Question 1

Inventory turnover and weeks of supply are mathematically the inverse of one another.

Accepted Answer

A) True 
 B)False

Question 2

An important opportunity in green sourcing is waste reduction opportunities.

Accepted Answer

A) True 
 B)False

Question 3

Logistics is a term that refers to the management functions that support the complete cycle of material flow, from the purchase and internal control of production materials; to the planning and control of work-in- process; to the purchasing, shipping, and distribution of the finished product.

Accepted Answer

A) True 
 B)False

Question 4

Ownership costs are incurred after the initial purchase and are associated with the ongoing use of the product or material.Which of the following is not an ownership cost listed in the text?

Accepted Answer

A)  Financing costs
B)  Energy costs
C)  Taxes
D)  Maintenance and repair costs
E)  Supply network costs

Question 5

Firms producing functional products are forced to introduce a steady stream of innovations in order to survive.

Accepted Answer

A) True 
 B)False

Question 6

Outsourcing is the act of moving some of a firm's internal activities and decision responsibility to outside providers.

Accepted Answer

A) True 
 B)False

Question 7

Inventory turn values that are considered good differ by industry and the type of products being handled.

Accepted Answer

A) True 
 B)False

Question 8

A financially-driven reason for outsourcing is that it can shorten cycle time.

Accepted Answer

A) True 
 B)False  False

Question 9

Strategic sourcing is the development and management of supplier relationships to acquire goods and services in a way that aids in achieving the immediate needs of the business.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is one of the strategic characteristics to consider when deciding how supplier relationships should be structured on the continuum between vertical integration (do not outsource)  to arm's length relationships (outsource) ?

Accepted Answer

A)  Cost
B)  Location
C)  Investment
D)  Coordination
E)  Control

Question 11

An organizationally-driven reason for outsourcing is that it can improve effectiveness by focusing on what the firm does best.

Accepted Answer

A) True 
 B)False

Question 12

The six-step process for green sourcing includes which of the following?

Accepted Answer

A)  Provide a press release to local (and perhaps national)  media.
B)  Include members of environmental groups in the decision.
C)  Notify the state and federal environmental agencies of your plans.
D)  Perform an environmental impact study.
E)  Develop the sourcing strategy. E

Question 13

A stable supply process is one where product volumes are high, demand is predictable and there is a long product life.

Accepted Answer

A) True 
 B)False  False

Question 14

A financially-driven reason for outsourcing is that it can help gain access to new markets, especially in developing countries.

Accepted Answer

A) True 
 B)False

Question 15

In conducting a Total Cost of Ownership analysis, it is probably best to use a team representing the key functional areas.

Accepted Answer

A) True 
 B)False

Question 16

The inventory turnover ratio used in measuring supply-chain efficiency is found by the ratio of which of the following?

Accepted Answer

A)  Cost of goods sold/Average aggregate inventory value
B)  Fixed costs/Variable costs
C)  Sales costs/Marketing costs
D)  Cost of goods sold/Cost to sell goods
E)  Operations flow costs/Suppliers flow costs

Question 17

In Hau Lee's uncertainty framework to classify supply chains, a supply chain for innovative products with an evolving supply process is called which of the following?

Accepted Answer

A)  Efficient
B)  Forward looking
C)  Agile
D)  Risk hedging
E)  Responsive

Question 18

A stable supply process is one where the manufacturing process and the underlying technology are mature and the supply base is well established.

Accepted Answer

A) True 
 B)False

Question 19

The optimal strategy for functional products is to use a responsive supply-chain.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is not an improvement-driven reason to outsource?

Accepted Answer

A)  Improve risk management
B)  Increase commitment in a non-core area
C)  Shorten cycle time
D)  Improve quality and productivity
E)  Obtain expertise, skills and technologies that are otherwise not available

Exam 11: Global Sourcing and Procurement

Inventory turnover and weeks of supply are mathematically the inverse of one another.

Correct AnswerverifiedShow Answer

An important opportunity in green sourcing is waste reduction opportunities.

Correct AnswerverifiedShow Answer

Logistics is a term that refers to the management functions that support the complete cycle of material flow, from the purchase and internal control of production materials; to the planning and control of work-in- process; to the purchasing, shipping, and distribution of the finished product.

Correct AnswerverifiedShow Answer

Ownership costs are incurred after the initial purchase and are associated with the ongoing use of the product or material.Which of the following is not an ownership cost listed in the text?

Correct AnswerverifiedShow Answer

Firms producing functional products are forced to introduce a steady stream of innovations in order to survive.

Correct AnswerverifiedShow Answer

Outsourcing is the act of moving some of a firm's internal activities and decision responsibility to outside providers.

Correct AnswerverifiedShow Answer

Inventory turn values that are considered good differ by industry and the type of products being handled.

Correct AnswerverifiedShow Answer

A financially-driven reason for outsourcing is that it can shorten cycle time.

Correct AnswerverifiedFalse

Strategic sourcing is the development and management of supplier relationships to acquire goods and services in a way that aids in achieving the immediate needs of the business.

Correct AnswerverifiedShow Answer

Which of the following is one of the strategic characteristics to consider when deciding how supplier relationships should be structured on the continuum between vertical integration (do not outsource) to arm's length relationships (outsource) ?

Correct AnswerverifiedShow Answer

An organizationally-driven reason for outsourcing is that it can improve effectiveness by focusing on what the firm does best.

Correct AnswerverifiedShow Answer

The six-step process for green sourcing includes which of the following?

Correct AnswerverifiedE

A stable supply process is one where product volumes are high, demand is predictable and there is a long product life.

Correct AnswerverifiedFalse

A financially-driven reason for outsourcing is that it can help gain access to new markets, especially in developing countries.

Correct AnswerverifiedShow Answer

In conducting a Total Cost of Ownership analysis, it is probably best to use a team representing the key functional areas.

Correct AnswerverifiedShow Answer

The inventory turnover ratio used in measuring supply-chain efficiency is found by the ratio of which of the following?

Correct AnswerverifiedShow Answer

In Hau Lee's uncertainty framework to classify supply chains, a supply chain for innovative products with an evolving supply process is called which of the following?

Correct AnswerverifiedShow Answer

A stable supply process is one where the manufacturing process and the underlying technology are mature and the supply base is well established.

Correct AnswerverifiedShow Answer

The optimal strategy for functional products is to use a responsive supply-chain.

Correct AnswerverifiedShow Answer

Which of the following is not an improvement-driven reason to outsource?

Correct AnswerverifiedShow Answer

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False

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E

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