategies, and the integration of e-procurement systems. Through case studies and real-world scenarios, students will develop skills in building supplier relationships, optimizing total cost of ownership, and aligning procurement practices with organizational goals.
Recommended Textbook Supply Chain Management 5th Edition by Sunil Chopra
Available Study Resources on Quizplus
18 Chapters
1461 Verified Questions
1461 Flashcards
Source URL: https://quizplus.com/study-set/1641
Page 2
Chapter 1: Understanding the Supply Chain
Available Study Resources on Quizplus for this Chatper
93 Verified Questions
93 Flashcards
Source URL: https://quizplus.com/quiz/32562
Sample Questions
Q1) Supply chain macro processes include which of the following?
A) Customer Relationship Management (CRM)
B) Internal Supply Chain Management (ISCM)
C) Supplier Relationship Management (SRM)
D) all of the above
E) none of the above
Answer: D
Q2) The manufacturing cycle occurs at the
A) customer/retailer interface.
B) retailer/distributor interface.
C) distributor/manufacturer interface.
D) manufacturer/supplier interface.
E) none of the above
Answer: C
Q3) The cycle view of the supply chain is useful when considering operational decisions,because it categorizes processes based on whether they are initiated in response to or in anticipation of customer orders.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Supply Chain Performance: Achieving Strategic
Fit and Scope
Available Study Resources on Quizplus for this Chatper
65 Verified Questions
65 Flashcards
Source URL: https://quizplus.com/quiz/32572
Sample Questions
Q1) A company's product development strategy
A) defines the set of customer needs that it seeks to satisfy through its products and services.
B) specifies the portfolio of new products that it will try to develop.
C) specifies how the market will be segmented and how the product will be positioned, priced, and promoted.
D) determines the nature of procurement and transportation of materials as well as manufacture and distribution of the product.
E) determines how it will obtain and maintain the appropriate set of skills and abilities to meet customer needs.
Answer: B
Q2) The cost of making and delivering a product to the customer is referred to as A) supply chain responsiveness.
B) supply chain efficiency.
C) cost-responsiveness efficient frontier.
D) implied uncertainty.
E) none of the above
Answer: B
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Supply Chain Drivers and Metrics
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/32573
Sample Questions
Q1) Sourcing involves
A) deciding the tasks that will be outsourced and those that will be performed within the firm.
B) deciding whether to source from a single supplier or a portfolio of suppliers.
C) identifying the set of criterion that will be used to select suppliers and measure their performance.
D) selecting suppliers and negotiating contracts with them.
E) all of the above
Answer: E
Q2) Amazon uses different prices for the products that are purchased from the company - often for the speed of the shipping.What is the name of this pricing scheme?
A) Everyday low pricing
B) High-low pricing
C) Fixed price
D) Menu pricing
Answer: D
To view all questions and flashcards with answers, click on the resource link above.
Chapter 4: Designing Distribution Networks and Applications to E-Business
Available Study Resources on Quizplus for this Chatper
78 Verified Questions
78 Flashcards
Source URL: https://quizplus.com/quiz/32574
Sample Questions
Q1) A decrease in the response time customers desire increases the number of facilities required in the network.
A)True
B)False
Q2) A customer does not necessarily want the highest level of performance along all dimensions of customer service,including response time,product variety,product availability,customer experience,order visibility,and returnability.
A)True
B)False
Q3) Firms that target customers who can tolerate a long response time require only a few locations that may be far from the customer.
A)True
B)False
Q4) Total logistics costs are the sum of inventory,transportation,and facility costs for a supply chain network.What occurs as the number of facilities increases?
Q5) Explain the six distinct distribution network designs that may be used to move products from factory to customer.
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Network Design in the Supply Chain
Available Study Resources on Quizplus for this Chatper
80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/32575
Sample Questions
Q1) Describe the four phases in the framework for network design decisions.
Q2) The objective of the first phase of network design is to
A) maximize total profits, taking into account the expected margin and demand in each market.
B) select a precise location and capacity allocation for each facility.
C) select a set of desirable sites within each region where facilities are to be located.
D) identify regions where facilities will be located, their potential roles, and their approximate capacity.
E) specify what capabilities the supply chain network must have to support a firm's competitive strategy.
Q3) The supply chain network is designed to maximize total profits,taking into account the expected margin and demand in each market,various logistics and facility costs,and the taxes and tariffs at each location.
A)True
B)False
Q4) Explain the two situations in which managers use network design models.
Q5) Describe the factors that influence supply chain network design decisions.
Q6) Explain how supply chain network design decisions are classified.
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Designing Global Supply Chain Networks
Available Study Resources on Quizplus for this Chatper
85 Verified Questions
85 Flashcards
Source URL: https://quizplus.com/quiz/32576
Sample Questions
Q1) The textbook mentions that decision makers should design global supply chain networks considering a portfolio of strategic options including
A) the option to wait, build finite capacity, build flexible capacity.
B) sign shorter-term contracts, purchase from the spot market.
C) uncertainty can usually be disregarded.
D) the option to wait, build excess capacity, build flexible capacity.
Q2) The degree of demand and price uncertainty has a significant influence on the appropriate portfolio of long- and short-term warehousing space that a firm should carry.
A)True
B)False
Q3) Summarize the steps in the decision tree analysis methodology.
Q4) Decisions made during the supply chain design phase regarding significant investments in the supply chain,such as the number and size of plants to build,the number of trucks to purchase or lease,and whether to build or lease warehouse space,cannot be altered in the short term.
A)True
B)False
Q5) Explain additive and multiplicative binomial representations of uncertainty.
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Demand Forecasting in a Supply Chain
Available Study Resources on Quizplus for this Chatper
90 Verified Questions
90 Flashcards
Source URL: https://quizplus.com/quiz/32577
Sample Questions
Q1) The objective of forecasting is to filter out the random component (noise)and estimate the systematic component.
A)True
B)False
Q2) A supermarket has experienced weekly demand of milk of D1 = 130,D2 =117,D3 =124,and D4 =142 gallons over the last four weeks.Forecast demand for Period 5 using a three-period moving average.
A) 128.25
B) 127.67
C) 133.00
D) 142.00
Q3) Forecasting and the accompanying managerial decisions are extremely difficult when either the supply of raw materials or the demand for the finished product is highly unpredictable.
A)True
B)False
Q4) Describe the basic characteristics of forecasts that managers should be aware.
Q5) Explain the four types of forecasting methods.
Q6) Explain the role of forecasting in a supply chain.
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Aggregate Planning in a Supply Chain
Available Study Resources on Quizplus for this Chatper
78 Verified Questions
78 Flashcards
Source URL: https://quizplus.com/quiz/32578
Sample Questions
Q1) When formulating aggregate plans,
A) forecast errors have no impact.
B) forecast errors must be taken into account.
C) forecast accuracy is assumed.
D) forecast accuracy is not a factor.
Q2) Which of the following is not a distinct aggregate planning strategy for achieving balance between capacity,inventory,and backlog costs?
A) Adjustable strategy
B) Chase strategy
C) Level strategy
D) Mixed strategy
E) Time flexible strategy
Q3) Which of the following is not information needed by the aggregate planner?
A) Demand forecast for each period in the planning horizon
B) Production costs
C) Labor costs
D) Cost of subcontracting production
E) Cost of changing the demand forecast
Q4) Discuss key issues to be considered when implementing aggregate planning.
Q5) Discuss the primary objective and operational parameters of aggregate planning.
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Sales and Operations Planning: Planning Supply and Demand in
a Supply Chain
Available Study Resources on Quizplus for this Chatper
91 Verified Questions
91 Flashcards
Source URL: https://quizplus.com/quiz/32579
Sample Questions
Q1) The advantage of offering a price promotion during periods of low demand to shift some of the demand into a slow period is
A) a demand pattern that is less expensive to supply.
B) very high inventory costs because inventory needs to be carried from period to period.
C) in the fact that a firm could get by with a smaller, more expensive factory.
D) much of the expensive capacity would go unused during most months when demand was lower.
E) all of the above
Q2) A firm that has production lines whose production rate can easily be varied to match demand has designed product flexibility into the production processes.
A)True
B)False
Q3) Discuss the impact of promotion on demand within a supply chain.
Q4) Which factor favors promotion during low-demand periods?
A) High margin
B) High ability to steal market share
C) High ability to increase overall market
D) Low margin
11
To view all questions and flashcards with answers, click on the resource link above.
Chapter 10: Coordination in a Supply Chain
Available Study Resources on Quizplus for this Chatper
87 Verified Questions
87 Flashcards
Source URL: https://quizplus.com/quiz/32563
Sample Questions
Q1) What is the impact of lack of coordination on the performance of the supply chain?
Q2) The lack of information sharing between the retailer and manufacturer leads to a large fluctuation in manufacturer orders.
A)True
B)False
Q3) Information distortion is exaggerated by the fact that
A) supply chains today produce a large amount of product variety.
B) supply chains today produce a small amount of product variety.
C) the telephone effect is extreme in situations where technology is in use.
D) different stages of supply chains send excessive data.
E) none of the above
Q4) A fundamental aspect of successful collaboration is
A) sharing product designs.
B) identification and resolution of exceptions.
C) no stock outs.
D) complete information sharing.
Q5) Describe the impact of forecasts based on orders rather than actual customer demand.
Q6) Describe the impact of behavioral obstacles on supply chain coordination.
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Managing Economies of Scale in the Supply
Chain: Cycle Inventory
Available Study Resources on Quizplus for this Chatper
95 Verified Questions
95 Flashcards
Source URL: https://quizplus.com/quiz/32564
Sample Questions
Q1) Which cost takes into account the return demanded on the firm's equity and the amount the firm must pay on its debt?
A) Cost of capital
B) Obsolescence (spoilage) cost
C) Handling cost
D) Occupancy cost
Q2) Price discrimination is the practice where a firm charges differential prices to maximize profits.
A)True
B)False
Q3) Discuss the role of cycle inventory in the supply chain.
Q4) The practice where a firm charges differential prices to maximize profits is
A) lot pricing.
B) marginal pricing.
C) price incrimination.
D) price discrimination.
Q5) When demand is steady,cycle inventory and lot size are related as follows: Cycle Inventory = Lot Size × 2 = Q*2.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Managing Uncertainty in a Supply Chain: Safety Inventory
Available Study Resources on Quizplus for this Chatper
96 Verified Questions
96 Flashcards
Source URL: https://quizplus.com/quiz/32565
Sample Questions
Q1) Order fill rate is the fraction of product demand that is satisfied from product in inventory.
A)True
B)False
Q2) A company that checks inventory status at regular periodic intervals and places an order to raise the inventory level to a specified threshold is using
A) continuous review.
B) daily review.
C) occasional review.
D) periodic review.
Q3) Aggregation reduces the standard deviation of demand only if demand across the regions being aggregated is not perfectly positively correlated.
A)True
B)False
Q4) With periodic review,inventory status is checked at regular intervals and an order is placed to raise the inventory level to a specified threshold.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Determining the Optimal Level of Product Availability
Available Study Resources on Quizplus for this Chatper
80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/32566
Sample Questions
Q1) The loss incurred by a firm for each unsold unit at the end of the selling season is
A) the cost of overstocking the product.
B) the cost of stocking the product.
C) the cost of understocking the product.
D) the cost of overselling the product.
Q2) There is a cost associated with postponement because the production cost using postponement is typically lower than the production cost without it.
A)True
B)False
Q3) A manufacturer of lawn care equipment has introduced a new product.The anticipated demand is normally distributed with a mean of = 100 and a standard deviation of = 50.Each unit costs $75 to manufacture and the introductory price is to be $125 to achieve this level of sales.Any unsold units at the end of the season are unlikely to be very valuable and will be disposed of in a fire sale for $25 each.It costs $10 to hold a unit in inventory for the entire season.What is the cost of overstocking? What is the cost of understocking? What is the optimal cycle service level? How many units should be manufactured for sale?
Q4) Decribe managerial levers to increase profitability within a supply chain.
Page 15
To view all questions and flashcards with answers, click on the resource link above.
Chapter 14: Transportation in a Supply Chain
Available Study Resources on Quizplus for this Chatper
60 Verified Questions
60 Flashcards
Source URL: https://quizplus.com/quiz/32567
Sample Questions
Q1) The key players in any transportation that takes place within a supply chain are
A) the shipper and the receiver.
B) the shipper and the supplier.
C) the shipper and the manufacturer.
D) the shipper and the carrier.
Q2) A distributor makes investment decisions regarding the transportation infrastructure and then makes operating decisions to try to maximize the return from these assets.
A)True
B)False
Q3) Milk runs reduce outbound transportation costs by consolidating large shipments.
A)True
B)False
Q4) A carrier uses transportation to minimize the total cost (transportation,inventory,information,and facility)while providing an appropriate level of responsiveness to the customer.
A)True
B)False
Q5) Discuss the importance of designing flexibility into the transportation network.
Q6) Explain why transportation systems should be tailored.
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Sourcing Decisions in a Supply Chain
Available Study Resources on Quizplus for this Chatper
104 Verified Questions
104 Flashcards
Source URL: https://quizplus.com/quiz/32568
Sample Questions
Q1) Which of the following is not a benefit of effective sourcing decisions?
A) Better economies of scale can be achieved if orders within a firm are aggregated.
B) More efficient procurement transactions can significantly reduce the overall cost of purchasing.
C) Sequential design results in products that are easier to manufacture and distribute, resulting in lower overall costs.
D) Good procurement processes can facilitate coordination with the supplier and improve forecasting and planning.
Q2) Which of the following is not a key principle used in design for manufacturability?
A) Part commonality
B) Symmetrical parts
C) Using catalog parts rather than designing a new part
D) All of the above are principles used in design for manufacturability.
Q3) As the replenishment lot size grows,the cycle inventory at the firm grows,thus increasing the cost of holding inventory.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: Pricing and Revenue Management in a Supply Chain
Available Study Resources on Quizplus for this Chatper
86 Verified Questions
86 Flashcards
Source URL: https://quizplus.com/quiz/32569
Sample Questions
Q1) Effective differential pricing over time will generally
A) decrease the level of product availability for the consumer willing to pay full price and also decrease total profits for the retailer.
B) decrease the level of product availability for the consumer willing to pay full price but will increase total profits for the retailer.
C) increase the level of product availability for the consumer willing to pay full price and also increase total profits for the retailer.
D) increase the level of product availability for the consumer willing to pay full price but will decrease total profits for the retailer.
Q2) The tactic of varying price over time is suitable for assets
A) that do not have a clear date beyond which they lose a lot of their value.
B) that have a clear date beyond which they lose a lot of their value.
C) where customers are able to cancel orders and the value of the asset drops significantly after a deadline.
D) where customers are unable to cancel orders and the value of the asset drops significantly after a deadline.
Q3) Explain how differential pricing can benefit a firm.
To view all questions and flashcards with answers, click on the resource link above.
Page 18
Chapter 17: Information Technology in a Supply Chain
Available Study Resources on Quizplus for this Chatper
66 Verified Questions
66 Flashcards
Source URL: https://quizplus.com/quiz/32570
Sample Questions
Q1) Which of the following is not one of the supply chain macro processes?
A) Customer Relationship Management (CRM)
B) Internal Supply Chain Management (ISCM)
C) Supplier Relationship Management (SRM)
D) Transaction Management Foundation (TMF)
Q2) The ________ process links each order to a specific supply source and means of transportation.
A) Demand planning
B) Field service
C) Supply planning
D) Fulfillment
Q3) Information is the supply chain driver that serves as the glue allowing the other three drivers to work together to create an integrated,coordinated supply chain.
A)True
B)False
Q4) To make good decisions,a manager needs to have accurate information regardless of how long it takes to acquire it.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 19
Chapter 18: Sustainability and the Supply Chain
Available Study Resources on Quizplus for this Chatper
55 Verified Questions
55 Flashcards
Source URL: https://quizplus.com/quiz/32571
Sample Questions
Q1) Discuss the role of sustainability supply chains.
Q2) The factors driving an increased focus on sustainability can be divided into three distinct categories.Which of the following is not one of these categories?
A) Increasing revenue for sustainability initiatives
B) Making the world more sustainable
C) Attracting customers who value sustainability
D) Reducing risk and improving the financial performance of the supply chain
Q3) In reality,there are no actions in a supply chain that improve both sustainability and supply chain surplus.
A)True
B)False
Q4) A focus on sustainability allows a supply chain to better serve more conscious customers while often improving supply chain performance.
A)True
B)False
Q5) What are some metrics that can be used to measure sustainability for a supply chain?
Q6) Discuss the factors driving an increased focus on sustainability.
To view all questions and flashcards with answers, click on the resource link above. Page 20