Question 1

Which of these aspects of supply chain management are especially concerning to small business?
(I)  customer reliability
(II)  inventory management
(III)  purchasing costs
(IV)  risk management
(V)  international trade

Accepted Answer

A)   III, IV, and V only
B)   I, II, and III only
C)   I, III, and IV only
D)   I and II only
E)   II, IV, and V onlyF) A) and D)
G) A) and E)

Question 2

The purchasing perspective of the supplier as a partner is characterized by:

Accepted Answer

A)   an emphasis on low prices.
B)   one or a few suppliers.
C)   low flexibility.
D)   100 percent inspection for quality.
E)   low volume.F) None of the above
G) B) and D)

Question 3

Forming strategic partnerships is beneficial for two or more business organizations that have the same products or services.

Accepted Answer

A) True 
 B)False

Question 4

The two types of decisions that are relevant to supply chain management are:

Accepted Answer

A)   short- and long-term.
B)   domestic and international.
C)   location and layout.
D)   in-sourcing and outsourcing.
E)   tactical and operational.F) A) and D)
G) A) and C)

Question 5

Starting with the final customer and moving backward through the supply chain, batch sizes and the level of safety stock tend to decrease.

Accepted Answer

A) True 
 B)False

Question 6

RFID eliminates the need for counting and bar-code scanning.

Accepted Answer

A) True 
 B)False  True

Question 7

One important objective of purchasing is to:

Accepted Answer

A)   set quality standards for purchased items.
B)   be knowledgeable about new products.
C)   maintain numerous sources of supply.
D)   obtain the lowest prices on all purchased items.
E)   determine the processes that should be used.F) All of the above
G) A) and D) B

Question 8

Centralized or decentralized purchasing is directly related to the size of an organization.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is not an application of E-business?

Accepted Answer

A)   Internet buying and selling
B)   e-mail
C)   order and shipment tracking
D)   electronic data interchange (EDI) 
E)   universal product codesF) None of the above
G) A) and E)

Question 10

Managing supply chain visibility involves making sure that potential supply chain partners are aware of your organization's needs.

Accepted Answer

A) True 
 B)False

Question 11

The purchasing cycle begins with:

Accepted Answer

A)   selecting a supplier.
B)   placing an order.
C)   evaluating potential vendors.
D)   conducting a value analysis.
E)   receiving a requisition.F) A) and B)
G) A) and C)

Question 12

To avoid temporary storage in a warehouse, cross-docking can be used.

Accepted Answer

A) True 
 B)False

Question 13

A given inventory item has a per-year holding cost of $500. One method of shipping this item is three days faster than the other, but it is $2.50 more per unit. Using the slower method would be __________ more expensive overall than using the faster method.

Accepted Answer

A)   $1.08
B)   $1.16
C)   $2.37
D)   $2.73
E)   $1.61F) B) and E)
G) A) and D)

Question 14

Price is the primary determining factor in choosing a vendor since most products are essentially the same.

Accepted Answer

A) True 
 B)False

Question 15

The activity which begins with a request from within the organization is:

Accepted Answer

A)   outsourcing search.
B)   purchasing cycle.
C)   supplier selection.
D)   order receipt.
E)   supply chain management.F) None of the above
G) C) and D)

Question 16

The need for supply chain management increases as globalization increases.

Accepted Answer

A) True 
 B)False

Question 17

The automatic identification of material is part of/facilitated by:

Accepted Answer

A)   holding costs.
B)   RFID.
C)   working capital reduction.
D)   net present value calculations.
E)   vendor analysis.F) A) and C)
G) A) and B)

Question 18

The more __________ a company's supply chain, the more difficult it is to ensure that the supply chain is managed ethically.

Accepted Answer

A)   interconnected
B)   global
C)   visible
D)   shortened
E)   competitiveF) B) and D)
G) None of the above

Question 19

Which of the following is not a benefit of effective supply chain management?

Accepted Answer

A)   lower inventory costs
B)   higher productivity
C)   shorter lead times
D)   greater customer loyalty
E)   larger number of suppliersF) B) and D)
G) B) and C)

Question 20

Vendor analysis is the process that evaluates the source of supply in terms of price, quality, reputation, and service.

Accepted Answer

A) True 
 B)False  True

Exam 15: Supply Chain Management

Which of these aspects of supply chain management are especially concerning to small business? (I) customer reliability (II) inventory management (III) purchasing costs (IV) risk management (V) international trade

Correct AnswerverifiedShow Answer

The purchasing perspective of the supplier as a partner is characterized by:

Correct AnswerverifiedShow Answer

Forming strategic partnerships is beneficial for two or more business organizations that have the same products or services.

Correct AnswerverifiedShow Answer

The two types of decisions that are relevant to supply chain management are:

Correct AnswerverifiedShow Answer

Starting with the final customer and moving backward through the supply chain, batch sizes and the level of safety stock tend to decrease.

Correct AnswerverifiedShow Answer

RFID eliminates the need for counting and bar-code scanning.

Correct AnswerverifiedTrue

One important objective of purchasing is to:

Correct AnswerverifiedB

Centralized or decentralized purchasing is directly related to the size of an organization.

Correct AnswerverifiedShow Answer

Which of the following is not an application of E-business?

Correct AnswerverifiedShow Answer

Managing supply chain visibility involves making sure that potential supply chain partners are aware of your organization's needs.

Correct AnswerverifiedShow Answer

The purchasing cycle begins with:

Correct AnswerverifiedShow Answer

To avoid temporary storage in a warehouse, cross-docking can be used.

Correct AnswerverifiedShow Answer

A given inventory item has a per-year holding cost of $500. One method of shipping this item is three days faster than the other, but it is $2.50 more per unit. Using the slower method would be __________ more expensive overall than using the faster method.

Correct AnswerverifiedShow Answer

Price is the primary determining factor in choosing a vendor since most products are essentially the same.

Correct AnswerverifiedShow Answer

The activity which begins with a request from within the organization is:

Correct AnswerverifiedShow Answer

The need for supply chain management increases as globalization increases.

Correct AnswerverifiedShow Answer

The automatic identification of material is part of/facilitated by:

Correct AnswerverifiedShow Answer

The more __________ a company's supply chain, the more difficult it is to ensure that the supply chain is managed ethically.

Correct AnswerverifiedShow Answer

Which of the following is not a benefit of effective supply chain management?

Correct AnswerverifiedShow Answer

Vendor analysis is the process that evaluates the source of supply in terms of price, quality, reputation, and service.

Correct AnswerverifiedTrue

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True

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B

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True