Intro to Supply chain Exam 2 Rutgers

Co-sourcing is the sharing of a process or function between internal staff and an external provider (i.e., a supplier).

True

False

True

If you understand the Total Cost of Ownership (TCO) then you know:

-That the acquisition cost is almost always the largest portion of the total cost of ownership

-That it Is better to own an item rather than to rent or lease an item

-That you should always buy from the supplier with the lowest purchase price

-That you need to consider all the related costs over the life of the product

-That you need to consider all the related costs over the life of the product

The Profit-Leverage Effect states that a decrease in purchasing expenditures will directly decrease profit

True

False

False

Which of the following are described as Agents licensed by the governmental regulatory authority to conduct business on behalf of importers, for a service fee?

-Trading Companies

-Import Merchants

-Import Brokers

-Import Brokers

Total Cost of Ownership is the sum of the cost elements Quality, Service, Delivery, and Price.

True

False

True

The fastest or most immediate way that a purchasing person can directly impact the profit of their company is to:

-Improve the quality of the items they are buying

-Obtain a price reduction on the items they are buying

-Improve the inventory turnover of the items they are buying

-Improve the delivery time of their suppliers

-Obtain a price reduction on the items they are buying

A proposal or quotation submitted in response to a solicitation from a contracting authority is known as what?

-Bond

-Countertrade

-Bid

-Tariff

-Bid

All of the following are reasons for Making an item in your own company operations, EXCEPT for which one?

-Due to insufficient capacity in your company operations

-To control transportation and warehousing costs

-To protect your proprietary technology

-There is no competent supplier available

-Due to insufficient capacity in your company operations

The purchasing tool described as "A document used to solicit bids (i.e., price and delivery) from interested and qualified suppliers for goods or services that the organization needs to obtain", is known as?

-Request for Proposal

-Purchase Requisition

-Purchase Order

-Request for Quote

-Request for Information

-Request for Quote

Industrial buyers purchase raw materials and other components for conversion into a finished product, but they do not purchase services or capital equipment.

-True

-False

False

Strategic Sourcing is a comprehensive approach for locating and sourcing key suppliers, so that an organization can leverage its consolidated purchasing power to find the best possible values in the marketplace.

True

False

True

Strategic Sourcing is the process of identifying a company that provides a needed good or service

True

False

False

In which item category would the sourcing strategies of simplifying and streamlining the purchasing process, reducing the number of suppliers and simplifying the ordering process, and transferring the buying responsibility to users within the company, be appropriate?

-Non-Critical Items

-Bottleneck Items

-Strategic Items

-Leverage Items

-Non-Critical Items

Which general sourcing category comprises commodity items where many alternatives of supply exist, and supply risk is low. Spend is high and there are potential procurement savings?

-Leverage

-Strategic

-Bottleneck

-Non-Critical

-Leverage

Through collaborative negotiations both side work together to maximize the outcome or create a win-win result

True

False

True

The practice of Supplier Co-location involves a supplier's employee being embedded in a buyer's purchasing department to forecast demand, monitor inventory and place orders for the item(s) provided by the supplier.

True

False

True

In which sourcing category would an item typically be classified, if it is considered to be high value, high risk, and there are few suppliers, but they are excellent?

-Strategic

-Bottleneck

-Non-Critical

-Leverage

Strategic

Products with short product life cycles, volatile demand, high-profit margins, and relatively little competition, are known as Functional Products.

True

False

False

Which sourcing strategy would typically be used for items with low profit margins, relatively stable demand, and high levels of competition?

-Multi-source

-Sole source

-Single source

-Multi-source

In which sourcing category would an item typically be classified, if it is considered to be low value, low risk, and there are lots of potential suppliers?

-Bottleneck

-Leverage

-Non-Critical

-Strategic

-Non-Critical

The process to evaluate a supplier's capabilities, and their capacity to supply a product or service to the buyer, is known as Supplier Certification.

True

False

False

Performance Measures should be S.M.A.R.T. which is an acronym that means?

-Significant, Memorable, Appropriate, Reasonable, Time-tested

-Specific, Measurable, Achievable, Relevant, Time-oriented

-Substantial, Meaningful, Accurate, Rational, Time-sensitive

-Suitable, Marketable, Applicable, Remarkable, Time-based

-Specific, Measurable, Achievable, Relevant, Time-oriented

ISO 14000 is a widely accepted management and quality certification standard.

True

False

False

The keys to developing successful supply partnerships include all of the following EXCEPT?

-Mutual Benefits and Needs

-Performance Metrics

-Personal Relationships

-Individualized Objectives

-Individualized Objectives

The process commonly utilized in continuous improvement is known as?

-Plan, Source, Make, Deliver

-Ready, Set, Go

-Plan, Do, Check, Act

-Specific, Measurable, Achievable, Relevant, Time-Oriented (S.M.A.R.T.)

-Plan, Do, Check, Act

An effective supplier certification program may increase the time spent on incoming inspections.

True

False

False

A key supplier's activities to help the buyer's company reduce cost, improve quality and reduce new product development time beginning with the initial design phase, are known as?

-Supplier Recognition

-Supplier Development

-Early Supplier Involvement

-Value Engineering

-Value Engineering

Supplier Relationship Management is a comprehensive approach for locating and sourcing key suppliers, so that an organization can leverage its consolidated purchasing power to find the best possible values in the marketplace

True

False

False

A strong supplier partnership requires that both buyer and supplier adopt a strong tactical perspective.

True

False

False

The goal of a good supplier performance evaluation system is to provide metrics that are:

-Understandable, quantitative, and focused on cost-related results

-Understandable, qualitative, and focused on performance-related

results

-Understandable, quantitative, and focused on quality-related results

-Understandable, easy to measure, and focused on real value-added results

-Understandable, easy to measure, and focused on real value-added results

The role of workers in Lean is to create the cultural change needed for Lean to succeed

True

False

False

Lean is a disciplined, statistical-based, data-driven methodology for identifying and removing the causes of defects and minimizing variability in manufacturing and in business processes

True

False

False

What is the term for starting the production of finished goods only after a customer's order is received?

-Make-to-Order

-Mass Customization

-Economic Order Quantity

-Make-to-Stock

Make-to-Order

Which element of Lean is described as a system based on making little changes on a regular basis, anywhere changes can be made, to reduce process, delivery, and quality problems?

-Workforce Empowerment

-Lean Supply Chain Relationships

-Uniform Plant Loading

-Continuous Improvement

-Continuous Improvement

All of the following are included in the eight wastes EXCEPT?

-Overproducing

-Overspending

-Extra-Processing

-Waiting

-Overspending

The Six Sigma 5-Step Plan referred to as DMAIC stands for?

-Determine, Motivate, Accept, Investigate, Conclude

-Defect, Method, Attribute, Inspect, Cause

-Detect, Monitor, Assess, Implement, Check

-Define, Measure, Analyze, Improve, Control

-Define, Measure, Analyze, Improve, Control

The term for a visual signal that authorizes production or the movement of materials to the next workstations is?

-Continuous Assembly

-Kanban

-LEAN Layouts

-Kaizen

-Kanban

Intermittent Production Processes are used to produce a large variety of products with different processing requirements in lower volumes

True

False

True

To make or process raw materials into finished products, especially by means of a large-scale industrial operation, is called what?

-Mass Customization

-Work-in-Process

-Manufacturing

-Inventory Management

-Manufacturing

Which Manufacturing Strategy can be described as producing products to put into inventory based on a demand forecast?

-Make-to-Stock

-Assemble-to-Order

-Make-to-Order

-Engineer-to-Order

-Make-to-Stock