Click on the Link Below to
Purchase A+ Graded Course Material
Chapter 2 and 3
CHAPTER 2
Supply Strategy
11. An
effective supply strategy primarily focuses on linking:
a. current needs to current markets.
b. future needs to future markets.
c. current needs to future markets.
d. future needs to current markets.
e. current and future needs to current and
future markets.
12. Organizational
objectives and supply objectives typically are expressed:
a. differently, making it difficult to
translate organizational objectives into supply objectives.
b. differently, providing the supply
manager multiple opportunities to tap into organizational resources.
c. the same (survival, growth, financial,
and environmental), making it easy to translate organizational objectives into
supply objectives.
d. the same factors (quality, quantity,
price, delivery and service), but long-term at the organizational level and
short-term at the supply level.
e. in ways that are very specific to the
organization, making it difficult to convey objectives to suppliers.
13. Which
one of the following is NOT one of the six major supply strategy areas:
a. competitive-edge strategies.
b. environmental-change strategies.
c. new-product design strategies.
d. risk-management strategies.
e. cost-reduction strategies.
14. When
developing supply strategies related to “how to buy,” decisions must be made
about:
i. systems and procedures
ii. goals and objectives.
iii. make or buy.
iv. large or small inventories.
v. none of the above.
15. The
key question in strategic supply management is:
a. How can supply strategy be kept
separate from and equal to organizational strategy?
b. How can first tier suppliers contribute
to the buying organization’s objectives and strategy?
c. How can first, second, third- and
subsequent tiers of suppliers contribute to the buying organization’s
objectives and strategy?
d. How can the supply manager develop a
network of suppliers that contribute to the buying organization’s strategies
and goals?
e. How can supply and the supply chain
contribute effectively to organizational objectives and strategy?
16. Three
major challenges exist when setting supply objectives and strategies:
a. adopting efficient electronic
transaction systems, designing effective strategic supply processes, and
increasing internal compliance with both.
b. effectively interpreting corporate and
supply objectives, selecting appropriate actions to achieve objectives, and
integrating supply information into organizational strategies.
c. hiring professionals educated
specifically in supply management, providing them with technical expertise, and
developing leadership skills for the long-term.
d. emphasizing strategic cost management,
involving key suppliers early in the process, and measuring the reduction in
total cost of ownership.
e. identifying internal stakeholders,
building consensus among these stakeholders, and selling top management on the
results.
17. To
effectively manage supply risks, the supply manager must:
a. inform the corporate risk officer of a
potential risk, await instructions, and implement the directive.
b. seek input from senior executives in
other functional areas, propose a risk mitigation plan, and await instructions
from senior management.
c. identify and classify risks, assess the
potential impact, and develop a risk mitigation strategy.
d. review the commodity strategy, revise
it as needed, and implement the strategy revision.
e. confer with the organization’s
management consultant, provide all requested data, and implement the
consultant’s plan.
18. Linking
supply strategy to corporate strategy is:
a. essential only in manufacturing, and
most have the mechanisms to link them..
b. essential only in the service sector,
and most lack the mechanisms to link them.
c. essential in all organizations, and
most have the mechanisms to link them.
d. essential in all organizations, and
many lack the mechanisms to link them.
e. non-essential in most types of
organizations.
19. Strategic
planning can be defined as:
a. how each functional area will achieve
its specific goals and objectives.
b. a procedure for allocating resources to
appropriate functions in the organization.
c. taking big risks to maximize current
period benefits.
d. an action plan to achieve specific
long-term goals and objectives.
e. an action plan to achieve specific operational
and tactical goals.
20. Supply
strategies that are based on changes in demand and supply are known as:
a. risk-management strategies.
b. assurance-of-supply strategies.
c. cost-reduction strategies.
d. environmental-change strategies.
e. supply chain support strategies.
True and False
1. The
three levels of strategic planning are: function, unit, and corporate.
2. Environmental-change
strategies are designed to anticipate and recognize shifts in the natural world
that affect supply availability.
3. Even
if a supply manager identifies and eliminates the causes of uncertainty and
risk in the supply chain, the organization may still need to carry the same
amount of inventory.
4. Risks
in the supply chain can be classified into three main categories: (1)
operational, (2) financial, and (3) strategic.
5. There
is a growing emphasis on strategic supply management processes and less on
purchase transactions.
6. A
corporate risk management group headed by a chief risk officer has emerged in
many organizations to assess total risk exposure and develop strategies to best
manage all risks.
7. Assurance-of-supply
strategies emphasize quality over all other considerations.
8. The
most fundamental question facing an organization is whether to make or buy.
9. Supply
managers may be able to provide information to identify risks to the
organization and they can develop strategies to mitigate those risks.
10. Seldom
do the actions of supply managers impact the organization’s reputation either
positively or negatively.
Chapter 3
Supply Organization
21. Close
to 70 percent of the value of any given requirement is established when needs
are recognized and described. Therefore, the following functions should work
together during need recognition and description:
a. the primary user and specifier.
b. the primary user and supply.
c. the primary user, design engineering
and supply.
d. the primary user, design engineering,
supply and accounting.
e. the primary user, design engineering,
supply and all other relevant functional areas such as accounting/finance,
marketing and operations.
22. A
change in how supply is organized and structured is the result of:
a. the changing preference of the Chief
Purchasing Officer.
b. an assessment of the best purchasing
structure given the supply base.
c. a change in the overall corporate
organizational structure.
d. a determination of the easiest change
to manage internally.
e. a consensus among the supply management
professionals in the company.
3. Which
factors have a major influence on supply’s level in the organization:
a. the ratio of purchased material and
services costs as a percentage of total costs or income.
b. the size of the supply base.
c. the nature of the products or services
acquired.
d. the extent to which supply and
suppliers can provide competitive advantage.
e. the credentials of the existing supply
personnel.
a. a and b
b. c and d.
c. d and e
d. a, c and d.
e. a, d and e.
4. Organizations
commit resources to cross-functional team development to:
a. give internal users ownership of tasks
and problems.
b. achieve time, quality, or
cost-reduction targets
c. promote diversity in the workplace.
d. give supply ownership of tasks and
problems.
e. cross-train employees in case of
downsizing.
5. Supply
can provide an uninterrupted flow of materials, supplies and services by:
a. holding large inventories.
b. holding small inventories.
c. standardizing capital equipment,
materials, MRO and services.
d. b and c.
e. a and c
6. A
purchasing consortium:
a. speeds up the purchasing process, but
does not usually result in price concessions from suppliers.
b. consists of two or more independent
organizations that combine requirements for materials, services and capital
goods to gain better pricing, service and technology from suppliers.
c. results in price concessions from
suppliers, but usually does not speed up the purchasing process.
d. consists of two or more divisions of
the same organization that combine requirements for materials, services and
capital goods to gain better pricing, service and technology from suppliers.
e. is a form of collaborative purchasing
used only by the public sector to deliver a wider range of services at a lower
total cost.
7. Hybrid
supply structures typically:
a. amplify the disadvantages of
centralization.
b. amplify the advantages of
decentralization.
c. capture the benefits of both
centralized and decentralized structures.
d. are used in small to medium-sized
organizations.
e. are used in service organizations of
all sizes.
8. The
organizational structure (centralized, decentralized, or hybrid) of the supply
function:
a. has little influence on supply
processes, internal cross-functional relationships, or the procedures and
systems employed.
b. influences supply processes, internal
cross-functional relationships, and the procedures and systems employed.
c. influences supply processes, but not
internal cross-functional relationships, or the procedures and systems
employed.
d. influences internal cross-functional
relationships, and the procedures and systems employed, but not supply
processes.
e. influences the procedures and systems
employed, but not supply processes or internal cross-functional
relationships.
9. Supply’s
contribution to the organization’s competitive position depends on its ability
to:
a. reduce costs.
b. enhance revenues.
c. manage assets.
d. a and c.
e. a, b and c.
10. Specialization
within the supply function:
a. allows staff to develop expertise in
particular areas.
b. is unnecessary because most tasks are
transactional.
c. has no impact on talent management or
organization within supply.
d. increases operating costs beyond the
benefits of specialization.
e. is seldom required now that so many
tasks are automated.
True and False
1. Eliminating
process inefficiencies is the best way to accomplish supply objectives at the
lowest total operating costs.
2. Decentralization
refers to a supply organization that is physically located at corporate
headquarters from which all organizational spending decisions are made.
3. There
is an inherent conflict between supply’s objective to provide an uninterrupted
flow of materials, supplies and services required to operate the organization
and the objective to keep inventory investment and loss at a minimum.
4. Products,
services and processes can be standardized and, if done effectively, will lower
total cost of ownership.
5. The
executive to whom the Chief Supply Officer reports has no relationship to the
status of purchasing and the degree to which it is emphasized within the
organization.
6. The
supply process and structure for managing indirect spend is typically different
than that for managing direct spend.
7. In a
decentralized purchasing structure, those tasks which are more effectively
handled at the business unit level include establishing policies, procedures,
controls, and systems.
8. Some
of the disadvantages of decentralization are narrow specialization and job
boredom, lack of job flexibility, and a tendency to minimize legitimate
differences in requirements.
9. Supply
should obtain needed goods and services at the lowest total cost of ownership
meaning that other cost factors—such as quality levels, after-sales service,
warranties, inventory and spare parts requirements, and downtime—must be
considered even though in the long term these factors seldom have a cost impact
greater than the original purchase price.
10.The
degree of centralization is reflected by the number of supply professionals
working throughout all functional areas of the organization.
No comments:
Post a Comment