Supply Chain Strategy
Test Preparation
Course Introduction
Supply Chain Strategy explores the comprehensive design, management, and evaluation of supply chain operations to align with overall business goals. The course examines frameworks and analytical tools to optimize sourcing, production, inventory, and distribution, with an emphasis on integrating supply chain strategy with corporate and competitive strategies. Topics include risk management, sustainability, globalization, and leveraging technology for supply chain innovation. Through case studies and real-world examples, students will learn to develop strategic supply chain solutions that create value, enhance customer satisfaction, and provide competitive advantage in dynamic markets.
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) _____ refers to the process of assessing and selecting the structure and formal system of communication, division of labor, coordination, control, authority, and responsibility required to achieve organizational goals and objectives, including supply chain objectives.
A) Supply chain orientation
B) Human resource management
C) Demand planning
D) Organizational design
E) Extended value chain
Answer: D
Q2) _____ are those items provided by suppliers and used directly during production or service delivery.
A) Direct materials
B) Indirect materials
C) Indirect services
D) Internal materials
E) Vendor managed inventories
Answer: A
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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) The _____ helps protect the carrier against wrongful allegations that the carrier somehow damaged, lost, or otherwise tampered with a shipment.
A) bill of lading
B) material packing slip
C) invoice
D) material purchase release
E) blanket purchase order
Answer: A
Q2) The dollar value of the items covered by procurement cards is relatively high.
A)True
B)False
Answer: False
Q3) Contract management should be used to trigger proactive sourcing events only after a contract expires.
A)True
B)False
Answer: False
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Page 4
Chapter 3: Purchasing Policy and Procedures
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28 Verified Questions
28 Flashcards
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Sample Questions
Q1) 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
Q2) A procedure is ineffective if it specifies too many steps to carry out or presents unnecessary detail.
A)True
B)False
Answer: True
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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Chapter 4: Supply Management Integration for Competitive Advantage
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67 Verified Questions
67 Flashcards
Source URL: https://quizplus.com/quiz/22662
Sample Questions
Q1) The need for confidentiality regarding financial, product, and process information is the most frequently cited reason for not developing closer supplier relationships.
A)True
B)False
Q2) [A/An] _____ consists of personnel from different functions and increasingly from suppliers who are brought together to achieve supply management or supply chain-related tasks.
A) Big R
B) External RM
C) cross-functional sourcing team
D) Little r
E) Internal RM
Q3) On supplier assessments, performance data should be weighted in such a manner that they are aligned with customer performance requirements.
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) Perhaps the least important factor contributing to purchasing's position in the organizational hierarchy is history.
A)True
B)False
Q2) [A] _____ is similar to [a] _____ except that they tend to be more advisory in nature.
A) strategic sourcing group .lead division buying
B) corporate steering committee .lead division buying
C) lead division buying .corporate steering committee
D) corporate steering committee .corporate purchasing council
E) There is no difference between the two entities.
Q3) Which of the following is an example of a strategic activity?
A) Manage transactions with suppliers.
B) Source items that are unique to the operating unit.
C) Manage risk monitoring programs.
D) Generate and forward material releases and expedite.
E) Provide supplier performance feedback.
Q4) A reason for decentralization is a reduction in duplication of effort.
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) An e-RA is an offline, static auction between a buying organization and a group of pre-qualified suppliers who compete against each other to win the business to supply goods or services that have ill-defined specifications for design, quantity, quality, delivery, and related terms and conditions.
A)True
B)False
Q2) 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
Q3) One factor that is increasing the risk exposure to supply chain disruption is the decreasing propensity of companies to outsource processes to global suppliers.
A)True
B)False
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Chapter 7: Supplier Evaluation and Selection
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78 Verified Questions
78 Flashcards
Source URL: https://quizplus.com/quiz/22665
Sample Questions
Q1) In supplier evaluation, reliability refers to the different individuals or groups reviewing the same items and measurement scales will arrive at the same conclusion.
A)True
B)False
Q2) A supplier's willingness to move beyond a traditional purchasing relationship should be part of the evaluation process for items and services where a longer-term relationship might be beneficial.
A)True
B)False
Q3) A buying firm frequently wants the seller to become more dependent on its business. A)True
B)False
Q4) Before committing time to evaluate a supplier in depth, suppliers should satisfy certain entry qualifiers.
A)True
B)False
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Chapter 8: Supplier Quality Management
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94 Verified Questions
94 Flashcards
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Sample Questions
Q1) In _____, there is an intense focus on identifying and eliminating common causes of waste that add cost, time, and effort to the product or service while not adding value to the customer.
A) supplier evaluation and selection process
B) the MBNQA
C) SIO 14000:2004
D) the Honda BP process
E) None of the above.
Q2) In recent years, the concept of quality has changed radically from meeting customer requirements or expectations to exceeding them.
A)True
B)False
Q3) Which of the following is not one of the eight key principles of total quality management?
A) Define quality in terms of customers and their requirements.
B) Inspect for quality at the end of the production line.
C) Stress objective rather than subjective analysis.
D) Strive for zero defects.
E) Make quality everyone's responsibility.
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Page 10
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) Supplier rationalization and optimization should be a one-time activity.
A)True
B)False
Q2) The _____ is a normalization factor for the supplier performance index (SPI) that eliminates high-dollar lot bias.
A) Cp
B) MRO
C) Q adjustment factor
D) Cpk
E) Rfx
Q3) In overcoming the barriers to supplier development, which of the following is not one of the approaches typically used?
A) Direct-involvement activities.
B) Single sourcing.
C) Incentives and rewards.
D) Warnings and penalties.
E) All of the above are typical approaches.
Q4) All organizations need to pursue supplier development.
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) Cultural differences between countries seldom result in unwelcome surprises when buying internationally.
A)True
B)False
Q2) Insurance protection for international shipments is optional because oceangoing carrier liability is generally unlimited.
A)True
B)False
Q3) Hedging is a form of risk insurance that can protect both parties from currency fluctuations.
A)True
B)False
Q4) Counterpurchase requires a company to fulfill its countertrade requirements by purchasing products within a country unrelated to its primary business.
A)True
B)False
Q5) Purchasing's role in countertrade is not as visible as marketing's role.
A)True
B)False
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Chapter 11: Strategic Cost Management
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83 Verified Questions
83 Flashcards
Source URL: https://quizplus.com/quiz/22669
Sample Questions
Q1) In TCO for capital equipment, _____ are all costs associated with operating the equipment during its life.
A) usage costs
B) end of life costs
C) opportunity costs
D) acquisition costs
E) training costs
Q2) In TCO for a product, _____ include(s) all costs associated with converting the purchased part/material into the finished product and supporting it through its usable life.
A) purchase price
B) acquisition costs
C) end of life costs
D) opportunity costs
E) usage costs
Q3) Under penetration pricing, using final price as a basis, the product is disaggregated into major subsystems, each of which has its own target cost.
A)True
B)False
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Page 13
Chapter 12: Purchasing and Supply Chain Analysis: Tools and Techniques
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67 Verified Questions
67 Flashcards
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Sample Questions
Q1) Offering a supplier a longer-term contract with guaranteed volumes encourages investment in equipment that results in lower production costs.
A)True
B)False
Q2) Learning curve analysis is appropriate when a supplier uses a new production process or produces an item for the first time.
A)True
B)False
Q3) The primary objective of value analysis is to increase the value of an item or service at the lowest cost without sacrificing quality.
A)True
B)False
Q4) Activities without any slack in a PERT network are by definition on the critical path. A)True B)False
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14
Chapter 13: Negotiation and Conflict Management
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98 Verified Questions
98 Flashcards
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Sample Questions
Q1) The bargaining zone represents the heart of the negotiation process, as any proposal or counterproposal offered outside of this range is likely to be rejected by the other party because it is not what he or she is willing to settle for.
A)True
B)False
Q2) The source of _____ comes from interpersonal appeal based on socially acceptable individual qualities and attributes, such as one's personality or attractiveness.
A) informational power
B) expert power
C) coercive power
D) referent power
E) physical power
Q3) A tactic used during one negotiation may not be successful or applicable to another negotiation, even with the same counterpart.
A)True
B)False
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Chapter 14: Contract Management
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109 Verified Questions
109 Flashcards
Source URL: https://quizplus.com/quiz/22672
Sample Questions
Q1) In the _____ approach to a systems supplier's level of service, the client company essentially turns over the entire outsourced service at a given point in time.
A) modular
B) incremental
C) turnkey
D) shared
E) None of the above.
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) To be successful, a good long-term contract needs to only consider the needs of the buyer.
A)True
B)False
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Page 16
Chapter 15: Purchasing Law and Ethics
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107 Verified Questions
107 Flashcards
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Sample Questions
Q1) Copyright law requires a formal application, as does patent law.
A)True
B)False
Q2) A breach of contract may entitle the offended party to certain remedies or damages.
A)True
B)False
Q3) _____ is that level of authority perceived by the seller to be available to the purchasing manager.
A) Actual authority
B) Apparent authority
C) Consideration
D) Personal liability
E) Transparent authority
Q4) In most cases, the sales representative is a general agent who can solicit orders and change price, terms, or conditions as well.
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) Ordering costs are a composite of the costs associated with the release of a material order.
A)True
B)False
Q2) The underlying emphases of lean- to eliminate all forms of uncertainty and wasteare relevant to all organizations, regardless of the specific planning and control tools that are used.
A)True
B)False
Q3) Which of the following is not one of the functions of a distribution resource planning system?
A) Forecasting finished-goods inventory requirements.
B) Establishing correct inventory levels at each stocking location.
C) Determining the timing and replenishment of finished-goods inventories.
D) Producing a time-phased set of material, component, and subassembly requirements timed to support an expected build schedule.
E) Transportation planning and vehicle load scheduling.
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Chapter 17: Purchasing Services
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98 Verified Questions
98 Flashcards
Source URL: https://quizplus.com/quiz/22675
Sample Questions
Q1) 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
Q2) A preferred supplier list database should be set up to generate a list of preferred suppliers based on previous project performance criteria.
A)True
B)False
Q3) _____ can be defined as the sum of all purchased goods and services that are not a direct part of products or services delivered to the customer.
A) Direct spend
B) MRO
C) Indirect spend
D) Consignment inventory
E) Kanban
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) A _____ sells services to anyone on the Internet.
A) semi-private cloud
B) private cloud
C) public cloud
D) blog
E) SMAC
Q2) Increasing the level of integration between logistics and other SCM applications presents firms with both technical and organizational hurdles.
A)True
B)False
Q3) Making information visible does not require a degree of collaboration between the parties.
A)True
B)False
Q4) SRM and CRM applications are directly focused on planning and managing the firm's internal linkages.
A)True
B)False
Page 20
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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) The measurement system should rely on quantitative data instead of qualitative feelings and assessments.
A)True
B)False
Q2) Having too little data is the most common problem an organization has with its measurement system.
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) Which of the following is not one of the common problems in measuring performance?
A) Too much detail.
B) Too much and wrong data.
C) Measures that are short-term focused.
D) Drive the wrong performance.
E) Measures of behavior versus accomplishments.
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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) Competition is no longer between fast and agile and slow firms but between big and small firms.
A)True
B)False
Q2) Which of the following is not one of the components of material ordering cycle time that supply chain management practices directly affect?
A) Transmission of requirements to suppliers.
B) Suppliers' ordering and manufacturing cycle time.
C) Allocation of manufacturing overhead costs.
D) Delivery from suppliers.
E) Incoming receipt and inspection.
Q3) 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
Q4) Firms, not supply chains, compete.
A)True
B)False
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