Deck 16: Other Supply Responsibilities

Question 1

The effective,efficient,and profitable recovery and disposal of scrap,surplus,obsolete,and waste materials and assets generated within the firm is called:

A)corporate social responsibility (CSR)program.
B)investment recovery.
C)eco-efficient disposal.
D)an environmentally preferable purchasing program.
E)green purchasing.

Answer 1

B

Question 2

The bill of lading contains the following information:

A)quantity shipped.
B)origin of the shipment.
C)material specifications.
D)quantity shipped and origin of the shipment.
E)quantity shipped,origin of the shipment and material specifications.

Answer 2

D

Question 3

The many by-products of the production process,such as fly from cotton spinning;warp ends from weaving;ferrous and nonferrous metal from boring,drilling,and stamping machines;flash metal from the foundry process;or paper cuttings from the binding process are examples of:

A)obsolete.
B)rejected.
C)surplus.
D)scrap.
E)waste.

Answer 3

D

Question 4

The role and importance of investment recovery in an organization is driven in large part by the:

A)projected dollar value of the potential revenue recovery or cost reduction.
B)internal level of knowledge about disposal channels and suppliers.
C)CEO's perspective on environmental issues.
D)salespeople who encourage inclusion of buy-back programs.
E)external pressure from the general public and social media campaigns.

Question 5

Production planning:

A)requires coordinating the delivery,storage and disposal of MRO materials.
B)cannot involve supply because of fears of undue influence from suppliers.
C)relies heavily on forecasts from purchasing and supply management.
D)focuses on short-,medium-,and long-term schedules to control inventory and production.
E)is a discrete activity with little coordination with other functions.

Question 6

Efforts to deal with hazardous waste include a focus on all of the following EXCEPT:

A)highly visible sources of pollution,e.g.smoke stacks.
B)less visible uncontrolled sites,e.g.buried waste.
C)recycling.
D)increasing the use of hazardous materials in carefully controlled environments.
E)substitution of non-hazardous materials for hazardous materials.

Question 7

Environmental matters can be incorporated into the supplier selection process by:

A)assessing the environmental impact of purchases on processes and products.
B)identifying opportunities for recyclable components.
C)assessing the impact customers have on the environment.
D)assessing the environmental impact of purchases on processes and products,and identifying opportunities for recyclable components.
E)assessing the environmental impact of purchases on processes and products,identifying opportunities for recyclable components and assessing the impact customers have on the environment.

Question 8

Accounts payable:

A)may be part of the supply department to ensure on-time payment to suppliers and to reduce transaction costs.
B)should always be separate from purchasing as a good business practice.
C)is legally prohibited from reporting to supply by federal regulations.
D)cannot report to supply because of Generally Accepted Accounting Practices (GAAP)Rule #462.
E)may legally report to supply,but it may convey the perception of conflict of interest to suppliers.

Question 9

The total cost of hazardous waste for a company includes the costs of new plant and equipment to reduce waste and deal with contaminated plants.

Question 10

When handling scrap material in the production process,it can be segregated by:

A)type.
B)alloy.
C)color.
D)type and alloy.
E)type,alloy and color.

Question 11

Warehousing and inventory storage:

A)typically has little communication with supply management.
B)may have direct responsibility for organizational purchasing decisions.
C)can either be an internal function or outsourced to a third-party logistics firm.
D)typically reports to the finance department.
E)is seldom outsourced.

Question 12

Closed-loop supply chains:

A)are a strategic,cross-functional initiative.
B)require the cooperation of suppliers.
C)require reverse logistics capabilities.
D)are a strategic,cross-functional initiative and require the cooperation of suppliers.
E)are a strategic,cross-functional initiative,require the cooperation of suppliers and require reverse logistics capabilities.

Question 13

The second step in the internal supply chain is receiving.

Question 14

Receiving involves:

A)inspection.
B)physical handling of goods.
C)inspection and physical handling of goods.
D)inspection,physical handling of goods and approval of payment to the supplier.
E)inspection,physical handling of goods and processing of information.

Question 15

Coordinating inbound and outbound transportation:

A)helps to reduce costs and improve utilization of related assets and resources.
B)is used extensively in Europe,but has not migrated to the U.S.
C)has little application in an effective and efficient supply organization.
D)is done by cross-functional teams in most organizations.
E)provides the basic elements of a global supply network.

Question 16

As more people believe that it makes economic sense to practice environmentally sound operations,business and government may be able to work together for common goals.

Question 17

The packing slip is created by the receiving department as part of the receiving process.

Question 18

The bill of lading is the contract between the shipper and carrier.

Question 19

Supply can simultaneously achieve cost reductions and make improvements in environmental performance by:

A)recovering valuable materials and assets with efficient materials recovery programs.
B)reducing the use of hazardous materials through more timely and accurate materials tracking and reporting systems.
C)reducing the obsolescence and waste of maintenance,repair,and operating (MRO)supplies through better materials and inventory management.
D)decreasing the use and waste of chemicals,solvents,and paints through chemical service partnerships.
E)recovering valuable materials and assets with efficient materials recovery programs,reducing the use of hazardous materials through more timely and accurate materials tracking and reporting systems,reducing the obsolescence and waste of maintenance,repair,and operating (MRO)supplies through better materials and inventory management and decreasing the use and waste of chemicals,solvents,and paints through chemical service partnerships.

Question 20

The most effective means for disposition of assets is:

A)using third-party sellers and brokers.
B)auctions.
C)e-auctions.
D)Internet postings.
E)intranet postings.

Question 21

If material has been declared surplus,there are several disposal options including storing it until needed,substituting it for a material in demand,transferring it to another plant,or selling it.

Question 22

Logistics activities occur throughout manufacturing companies,and are not a major consideration for firms in the services sector.

Question 23

An organization's enterprise resource planning (ERP)system is of little use when developing a national or global database for company personnel at different locations to post and purchase obsolete and surplus materials.

Question 24

To ensure maximum return for its investment,the process and procedures for selling scrap and surplus must cover a broad range of activities including segregation and storage,weighing and measuring,delivery,negotiation,supplier selection,and payment.

Question 25

Something that has been declared obsolete in one organization will be considered obsolete in all other organizations.

Question 26

The method of material and equipment disposal that provides the maximum return is to sell to another firm on an "as is" basis.

Question 27

Production planning relies heavily on forecasts from sales and marketing to anticipate demand for products and services.

Question 28

Escalator clauses in contracts for scrap disposal are necessary because the prices of primary metals fluctuate regularly.

Question 29

Scrap is material or supplies that have been changed during the production process and,through carelessness,faulty production methods,poor handling,or other causes,have been spoiled,broken,or otherwise rendered unfit for further use or reclamation.

Question 30

Examination of activities and plant processes in the collection and handling of scrap can potentially lead to cost savings through reduced material handling expenses and lower fees.