Deck 4: Supply Processes and Technology

Question 1

The terms and conditions included in a purchase order vary depending on the nature of the purchase and may relate to price, quality, and service.

Answer 1

True

Question 2

An online catalog is a digitized version of a supplier's catalog that cannot be customized to include the specific items, prices, and other terms and conditions negotiated by the buyer and seller.

Answer 2

False

Question 3

A bill of material BOM) includes a list of potential suppliers for each item needed to make one month's scheduled production.

Answer 3

False

Question 4

The benefits) of participation in an e-marketplace include:

A) the ability to aggregate spend
B) the advantages from economies of scale.
C) visibility up- and downstream in the supply chain.
D) the ability to automate and facilitate transactions.
E) all of the above.

Question 5

Application software for the procurement process is available:

A) only through an enterprise resource planning ERP) system.
B) only from a systems developer.
C) only from an application software provider ASP).
D) from an ERP system or systems developer, but not from an ASP.
E) from an ERP system, a systems developer, or an ASP.

Question 6

Electronic data interchange EDI) provides:

A) secure transmission of large amounts of data, but with slow turnaround.
B) secure transmission, greater accuracy and shorter process cycle time for all data.
C) slow processing of large amounts of data, but with greater accuracy.
D) longer process cycle time, but with greater accuracy.
E) secure and rapid transmission of small amounts of data.

Question 7

Before embarking on an e-commerce path, the supply leadership should decide what should be acquired through e-commerce and what tools should be used.

Question 8

Online auctions have been most effective when:

A) the good or service is unique or highly customized.
B) technological, logistical, and commercial specifications are ambiguous.
C) the market conditions favor buyers.
D) the organization owns the technology to run the auction.
E) there are a limited number of suppliers available.

Question 9

If the buyer does not have a clear and unambiguous description or specification and wants to find out which suppliers can deliver the best value when and where needed, he or she will typically issue a:

A) request for quotation RFQ).
B) request for proposal RFP).
C) request for information RFI).
D) request for bid RFB).
E) request for suggestions RFS).

Question 10

A process is a set of activities that has a beginning and an end, occurs in a specific sequence, and has inputs and outputs.

Question 11

It is relatively difficult to develop a global database to consolidate volumes and sourcing strategy because common technical standards and government regulations do not exist across countries.

Question 12

Radio frequency identification RFID) will:

A) eliminate bar coding and manual counting.
B) eliminate further investment in information technology.
C) supplement bar coding to reduce theft.
D) be more cost effective to implement than bar coding.
E) improve data capture but slow down inventory picking

Question 13

A reverse auction is an online, real time, increasing price auction between multiple pre-qualified suppliers and a buying organization.

Question 14

Efficient and effective supply processes are needed because of:

A) the need for an audit trail.
B) the large volume of items and dollar value.
C) severe consequences of poor performance.
D) the potential contribution to organizational objectives.
E) all of the above.

Question 15

Information flows into the supply group from 1) other internal functions and 2) external sources; and information flows out from supply to 1) other internal functions and 2) suppliers.

Question 16

A maverick buyer is a talented member of the supply department whose creativity and innovations have saved the organization large sums of money.

Question 17

Poor internal compliance with supply processes may indicate that internal customers do not trust the supply process or the suppliers to live up to promises.

Question 18

The greatest opportunity to affect value in the purchasing process is when:

A) the suppliers) is selected.
B) price and terms are determined.
C) potential suppliers are analyzed.
D) needs are recognized and described.
E) the buyer follows-up and expedites the order.

Question 19

Effectively and efficiently applying technology to the supply management process will result in:

A) increased clerical effort because there is more data entry than in a manual system.
B) damaged buyer-supplier relationships because of the impersonal nature of electronic communication.
C) an ability to reduce the total cost of doing business by enabling just-in-time systems, bar-coding applications, integrated manufacturing, and electronic funds transfers.
D) poorer negotiation planning and preparation because of the time spent accessing and analyzing data.
E) a decline in operating performance because of the volume of information to be analyzed and considered before making a decision.