Question 1

Which of the following is an organizationally-driven reason for outsourcing?

Accepted Answer

A)   Improve effectiveness by focusing on what the firm does best
B)   Turn fixed costs into variable costs
C)   Reduce costs through lowered cost structure and increased flexibility
D)   Improve risk management
E)   Improve credibility and image by associating with superior providersF) None of the above
G) All of the above

Question 2

Which of the following is not an improvement-driven reason for outsourcing?

Accepted Answer

A)   Improve quality and productivity
B)   Enhance effectiveness by focusing on what you do best
C)   Improve risk management
D)   Obtain expertise, skills and technologies not otherwise available
E)   Improve credibility and image by associating with superior providersF) A) and D)
G) C) and D)

Question 3

Ownership costs include which of the following costs?

Accepted Answer

A)   Environmental costs
B)   Warranty costs
C)   Supply chain costs
D)   Quality costs
E)   TaxesF) A) and B)
G) All of the above

Question 4

The inventory turnover ratio used in measuring supply chain efficiency is found by the ratio of which of the following?

Accepted Answer

A)   Cost of goods sold/Average aggregate inventory value
B)   Fixed costs/Variable costs
C)   Sales costs/Marketing costs
D)   Cost of goods sold/Cost to sell goods
E)   Operations flow costs/Suppliers flow costsF) B) and C)
G) All of the above

Question 5

The six-step process for green sourcing does not include which of the following?

Accepted Answer

A)   Assess the opportunity
B)   Assess the supply base
C)   Confer with environmental groups
D)   Engage sourcing agents
E)   Institutionalize the sourcing strategyF) All of the above
G) B) and E)

Question 6

The optimal strategy for functional products is to use a responsive supply chain.

Accepted Answer

A) True 
 B)False

Question 7

The optimal strategy for innovative products is to use an efficient supply chain.

Accepted Answer

A) True 
 B)False

Question 8

Ownership costs are incurred after the initial purchase and are associated with the ongoing use of the product or material. Which of the following is not an ownership cost listed in the text?

Accepted Answer

A)   Financing costs
B)   Energy costs
C)   Taxes
D)   Maintenance and repair costs
E)   Supply network costsF) A) and C)
G) B) and D)

Question 9

The best strategy for innovative products is to use either a responsive or an agile supply chain.

Accepted Answer

A) True 
 B)False

Question 10

Typically, which is the most challenging kind of supply chain to manage?

Accepted Answer

A)   Agile supply chain
B)   Efficient supply chain
C)   Risk-hedging supply chain
D)   Erratic supply chain
E)   Responsive supply chainF) B) and D)
G) A) and D)

Question 11

An organizationally-driven reason for outsourcing is that it can transform the organization.

Accepted Answer

A) True 
 B)False

Question 12

Green sourcing requires incorporating new criteria for evaluating alternatives.

Accepted Answer

A) True 
 B)False

Question 13

When using the supply chain uncertainty framework to classify supply chains, a supply chain for innovative products with a stable supply process is called which of the following?

Accepted Answer

A)   Efficient
B)   Forward looking
C)   Agile
D)   Risk hedging
E)   ResponsiveF) A) and B)
G) B) and C)

Question 14

Which of the following is an improvement-driven reason for outsourcing?

Accepted Answer

A)   Shorten cycle time
B)   Improve effectiveness by focusing on what the firm does best
C)   Increase product and service value by improving response to customer needs
D)   Turn fixed costs into variable costs
E)   Reduce costs through a lower cost structureF) A) and E)
G) C) and E)

Question 15

When using the supply chain uncertainty framework to classify supply chains, a supply chain for functional products with a stable supply process is called which of the following?

Accepted Answer

A)   Efficient
B)   Forward looking
C)   Agile
D)   Risk hedging
E)   ResponsiveF) A) and B)
G) A) and C)

Question 16

A firm that controls most of the activities in its supply chain is said to be vertically integrated.

Accepted Answer

A) True 
 B)False

Question 17

Strategic sourcing is the development and management of supplier relationships to acquire goods and services in a way that aids in achieving the immediate needs of the business.

Accepted Answer

A) True 
 B)False

Question 18

If the average aggregate inventory value is $1,200,000 and the cost of goods sold is $600,000, which of the following is weeks of supply?

Accepted Answer

A)   1,040
B)   606
C)   104
D)   60.6
E)   2.0F) A) and B)
G) None of the above

Question 19

Acquisition costs include which of the following costs?

Accepted Answer

A)   Quality costs
B)   Maintenance and repair costs
C)   Environmental costs
D)   Supply chain costs
E)   Customer dissatisfaction costsF) None of the above
G) B) and C)

Question 20

Ownership costs incurred after the initial purchase and associated with the ongoing use of the product or material purchased include which of the following?

Accepted Answer

A)   Energy usage
B)   Purchase price
C)   Product liability costs
D)   Warranty costs
E)   Customer dissatisfaction costsF) B) and C)
G) A) and E)

Exam 13: Global Sourcing and Procurement

Which of the following is an organizationally-driven reason for outsourcing?

Correct AnswerverifiedShow Answer

The best strategy for innovative products is to use either a responsive or an agile supply chain.

Correct AnswerverifiedShow Answer

The optimal strategy for innovative products is to use an efficient supply chain.

Correct AnswerverifiedShow Answer

The optimal strategy for functional products is to use a responsive supply chain.

Correct AnswerverifiedShow Answer

Which of the following is an improvement-driven reason for outsourcing?

Correct AnswerverifiedShow Answer

Strategic sourcing is the development and management of supplier relationships to acquire goods and services in a way that aids in achieving the immediate needs of the business.

Correct AnswerverifiedShow Answer

Green sourcing requires incorporating new criteria for evaluating alternatives.

Correct AnswerverifiedShow Answer

When using the supply chain uncertainty framework to classify supply chains, a supply chain for innovative products with a stable supply process is called which of the following?

Correct AnswerverifiedShow Answer

Ownership costs include which of the following costs?

Correct AnswerverifiedShow Answer

The six-step process for green sourcing does not include which of the following?

Correct AnswerverifiedShow Answer

The inventory turnover ratio used in measuring supply chain efficiency is found by the ratio of which of the following?

Correct AnswerverifiedShow Answer

Which of the following is not an improvement-driven reason for outsourcing?

Correct AnswerverifiedShow Answer

If the average aggregate inventory value is $1,200,000 and the cost of goods sold is $600,000, which of the following is weeks of supply?

Correct AnswerverifiedShow Answer

Acquisition costs include which of the following costs?

Correct AnswerverifiedShow Answer

Ownership costs are incurred after the initial purchase and are associated with the ongoing use of the product or material. Which of the following is not an ownership cost listed in the text?

Correct AnswerverifiedShow Answer

A firm that controls most of the activities in its supply chain is said to be vertically integrated.

Correct AnswerverifiedShow Answer

An organizationally-driven reason for outsourcing is that it can transform the organization.

Correct AnswerverifiedShow Answer

Ownership costs incurred after the initial purchase and associated with the ongoing use of the product or material purchased include which of the following?

Correct AnswerverifiedShow Answer

Typically, which is the most challenging kind of supply chain to manage?

Correct AnswerverifiedShow Answer

When using the supply chain uncertainty framework to classify supply chains, a supply chain for functional products with a stable supply process is called which of the following?

Correct AnswerverifiedShow Answer

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