Supply Chain Management
Test Bank
Course Introduction
Supply Chain Management examines the systematic, strategic coordination of the traditional business functions and tactics across these business functions within a particular company and across businesses within the supply chain, for the purposes of improving the long-term performance of the individual companies and the supply chain as a whole. The course explores key concepts such as procurement, production, inventory management, logistics, and distribution, with an emphasis on the integration of processes and information sharing to reduce costs, increase efficiency, and enhance customer value. Students learn about contemporary challenges and solutions in global supply chains, including sustainability, risk management, the impact of technology, and approaches to building agile and resilient supply networks.
Recommended Textbook
Purchasing and Supply Chain Management 6th Edition by Robert M. Monczka
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20 Chapters
1518 Verified Questions
1518 Flashcards
Source URL: https://quizplus.com/study-set/1154
Page 2
Chapter 1: Introduction to Purchasing and Supply Chain Management
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46 Verified Questions
46 Flashcards
Source URL: https://quizplus.com/quiz/22659
Sample Questions
Q1) Competition today is no longer between firms; it is between the supply chains of those firms.
A)True
B)False
Answer: True
Q2) _____ are those items provided by suppliers and used directly during production or service delivery.
A) Direct materials
B) Indirect materials
C) Indirect services
D) Internal materials
E) Vendor managed inventories
Answer: A
Q3) Purchasing and supply management has a major impact on product and service quality.
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) A _____ involves the physical checking of inventory to verify that system records match actual on-hand inventory levels.
A) reorder point system
B) stock check
C) just-in-time system
D) forecasting system
E) p-card system
Answer: B
Q2) _____ include(s) the materials required to pack and ship final products, such as pallets, boxes, master shipping containers, tape, bags, wrapping, inserts, and other packaging material.
A) Raw materials
B) Production support items
C) Semifinished products
D) Components
E) Work-in-process inventory
Answer: B
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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) Policies defining the role of purchasing often serve as a general or broad policy statement from which more detailed or specific policies evolve.
A)True
B)False
Answer: True
Q2) Once written, policies do not have to be periodically reviewed for clarity and conformance.
A)True
B)False
Answer: False
Q3) The term _____ refers to the set of purposes, principles, and rules of action that guide an organization.
A) government regulation
B) procedure
C) guideline
D) work rule
E) policy
Answer: E
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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) A team may pressure an individual to support or conform to a lower production norm than the individual's personal norm.
A)True
B)False
Q2) [A/An] _____ consists of personnel from different functions and increasingly from suppliers who are brought together to achieve supply management or supply chain-related tasks.
A) Big R
B) External RM
C) cross-functional sourcing team
D) Little r
E) Internal RM
Q3) Interacting as a team requires the same set of skills as the skills required for traditional work.
A)True
B)False
Q4) Closer buyer-supplier relationships interest all suppliers.
A)True
B)False
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Chapter 5: Purchasing and Supply Management Organization
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73 Verified Questions
73 Flashcards
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Sample Questions
Q1) The challenge today for location of authority is to know which activities, processes, and tasks to control or coordinate centrally and which to assign to operating units.
A)True
B)False
Q2) Which of the following is not one of the hurdles that can affect how well an organization uses teams?
A) Many organizations form teams using functional group employees as part-time members.
B) There are increased requirements for the use of social networks.
C) Many organizations fail to recognize and reward the effort team members put forth towards their assignments.
D) It is not the nature of our individualistic national culture, except perhaps for sporting events, to be group or team focused.
E) All of the above are hurdles that affect how well an organization uses teams.
Q3) The preparation and transfer of material releases to suppliers is part of the operational support process.
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 longer-term relationship should never include a joint product development relationship with shared development costs and intellectual property.
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 insourcing/outsourcing decision cannot be applied to virtually every process conducted within the traditional walls of an organization.
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) Purchasing from competitors may limit information sharing between the parties.
A)True
B)False
Q2) All of the following are characteristics of an effective supplier survey except _____.
A) the survey should include the performance categories considered important to the evaluation and selection process
B) the survey process should be as objective as possible
C) it is mathematically straightforward
D) the buyer should attempt to measure every possible variable every time it is used
E) the format of the evaluation should provide some flexibility across different types of purchase requirements
Q3) Using third-party information can be a timely and effective way to gain insight into potential suppliers.
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) To be considered capable, the outputs from a process must fall outside upper and lower specification limits.
A)True
B)False
Q2) The concept of _____ consists of rework and disposal efforts that increase cost and decrease productivity.
A) the hidden factory
B) Six Sigma
C) continuous improvement
D) zero defects
E) kaizen
Q3) The _____ process capability index does not adequately account for situations where the process is not closely centered on the nominal specification target value.
A) Cxy
B) optimization
C) Six Sigma
D) Cpk
E) Cp
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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) A single source can never deliver cost and quality improvements over the life of a contract even if a buyer manages that supplier effectively.
A)True
B)False
Q2) All supplier measurement systems have some element of subjectivity.
A)True
B)False
Q3) All buyers are encouraged to engage in currency hedging activities, regardless of their level of experience.
A)True
B)False
Q4) Buyers rarely rely on suppliers for cost-reduction assistance.
A)True B)False
Q5) Sustainability reflects only the importance of strategic environmental practices of an organization's suppliers but not the management of social responsibility in the supply base.
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) _____ mean(s) that no duties or quota charges will be placed on goods that are reexported from the FTZ.
A) Inverted tariff
B) Duty deferral
C) EXW
D) Duty exemption
E) Streamlined customs procedures
Q2) Counterpurchase requires a company to fulfill its countertrade requirements by purchasing products within a country unrelated to its primary business.
A)True
B)False
Q3) All of the following are common methods for overcoming barriers to worldwide sourcing except _____.
A) education and training
B) publicizing success stories
C) measurement and reward systems
D) payment only in foreign currency
E) use of third party or external agents
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12
Chapter 11: Strategic Cost Management
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83 Verified Questions
83 Flashcards
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Sample Questions
Q1) How well suppliers purchase their goods and services has no direct impact on purchase price levels.
A)True
B)False
Q2) When supply exceeds demand, a buyer's market exists, and prices generally move downward.
A)True
B)False
Q3) In should-cost modeling, _____ are any components not under the direct control of the buying or supplying company but those that have a significant influence on the outcome being modeled.
A) direct costs
B) assumption variables
C) overhead costs
D) transportation modes
E) decision variables
Q4) Economic conditions seldom determine whether a market is favorable to the seller or to the purchaser.
A)True
B)False
Page 13
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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) The work force factor of the learning curve refers to the ability of the worker on the job to learn and improve through repetitive effort and increased efficiency, but not the effort by management to pursue productivity gains.
A)True
B)False
Q2) In a PERT network, a/an _____ is the earliest time a project can finish given the expected activity time.
A) late finish
B) on time start
C) on time finish
D) early start
E) early finish
Q3) According to Ohno and Toyota, _____ is a category of waste that includes any wasted motion by man or machine.
A) overproduction
B) unnecessary transport
C) unnecessary movement
D) defect
E) None of the above.
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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) _____ is a negotiation tactic in which the negotiator insists on negotiating in a location that is more favorable to him/her.
A) Consistency
B) Caucus
C) Venue
D) Low ball
E) High ball
Q2) 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
Q3) The manner in which a negotiator approaches concession making is an important part of every successful negotiation strategy.
A)True
B)False
Q4) Everyone negotiates something every day.
A)True
B)False
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Page 15
Chapter 14: Contract Management
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109 Verified Questions
109 Flashcards
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Sample Questions
Q1) Even when there is no contract, most transactions are covered by a "gap filler" known as the Uniform Commercial Code.
A)True
B)False
Q2) A buyer must focus intently on determining an acceptable initial price because over the course of the long-term contract the price adjustment mechanism will use the initial price as the base for future adjustments.
A)True
B)False
Q3) A/An _____ occurs in situations in which a buyer is allowed to automatically discount the published purchase price by a negotiated percentage for all purchases from a given price list or catalog during the contract period.
A) pricing agreement
B) international contract
C) national contract
D) open-ended order
E) None of the above.
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Chapter 15: Purchasing Law and Ethics
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107 Verified Questions
107 Flashcards
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Sample Questions
Q1) If the carrier has refused to pay a freight claim, then the claimant has _____ from the time the claim was disallowed to file for legal relief in the courts.
A) 10 days
B) 1 month
C) 2 years
D) 10 years
E) There is no time limit for pursuing freight claims in the courts.
Q2) Contracts between two or more parties do not allow the shifting of risk between the entities and do not constitute the foundation and fabric for every type of supply chain relationship.
A)True
B)False
Q3) A contract can exist only when there is an agreement resulting from both an offer and an acceptance.
A)True
B)False
Q4) Executive management sets the ethical code of behavior within a firm.
A)True
B)False
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Chapter 16: Lean Supply Chain Management
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73 Verified Questions
73 Flashcards
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Sample Questions
Q1) Decisions in lean must be based on the opinions or preferences of influential individuals, as well as on facts and data.
A)True
B)False
Q2) Shortening the material pipeline in terms of time between suppliers and a buyer can reduce the average amount of inventory in a system.
A)True
B)False
Q3) When firms produce goods in anticipation of future customer orders, they are operating in a just-in-time environment.
A)True
B)False
Q4) According to Shook, lean is a philosophy that seeks to shorten the time between when the customer order and the shipment to the customer by eliminating waste.
A)True
B)False
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Chapter 17: Purchasing Services
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98 Verified Questions
98 Flashcards
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Sample Questions
Q1) A major advantage of a rail carrier is the wide range of items it is capable of carrying.
A)True
B)False
Q2) Traditional cost accounting systems are designed to systematically track and consolidate indirect spend across an organization.
A)True
B)False
Q3) An apparently low-cost carrier may actually end up costing far more than a seemingly higher-cost carrier when the total associated costs are calculated.
A)True
B)False
Q4) A savvy buyer will want to control transportation costs internally instead of simply allowing the shipper to pass them along in the form of a delivered price.
A)True
B)False
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Page 19
Chapter 18: Supply Chain Information Systems and Electronic Sourcing
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69 Verified Questions
69 Flashcards
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Sample Questions
Q1) A/An _____ is typically organized around specific e-sourcing suite modules that interact with different elements of the purchasing database, elements of the ERP system, and integration of data obtained through external EDI or web-based communications with suppliers or customers.
A) EDI system
B) SRM system
C) third-party marketplace
D) sell-side system
E) buy-side system
Q2) Making information visible does not require a degree of collaboration between the parties.
A)True
B)False
Q3) SMAC is the new enterprise IT model delivering an organization that is more connective, collaborative, real-time, and productive.
A)True
B)False
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Page 20
Chapter 19: Performance Measurement and Evaluation
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62 Verified Questions
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Sample Questions
Q1) _____ involves a comparison of one firm's market strategies against those of another.
A) Functional benchmarking
B) Strategic benchmarking
C) Operational benchmarking
D) Support-activity benchmarking
E) None of the above.
Q2) The most common price performance measures include actual purchase price versus planned purchase price comparisons, actual purchase price(s) compared to a market index, comparisons of actual-to-actual purchase prices for individual and aggregated items between operating plants or divisions within an organization, and target prices achieved.
A)True
B)False
Q3) A performance objective must reflect the realities of the firm's competitive environment.
A)True
B)False
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21
Chapter 20: Purchasing and Supply Strategy Trends
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36 Verified Questions
36 Flashcards
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Sample Questions
Q1) An individual supplier focus (as opposed to a supply network focus) for category strategy development will be increasingly applied.
A)True
B)False
Q2) Leading sustainability efforts with suppliers and their suppliers will decrease in importance.
A)True
B)False
Q3) Which of the following is not one of the components of material ordering cycle time that supply chain management practices directly affect?
A) Transmission of requirements to suppliers.
B) Suppliers' ordering and manufacturing cycle time.
C) Allocation of manufacturing overhead costs.
D) Delivery from suppliers.
E) Incoming receipt and inspection.
Q4) Big data and analytics will play an increasingly important role in purchasing and supply chain management.
A)True B)False
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