University of Houston - EXAM 3Exam 3 Study Guide (Ch. 7 & 12)> (CORRECT ANS HIGHLIGHTED IN YELLOW)

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Chapter 7 Concepts 1. Supply Management refers to the broad set of activities carried out by organizations to analyze sourcing opportunities, develop sourcing strategies, select suppliers, and carry... out all the activities required to procure goods and services. 2. Cost of Goods Sold (COGS) is the purchased cost of goods from outside suppliers. 3. Merchandise Inventory shows us how much the company paid for the inventory it had on hand at the time of the report. 4. "The ratio of earnings to sales for a given time period" is the definition of Profit Margin 5. A document that authorizes a supplier to deliver a product or service is known as purchase order. 6. "The set of activities required to first identify a need, assign a supplier to meet that need, approve the specification or scope, acknowledge receipt, and submit payment to the supplier" is the definition of procure-to-pay cycle. 7. Statements of work are terms and conditions for a purchased service that indicate, among other things, what services will be performed and how the service provider will be evaluated. 8. Communicating your needs can be difficult when purchasing services. The document that communicates this need is called a statement of work. Chapter 12 Concepts 1. MRP can be performed based on three concepts; which one of the following is NOT necessary? Job Sequencing Rules 2. The critical ratio is the ratio of the due date to the time it takes to perform a job. False. Critical Ratio = days until due / total task time remaining 3. Distribution Requirements Planning is a time-phased planning approach similar to MRP that uses planned orders at the point of demand (customer, warehouse, etc.) to determine forecasted demand at the source level (often a plant). 4. Distribution requirements planning is a supply chain approach to material requirements planning. True. 5. Distribution requirements planning helps to synchronize supply chain partners at the master schedule level. 6. According to the text, which of the following is NOT a function of an information system? Support for Marketing 7. According to the text, which task is NOT routinely performed by an information system? Creating Information. 8. Which supply chain activity is in greatest need of information flows that are accurate and timely? Execution and Transaction Processing 9. Longer term, strategic activities need an information system with a great deal of flexibility. 10. An information system that is highly automated and capable of handling high volumes with little user intervention probably operates to assist with Execution and Transaction Processing 11. A network design application operates on which area of the supply chain? Logistics 12. Computer-based information systems that allow users to analyze, manipulate, and present data in a manner that aids higher-level decision making are called decision support systems. 13. A supplier relationship management system assists with which of the following processes? Design Collaboration 14. A customer relationship management system typically assists with which of the following processes? Selling 15. Cram's Warehouse has a 500,000 square foot warehouse off exit 7 on Interstate 35 where goods are held for periods of up to six months before being sent to retail locations. The shelf space is fluid in that there is no established area for each SKU (stock keeping unit). As items are placed on the shelves, the computer system stores item, quantity and shelf location so it can be picked when it is time to ship. The system that controls this information is a War [Show More]

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