QUESTION 1. New technology frequently permits an organization to gain competitive advantage on the bases of different products and services at significantly lower cost.
0 True
m False
QUESTION 2. 'A" items in ABC analysis are: 0 reviewed infrequently.
0 particularly critical in financial terms. 0 normally carried in large quantities.
§ ordered infrequently.
m commonly managed by carrying inventory.
QUESTION 3. Seldom do the actions of supply managers impact the organization's reputation either positively or negatively_
m True
m False
QUESTION 4. Sustainability initiatives include the effective and efficient capture and disposition of down strearn products from customers and the reduction of the impact of the organization's supply chains on the natural environment.
0 True
m False
QUESTION 5. Reductions in inventory investment primarily come from getting users to reduce their demand for inventoried items. :.-
QUESTION 6.Description by brand:
0 may be a preference of an internal user, but it is never a necessity. oismeleaot risky and lowest cost approach to attaining "best value." may be a necessity because the manufacturing process is secret.
0 should always be discouraged by the buyer.
0 indicates a supplier has unduly influenced someone in the buyer's organization.
QUESTION 7. Supply has the potential to contribute to:
0 cost management, profitability, return on assets, competitive position and corporate social policy. 0 cost management, profitability, return on assets and competitive position.
cost management, profitability and return on assets.
o cost management and profitability.
0 cost management.
QUESTION 8. Supply makes a limited contribution to organizational risk management since most supply decisions have few downside risks that might impact the organization's strategy.
0 True
0 False
QUESTION 9. Linking supply strategy to corporate strategy is:
0 essential only in manufacturing, and most have the mechanisms to link them..
essential only in the service sector, and most lack the mechanisms to link them. O essential in all organizations, and most have the mechanisms to link them.
essential in all organizations, and many lack the mechanisms to link them. 0 non-essential in most types of organizations.
Question14. For non-repetitive requirements, a system or process of acquisition can be designed. Three major challenges exist when setting supply objectives and strategies:
O adopting efficient electronic transaction systems, designing effective strategic supply processes, and increasing internal compliance with both.
0 effe6tively interpreting corporate and supply objectives, selecting appropriate actions to achieve objectives, and integrating supply information into organizational strategies.
0 hiring professionals educated specifically in supply management, providing them with technical expertise, and developing leadership skills for the long-term.
0 emphasizing strategic cost management, involving key suppliers early in the process, and measuring the reduction in total cost of ownership.
§ identifying internal stakeholders, building consensus among these stakeholders, and selling top management on the results.
QUESTION 11. To effectively manage supply risks. the supply manager must:
0 inform the corporate risk officer of a potential risk, await instructions, and implement the directive.
0 seek input from senior executives in other functional areas, propose a risk mitigation plan, and await instructions from senior management.
identify and classify risks, assess the potential impact, and develop a risk mitigation strategy.
review the commodity strategy, revise it as needed, and implement the strategy revision.
§ confer with the organization's management consultant, provide all requested data, and implement the consultant's plan.
QUESTION 12. Capital items can be depreciated, are often bought under a separate budgetary allocation, and may require special ' financing arrangements.
m True
m False
QUESTION 13. In fixed period inventory models, orders are placed when the reorder point is reached.
m True
m False
QUESTION 15. The key question in strategic supply management is:
- How can supply strategy be kept separate from and equal to organizational strategy?
m How can first tier suppliers contribute to the buying organization's objectives and strategy?
m How can first, second, third- and subsequent tiers of suppliers contribute to the buying organization's objectives and strategy?
- How can the supply manager develop a network of suppliers that contribute to the buying organization's strategies and goals?
m How can supply and the supply chain contribute effectively to organizational objectives and strategy?
QUESTION 16. Service coverage is the ability of purchasing to meet the needs of its internal customers.
QUESTION 17. The design and management of seamless, value-added processes across organizational boundaries to meet the eN real needs of the end customer is called:
strategic sourcing.
0 value management.
0 customer relationship management.
O supply chain management.
0 strategic process management.
QUESTION 18 The increase in outsourcing has resulted in an increase in the percentage of revenue paid out to suppliers.
m True
m False
QUESTION 19. Which one of the following is NOT one of the six major supply strategy areas: 0 competitive-edge strategies.
O environmental-change strategies.
§ new-product design strategies.
§ risk-management strategies.
cost-reduction strategies.
QUESTION 20.The return on assets effect (ROA) quantifies and measures:
O the indirect contribution of supply management to profitability.
O any increase in sales that occurs at a greater rate than the cost of assets. 0 the impact of supply actions on inventory and the balance sheet.
0 reductions in the allocations to the operating budget of the supply department. O the effect on profitability of reduced spend compared to a sales increase.
QUESTION 21
Performance of the supply management function can be viewed in two contexts: 0 operational and trouble-avoidance.
O operational and strategic.
0 operational and transactional.
O strategic and opportunistic.
O strategic and future-oriented.