BUAD 331 Exam 2 | Questions with 100% Correct Answers

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BUAD 331 Exam 2 | Questions with 100% Correct Answers Sourcing is the inputs (or things we buy), including materials, sub-assembled components, equipment, and services, that are required to create ... value. A. True B. False Which of the following is NOT an area in which successful supply managers need expertise? A. Technologies B. Customers C. Suppliers D. Processes E. Resources When purchasing and supply management works well within an organization, the company acquires the best resources from around the world, which allows its to compete on cost, quality, and innovation. A. True B. False The following items for an automobile manufacturer would fit in the Supply Commodity category titled "Indirect Materials Office Supply Product category". (images of a pen, whiteout, stapler, water bottle, and pencil) A. True B. False Which of the following is the most important right of purchasing? A. Delivery to the RIGHT place B. The RIGHT price C. The RIGHT supplier D. The RIGHT time E. The RIGHT material One of the most challenging aspects of purchasing is to ensure an uninterrupted flow of supply. Which of the following might "interrupt" that flow? A. Natural disasters B. Supplier quality issues C. Logistics interruptions D. Financial issues E. All of the above A dollar saved in material costs goes directly to an increase in revenue for the organization. A. True B. False You are working as a Procurement Manager for a Fortune 500 company and are in charge of buying a new make and model of work computers for the entire company headquarters. You know it will be an expensive purchase, but have many options to choose from so you can make the computer manufacturers bid against each other to get the best price. Which type of commodity are these computers? A. Noncritical Commodity B. Strategic Commodity C. Leverage Commodity D. Bottleneck Commodity Purchasing has become a strategic contributor to organizational value by contributing to both the top and bottom line of the business. A. True B. False The choice of suppliers is important to ensure an uninterrupted flow of supply and avoid some of the problems inherent in complex supply chains. A. True B. False Supplier portfolio analysis was introduced by Michael Porter. A. True B. False An item with high market complexity and low importance to the organization should be classified as: A. Non-critical B. Leverage C. Strategic D. Bottleneck E. None of the above What supplier management tool is the standard to continuously track a supplier's performance and financial health and ensure that key goals are being met? A. Partnerships B. Six Sigma Projects C. Negotiations D. Scorecards E. Sourcing Projects The key to effective procurement strategy is ______ of suppliers and ___________ management. A. Comparison, aligned B. Segmentation, strategically appropriate C. Strengthening, customer-focused D. Disconnection, dishonest Which of the Krajlic's Portfolio Matrix items is highly complex in the supply market and has a high importance of purchasing? A. Leverage Items B. Strategic Items C. Mosaic Items D. Pertinent Items E. Expendable Items How can purchasing add value to an organization? A. By ensuring an uninterrupted flow of materials or services B. By reducing the total cost of products C. By collaborating with other areas such as logistics on supplier location decisions. D. By increasing revenue through supplier innovation and new product launch E. All of the above (and MORE) are ways that purchasing can contribute to organizational success. On Kraljic's matrix the quadrant of "bottleneck" is the most challenging for purchasing managers to deal with? In fact it is recommended that you think of ways to shift these items to other quadrants of the matrix. What is one purchasing tactic that might allow you to do that? A. Reverse auction B. Use P-cards and on-line catalogs C. Set up a long term contract D. Buying consortium, group together multiple buyers E. Switch suppliers When are supplier evaluation and selection decisions initiated? A. In response to requests from internal customers B. During the design and building of new facilities C. During new product development D. During routine market testing E. All of the above When thinking about price reductions what can purchasing do to achieve significant price or cost savings and maintain the appropriate supplier relationship when buying leverage items? A. Forward buying B. Supply base reduction C. Hard ball negotiations D. Buy the product from more suppliers E. All of the above are tactics to achieve price or cost savings What is the best tactic purchasing can use in order to meet the material and support needs of its internal customers? A. Provide an uninterrupted flow of the appropriate quality materials and services. B. Buy from suppliers that are geographically close to the location of internal customers. C. Find the lowest possible price through low-cost country sourcing. D. Minimize the number of suppliers in the supplier pool. E. Automate the purchasing process with the suppliers. Both objective and subjective measures are used to measure the performance of suppliers. Which of the following is NOT true regarding objective and subjective measures? A. Objective (Hard) Measures are quantitative B. Subjective (Soft) Measures are based on preference or judgment C. An example of a subjective measure is supplier on-time delivery D. Subjective measures can be biased and dependent on the user. E. All of the above are true. What term is best described as the process of combining purchasing requirements across operating units in order to capitalize on suppliers' fixed cost allocations and improvements in suppliers' productivity? A. Leveraging B. Specifying C. Spot Buying D. Strategizing E. Contracting You are a supply manager at a large US bank and you are responsible for buying marketing and creative services (advertising, etc.). The marketing services category represents a substantial amount of procurement spend and the suppliers that compete in this industry tend to have very different capabilities. Consider the Kraljic matrix and classify this purchase. A. Leverage item. B. Bottleneck item. C. Strategic item. D. Non-critical item. E. None of these are the appropriate classification for this component. The purchasing function contributes to the type and bottom line of an organization. A. True B. False Which of the following is generally NOT true about supply management and the bottom line (net profit to the firm)? A. Purchased items account for a large percentage of the cost of goods sold. Hence, a reduction in cost of purchased goods has a major impact on the bottom line B. A Euro increase in sales is equivalent to a Euro decrease in materials cost in impacting the bottom line C. Outsourcing can allow firms to focus on their core competencies, possibly reducing waste, which then has the potential to improve the bottom line D. A dollar saved in materials cost is usually considered a dollar increase in net income, which directly translates into bottom line savings E. All of the above are true. As a category specialist, you need to develop expertise on which of the following? A. Price B. Data retrieval C. Puzzles D. Availability E. A and D only Top line contributions by the purchasing function include which of the following? A. Cost cutting B. Supply base reduction C. Leveraging D. Involvement in new product development E. All of the above _________ is part of the supply chain involved in managing the forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption to meet customers' requirements. A. Procurement B. Logistics C. Transportation D. Negotiation Which mode of transportation is best used to transport each of the products listed below? Heavy construction equipment: Short distance consumer finished goods: Long distance containerized goods: High value good: Petroleum or mineral slurry: Heavy construction equipment: Rail Short distance consumer finished goods: Motor Long distance containerized goods: Water High value good: Air Petroleum or mineral slurry: Pipeline What invention by Malcolm McLean revolutionized how products are shipped at reduced cost, considered a key facilitator of global trade? A. Drones B. Driverless trucks C. TARS from the movie Interstellar D. Shipping containers E. Forklifts Based on similar cost and service characteristics, which mode of transportation is the biggest competition for an inland water transport? A. Truck B. Pipeline C. Rail D. Air E. Forklifts What mode of transportation is the biggest competition for an inland barge? A. Truck B. Pipeline C. Rail D. Air E. Forklifts ______ + ______ = Rate bargaining power when negotiating rates. A. Volume + Consistency B. Technology + Consistency C. Rates + Consistency D. Volume + Good Relationships E. Volume + Value Density Carriers will offer better rates if clients give them revenue miles in ______________. A. Both cash and prizes B. Both cash and bonuses C. More delivery time D. Both directions E. Dollars What warehouse activity includes identifying the location of the product required to fill an order? A. Shipping B. Order picking C. Put-away D. Shipment assembly E. Towline What type of warehouse has the advantages of minimizing labor disputes, economies of scale, and letting experts run the warehouse? A. Public B. Private C. Exempt D. Bonded logistics park E. Subcontracted Incoming replenishment shipments are preassigned to actual demand orders, so that as soon as a product arrives in the facility it is already assigned to an order. This describes? A. Assortment B. Spot stocking C. Cross docking D. Break bulking E. Product life cycle management What type of storage technique assigns a specific location for each SKU every time it is stored? A. Assortment B. Random C. Product profiling D. Spot stocking E. Dedicated What warehouse automation system is used for high-assortment, low-volume SKUs and maximizes space use? A. Conveyors B. Carousel C. Item bins D. Automated storage/retrieval system E. Forklifts What emerging trend will alleviate the need to carry certain inventory such as spare automotive or aircraft parts? A. Drones B. Automation in warehouses C. Additive manufacturing D. Digital supply chains E. People moving back to cities A GE refrigerator has a sensor that tracks milk consumption based upon the weight of the container and automatically orders from a grocery store when it senses the milk is getting low. This is an example of what global trend? A. Drones B. Automation in warehouses C. Internet of Things (IoT) D. Digital supply chains E. People moving back to cities Which of these is not a key component of transportation management? A. Meet delivery promises B. Track and monitor goods in transport C. Process appropriate information to avoid regulatory approval D. Execute the move, ensuring goods are picked up and delivered on time and undamaged [Show More]

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