Supply Chain Strategy
Exam Answer Key
Course Introduction
Supply Chain Strategy explores the design, implementation, and management of end-to-end supply chains aligned with organizational goals and market dynamics. The course examines the strategic role of supply chains in gaining competitive advantage, balancing cost efficiency with service quality, and responding to evolving customer demands. Key topics include supply chain segmentation, risk management, collaboration with partners, global sourcing, sustainability, and the integration of digital technologies. Students analyze case studies, develop strategic frameworks, and apply analytical tools to understand how leading firms achieve operational excellence and innovation through effective supply chain strategies.
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
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) Supply chain management does not require the coordination of activities and flows that do not extend across boundaries.
A)True
B)False
Answer: False
Q2) Distribution management involves the management of packaging, storing, and handling of materials at receiving docks, warehouses, and retail outlets.
A)True
B)False
Answer: True
Q3) Formal organizational charts portray the entirety of the workings of an organization. A)True
B)False Answer: False
Q4) Global sourcing is a requirement and no longer a luxury for most firms.
A)True
B)False
Answer: True
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Chapter 2: The Purchasing Process
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79 Flashcards
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Sample Questions
Q1) When a situation arises when an internal customer has a need that comes up suddenly, which is not planned for and for which there is no preexisting supplier identified to provide the product or service required, purchasing should use a/an _____ approach.
A) spot buy
B) long term agreement
C) P2P
D) e-procurement
E) None of the above.
Answer: A
Q2) Buyers use competitive bidding when price is a minor criteria and the required item (or service) has complex material specifications.
A)True
B)False
Answer: False
Q3) Responsibility for concealed damage is often simple and easy to detect.
A)True
B)False
Answer: False
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Page 4
Chapter 3: Purchasing Policy and Procedures
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28 Verified Questions
28 Flashcards
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Sample Questions
Q1) A _____ is an operating instruction detailing functional duties or tasks.
A) policy
B) procedure
C) work rule
D) guideline
E) policy manual
Answer: B
Q2) Organizations do not need to be cautious about liabilities associated with accepting and using ideas provided by suppliers interested in doing business with a purchaser.
A)True
B)False
Answer: False
Q3) All of the following are characteristics of effective policies except _____.
A) action-oriented
B) relevant
C) concise
D) highly detailed and written.
E) timely and current
Answer: D
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Page 5
Chapter 4: Supply Management Integration for Competitive Advantage
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67 Verified Questions
67 Flashcards
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Sample Questions
Q1) If positive work is never recognized or reinforced through rewards, the positive effort will likely be extinguished.
A)True
B)False
Q2) Suppliers of critical nonstandard commodities are involved much later in the product development initiative.
A)True
B)False
Q3) Suppliers are never an invaluable source of ideas for process improvement.
A)True
B)False
Q4) _____ involves professionally managing suppliers and developing close working relationships with different internal groups.
A) Purposeful cooperation
B) Program management
C) Credible commitment
D) Supply integration
E) Relationship management
Page 6
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Chapter 5: Purchasing and Supply Management Organization
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73 Flashcards
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Sample Questions
Q1) Not all observers agree that the use of teams is a guarantee of greater effectiveness.
A)True
B)False
Q2) _____ refers to the process of assessing and selecting the structure and formal system of communication, division of labor, coordination, control, authority, and responsibility required to achieve organizational goals and objectives, including supply management objectives.
A) Cross-functional teaming
B) Reciprocity
C) Organizational design
D) Purchasing authority
E) Supply chain integration
Q3) Which of the following is an example of an operational activity?
A) Manage relationships with critical suppliers.
B) Generate and forward material releases and expedite.
C) Develop electronic purchasing systems.
D) Negotiate company-wide supply contracts.
E) Manage critical commodities.
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Chapter 6: Category Strategy Development
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80 Flashcards
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Sample Questions
Q1) A _____ is concerned with (1) the scope or boundaries of each business and the links with corporate strategy and (2) the basis on which the business unit will achieve and maintain a competitive advantage within an industry.
A) commodity strategy
B) category strategy
C) business unit strategy
D) functional strategy
E) supply management strategy
Q2) In some cases, a firm may be looking to develop a long-term relationship with a potential supplier, particularly if the supplier is in the "Routine" quadrant of the Strategy Portfolio Matrix and the category of spend is low volume and routine to the company's business.
A)True
B)False
Q3) SWOT analysis was created to describe the competitive forces in a market economy that help shape an industry.
A)True
B)False
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8
Chapter 7: Supplier Evaluation and Selection
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78 Verified Questions
78 Flashcards
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Sample Questions
Q1) Databases allow the purchaser to quickly identify suppliers potentially qualified to support a requirement and may contain information on current products, the supplier's future technology roadmap, process capability ratios, and past performance.
A)True
B)False
Q2) Purchasers often perform a first cut or preliminary evaluation of potential suppliers to narrow the list before conducting an in-depth formal evaluation.
A)True
B)False
Q3) A _____ is limited to a select group of suppliers who provide critical high value items to the firm.
A) disqualified supplier
B) sole source supplier
C) preferred supplier
D) single source supplier
E) partnered supplier
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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) Inconsistency is the enemy of total quality.
A)True
B)False
Q2) Buyers should focus only on a supplier's physical output (the end result), never on the supporting inputs, systems, and processes that created that output.
A)True
B)False
Q3) To be considered capable, the outputs from a process must fall outside upper and lower specification limits.
A)True
B)False
Q4) All delivery activities in a process can be considered wasteful.
A)True
B)False
Q5) Designed-in systemic variation is a managerial concern, not a labor issue.
A)True
B)False
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Page 10
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) All of the following are elements of market risk in a supply base except _____.
A) the number of buyers competing for the same goods or source of supply
B) increasingly shorter product life cycles
C) regional political risk
D) threat of emerging, often disruptive, technologies
E) protecting and maintaining trade secrets and intellectual properties from misuse or misappropriation by suppliers, particularly those located overseas
Q2) Multiple sourcing can add quality variability to the sourced product because of the use of different materials, manufacturing techniques, and processes.
A)True
B)False
Q3) A large supply base means the duplication of a wide range of supply management activities, adding to acquisition cost without a corresponding increase in value added to the customer.
A)True
B)False
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Chapter 10: Worldwide Sourcing
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Sample Questions
Q1) Social culture and laws, personnel skills and abilities, and business culture are three areas where differences are the greatest across different geographic units.
A)True
B)False
Q2) In supply management, the cost/price benefits associated with sourcing in developing countries are an insignificant motivation for remaining competitive in an increasingly global environment.
A)True
B)False
Q3) Which of the following is not one of the factors that drive global sourcing performance?
A) Centrally coordinated and centrally led decision making.
B) Site-based control of operational activities.
C) Ability to speak multiple foreign languages.
D) Sourcing and contracting systems.
E) International purchasing office support.
Q4) Purchasing's role in countertrade is not as visible as marketing's role.
A)True
B)False
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Chapter 11: Strategic Cost Management
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83 Verified Questions
83 Flashcards
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Sample Questions
Q1) Which of the following is not one of the important factors to consider when building a TCO model?
A) Focus on the small and easily measurable costs first.
B) Building a TCO can be a costly and time-intensive activity.
C) Work in a team.
D) Make sure to obtain senior management buy-in before embarking on a full-fledged TCO.
E) When considering global sourcing, consider all of the relevant labor, quality, logistics, and import costs associated with the total supply chain.
Q2) _____ = (Quality + Technology + Service + Cycle Time) ÷ Price.
A) Cost
B) Efficiency
C) Value
D) Total cost
E) Target cost
Q3) The major benefits from cost-reduction efforts occur when supply management is not involved in the new-product/service development cycle.
A)True
B)False
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Page 13
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) According to Ohno and Toyota, _____ is a category of waste that moves material unnecessarily or long distances.
A) unnecessary movement
B) over-processing
C) defect
D) unnecessary transport
E) overproduction
Q2) 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
Q3) According to Ohno and Toyota, _____ is a category of waste that uses more steps to produce a product than necessary.
A) excess inventory
B) defect
C) unnecessary movement
D) unnecessary transport
E) over-processing
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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) _____ involves inventing new options that satisfy each party's needs.
A) Expand the pie
B) Find a bridge solution
C) Logroll
D) Cut the costs for compliance
E) Use non-specific compensation
Q2) A/An _____ is an item or topic to be resolved during the negotiation.
A) BATNA
B) issue
C) interest
D) position
E) fact
Q3) A tactic used during one negotiation may not be successful or applicable to another negotiation, even with the same counterpart.
A)True
B)False
Q4) People seldom show the tendency to fill in the gaps when a discussion encounters silence.
A)True
B)False
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Chapter 14: Contract Management
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109 Verified Questions
109 Flashcards
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Sample Questions
Q1) A _____ is defined as a purchase that is made on a nonrecurring or limited basis with little or no attention of developed an ongoing relationship with the supplier.
A) purchasing alliance
B) long-term contract
C) short-term contract
D) spot contract
E) JIT contract
Q2) A/An _____ specifies that the buyer will buy a certain amount of goods and services for the duration of the agreement.
A) pricing agreement
B) evergreen clause
C) national buying agreement
D) national contract
E) blanket order
Q3) Even if the client company does not withhold income taxes, a consultant will normally be viewed as an employee, not as an independent contractor.
A)True
B)False
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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) _____ can be defined as failure of one of the parties to live up to the terms and conditions of the contract.
A) Cancellation for default
B) Cancellation for convenience of the seller
C) Cancellation for convenience of the purchaser
D) Cancellation by mutual assent
E) None of the above.
Q2) The concept of damages in the UCC is based on the remedy of a party being "made whole."
A)True
B)False
Q3) Price fixing, dividing territories among competitors, and agreements that limit the supply of a commodity are violations of the Foreign Corrupt Practices Act.
A)True
B)False
Q4) Accepting gifts and favors from a supplier is the most common ethical infraction involving buyers.
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) Most inventory waste results from underlying problems that blue collar workers have failed to correct.
A)True
B)False
Q2) Even in an era of just-in-time production, almost all firms hold some level of preproduction inventory.
A)True B)False
Q3) Unnecessary inventory usually results from one thing: uncertainty.
A)True
B)False
Q4) Which of the following is a component of carrying cost?
A) Cost of capital.
B) Cost of storage.
C) Cost of obsolescence, deterioration, and loss.
D) All of the above.
E) None of the above.
Q5) Purchasers should not accept any of the blame for delivery uncertainty. A)True
B)False
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Chapter 17: Purchasing Services
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98 Verified Questions
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Sample Questions
Q1) A shipper should necessarily negotiate a contract with every carrier it uses, even if it is considered a small or infrequent shipper.
A)True
B)False
Q2) Which of the following is not one of the advantages of motor carrier over other modes of transportation?
A) High flexibility.
B) Good reliability.
C) Good for JIT delivery.
D) Good speed.
E) Low cost.
Q3) The greatest competition between domestic transportation modes involves rail and motor carriers.
A)True
B)False
Q4) Moving to a centralized process for procuring professional services does not allow the buying company to leverage its corporate buying power.
A)True
B)False
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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) In a _____ system, decisions are automated, with exceptions dealt with manually.
A) transaction processing
B) routine decision making
C) strategic decision making
D) decision support
E) None of the above.
Q2) A data warehouse, in theory, is organized around informational subjects rather than specific business processes.
A)True
B)False
Q3) A _____ is an independent firm that neither buys nor sells goods but seeks to facilitate the electronic purchasing process through value enhancement.
A) strategic alliance
B) partnership
C) third-party marketplace
D) horizontal portal
E) None of the above.
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Page 20
Chapter 19: Performance Measurement and Evaluation
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Sample Questions
Q1) A sound measurement and evaluation system provides sporadic reporting of performance results.
A)True
B)False
Q2) The most common method of establishing a budget uses the current administrative budget as a starting point.
A)True
B)False
Q3) Which of the following is one of the reasons for measuring performance?
A) Support better decision making.
B) Support better communication.
C) Provide performance feedback.
D) Motivate and direct behavior.
E) All of the above.
Q4) A common misconception is that a performance evaluation system should not measure every activity.
A)True
B)False
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Chapter 20: Purchasing and Supply Strategy Trends
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Sample Questions
Q1) Leading sustainability efforts with suppliers and their suppliers will decrease in importance.
A)True
B)False
Q2) Purchasing and supply will be expected to play a growing role in sustainability efforts of the firms, many of which closely involve suppliers.
A)True
B)False
Q3) The currently dominant decentralized model for supply management will continue to be a key strategy and likely the norm for the foreseeable future.
A)True
B)False
Q4) The supply base will be viewed not only as tier one suppliers but also as supply networks that extend beyond the tier one suppliers.
A)True B)False
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