Question 1

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.

Accepted Answer

The answer of Supply management is responsible for putting pressure...

Question 2

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

Accepted Answer

The objective of a supply environment monitoring system is not to instill fear, but rather to provide real-time data and feedback to suppliers so that they can make necessary adjustments and improvements in their operations. The ultimate goal is to ensure that suppliers are meeting their obligations and delivering quality products and services, not to intimidate or control them through fear.

Question 3

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

Accepted Answer

Supply management professionals should be involved in new product development primarily to provide insights on procurement, cost management, and supplier capabilities, not to direct the design process itself.

Question 4

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

Accepted Answer

Many advances in supply management, including standardized procurement processes, inventory management techniques, and logistical support strategies, have their origins in military and other federal government operations, reflecting the government's long history of managing complex supply chains and logistical challenges.

Question 5

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

Accepted Answer

Supply management can impact the efficient and effective use of tax dollars within government by ensuring that goods and services are procured in a cost-effective and timely manner. This can result in savings for the government and ultimately taxpayers.

Question 6

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

Accepted Answer

Attorneys involved in supply management should embrace a collaborative approach. This involves working closely with suppliers to negotiate reasonable contracts and resolve any issues that may arise. It is important to maintain positive relationships with suppliers in order to maintain a stable supply chain and avoid any disruptions. A collaborative approach promotes communication and cooperation, which can ultimately benefit both parties.

Question 7

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

Accepted Answer

This statement presents supply managers as having a one-dimensional outlook, which is not a fair portrayal of their role in the organization. Supply managers are responsible for managing the cost and availability of materials and services needed by the organization. However, they are also responsible for ensuring that the organization obtains quality inputs in a timely manner. Supply managers must be knowledgeable about the technical specifications and requirements of the organization, as well as the capabilities of suppliers. Therefore, the idea that they are only interested in the bottom line oversimplifies their role and suggests that they are not interested in quality or technical specifications.

Question 8

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

Accepted Answer

In non-manufacturing organizations, supply management often plays a crucial role in leading the requirements process, as it is responsible for understanding and procuring the goods and services needed to support the organization's operations and objectives.

Question 9

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

Accepted Answer

The "Six-step Environment Monitoring Strategy" does not include running quantitative models to confirm your strategy as a step. This step is more aligned with strategy validation and execution rather than environmental monitoring.

Question 10

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

Accepted Answer

Supply management in manufacturing organizations is responsible for a significant portion of a firm's financial resources as it involves managing the procurement of raw materials, components, and equipment necessary for production.

Question 11

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

Accepted Answer

The answer of Supply management's two primary interests relative to...

Question 12

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

Accepted Answer

The answer of The effect of different materials on productivity...

Question 13

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

Accepted Answer

The flow of communications between these departments should be greatest at the beginning of a product's life cycle to ensure proper planning, development, and launch strategies. As the product matures and eventually declines, the intensity of communication may decrease as processes and expectations become more established and routine.

Question 14

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?

Accepted Answer

The lack of adequate lead-time cost in the case is $1.7 million, as mentioned in the introductory case of Chapter 3.

Question 15

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

Accepted Answer

The common conflict of interest between supply management and accounts payable typically revolves around cost versus quality, payment terms, and supplier selection, rather than the delivery schedule of suppliers. Supply management focuses on obtaining the best value and quality for the company, while accounts payable is concerned with managing cash flow, adhering to budget constraints, and ensuring timely payments. Delivery schedules are more directly related to operational logistics and supply chain management.

Question 16

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.

Accepted Answer

Obtaining an independent estimate can provide valuable information for a supply manager to ensure they are receiving a fair price for a major item of capital equipment. It can also serve as a bargaining tool in negotiations with the vendor.

Question 17

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

Accepted Answer

This statement is incorrect. Both manufacturing organizations and government procurement can face similar problems such as supply chain disruptions, quality control issues, and cost overruns. Additionally, government procurement may also face unique challenges such as compliance with regulations and ethical considerations.

Question 18

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

Accepted Answer

The best way to insure interface with key business functions is through the use of cross functional teams. These teams consist of representatives from different functional areas and are designed to promote communication, collaboration, and coordination among these areas. By bringing together representatives from different areas, cross functional teams can ensure that the interface between functions is smooth and effective, and that any problems or issues that arise are quickly addressed and resolved. Policy statements, directives from upper management, meetings, and conferences may all be useful tools for promoting interface between functions, but none of them are as effective as cross functional teams in ensuring that communication and coordination are ongoing and productive.

Question 19

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

Accepted Answer

Supply management in non-manufacturing organizations often takes a leading role in determining requirements due to the absence of engineering departments, impacting profits similarly to manufacturing firms.

Question 20

What should be the relationship between supply management and logistics?

Accepted Answer

Supply management and logistics should have a professional and excellent relationship regardless of their task. Both departments should work collaboratively to ensure that materials and products are delivered on time, at the right place, and in optimal conditions. Cooperation between these two departments can help organizations reduce costs, increase efficiency, and improve customer satisfaction. Neither department should play a dominant role, nor should they have an adversarial relationship.

Quiz 3: Supply Management: an Organization Spanning Activity