Question 1

Production planning relies heavily on forecasts from operations to anticipate demand for products and services..

Accepted Answer

False

Question 2

Supply can contribute to the organization's environmental management program by:
A) developing sourcing and usage alternatives for hazardous materials.
B) focusing on substitution of non-hazardous materials for hazardous materials.
C) encouraging and participating in designing products that do not use or generate hazardous waste.
D) a and b
E) a, b and c

Accepted Answer

Supply can contribute to environmental management by developing alternatives for hazardous materials, substituting non-hazardous materials, and participating in eco-friendly product design.

Question 3

Reducing the obsolescence and waste of maintenance, repair, and operating MRO) supplies through better materials and inventory management will:
A) reduce the costs of disposing of MRO items that are obsolete or waste.
B) reduce carrying cost by lowering inventory levels, especially of obsolete items.
C) improve environmental performance by reducing waste that goes into landfills or incinerators.
D) simultaneously reduce costs and improve environmental performance.
E) have little impact because MRO is a small percentage of annual spend and the items usually have low environmental low-impact.

Accepted Answer

Reducing obsolescence and waste through better materials and inventory management will simultaneously reduce costs and improve environmental performance.

Question 4

One of the reasons why companies are paying more attention to the effective, efficient, and profitable recovery and disposal of scrap, surplus, obsolete, and waste materials is that:
A) consumers overwhelmingly demand environmental responsibility.
B) it is easy to administer and highly profitable.
C) most organizations generate little scrap, surplus, obsolete and waste materials.
D) disposal costs are rising and environmental legislation is strengthening.
E) disposal is a fairly simple problem that is easily resolved.

Accepted Answer

Disposal costs are rising and environmental legislation is strengthening, prompting companies to focus on efficient and profitable recovery and disposal of materials.

Question 5

Obsolete is in the eyes of the beholder. Something that has been declared obsolete in one organization may be perfectly acceptable and useable in another.

Accepted Answer

The perception of obsolescence can vary between organizations based on their specific needs, resources, and technological adoption levels.

Question 6

Waste is created when a change in the production process occurs, or when a better material is substituted for the material originally used.

Accepted Answer

The answer of Waste is created when a change in...

Question 7

An organization's Enterprise Resource Planning ERP) system may be used to develop a national or global database for company personnel at different locations to post and purchase spare parts, obsolete materials, and surplus.

Accepted Answer

ERP systems integrate various business processes and can be used to manage and share resources like spare parts and materials across different locations.

Question 8

Escalator clauses in contracts for scrap disposal are necessary because the prices of primary metals fluctuate.

Accepted Answer

Escalator clauses are included in contracts to adjust prices based on market fluctuations, such as those seen in primary metal prices, ensuring fair compensation for both parties.

Question 9

To ensure maximum return for its investment, the process and procedures for selling scrap and surplus must cover a broad range of activities including segregation and storage, weighing and measuring, delivery, negotiation, supplier selection, and payment.

Accepted Answer

The statement is true, as it highlights the different aspects that need to be considered in the process of selling scrap and surplus to ensure maximum return on investment.

Question 10

The role and importance of investment recovery in an organization is driven in large part by the:
A) CEO's perspective on environmental issues.
B) Chief Purchasing Officer's clout or leverage with other executives.
C) projected dollar value of the potential revenue recovery or cost reduction.
D) salespeople who encourage the inclusion of buy-back programs of key materials.
E) internal level of knowledge about disposal channels and suppliers.

Accepted Answer

Investment recovery is primarily driven by the financial benefits it can bring to an organization, such as potential revenue recovery or cost reduction.

Question 11

Production planning:
A) focuses on long-term schedules to control inventory and production.
B) requires coordinating the delivery and storage of key raw materials.
C) cannot involve supply because of fears of undue influence from suppliers.
D) relies heavily on forecasts from purchasing and supply management.
E) is a discrete activity with little coordination with other functions.

Accepted Answer

Production planning involves coordinating the delivery and storage of key raw materials to ensure that production processes run smoothly and efficiently.

Question 12

The potential benefits of having accounts payable report to the same executive as supply include:
A) familiarity with the supplier
B) familiarity with the order.
C) opportunities to reduce transaction costs and headcount.
D) the ability for supply to ensure that payments for suppliers are made on time.
E) all of the above.

Accepted Answer

Having accounts payable report to the same executive as supply can lead to better coordination and communication, resulting in familiarity with suppliers and orders, opportunities to streamline processes and reduce costs, and ensuring timely payments.

Question 13

The total cost of hazardous waste for a company does not include the costs of new plant and equipment to reduce waste and deal with contaminated plants.

Accepted Answer

The total cost of hazardous waste for a company typically includes costs associated with reducing waste and dealing with contamination, such as investments in new plant and equipment.

Question 14

Investment recovery is often assigned to:
A) supply managers because they have knowledge supply markets and price trends.
B) salespeople because they have contact with buyers who may use the material.
C) marketing managers because they have information on internal users.
D) engineers who can suggest possible uses of the material within the organization.
E) financial analysts because they set the target return on all investments.

Accepted Answer

Supply managers are typically responsible for investment recovery because they have expertise in supply markets and price trends, which are crucial for recovering value from surplus or obsolete materials.

Question 15

Coordinating inbound and outbound transportation:
A) has little application in an effective and efficient supply organization.
B) is done by cross-functional teams in most organizations.
C) helps to reduce costs and improve utilization of related assets and resources.
D) provides the basic elements of a global supply network.
E) is used extensively in Europe, but has not migrated to the U.S.

Accepted Answer

Coordinating inbound and outbound transportation helps to reduce costs and improve utilization of related assets and resources by optimizing logistics and ensuring efficient movement of goods.

Question 16

It makes no sense to assign responsibility for disposal to the supply management function because the personnel usually have no selling experience.

Accepted Answer

Supply management personnel can be responsible for disposal as they manage the lifecycle of products, including end-of-life processes, and can coordinate with other departments for selling expertise if needed.

Question 17

As more people come to believe that it makes economic sense to practice environmentally sound operations, business and government may be able to work together for common goals.

Accepted Answer

The statement suggests that a shared belief in the economic benefits of environmentally sound practices can lead to collaboration between business and government for mutual objectives.

Question 18

If material has been declared surplus, the only option is to sell it.

Accepted Answer

Surplus material can be managed in various ways, such as recycling, donating, repurposing, or disposing of it, in addition to selling.

Question 19

Warehousing and inventory storage:
A) can either be an internal function or outsourced to a third-party logistics firm.
B) typically has little communication with supply management.
C) may have direct responsibility for organizational purchasing decisions.
D) outsourcing decisions typically are made by the finance department.
E) is seldom outsourced.

Accepted Answer

Warehousing and inventory storage can be managed internally or outsourced to third-party logistics firms, depending on the organization's needs and strategy.

Quiz 16: Other Supply Responsibilities

Production planning relies heavily on forecasts from operations to anticipate demand for products and services..

Supply can contribute to the organization's environmental management program by:

Reducing the obsolescence and waste of maintenance, repair, and operating MRO) supplies through better materials and inventory management will:

One of the reasons why companies are paying more attention to the effective, efficient, and profitable recovery and disposal of scrap, surplus, obsolete, and waste materials is that:

Obsolete is in the eyes of the beholder. Something that has been declared obsolete in one organization may be perfectly acceptable and useable in another.

Waste is created when a change in the production process occurs, or when a better material is substituted for the material originally used.

An organization's Enterprise Resource Planning ERP) system may be used to develop a national or global database for company personnel at different locations to post and purchase spare parts, obsolete materials, and surplus.

Escalator clauses in contracts for scrap disposal are necessary because the prices of primary metals fluctuate.

To ensure maximum return for its investment, the process and procedures for selling scrap and surplus must cover a broad range of activities including segregation and storage, weighing and measuring, delivery, negotiation, supplier selection, and payment.

The role and importance of investment recovery in an organization is driven in large part by the:

Production planning:

The potential benefits of having accounts payable report to the same executive as supply include:

The total cost of hazardous waste for a company does not include the costs of new plant and equipment to reduce waste and deal with contaminated plants.

Investment recovery is often assigned to:

Coordinating inbound and outbound transportation:

It makes no sense to assign responsibility for disposal to the supply management function because the personnel usually have no selling experience.

As more people come to believe that it makes economic sense to practice environmentally sound operations, business and government may be able to work together for common goals.

If material has been declared surplus, the only option is to sell it.

Warehousing and inventory storage: