Deck 11: Global Supply Chain Procurement and Distribution

Question 1

Purchasing from a supplier is called procurement.

Answer 1

True

Question 2

Outsourcing involves sourcing from an outside supplier goods and services that were previously produced in-house.

Answer 2

True

Question 3

Postponement moves some manufacturing steps into the warehouse or distribution center.

Answer 3

True

Question 4

Outsourcing supports vertical integration of a firm's supply chain.

Question 5

In a reverse auction a customer posts contracts for products available for bids from potential suppliers on the Internet.

Question 6

Distributors deal only in very large quantities providing infrequent deliveries.

Question 7

In today's competitive environment, speed is often the most important factor in logistics.

Question 8

Distribution includes both warehousing and transportation functions.

Question 9

Outsourcing and sourcing have the same meaning and are often used interchangeably.

Question 10

Warehouse management systems are often used to run the day-to-day operations of a distribution center.

Question 11

E-procurement is often used to purchase indirect products that support production.

Question 12

Companies use outsourcing as a strategic move to transfer their core competencies to their suppliers.

Question 13

Many companies are outsourcing in countries where higher prices for supply are offset by lower quality.

Question 14

Outsourcing is a relatively new phenomenon used strictly by multinationals.

Question 15

Procurement involves the selection of a supplier.

Question 16

Purchasing can be classified according to two broad categories: direct (manufacturing inputs) and indirect (operating inputs).

Question 17

Logistics includes distribution and transportation activities within a supply chain.

Question 18

E-marketplaces are sites on the Internet where companies can find new business partners.

Question 19

Box retailers are some of the largest facilities in the United States.

Question 20

One of the advantages of outsourcing is that firms can focus on their core competencies.

Question 21

The combination of several modes of transportation is called intermodal transportation.

Question 22

Distribution outsourcing allows companies to focus on their core competencies.

Question 23

The purchasing of goods and services from suppliers is called a) sourcing.
B) outsourcing.
C) procurement.
D) None of these answer choices is correct.

Question 24

Globalization decreases the need for a well-planned domestic supply chains.

Question 25

Most favored-nation (MFN) status is an agreement where members of the WTO extend to other members the most favorable treatment given to any trade partner.

Question 26

equiring suppliers to deliver goods when demanded by the customer is called a) periodic delivery.
B) continuous delivery.
C) on-demand delivery.
D) All of these answer choices are correct.

Question 27

The selection of suppliers is called a) sourcing.
B) outsourcing.
C) procurement.
D) None of these answer choices is correct.

Question 28

Package delivery is best suited to fast and reliable shipments of large, bulky items.

Question 29

Postponement involves moving some of the manufacturing into the distribution center.

Question 30

Transportation involves the movement of a product within a warehouse or distribution center.

Question 31

Cross docking is one of the reasons Wal-Mart has such an efficient supply chain.

Question 32

Landed cost includes the cost of storing and transporting a product, but not the cost of producing it.

Question 33

A transportation management system controls activities at a facility's dock and schedules appointments.

Question 34

Cross-docking allows a distribution center to direct incoming shipments from one shipping dock to another within 48 hours to fill outgoing orders.

Question 35

A value-added tax is based on the total cost of producing a product and not the value added by the supply chain partner.

Question 36

International trading is viewed as business as usual for any sized firm.

Question 37

What a company does best is often referred as the firm's core a) capabilities
B) activities.
C) competencies.
D) competitiveness.

Question 38

Information technology is an enabler of globalization for middle-tier companies.

Question 39

International trade specialists help firms overcome obstacles associated with importing products.

Question 40

The proliferation of nation trading groups has increased tariffs and decreased duties.

Question 41

Partnerships between customers and suppliers are beneficial because they a) provide security and stability.
B) reduce the need for global suppliers.
C) enhance competition in the supply chain.
D) require suppliers to build facilities near the customer.

Question 42

Supplying orders in a short period of time according to a predetermined schedule is called a) periodic delivery.
B) continuous delivery.
C) on-demand delivery.
D) All of these answer choices are correct.

Question 43

Distribution includes all of the following activities except

A) packaging.
B) storing.
C) shipping.
D) sourcing.

Question 44

Distribution centers generally ship products to

A) retailers.
B) customers.
C) suppliers.
D) warehouses.

Question 45

Spend analysis strives to a) reduce procurement costs.
B) improve the efficiency of the procurement process.
C) reduce procurement costs and improve the efficiency of the procurement process.
D) None of these answer choices is correct.

Question 46

______________ is a formal process of collecting, analyzing, cleansing, and classifying spending data.

A) Spend analysis
B) Budget analysis
C) Spend classifying
D) Budget classifying

Question 47

Spend analysis is a formal process for __________________________ spending data. a) collecting
B) cleansing
C) classifying
D) All of these answer choices are correct.

Question 48

The three main categories of goods and services that a company tend to outsource include all the following except a) original equipment manufacturer (OEM).
B) maintenance, repair, and operation (MRO).
C) corporate services.
D) everyday equipment (EDE).

Question 49

E-procurement is most often used for i) direct products.
J) indirect products.
K) finished products.
L) international products.

Question 50

_________ are websites where companies and suppliers conduct business-to-business activities. a) E-procurements
B) E-marketplaces
C) Reverse auctions
D) None of these answer choices is correct.

Question 51

The decision to purchase goods and services that were produced in-house from an outside supplier is called a) sourcing.
B) outsourcing.
C) procurement.
D) None of these answer choices is correct.

Question 52

The products that go directly into the production process of a product are called

A) direct products.
B) indirect products.
C) finished products.
D) None of these answer choices is correct.

Question 53

Companies often outsource to e) focus on core competencies.
F) achieve greater flexibility.
G) reduce costs.
H) All of these answer choices are correct.

Question 54

Companies that purchase ___________________ over the Internet tend to do it with suppliers with whom they have an established relationship.

A) direct products
B) indirect products
C) finished products
D) international products

Question 55

The primary focus of distribution in terms of what it accomplishes is

A) logistics.
B) order fulfillment.
C) customer service.
D) maintaining inventories.

Question 56

Benefits of e-procurement include all of the following except a) lower prices.
B)faster delivery.
C)fewer transactions.
D)reduced labor.

Question 57

Partnerships between customers and suppliers require suppliers to provide a) higher quality.
B) prompt delivery.
C) lower prices.
D) All of these answer choices are correct.

Question 58

Distribution and transportation are often referred to as

A) logistics.
B) order fulfillment.
C) customer service.
D) maintaining inventories.

Question 59

_________________ is the process of ensuring on-time delivery of customers' orders.

A) Logistics
B) Order fulfillment
C) Customer service.
D) Maintaining inventories

Question 60

With _________, customers posts contracts for items it want to purchase so that suppliers can bid on. a) e-procurement
B) e-marketplaces
C) reverse auctions
D) None of these answer choices is correct.

Question 61

With vendor-managed inventory,

A) distributors generate orders.
B) retailers place orders.
C) customers place orders.
D) manufacturers place orders.

Question 62

Retailers expect suppliers to make frequent delivery of merchandise that includes a mix of different products in small quantities in what is called a

A) mixed pallet.
B) partial pallet.
C) mixed truckload.
D) partial truckload.

Question 63

The driving force behind transportation and distribution in a highly competitive environment is

A) quality.
B) cost.
C) flexibility.
D) speed.

Question 64

Internet transportation exchanges brings together shippers who post __________ and carriers that post __________ in order to arrange shipments. e) loads, capacity
F) capacity, loads
G) loads, loads
H) capacity, capacity

Question 65

The trend in distribution that allows companies to focus on their core competencies is called

A) collaborative logistics.
B) distribution outsourcing.
C) cross docking.
D) None of these answer choices is correct.

Question 66

For some manufacturing companies, transportation can run as much as _____________ of total production cost, and run as high as _____________ of revenue. a) 20 percent, 6 percent
B) 30 percent, 10 percent
C) 40 percent, 14 percent
D) None of these answer choices is correct.

Question 67

Factors driving globalization of the supply chain include all of the following except

A) international trade agreements.
B) advances in information technology.
C) lower cost transportation.
D) government intervention.

Question 68

Intermodal combines several modes of shipment. The most common intermodal combination globally is a) truck-water-rail-truck
B) truck-rail-truck-water
C) rail-water-rail-truck
D) None of these answer choices is correct.

Question 69

The mode of transportation that utilizes the most containers is

A) water.
B) intermodal.
C) trucking.
D) rail.

Question 70

Which mode of transportation transports products in liquid form? a) pipeline
B) ocean by ship
C) pipeline and ocean by ship
D) airline

Question 71

The most common mode of transporting products is

A) railroad.
B) trucking.
C) package delivery.
D) water.

Question 72

Which mode of transportation is the most cost effective for transporting raw materials? a) Pipeline
B) Railroad
C) Trucking
D) Intermodal

Question 73

Which of the following is not a feature of a warehouse management system?

A) warehouse optimization
B) order tracking
C) vendor management
D) custom labeling and packaging

Question 74

Rival companies pooling their distribution resources to reduce cost are engaging in

A) collaborative logistics.
B) distribution outsourcing.
C) cross docking.
D) None of these answer choices is correct.

Question 75

Long life, high capital cost, and low operating costs are associated with which mode of transportation?

A) pipeline
B) trucking
C) airline
D) None of these answer choices is correct.

Question 76

Which of the following is not an obstacle to global supply chain management?

A) increased documentation
B) differences in communication technology
C) decreased delivery times
D) different business practices

Question 77

Internet transportation exchanges bring together shippers who post __________ and carriers that post __________ in order to arrange shipments. a) loads, capacity
B) capacity, loads
C) loads, loads
D) capacity, capacity

Question 78

With ________________, some of the manufacturing activities are moved into the warehouse or distribution center.

A) postponement
B) vendor managed inventories
C) cross docking
D) None of these answer choices is correct.

Question 79

Landed cost includes

A) value added tax.
B) duties.
C) customs.
D) All of these answer choices are correct.

Question 80

In a supply chain, __________________ is the movement of a product from one location to another as it makes its way to the final customer. a) distribution
B) transportation
C) material handling
D) None of these answer choices is correct.