Deck 3: Supply Management: an Organization Spanning Activity

Question 1

Communications about a product should flow freely between marketing,operations,material control and supply management from the beginning to the end of a product's life cycle.

Answer 1

True

Question 2

Two sources of materials are internal production and external sources,where external sources are increasingly being used over internal production.

Answer 2

True

Question 3

A common conflict of interest between supply management and accounts payable is the timely payment to suppliers.

Answer 3

True

Question 4

Many advances in supply management originated in the federal government.

Question 5

Supply management has a major impact on the efficient and effective use of our tax dollars at all levels of government.

Question 6

As a philosophy,SM is internally focused.

Question 7

As a philosophy,SM spans functional boundaries and company borders.

Question 8

In assuming greater strategic responsibility,the activities of supply managers increasingly span organizational boundaries.

Question 9

Communication between manufacturing,marketing and supply management is required to accurately modify manufacturing schedules at the firm's suppliers when sales forecast changes.

Question 10

Supply management in manufacturing organizations is responsible for a very large percentage of a firm's financial resources,so a capable CFO should have a stake in managing the supply chain and desire collaboration with supply management.

Question 11

Information technology is greatly simplifying the relationship between supply management and manufacturing.

Question 12

Virtually all of the problems present in manufacturing organizations are present in government procurement.

Question 13

In non-manufacturing organizations,supply management often must lead the requirements process.

Question 14

Efforts to improve should cease at an organization's internal functions and not span over the supply chain.

Question 15

In assuming lesser strategic responsibility,the activities of supply managers are increasingly spanning less organizational boundaries.

Question 16

Supply management's two primary interests relative to their key suppliers are quality and delivery.

Question 17

A realistic independent estimate is important to a supply manager responsible for a major item of capital equipment because it is the basis for developing a realistic negotiating objective.

Question 18

Efforts to improve do not cease at an organization's internal functions,but should span over the supply chain as well.

Question 19

One of the objectives of a supply environment monitoring system is to protect the buying firm from unexpected threats or shocks from suppliers.

Question 20

Among the reasons that supply management professionals should be involved in new product development are to clarify cost and provide information on the availability of materials.

Question 21

Supply management is responsible for putting pressure on marketing to share forecasts so that supply management can update manufacturing schedules at the firm's suppliers when sales forecasts change.

Question 22

One of the objectives of a supply environment monitoring system is to put fear in the minds of suppliers to "keep them in line."

Question 23

Supply management professionals should be involved in new product development as the directors of the design process.

Question 24

Very few advances in supply management originated in the federal government.

Question 25

Supply management has little impact on the efficient and effective use of our tax dollars within government.

Question 26

What approach should attorneys who are involved in supply management embrace?

A) Transactional
B) Aggressive
C) Conservative
D) Collaborative
E) Adversarial

Question 27

Which one does not contribute to the potential conflict between design engineers and supply management professionals?

A) Supply managers are only interested in the bottom line
B) Engineers naturally tend to design conservatively
C) Engineers usually disregard cost or availability
D) Supply managers are concerned with cost and availability
E) Both differ in their concepts of material

Question 28

In non-manufacturing organizations,supply management should not lead the requirements process.

Question 29

Which of the following is not a step in the "Six-step Environment Monitoring Strategy" presented in Chapter 3?

A) "Identify the major suppliers and customers of the materials and services."
B) "Build a model that predicts the material (or service) behavior."
C) "Monitor the model to determine its accuracy."
D) "Run quantitative models to confirm your strategy"
E) "Continuously make improvements as new relationships are understood and additional data becomes available."

Question 30

Supply management in manufacturing organizations is responsible for a small percentage of a firm's financial resources.

Question 31

Supply management's two primary interests relative to their key suppliers are quality and price.

Question 32

The effect of different materials on productivity and cost is often the result of:

A) Using less costly materials
B) Using the latest hi tech materials
C) Using computer run machines
D) Using more costly materials
E) Faster delivery of the materials

Question 33

The flow of communications between marketing,operations,material control and supply management should be greatest at the end of a product's life cycle.

Question 34

In the introductory case at the beginning of Chapter 3,Ted Jones,supply manager for the Eagle Manufacturing Company,expressed his concern about the issue of adequate lead-time for the purchase of a new robot.How much does the lack of adequate lead-time cost in the case?

A) $5.5 million
B) $1.7 million
C) $12.7 million
D) $11 million
E) None of the above

Question 35

A common conflict of interest between supply management and accounts payable is the delivery schedule of suppliers.

Question 36

An independent estimate is usually not cost beneficial information for a supply manager to obtain in analyzing the potential purchase of a major item of capital equipment.

Question 37

Almost all of the problems present in manufacturing organizations are not present in government procurement.

Question 38

The best way to insure interface with key business functions is:

A) Policy Statements
B) Directives from upper management
C) Cross functional teams
D) Use of meetings
E) Monthly conferences

Question 39

Why does supply in non-manufacturing organizations have as much impact on profits as it does on manufacturing firms?

A) The global nature of services
B) Competition in the service industry
C) The nature of personal services
D) Type of suppliers
E) In the absence of engineering departments, supply management must often be the leader in determining requirement

Question 40

What should be the relationship between supply management and logistics?

A) Logistics department plays the dominant role
B) Supply management plays the dominant role
C) Professional and excellent regardless of their task
D) No relationship
E) An adversarial relationship

Question 41

One of the key reasons for a proper interface between design engineering and supply management is:

A) Early supplier involvement can reduce design costs and time to market
B) It reduces conflict on specifications
C) It helps reduce inventory
D) It improves ROI
E) It improves quality

Question 42

the many internal interfaces of the supply management function begin with:

A) Engineering
B) Material control
C) The customer
D) Operations
E) Production Control