Question 1: Because internationally recognized certifications like ISO 9000 are becoming so common among suppliers, it is becoming more important that purchasing firms develop internal certification programs that are geared toward the specific needs of the purchasing organization.

True

False

Question 2: Benchmarking is:

A system of performance metrics that seeks to motivate suppliers to perform better.

A practice where companies attempt to learn and apply the best practices of other companies.

A system of marking defective inbound inventory so it can quickly be identified for return to the supplier.

A program where suppliers compete for contracts, but those companies who are outbid are provided advice for winning future contracts.

Question 3: Variations of outsourcing include all of the following EXCEPT:

Co-sourcing

Selective sourcing

Front sourcing

Insourcing

Question 4: The influence of corporate sourcing decisions interacts with internal design, production, finance, marketing, and accounting.

True

False

Question 5: The inventory level where suppliers replenish their customer's inventory with a predetermined order quantity is called the:

Channel Equity Level

Reorder point

Bill Back

MRO point

Question 6: The management of the firm's external resources through identification and selection of suppliers, management of supplier relationships, and monitoring and rewarding supplier performance in an effort to support the long-term goals of the organization is called:

Buyer-supplier integration

Acceptance sampling

Procurement rationalization

Strategic sourcing

Question 7: An outsourcing program can result in all of the following positive outcomes, EXCEPT:

Reducing staffing levels

Decreased need for supplier management

Cost reduction

Gains in manufacturing flexibility

Question 8: The primary benefits of ____ include costs savings and freeing up time for purchasing staff to concentrate on the firm's core activities.

eProcurement

Insourcing

The Ethical Trade initiative

Six Sigma

Question 9: Benchmarking is the practice of copying what other businesses do best.

True

False

Question 10: Product parts, processes, and product assembly should all be designed by the manufacturing firm to assure a single-minded approach that the suppliers can follow. Supplier involvement in these design phases is considered counterproductive.

True

False

Question 11: The following term refers to an act that creates the greatest good for the greatest number of people:

Rights and duties

Corporate responsibility

Utilitarianism

Social sustainability

Question 12: The application of ethical principles to business situations can be referred to as:

Business ethics

Social responsibility

Ethical Sourcing

Strategic Sourcing

Question 13: According to the textbook, collaborative relationships place a relatively lower importance rating on which of the following competitive priorities:

Speed of Delivery

Cost

Product Quality

Frequency of deliveries

Question 14: Hard-bargaining sourcing departments focused on decreasing purchasing spend may experience which of the following from their suppliers?

Lower levels of quality from their suppliers

Lower levels of service from their suppliers

Deteriorating buyer-supplier relationships

All of these

Question 15: Which of the following can be used as a punishment for suppliers that perform poorly?

Elimination of future business with the focal firm

Downgrade the supplier's status

Billback penalty

All of these

Question 16: According to the text, driving your suppliers to offer the lowest possible prices, which in turn will lower your cost of goods sold, could prove to be harmful to buyer-supplier relationships and may also decrease the quality levels of the items produced using your suppliers' low cost components.

True

False

Question 17: Which of the following are considered outcomes of implementing a supplier evaluation and selection criteria?

Allows firm to screen out poor performing suppliers in its present supplier base.

Allows firm to screen out undesirable suppliers that they may be considering for future purchases.

Allows firm and its suppliers to develop a better corporate relationship.

All of these.

Question 18: While paperless transactions are now possible through e-procurement and Web-based services, these would NOT be considered sustainable business practices.

True

False

Question 19: Which of the following would most likely be considered a functional product?

PDA - Personal Digital Assistant

HDTV - High Definition Televisions

DVD recorders

Disposable Camera

Question 20: The Ethical Trading Initiative (ETI) does NOT include which of the following:

Children under 13 shall not be employed

Working hours are not excessive

Regular employment is provided

Freedom of association and the right to collective bargaining are respected

Question 21: The average annual Purchase spent as a percentage of sales has been declining over the years.

True

False

Question 22: "Rationalizing the supplier base" would mean that the purchasing firm is attempting to reduce the number of suppliers in its supplier network by eliminating poor performing suppliers in its present supplier base.

True

False

Question 23: The purchasing managers at Sunnydale Corporation decide to intentionally increase purchases from small, women-owned suppliers) This decision can be considered:

Illegal

Unethical

Ethical Sourcing

Utilitarianism

Question 24: Which of the following is FALSE?

The use of 3PL's has been increasing as companies seek more effective supply chain strategies.

VMI provides retail facilities the opportunity to communicate to manufacturers that the customers are requesting customized items.

The use of 3PL providers allows companies to gain competitive advantages without having to gain the required knowledge through firsthand experience.

VMI allows suppliers to manage their customers' inventory provided they have the capability to see inventory levels in real time.

Question 25: Which of the following is TRUE?

VMI stands for Vertically Managed Inventory

3PL stands for Third Party Leverage

VMI stands for Vendor-Managed Inventory

3PL stands for Three Point Logistics

Question 26: A 4PL, commonly referred to as a lead logistics provider, is a trucking company that also provides tracking services.

True

False

Question 27: Some strategic supplier agreements reward the highest performing suppliers with a share of the cost reductions resulting from supplier improvements, additional purchasing contracts, or contract extensions on existing contracts.

True

False

Question 28: All of the following are reasons for the increasing use of ethical and sustainable sourcing practices EXCEPT:

Global population growth

Increasing environmental awareness

Legislation requiring corporate ethical and sustainable sourcing

Declining worldwide levels of natural resources

Question 29: Retail items, which would likely be found at a store like Target or Wal-Mart, like lamps, blankets, microwave ovens, and candy bars would be classified as functional products.

True

False

Question 30: Companies that lack internal expertise in a specific functional area would likely consider in sourcing.

True

False

Question 31: Harold's Fish Shop decides to reduce its purchases from poorly performing fish suppliers and focus future orders with suppliers that have been top-performing in the past. This is an example of:

Supply base rationalization

Supplier development

Top-tier supplier selection

Selective sourcing

Question 32: According to the textbook, Wal-Mart is perhaps the company that is most averse to implementing sustainable business practices.

True

False

Question 33: According to the EcoMarkets survey, which surveys over 6000 private and public buyers, the most popular aspect of green sourcing is:

Recycling

Material reuse

Energy conservation

Packaging reuse

Question 34: One of the most value enhancing activities performed by a supplier, for a key customer, which minimizes carrying costs and can avoid stockouts:

Early supplier involvement scheduling

Vendor managed inventory

Strategic inventory planning

Purchase spend reduction forecasting

Question 35: Managing a firm's external resources in ways that support the long-term goals of the firm can be referred to as:

Ethical souring

Functional sourcing

Strategic sourcing

Hybrid Sourcing

Question 36: Which of the following is NOT a step suggested in the Supply Chain Sourcing Strategy Framework?

Classify supplier items as either innovative or functional

Define the goals of the supply chain and check for consistency with products and firm strategy

Distribute free samples of all purchased products to the end-user for detailed evaluation and feedback on supply chain development

Identify and evaluate the capabilities of suppliers and then identify areas which could be improved

Question 37: While a manufacturer may have substantial influence over its first tier suppliers, their influence over second and third tier suppliers is typically much higher.

True

False

Question 38: Developing a collaborative negotiation infrastructure include four steps: building a preparation process, develop a negotiation database. Design a negotiation launch process, and institute a feedback mechanism.

True

False

Question 39: Purchasing departments can be seen as a primary designer and facilitator of important inward- and outward-facing sourcing policies.

True

False

Question 40: Companies that experience late deliveries or low product quality from their supplier may resort to insourcing.

True

False

Question 41: Wal-Mart is the driving force behind a system of measurement intended to influence how products are made and purchased in the future. This system of measurement is the:

Greenstream

ISO 17000

Retail carbon footprint

Global sustainability index

Question 42: Generally speaking, there are two approaches to deciding whether or not an action is ethical, utilitarianism and rights and duties.

True

False

Question 43: The textbook outlined a Supply Chain Ethical and Sustainability Sourcing Strategy Framework. How many steps are in this framework?

3

5

6

10

Question 44: Manufacturers typically have very little influence over second and third tier suppliers when compared to the influence they hold over first tier suppliers.

True

False