1) The difference between manufacturer's desire to produce large quantities of a limited variety of items vs. a customer's desire to demand small quantities of numerous items best describes which of the following?
Discrepancy in space
Discrepancy in quantity and assortment
Discrepancy in time
Discrepancy in logistics
2) Developing long-term relationships with key supply chain participants (e.g., consumers, intermediate customers, and suppliers) can be best described as:
Relationship marketing
Transactional marketing
Niche marketing
Micromarketing
3) According to the textbook, if orders shipped complete, average on-time delivery, average damage-free delivery, and average correct document are each 97 percent, the probability that any order will be delivered with no defects is approximately:
100%
78.5%
98.5%
88.5%
4) According to Figure 3.2 matrix on textbook p. 69, a customer with a medium expectation will be dissatisfied if the supplier's performance is:
Low
Medium
High
Ultra-high
5) One of the limitations of emphasizing customer satisfaction is that:
Satisfied customers are always happy customers.
Satisfied customers are always loyal customers.
Firms always remember that satisfaction lies in the expectation and perception of individual customers.
Satisfied customers are not necessarily loyal customers.
6) An example of a value-added service from a hair stylist might be:
Offering a competitive price
Cutting your hair as requested
Coming to your place of business to do your hair
Keeping your appointment time
7) Customer relation management (CRM) incorporates all of the following EXCEPT:
Efforts to accommodate the needs and requirements of individual customers
CRM technology and software
Call centers
One-time sales transactions with no attempt at after sales follow-up
8) ______________ is a process by which a supplier manages both the product mix and shelf quantities for major product categories of a retailer.
Product placement
Category management
Market segmentation
Pareto analysis
9) Typical perfect order failures include all of the following EXCEPT:
Late or early delivery
Wrong items
Late customer payment
Damaged items
10) According to the textbook, purchased goods and services account for approximately _____ of every sales dollar.
15 cents
20 cents
55 cents
99 cents
11) The three major categories for the Components of Total Cost of Ownership include all of the following EXCEPT:
Hypertransaction
Pretransaction
Transaction
Posttransaction
12) Which of the following statements best describes the term "outsourcing"?
A firm has decided not to produce an item or service internally
A firm has decided to purchase an item exclusively from a foreign supplier
A firm has decided to produce a component internally
A firm has decided to purchase an item exclusively from a domestic supplier
13) All of the following are advantages of Volume Consolidation EXCEPT:
Increases the buyer's negotiation strength over the supplier
Allows the supplier to improves its economies of scale
Makes it more likely that the supplier will invest more in capacity or processes
Decreases the risk of a raw material/component shortage
14) A complex and expensive piece of manufacturing equipment would probably fall into which of the following Procurement Strategy Matrix boxes?
Routine purchases
Bottleneck purchases
Leverage purchases
Critical purchases
15) Paper clips, pens, staplers, and other office supplies would probably fall into which of the following Procurement Strategy Matrix boxes?
Routine purchases
Bottleneck purchases
Leverage purchases
Critical purchases
16) All of the following are valid reasons for implementing a supplier development process EXCEPT:
The firm wishes to sole-source a product or service
The firm needs a new product that no supplier currently provides
The firm wants a more convenient and less costly source of supply
A current supplier lacks sufficient capacity to meet the firm's demand
17) Which of the following categories for a supplier scorecard might receive more weight relative to other categories if the customer's production line has very little buffer stock and the costs of a line shutdown are enormous?
Correct documentation
Flexibility
All shipments on time
Communication
18) Which of the following categories for a supplier scorecard might receive more weight relative to other categories if the customer's production schedule changes frequently with the demand of its own customers?
Correct documentation
Flexibility
All shipments on time
Communication
19) The technical term that describes the transmission of information between a firm and its suppliers is called:
Economic Order Quantity (EOQ)
Material Requirements Planning (MRP)
Total Quality Management (TQM)
Electronic Data Interchange (EDI)