Deck 2: Organizational Issues

Question 1

The lower purchasing is on the organization chart,the less impact the supply function will have on corporate strategy.

Answer 1

True

Question 2

The materials management organization structure is now obsolete.

Answer 2

False

Question 3

Managing supplier relationships is a strategic responsibility.

Answer 3

False

Question 4

Managing contract and blanket order releases are operational responsibilities.

Question 5

Hybrid organizational structures often use cross functional teams to achieve the best of both centralized and decentralized decision making.

Question 6

The "mind set" or focus on internal processes usually produces the kind of detailed work necessary to achieve significant material savings.

Question 7

E-commerce has strengthened the case for decentralization of purchasing.

Question 8

Even in a firm,which primarily purchases small numbers of standard production parts,the supply department can be a significant value as a profit center.

Question 9

The key first step in establishing cross functional teams is obtaining executive sponsorship.

Question 10

The smaller the organization,the less likely the purchasing operations will be strategic.

Question 11

Supply chain management expanded the materials management structure functions to include all the stake holders and total demand management.

Question 12

The degree of competition for critical materials will be a key factor in the importance of supply management.

Question 13

Consolidation provides the opportunity to standardize,simplify and leverage material purchases.

Question 14

Supplier relationship management includes motivation,assistance,incentives,cooperation,collaboration and on occasion,penalties.

Question 15

One of the big challenges and problems with cross functional teams is the lack of time for the team member participation and role conflict.

Question 16

Cross functional teams operate best when they use the brainstorming approach to innovative thinking.

Question 17

One of the key skills for any leader is to be an effective listener.

Question 18

Aside from the benefits of synergy,cross functional teams provides input from all affected functions.

Question 19

Cross function teams are often the key step in a firms evolution to supply chain management.

Question 20

Its best to let a cross functional team "train itself" as they learn how to communicate with one another.

Question 21

Managing supplier relationships,contracts,placement of purchase orders and other transaction focused activities are _____ responsibilities: :

A) strategic
B) short term
C) long term A
D) operational B
E) action C

Question 22

Cross functional teams have proven to help: :

A) break down functional silos
B) reduce new product development time
C) facilitate integrated planning and coordination S
D) stimulate engineering change management control T
E) all of the above U

Question 23

When a firm's major activity is research and development,the firm will most likely use: :

A) centralized purchasing
B) headquarter purchasing
C) decentralized purchasing G
D) hybrid purchasing structure H
E) a specialized purchasing staff at headquarters I

Question 24

Of the purchasing/supply responsibilities and activities,______ becomes more important as the function becomes responsible for supply and value network chains: :
A) buying supply management

A) Supplier liaison work
B) executive management
C) strategic planning and research work
D) contract and relationship management

Question 25

The key prerequisite to having cross functional teams is: :

A) effective team leaders
B) qualified team members
C) a clear team charter V
D) adequate training W
E) executive sponsorship X

Question 26

The most significant advantage of the supply chain management structure is: :

A) it facilitated a total systems approach to stimulate integration
B) it uses the internet to extract key information
C) it increases the visibility of the purchasing department P
D) it focuses management attention on quality Q
E) it reveals that inventory costs are often understated R

Question 27

Aside from reducing potential duplication of efforts,the major advantage of centralized purchasing is: :

A) improved inventory control
B) leveraged volume purchasing
C) consolidation D
D) transportation savings E
E) lower administrative costs F

Question 28

The importance of supply management in any specific firm is determined by the following factors:
A) All of the above

A) availability of materials and services
B) absolute dollar volume of purchases
C) percentage of product cost represented by materials and services
D) types of materials and services purchased

Question 29

E-commerce has facilitated the use of: :

A) centralized purchasing
B) decentralized purchasing
C) hybrid purchasing J
D) none of the above K
E) A, B & C L

Question 30

The materials management organization structure paved the way for _____ structure: :

A) value network chain structures
B) supply chain management structure
C) procurement management structure M
D) purchasing centralization N
E) purchasing decentralization O