Question 1

_____ are those items provided by suppliers and used directly during production or service delivery.
A) Direct materials
B) Indirect materials
C) Indirect services
D) Internal materials
E) Vendor managed inventories

Accepted Answer

Direct materials are items that are used directly in the production or service delivery process, such as raw materials or components. Indirect materials, on the other hand, are items that are not directly used in the production process but are still necessary for operation, such as maintenance supplies or office supplies. Indirect services are services that support the production process, such as janitorial or security services. Internal materials refer to items produced by the company for its own use. Vendor managed inventories refer to a system where suppliers manage and replenish a customer's inventory.

Question 2

The _____ is a change index, and generally a rating over 50 indicates that the economy is expanding.
A) Consumer Price Index
B) Producer Price Index
C) ISM Report on Business
D) rate of inflation
E) None of the above.

Accepted Answer

The ISM Report on Business is a survey that measures changes in business activity, employment, prices, and new orders. It is considered a change index and a rating over 50 indicates that the economy is expanding. The Consumer Price Index (A) and Producer Price Index (B) both measure changes in prices over time, while the rate of inflation (D) is a measure of the rate at which prices are increasing.

Question 3

According to the Institute for Supply Management, _____ is the identification, acquisition, access, positioning, and management of resources and related capabilities an organization needs or potentially needs in the attainment of its strategic objectives.
A) supply chain management
B) procurement
C) logistics
D) supply management
E) distribution

Accepted Answer

Supply management is the correct term as it encompasses the broad set of activities involved in the identification, acquisition, access, positioning, and management of resources and capabilities an organization needs or potentially needs in the strategic objectives attainment.

Question 4

The _____ states that success is a function of effectively managing a linked group of firms past first-level suppliers or customers.
A) supply chain orientation
B) value chain concept
C) traditional purchasing perspective
D) extended enterprise concept
E) process orientation

Accepted Answer

The extended enterprise concept states that success is a function of effectively managing a linked group of firms past first-level suppliers or customers. This concept is focused on enhancing a company's ability to compete by collaborating with suppliers, customers and other stakeholders beyond its immediate borders.

Question 5

There is a definitive and prescriptive set of supply chain measures that result in one best way to measure supply chain performance.

Accepted Answer

There is no one best way to measure supply chain performance as it depends on various factors such as the industry, company objectives, and specific metrics chosen to align with those objectives. Different organizations may prioritize different measures and may require a customized approach to measuring their supply chain performance.

Question 6

According to Michael Porter, a firm's _____ is composed of primary and secondary support activities that can lead to competitive advantage when configured properly.
A) supply chain
B) process
C) value chain
D) marketing channel
E) core competency

Accepted Answer

Michael Porter's theory of competitive advantage emphasizes that firms create value through their operations. This value chain is composed of primary activities related to the production, marketing, delivery, and support of a product or service, as well as secondary activities that support primary activities. By analyzing and optimizing these activities, firms can achieve a competitive advantage over their rivals. Therefore, the correct choice here is C, value chain.

Question 7

In Period 4 of the evolution of purchasing and supply chain management, firms faced stable competition and had access to abundant material - conditions that historically have diminished the overall importance of purchasing.

Accepted Answer

The answer of In Period 4 of the evolution of...

Question 8

All of the following are typical processes involved in supply chain management except _____.
A) new-product development
B) customer-order fulfillment
C) supplier evaluation and selection
D) demand and supply planning
E) cash flow management

Accepted Answer

Cash flow management is more directly related to financial management rather than the typical processes involved in supply chain management, which focus on the flow of goods and services, information, and funds between the stages of production and consumption.

Question 9

_____ helps ensure that customers receive material when and where they require it and represents the key link between the producer and the external customer.
A) Order processing
B) Inbound transportation
C) Customer service
D) Scheduling
E) Inventory control

Accepted Answer

The answer of _____ helps ensure that customers receive material...

Question 10

A _____ is a set of three or more organizations linked directly by one or more of the upstream or downstream flows of products, services, finances, and information from a source to a customer.
A) process
B) manufacturing system
C) value chain
D) social media chain
E) supply chain

Accepted Answer

The definition provided matches the characteristics of a supply chain, where multiple organizations are linked through the flow of products, services, finances, and information.

Question 11

All of the following are examples of demand planning activities except _____.
A) forecasts of anticipated demand
B) accounts payable
C) inventory adjustments
D) orders taken but not filled
E) spare parts and aftermarket requirements

Accepted Answer

Demand planning activities involve forecasting demand and making necessary adjustments to inventory and orders to meet that demand. Accounts payable, while a financial activity, does not directly relate to demand planning.

Question 12

_____ is a functional group (i.e., a formal entity on the organizational chart as well as a functional activity (i.e., buying goods and services).
A) Engineering
B) Purchasing
C) Quality assurance
D) Logistics
E) Treasury operations

Accepted Answer

Purchasing is both a formal entity on the organizational chart and a functional activity that involves buying goods and services. The other options listed are also functional groups, but do not necessarily involve buying goods and services. Engineering, for example, may design products, and Quality Assurance may test them, while Logistics may manage the transportation and storage of goods. Treasury Operations usually focus on financial activities, such as managing cash flow and investments.

Question 13

_____ involves generating the materials release, contacting a supplier directly concerning changes, and monitoring the status of inbound shipments.
A) Order processing
B) Material control
C) Warehousing
D) Customer service
E) Quality control

Accepted Answer

Material control involves generating the materials release, contacting a supplier directly concerning changes, and monitoring the status of inbound shipments. Order processing involves receiving and processing customer orders. Warehousing involves the storage and handling of goods. Customer service involves providing assistance to customers. Quality control involves ensuring that products meet specified quality standards.

Question 14

Which of the following is an example of a purchased direct item for a manufacturing firm?
A) Parts and components.
B) Travel.
C) Office and janitorial supplies.
D) Advertising and media.
E) Personal computers.

Accepted Answer

Parts and components are necessary direct items for manufacturing firms, as they are used in the production process of the final product. Travel, office and janitorial supplies, advertising and media, and personal computers are not direct items used in the manufacturing process.

Question 15

Within the downstream portion of a supply chain, _____ are responsible for the actual movement of materials between locations.
A) buyers
B) trucking firms
C) logistics managers
D) accountants
E) purchasing managers

Accepted Answer

The answer of Within the downstream portion of a supply...

Question 16

Which of the following is not one of the factors driving an emphasis on supply chain management?​
A) An increasing emphasis on domestic sourcing due to the longer lead times and higher levels of pipeline inventories associated with global sourcing.
B) The cost and availability of information resources among entities in the supply chain that allow easy linkages that eliminate time delays in the network.
C) The level of competition in both domestic and international markets requires organizations to be fast, agile, and flexible.
D) Customer expectations and requirements that are becoming much more demanding.
E) The ability of an organization's supply chain to identify and mitigate risk minimizes disruptions in both supply and downstream product or services to mitigate the impact on lost sales.

Accepted Answer

An increasing emphasis on domestic sourcing due to longer lead times and higher levels of pipeline inventories associated with global sourcing is not a factor driving an emphasis on supply chain management, but rather a potential challenge that must be addressed through effective supply chain management strategies. The other choices (B, C, D, and E) are all factors driving an emphasis on supply chain management.

Question 17

Which of the following is not an example of a typical resource shared between a buyer and supplier?​
A) Dedicated capacity.
B) Specific information.
C) Technological capabilities.
D) Direct financial support.
E) Advertising and media.

Accepted Answer

Advertising and media are not typically shared between a buyer and supplier, as they are more likely to be services provided by a third party. The other answer choices all represent resources that could be shared between a buyer and supplier in a business relationship.

Question 18

Which of the following is not one of the features of the new model of progressive purchasing?
A) Developing closer relationships with important suppliers.
B) Performing due diligence on suppliers before awarding longer-term contracts.
C) Focusing primarily on price analysis and short term contracts.
D) Conducting worldwide Internet searches for the best sources of supply.
E) Inviting key suppliers to participate in product and process development.

Accepted Answer

The new model of progressive purchasing focuses on developing closer relationships with important suppliers, performing due diligence on suppliers before awarding longer-term contracts, conducting worldwide Internet searches for the best sources of supply, and inviting key suppliers to participate in product and process development. However, it does not primarily focus on price analysis and short-term contracts.

Question 19

_____ schedules the firm's output; while _____ is the process of taking demand data and developing a supply, production, and logistics network capable of satisfying demand requirements.
A) Inventory control….quality control
B) Quality control….supply planning
C) Order processing….material control
D) Demand planning….customer service
E) Demand planning….supply planning

Accepted Answer

The first blank is best filled with "demand planning" because it refers to scheduling the firm's output based on demand. The second blank is best filled with "supply planning" because it refers to the process of developing a supply network to meet demand. Therefore, the correct answer is E: "Demand planning...supply planning."

Question 20

Instead of adversarial relationships which characterize _____, _____ features a long-term, win-win relationship between a buying company and specially selected suppliers.
A) traditional purchasing….supply management
B) traditional purchasing….logistics management
C) supply management….traditional purchasing
D) strategic sourcing….supply management
E) supply chain management….strategic sourcing

Accepted Answer

Traditional purchasing often involves adversarial relationships, while supply management focuses on long-term, win-win relationships with selected suppliers.

Quiz 1: Introduction to Purchasing and Supply Chain Management

_____ are those items provided by suppliers and used directly during production or service delivery.

The _____ is a change index, and generally a rating over 50 indicates that the economy is expanding.

According to the Institute for Supply Management, _____ is the identification, acquisition, access, positioning, and management of resources and related capabilities an organization needs or potentially needs in the attainment of its strategic objectives.

The _____ states that success is a function of effectively managing a linked group of firms past first-level suppliers or customers.

There is a definitive and prescriptive set of supply chain measures that result in one best way to measure supply chain performance.

According to Michael Porter, a firm's _____ is composed of primary and secondary support activities that can lead to competitive advantage when configured properly.

In Period 4 of the evolution of purchasing and supply chain management, firms faced stable competition and had access to abundant material - conditions that historically have diminished the overall importance of purchasing.

All of the following are typical processes involved in supply chain management except _____.

_____ helps ensure that customers receive material when and where they require it and represents the key link between the producer and the external customer.

A _____ is a set of three or more organizations linked directly by one or more of the upstream or downstream flows of products, services, finances, and information from a source to a customer.

All of the following are examples of demand planning activities except _____.

_____ is a functional group (i.e., a formal entity on the organizational chart as well as a functional activity (i.e., buying goods and services) .

_____ involves generating the materials release, contacting a supplier directly concerning changes, and monitoring the status of inbound shipments.

Which of the following is an example of a purchased direct item for a manufacturing firm?

Within the downstream portion of a supply chain, _____ are responsible for the actual movement of materials between locations.

Which of the following is not one of the factors driving an emphasis on supply chain management?

Which of the following is not an example of a typical resource shared between a buyer and supplier?

Which of the following is not one of the features of the new model of progressive purchasing?

_ schedules the firm's output; while _ is the process of taking demand data and developing a supply, production, and logistics network capable of satisfying demand requirements.

Instead of adversarial relationships which characterize _, _ features a long-term, win-win relationship between a buying company and specially selected suppliers.

Quiz 1: Introduction to Purchasing and Supply Chain Management

_____ are those items provided by suppliers and used directly during production or service delivery.

The _____ is a change index, and generally a rating over 50 indicates that the economy is expanding.

According to the Institute for Supply Management, _____ is the identification, acquisition, access, positioning, and management of resources and related capabilities an organization needs or potentially needs in the attainment of its strategic objectives.

The _____ states that success is a function of effectively managing a linked group of firms past first-level suppliers or customers.

There is a definitive and prescriptive set of supply chain measures that result in one best way to measure supply chain performance.

According to Michael Porter, a firm's _____ is composed of primary and secondary support activities that can lead to competitive advantage when configured properly.

In Period 4 of the evolution of purchasing and supply chain management, firms faced stable competition and had access to abundant material - conditions that historically have diminished the overall importance of purchasing.

All of the following are typical processes involved in supply chain management except _____.

_____ helps ensure that customers receive material when and where they require it and represents the key link between the producer and the external customer.

A _____ is a set of three or more organizations linked directly by one or more of the upstream or downstream flows of products, services, finances, and information from a source to a customer.

All of the following are examples of demand planning activities except _____.

_____ is a functional group (i.e., a formal entity on the organizational chart as well as a functional activity (i.e., buying goods and services) .

_____ involves generating the materials release, contacting a supplier directly concerning changes, and monitoring the status of inbound shipments.

Which of the following is an example of a purchased direct item for a manufacturing firm?

Within the downstream portion of a supply chain, _____ are responsible for the actual movement of materials between locations.

Which of the following is not one of the factors driving an emphasis on supply chain management?​

Which of the following is not an example of a typical resource shared between a buyer and supplier?​

Which of the following is not one of the features of the new model of progressive purchasing?

_____ schedules the firm's output; while _____ is the process of taking demand data and developing a supply, production, and logistics network capable of satisfying demand requirements.

Instead of adversarial relationships which characterize _____, _____ features a long-term, win-win relationship between a buying company and specially selected suppliers.

Which of the following is not one of the factors driving an emphasis on supply chain management?

Which of the following is not an example of a typical resource shared between a buyer and supplier?

_ schedules the firm's output; while _ is the process of taking demand data and developing a supply, production, and logistics network capable of satisfying demand requirements.

Instead of adversarial relationships which characterize _, _ features a long-term, win-win relationship between a buying company and specially selected suppliers.