Supply Chain Strategy
Final Exam
Course Introduction
Supply Chain Strategy explores the frameworks, principles, and practices that organizations use to design, operate, and optimize their supply chains for competitive advantage. The course covers strategic decision-making in areas such as sourcing, manufacturing, logistics, distribution, and risk management, with a strong emphasis on the alignment of supply chain activities with overall business objectives. Through case studies, real-world examples, and analytical tools, students learn to evaluate and implement effective supply chain strategies in a global business environment, addressing issues such as globalization, sustainability, innovation, and technological change.
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) The development of strategic purchasing practices can only help a company maintain its competitive position in a rapidly changing business environment.
A)True
B)False
Answer: False
Q2) Purchasing is becoming less responsible for sourcing indirect goods and services required by internal groups.
A)True
B)False
Answer: False
Q3) Which of the following is not an example of a typical resource shared between a buyer and supplier?
A) Dedicated capacity.
B) Specific information.
C) Technological capabilities.
D) Direct financial support.
E) Advertising and media.
Answer: E
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Chapter 2: The Purchasing Process
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79 Verified Questions
79 Flashcards
Source URL: https://quizplus.com/quiz/22660
Sample Questions
Q1) _____ is used when a product or service is proprietary or when there is a perceived advantage to using a particular supplier's products or services.
A) Description by market grade
B) Description by industry standard
C) Description by specification
D) Description by performance characteristics
E) Description by brand
Answer: E
Q2) Responsibility for concealed damage is often simple and easy to detect.
A)True
B)False
Answer: False
Q3) Historically, most organizations have paid minimal attention to MRO items.
A)True
B)False
Answer: True
Q4) Almost all firms establish blanket purchase orders with their suppliers.
A)True
B)False
Answer: True
Page 4
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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) Which of the following is not one of the principles that support positive buyer-supplier relationships?
A) Treating suppliers fairly and with integrity.
B) Providing prompt payment to suppliers.
C) Encouraging suppliers to submit innovative ideas with joint sharing of benefits.
D) Establishing a fair process to award purchase contracts.
E) Providing engineering and manufacturing technical assistance.
Answer: E
Q3) Although policies are usually documented in writing, unwritten or informal policies can also exist.
A)True
B)False
Answer: True
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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) Suppliers are never an invaluable source of ideas for process improvement.
A)True
B)False
Q2) _____ is the process of incorporating or bringing together different groups, functions, or organizations, either formally or informally, physically or by information technology, to work jointly and often concurrently on a common business-related assignment or purpose.
A) Cooptation
B) Program management
C) Collaboration
D) Collusion
E) Integration
Q3) Many companies are encouraging suppliers to provide a permanent on-site representative who can aid the company in improving customer order fulfillment processes.
A)True
B)False
Q4) Organizations should use teams selectively due to limited resource availability.
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) Center-led organizations have the same total authority that purely centralized units do.
A)True
B)False
Q2) The _____ task involves identifying company spend and matching to the best potential suppliers, negotiating with selected suppliers, and finally managing the contract.
A) market intelligence and research
B) operational support and follow-up
C) administration and data management
D) sourcing, negotiation, and contract management
E) material handling
Q3) The supply chain organization of the future will rely much more on hierarchical and functional boundaries.
A)True B)False
Q4) Managing day-to-day supply management operations is substantially the same as managing longer-term responsibilities.
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 _____ refers to a specific family of products or services that is used in delivering value to the end customer.
A) spend analysis
B) decentralized structure
C) category
D) centralized structure
E) hybrid structure
Q2) A/An _____ may be used as a decision support tool in which the sourcing team assigns a weight to the different categories and develops a numerical score for each supplier in each category, thereby developing a final performance score.
A) make-buy analysis
B) portfolio analysis matrix
C) reverse auction
D) e-catalog
E) supplier selection scorecard
Q3) Identifying the major suppliers in a market is an important first step of any supplier analysis.
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) Traditional purchasers understand the risk/reward tradeoff and are prepared to manage it better to attain overall lower costs.
A)True
B)False
Q2) Local suppliers are less responsive to the buying firm's changing needs and cannot economically make frequent smaller deliveries.
A)True
B)False
Q3) A/An _____ involves sending a preliminary survey to suppliers.
A) request for quotation
B) request for information
C) purchase order
D) order release
E) All of the above.
Q4) The complexity and value of a required purchase does not influence the extent to which a buyer evaluates potential supply sources.
A)True
B)False
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Page 9
Chapter 8: Supplier Quality Management
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94 Verified Questions
94 Flashcards
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Sample Questions
Q1) A supplier quality manual may delineate the maximum process required for the supplier regarding inspections, use of statistical process control, continuous improvement, testing, sample evaluations, performance improvement, and the like.
A)True
B)False
Q2) _____ represents the ability to meet or exceed current and future customer (i.e., buyer and eventually end customer) expectations or requirements within critical performance areas on a consistent basis.
A) Kaizen
B) Supplier quality
C) Strategic sourcing
D) Process capability
E) Supply base rationalization
Q3) The performance appraisal systems in most organizations create real barriers to pride in workmanship as they promote competitive behavior and quantity of work over quality.
A)True
B)False
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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) All of the following are general categories of supply base risk except _____.
A) political risk
B) market risk
C) sourcing risk
D) financial risk
E) employee hiring risk
Q2) According to ISM, _____ is defined as the ability to meet current needs without hindering the ability to meet the needs of future generations in terms of economic, environmental, and social challenges.
A) Sustainability
B) Scenario analysis
C) Social responsibility
D) Supply chain risk management
E) Standardization
Q3) Supplier rationalization and optimization should be a one-time activity.
A)True
B)False
Q4) Buyers rarely rely on suppliers for cost-reduction assistance.
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) Buyers are never reluctant to shift business from domestic sources to unknown offshore sources.
A)True
B)False
Q2) A major complaint about Americans is our ignorance of other cultures.
A)True
B)False
Q3) Firms that centralize operational activities during global sourcing are likely to realize lower total cost of ownership, better inventory management, and improved performance to external customers.
A)True
B)False
Q4) _____ involves contracting with independent suppliers outside the organization (domestic or foreign) to provide products or services that were performed inside the organization.
A) Re-shoring
B) Nearshoring
C) Outsourcing
D) offshoring
E) International purchasing
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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) The cost of a new product is no longer an outcome of the product design process; rather, it is an input to the process.
A)True
B)False
Q2) Strategic cost management approaches do not vary according to the stage of the product life cycle.
A)True B)False
Q3) Economic conditions seldom determine whether a market is favorable to the seller or to the purchaser.
A)True
B)False
Q4) Although a quantity discount has a positive effect on the purchase price, a buyer need not be cautious about the net impact on the total cost of an item.
A)True B)False
Q5) Building a TCO model is an easy task.
A)True B)False
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Chapter 12: Purchasing and Supply Chain Analysis: Tools and Techniques
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67 Verified Questions
67 Flashcards
Source URL: https://quizplus.com/quiz/22670
Sample Questions
Q1) If learning occurs at a supplier during the performance of a purchase contract, and the buyer does not take that into account, then the supplier will not reap the financial benefits that result from learning.
A)True
B)False
Q2) In a PERT network, a/an _____ is the latest time an activity can finish without delaying the entire project.
A) Late start
B) late finish
C) on time finish
D) early start
E) late start
Q3) Offering a supplier a longer-term contract with guaranteed volumes encourages investment in equipment that results in lower production costs.
A)True
B)False
Q4) The longest path (in time) through a PERT network is the critical path.
A)True
B)False
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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) It is unimportant for the negotiator to have adequately prepared and established a thoughtful BATNA for each issue until after the negotiation has begun.
A)True
B)False
Q2) All purchase requirements will require buyers and sellers to conduct a thorough, detailed, and time-consuming negotiation.
A)True
B)False
Q3) In _____, one party (usually the buyer) gets a lower price as the parties work jointly to reduce the seller's costs or the joint transaction costs of doing business together.
A) logroll
B) expand the pie
C) cut the costs for compliance
D) find a bridge solution
E) use non-specific compensation
Q4) Everyone negotiates something every day.
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) Long-term contracts should be written to avoid incentive or cost-sharing arrangements.
A)True
B)False
Q2) The ____ clause of a contract defines what is in and out of scope, which might include the geographical limitations, the validity or invalidity of prior contracts, preferential treatment by the supplier, or other elements.
A) force majeure
B) supply and delivery
C) scope of agreement
D) liability
E) key performance indicators and compensation
Q3) It is often easy to go back and negotiate what contractual terms actually mean once the contract has been signed and a period of time has passed.
A)True
B)False
Q4) Once a contract has been negotiated and signed, the real work is over.
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) According to the UCC, any affirmation of fact or promise made by the seller to the buyer which relates to the goods and becomes part of the basis of the bargain creates a/an _____ that the goods shall conform to the affirmation or promise.
A) implied warranty
B) express warranty
C) general warranty
D) warranty of merchantability
E) warranty of title
Q2) On _____, the freight bill is presented on the effective day of the shipment.
A) FOB origin shipments
B) collect shipments
C) prepaid shipments
D) FOB destination shipments
E) None of the above.
Q3) Purchasing managers cannot be held personally liable for their damaging and illegal activities even if they perform them with the authority of their 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) Which of the following is not one of the wrong reasons for investing in inventory?
A) Poor quality and material yield.
B) Extended order-cycle times from global sourcing.
C) Hedge against marketplace uncertainty.
D) Specifying custom items for standard applications.
E) Inefficient manufacturing processes.
Q2) _____ represents the funds committed to operating a business, including the purchase and holding of inventory.
A) Pipeline inventory
B) WIP
C) MRP
D) Working capital
E) None of the above.
Q3) Which of the following is not one of the key principles of the lean concept?
A) Maximize the use of people.
B) Simplify first, and only then apply new technology.
C) Focus on gradual, but continuous, improvement.
D) Minimize waste (including poor quality).
E) All of the above.
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Page 18
Chapter 17: Purchasing Services
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98 Verified Questions
98 Flashcards
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Sample Questions
Q1) Exempt carriers are highly regulated economically by the Surface Transportation Board.
A)True
B)False
Q2) The U.S. Bureau of Customs and Border Protection established the so-called "10+2" rule that affects all modes of transportation except ocean container freight.
A)True
B)False
Q3) When freight is shipped _____, the buyer, or consignee, is responsible for choosing the carrier, arranging for the physical movement of the goods, paying the freight bill, and filing loss and damage claims.
A) FOB destination
B) FOB origin
C) FOB delivered
D) FOB supplier
E) None of the above.
Q4) A major disadvantage of a rail carrier is its relatively higher cost.
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) The goal of DRP systems is to integrate all business function planning and processing, and to avoid data interruption to make better business decisions and run the business more effectively and efficiently.
A)True
B)False
Q2) Historically, companies adopted a unified approach to system usage, such that each function could communicate with each other in the company.
A)True
B)False
Q3) When companies map what they believe a process looks like, they discover that the actual process is quite different from what they thought it would look like.
A)True
B)False
Q4) In a regular reverse auction, prices are anonymous, and the identity of the competitors is provided to all sellers.
A)True
B)False
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Chapter 19: Performance Measurement and Evaluation
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62 Verified Questions
62 Flashcards
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Sample Questions
Q1) Each location of an organization must use the same performance objectives or performance criteria.
A)True
B)False
Q2) Purchasing requires measures that reflect its ability to support overall corporate and functional goals, which means a reduced emphasis on pure efficiency measures and greater emphasis on effectiveness measures.
A)True
B)False
Q3) Purchase price versus market index measures are least appropriate for market-based products where pricing is primarily a function of supply and demand.
A)True
B)False
Q4) Well-defined measures use data that are available and accurate.
A)True
B)False
Q5) There is no one best way to measure performance.
A)True
B)False
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Chapter 20: Purchasing and Supply Strategy Trends
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36 Verified Questions
36 Flashcards
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Sample Questions
Q1) Time-related capabilities will drive the next generation of order winners in the eyes of the customer.
A)True
B)False
Q2) External collaboration will signal a shift from cooperation to pure competition for some segments of a company's supply base.
A)True
B)False
Q3) Perhaps the most obvious area where firms are concentrating their time-reduction efforts is during new-product and process development along with achieving innovation.
A)True
B)False
Q4) Providing ongoing purchase price and cost reduction, combined with quality and delivery performance improvement, is the maximum contribution expected of purchasing and supply.
A)True
B)False
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Page 22