FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 16: Global Sourcing and Procurement

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 31

True/False

Review LaterAdd Note

Review Later

The total cost of ownership (TCO) is an estimate of the cost of an item that includes all the costs related to the procurement and use of an item, but it does not include any of the costs related to disposing of the item after it is no longer useful.

Correct Answer

verified

Show Answer

Question 32

Multiple Choice

Review LaterAdd Note

Review Later

When considering outsourcing, what should firms be sure to avoid?

A) Losing control of noncore activities that don't distinguish the firm
B) Allowing outsourcing to develop into a substitute for innovation
C) Giving the outsourcing partner opportunities to become a strong competitor
D) Allowing employees transferred to the outsourcing partner to rejoin the firm
E) Adverse corporate tax implications of asset transfers to the outsourcing partner

Correct Answer

verified

Show Answer

Question 33

True/False

Review LaterAdd Note

Logistics is a term indicating transportation choices for goods produced internationally but consumed domestically.

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

If the average aggregate inventory value is $1,200,000 and the cost of goods sold is $600,000, which of the following is weeks of supply?

Functional products include staples that people buy in a wide range of retail outlets, such as grocery stores and gas stations.

A firm that controls most of the activities in its supply chain is said to be vertically integrated.

Capability sourcing refers to outsourcing the functions that a company does best to trusted key partners.

The phenomenon that magnifies the variability in order quantities for goods as orders move through the supply chain from the customer to the producer is called the bullwhip effect.

Green sourcing is only about finding new environmentally friendly technologies and increasing the use of recyclable materials.

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) and arm's length relationships (outsource) ?

An organizationally driven reason for outsourcing is that it can transform the organization.

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

In outsourcing, which of the following internal activities and decision responsibilities cannot be transferred to outside contractors?

Retailer behavior when stocking up during promotion periods (where the prices of goods are reduced) is called backward buying.

Two common measures to evaluate supply chain efficiency are the Consumer Price Index and the beta flow system.

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

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

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

The total value of all items held in inventory for the firm valued at cost is which of the following?