Deck 15: Global Supply Chain Procurement and Distribution

Question 1

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

Answer 1

True

Question 2

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

Answer 2

True

Question 3

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

Answer 3

True

Question 4

Procurement involves the selection of a supplier.

Question 5

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

Question 6

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

Question 7

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

Question 8

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

Question 9

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

Question 10

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

Question 11

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

Question 12

Purchasing from a supplier is called procurement.

Question 13

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

Question 14

Outsourcing is a relatively new phenomenon used strictly by multinationals.

Question 15

Logistics includes distribution and transportation activities within a supply chain.

Question 16

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

Question 17

Distribution includes both warehousing and transportation functions.

Question 18

Distributors deal only in very large quantities providing infrequent deliveries.

Question 19

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

Question 20

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

Question 21

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

Question 22

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

Question 23

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

Question 24

What a company does best is often referred as the firm's core

A)capabilities
B)activities.
C)competencies.
D)competitiveness.

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

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

Question 27

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 28

Distribution outsourcing allows companies to focus on their core competencies.

Question 29

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

Question 30

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 31

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

Question 32

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

Question 33

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

Question 34

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

Question 35

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

Question 36

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

Question 37

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

Question 38

Requiring 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 39

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

Question 40

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

Question 41

Distribution and transportation are often referred to as

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

Question 42

_________ 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 43

Distribution includes all of the following activities except

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

Question 44

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 45

______________ 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 46

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

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

Question 47

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 48

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 49

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 50

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

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

Question 51

Benefits of e-procurement include all of the following except

A)lower prices.
B)faster delivery.
C)fewer transactions.
D)reduced labor.

Question 52

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 53

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

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

Question 54

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 55

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 56

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 57

Distribution centers generally ship products to

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

Question 58

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 59

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 60

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 61

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 62

_________________ companies use web-based technologies that directly link to customers' websites to eliminate obstacles to global trade.

A)International trade logistics (ITL)
B)Global trade facilitators (GTF)
C)International trade solutions (ITS)
D)None of these answer choices is correct.

Question 63

Which mode of transportation is the most cost effective for transporting raw materials?

A)Pipeline
B)Railroad
C)Trucking
D)Intermodal

Question 64

Landed cost includes

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

Question 65

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.

Question 66

The most common mode of transporting products is

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

Question 67

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 68

United States companies usually adhere to which of the following models for doing business in China?

A)Employ local third party trading agents.
B)Develop a wholly owned foreign enterprise.
C)Develop their own international procurement offices.
D)All of these answer choices are correct.

Question 69

The mode of transportation that utilizes the most containers is

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

Question 70

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 71

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 72

Nations have joined together to form trading groups with no

A)import tax.
B)tariffs.
C)duties.
D)All of these answer choices are correct.

Question 73

Which of the following factors are responsible for the creation and expansion of a global marketplace?

A)The dissolution of Communism in Eastern Europe and the creation of the European Union.
B)Emerging markets in China and growing Asian export-driven economies.
C)Falling trade barriers and the establishment of new trade agreements.
D)All of these answer choices are correct.

Question 74

With vendor-managed inventory,

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

Question 75

International trade specialists include all of the following except

A)export packers.
B)finance brokers.
C)purchasing agents.
D)duty specialists.

Question 76

Which of the following countries is not an important U.S.trading partner?

A)Canada
B)Mexico
C)China
D)Russia

Question 77

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 78

Which mode of transportation transports products in liquid form?

A)pipeline
B)ocean by ship
C)pipeline and ocean by ship
D)airline

Question 79

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 80

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