Intro to SCM Quiz 5-8

A conceptual image depicting the interconnected elements of Supply Chain Management, including procurement, logistics, and manufacturing, with a modern and digital aesthetic.

Introduction to Supply Chain Management Quiz

Test your knowledge on the fundamentals of Supply Chain Management with our comprehensive quiz! This quiz features 40 carefully crafted questions designed to challenge your understanding of key concepts such as sourcing strategies, waste reduction, and ethical sourcing.

Get ready to explore various topics, including:

Profit Leverage Effect
Lean Manufacturing
Supplier Code of Conduct
Strategic Sourcing

40 Questions10 MinutesCreated by EngagingFocus374

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

True

False

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

Time Savings

Real Time Access

Decentralizing Purchasing

Trackability

In public purchasing in the government & non-profit business sector, bidders (i.e., potential suppliers) are generally required to furnish bonds as an incentive to ensure that the successful bidder will fulfill the contract awarded. Which type of bond provides protection against 3rd party liens (i.e., debts) not fulfilled by the bidder?

Performance Bonds

Bid Bonds

Surety Bonds

Payment Bonds

Which of the following is an internal document that defines the need to purchase goods and/or services? This document does not constitute a contractual relationship with any external party.

Purchase Requisition

RFQ

EProcurement

Purchase Order

A proposal or quotation submitted in response to a solicitation from a contracting authority is known as what?

Counter Trade

Bond

Tariff

Bid

Which one of the following is NOT a reason for buying or outsourcing?

Due to a lack (i.e., shortage) of procurement personnel

To achieve a cost savings

Due to insufficient capacity to make the item internally in your company-owned operations

To take advantage of better quality

�Supply Management” is a newer term that encompasses all acquisition activities beyond the simple purchase transaction.

True

False

Products with short product life cycles, volatile demand, high-profit margins, and relatively little competition, are known as Innovative Products.

True

False

Products with low profit margin, relatively stable demand, and high levels of competition, are known as Innovative Products.

True

False

The application of ethical principles in business situations is known as?

Sustainability

Profit Leverage Effect

Corporate Social Responsibility

Business Ethics

The concept which attempts bring about positive social change through organizational buying behavior, is known as?

Ethical Sourcing

Business Ethics

Sustainability

Supplier Code of Conduct

A Supplier Code of Conduct is intended to inform suppliers of ethical sourcing expectations and is typically a condition for becoming an approved supplier.

True

False

Which sourcing strategy would typically be used for items with low profit margins, relatively stable demand, and high levels of competition?

Mulit-source

Sole Source

Single Source

Which one of the following is NOT a reason to have a single supplier?

To establish a good relationship

To spread the risk of a supply disruption

To achieve transportation economies

To have less quality variability

Which of the following is TRUE?

3PL stands for Third Party Leverage

VMI stands for Vendor-Managed Inventory

3PL stands for Three Point Logistics

VMI stands for Vertically Managed Inventory

In which item category would the sourcing strategies of simplifying and streamlining the purchasing process, reducing the number of suppliers and simplifying the ordering process, and transferring the buying responsibility to users within the company, be appropriate?

Non-Critical Items

Bottleneck Items

Strategic Items

Leverage Items

Strategic Sourcing is a comprehensive approach for locating and sourcing key suppliers, so that an organization can leverage its consolidated purchasing power to find the best possible values in the marketplace.

True

False

When a company utilizes a “make to stock” strategy, the company is also said to be using a “pull” business model

True

False

What is the term used in business to describe the in-depth process of capturing internal and external customer's stated and unstated expectations, preferences, likes, and dislikes?

Voice of the Customer (VOC)

Vertical Integration

Customer Interviews

Relationship Marketing

The quality management philosophy that focuses on improving the overall quality of process outputs by identifying and removing the causes of defects and minimizing variability in manufacturing and business processes, is known as?

Six Sigma

Lean Manufacturing

Kaizen

Acceptance Sampling

Waste encompasses wait times, inventories, material and people movement, processing steps, variability, any other non-value-adding activity

True

False

Which one of the following Manufacturing Strategies has the shortest (i.e., fastest) Customer Delivery Cycle?

Assemble-to-Order

Engineer-to-Order

Make-to-Stock

Make-to-Order

Which one of the following is NOT part of the eight (8) wastes identified through LEAN Manufacturing?

Overproduction

Insufficient Capacity

Extra-Processing

Non-Utilized Talent

Total Quality Management is the term used in business to describe the in-depth process of capturing internal and external customer's expectations, preferences, likes, and dislikes

True

False

In the context of Total Cost of Manufacturing (TCM), in general terms, procurement, manufacturing, inventory, warehousing, and transportation per unit costs each go up as volume goes up.

True

False

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

Large inventories and large batch sizes

Quality inspections and a standardized product line

Fully automated assembly lines and a large supplier base

Waste reduction and continuous improvement

The best supplier candidates for Supplier Relationship Management (SRM) include all of the following EXCEPT?

Suppliers that provide high volumes of products or services

Suppliers that provide lesser quantities of a crucial products/services

Preferred Suppliers

Developmental suppliers that need to make improvements

When using a weighted-criteria evaluation system with five or more categories, suppliers should be ranked based on their score in only the two highest weighted categories.

True

False

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

Individualized Objectives

Personal Relationships

Mutual Benefits and Needs

Performance Metrics

The process commonly utilized in continuous improvement is known as?

Specific, Measurable, Achievable, Relevant, Time-Oriented (S.M.A.R.T.)

Ready, Set, Go

Plan, Source, Make, Deliver

Plan, Do, Check, Act

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

True

False

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

Building long-term relationships

Recognizing excellence

Reducing time spent on incoming inspections

Increasing the supplier base

The Weighted-Criteria Evaluation System is typically used to select a supplier or to evaluate the performance of a supplier?

True

False

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

Supplier Inspection

Supplier Certification

Supply Management

Quality Systems Certification

The key characteristics to consider in the development and implementation of a Supplier Relationship Management System, include all of the following, EXCEPT?

Integration

Visibility

Detachment

Collaboration

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