Deck 6: Procurement and Manufacturing

Question 1

Which of the following process structures can produce highest volume?

A)Job shop
B)Line flow
C)Continuous flow
D)Batch operation

Answer 1

C

Question 2

In MTS (Make-to-Stock),customer orders are satisfied from?

A)Raw material inventory
B)Work in process inventory
C)Finished goods inventory
D)Supplier inventory

Answer 2

C

Question 3

It is very possible that the supplier which offers the lowest purchase price does not have the lowest total cost of ownership for the buying firm.

Answer 3

True

Question 4

Which of the following manufacturing approaches would describe most consumer products,such as food,razor blades,over the counter drug,etc?

A)PTO (Procure to order)
B)MTO (Make to order)
C)ATO (Assemble to order)
D)MTS (Make to stock)

Question 5

The most important objective in procurement strategy is to insure that the lowest purchase price is obtained from suppliers.

Question 6

Which of the following statements would be true regarding the customer experienced lead time in a make-to-order company?

A)It would be shorter than make-to-stock company
B)It would be the same as a make-to-stock company
C)It would be longer than assemble-to-order company
D)It would be shorter than an assemble-to-order company

Question 7

A job shop manufacturing process allows products to be customized for specific customers.

Question 8

Which of the following reflects does not reflect a strategic focus on procurement?

A)focus on total cost of ownership.
B)supply base reduction.
C)focus on purchase price.
D)win-win negotiation.

Question 9

In the promotional material for its GG2330 portable bar code scanner,the Yanda Company states that the mean time between failures for the scanner is 400 operating hours.Which of the following dimensions of quality does this indicate?

A)functionality.
B)durability.
C)performance
D)reliability.

Question 10

Generally speaking,procurement can have a greater impact on the net income of a company than most other departments.This is due to the fact that:

A)manufacturing relies on purchasing to identify high quality suppliers
B)suppliers want to reduce their prices to their customers
C)marketers don't care about net income
D)purchased materials and supplies frequently represent the largest costs in a company

Question 11

Which manufacturing process can produce many different product varieties but has a long customer experienced lead time?

A)Line flow
B)Repetitive flow
C)Continuous flow
D)Batch operation

Question 12

Supply base reduction (volume consolidation)

A)has potential benefits for suppliers as well as for buyers.
B)involves early supplier involvement in product design.
C)puts the buyer at a negotiating disadvantage.
D)has little potential for savings for buyers.

Question 13

Which of the following approaches would typically have the longest customer experienced lead time?

A)MTO (Make to order)
B)PTO (Procure to order)
C)MTS (Make to stock)
D)ATO (Assemble to order)

Question 14

In this manufacturing approach,typically many different end items are made by combining standard components in inventory into many different products.

A)MTS (Make to Stock)
B)ATO (Assemble to Order)
C)ETO (Engineer to Order)
D)JIT (Just in Time)

Question 15

A company has decided that it no longer needs to extensively count and inspect the products it receives from a particular supplier.This suggests that the company has begun:

A)volume consolidation
B)supplier operational integration
C)value management
D)analysis of total cost of ownership

Question 16

In procurement,Total Cost of Ownership includes all of the following except:

A)field failures of purchased items
B)consideration of the impact of supplier quantity discounts
C)cost of order placement
D)In fact,total cost of ownership includes all of the above.

Question 17

John Jones told his friend that his VCR is over 20 years old while most VCRs only last about 10 years.He is focusing on which aspect of quality?

A)features
B)reliability
C)performance
D)durability

Question 18

Good purchasing strategy is based on standardized set of procedures for dealing with every supplier in a firm's supply base.

Question 19

John Jones has a VCR which a friend described as being of poor quality since it doesn't have a remote control.The friend is focusing on what aspect of quality?

A)conformance
B)aesthetics
C)features
D)durability

Question 20

Early Supplier Involvement (ESI)is an important part of the "Volume Consolidation" stage of procurement strategy evolution.

Question 21

The customer accommodation cycle for make-to-plan items is typically longer than the cycle for assemble-to-order items.

Question 22

A six-sigma quality program suggests that the acceptable level of defects or failures is one-half that of a traditional three sigma approach.

Question 23

Make-to-order strategies typically have lower inventory and warehousing cost than make-to plan strategies.

Question 24

Performance based logistics has been found to both improve quality as well as reduce cost for the buying organization.