Intro to Supply Chain – Practice Exam 2 Q’s – Flashcards

The Profit-Leverage Effect states that a decrease in purchasing expenditures will directly decrease profit.

While the purchasing function is one of the most value-enhancing functions in any organization, it is not preferable to periodically monitor the purchasing function's performance against set standards, goals, and/or industry benchmarks.

Outsourcing allows a firm to concentrate on core capabilities and reduce staffing levels.

A purchase order is legally binding once issued by the buyer.

What is the term that is often used for the acquisition of services?

Which of the following are the primary goals of Purchasing?

Benefits derived from implementing an e-procurement system include all of the following.

Which of the following would be a good reason to outsource (buy) versus make an item?

A 4PL, commonly referred to as a lead logistics provider, is a trucking company that also provides tracking services.

"Rationalizing the supplier base" would mean that the purchasing firm is attempting to reduce the number of suppliers in its supplier network by eliminating poor performing suppliers in its present supplier base.

While paperless transactions are now possible through e-procurement and Web-based services, these would NOT be considered sustainable business practices.

Managing a firm's external resources in ways that support the long-term goals of the firm can be referred to as?

The following term refers to an act that creates the greatest good for the greatest number of people?

An outsourcing program can result in all of the following positive outcomes.

Which of the following is True?

An organization's process for evaluating the quality systems of key suppliers in an effort to eliminate incoming inspections can be referred to as?

An effective supplier certification program may increase the time spent on incoming inspections.

Award-winning suppliers serve as role models for other suppliers and may therefore be exempt from audits and certification programs.

The keys to developing successful supply partnerships include all of the following.

Benefits of implementing an effective supplier certification program include all of the following.

Successful supplier relationships involve equal decision-making control between both the buyer and the supplier.

The combination of the purchase price of a product, plus all costs associated with the use and maintenance of a good or service, is referred to as?

LEAN production is an operating philosophy or mindset that attempts to minimize the impact of supply variability and flaws in forecasting through the use of safety stock inventories.

The primary design objective of a LEAN layout is to reduce wasted movements of workers and/or materials.

A LEAN system is also known as a pull system.

Which one of the following is among the most important elements of the LEAN manufacturing philosophy?

All of the following are included in the seven wastes EXCEPT?

LEAN manufacturing emphasizes all of the following.