SCMN 3730 Exam 1 Questions with
Answers
-developing closer relationships with important suppliers
-performing due diligence on suppliers before awarding longer term contracts
-conducting worldwide internet searches for the best sources of supply
-inviting key suppliers to participate in product and process development. - ANSWER-
What are the features of the new model of progressive purchasing?
A change index report on business
A score of 50 means the market is neither expanding nor contracting - ANSWER-What
index does ISM issue monthly, and what does a score of 50 represent?
Primary and secondary support activities that can lead to competitive advantage -
ANSWER-What is a value chain composed of?
A company does not operate in isolation because its success is dependent upon a
network of partner relationships - ANSWER-What is meant by extended enterprise?
Items provided by suppliers and used directly during production or service delivery;
specific in making a product and its final form - ANSWER-Direct Materials
Purchasing
Inbound transportation
Quality control
Demand and supply planning
Receiving, materials handling, and storage
Material or inventory control
Order processing
Production planning, scheduling, and control
Shipping/Warehousing/Distribution
Outbound transportation
Customer service - ANSWER-What are all the functional management activities under
the Supply Chain umbrella?
In manufacturing, purchased content is more than 55% of revenues - ANSWER-What is
the average percentage of purchases to sales in the manufacturing sector?
Buyer focuses on core competencies and outsources non-core activities and materials -
ANSWER-Explain the relationship between outsourcing and core competencies.
, Supply management is a more broad concept than purchasing - ANSWER-What is the
difference between Purchasing / Procurement and Supply Management?
The value chain is the entire production chain, and the supply chain is just a portion or
subset of the value chain process - ANSWER-What is the difference between a supply
chain and a value chain?
Identifying, evaluating, selecting, managing, and developing suppliers to improve
performance & moving across functional area boundaries - ANSWER-What is meant by
the term process approach?
Sharing information
Suppliers as an extension of the buying company - ANSWER-What is meant by the
term cross-functional?
Third party logistics
an independent logistics provider that performs any or all of the functions required to get
a client's product to market - ANSWER-What is meant by the term 3PL?
-User selects different supplier than supply management has approved
-May be acceptable when there is small chance of risk
-Loss of opportunity to control cost and/or leverage purchase volume
-Exposes firm to greater risk - ANSWER-What is meant by maverick spending?
Identify user requirements
Evaluate user needs effectively and efficiently
Identify suppliers to meet that need
Develop agreements with suppliers
Develop ordering mechanism
Ensure payment occurs promptly
Ascertain that need was effectively met
Drive continuous improvement - ANSWER-What are the steps in the purchasing cycle?
when an internal customer has a need that comes up suddenly, which is not planned for
and for which there is no preexisting supplier identified to provide the product or service
required. - ANSWER-Under what circumstances would a spot buy be appropriate?
Description of required material or service
Quantity required
Estimated unit cost
Operating account to be charged
Date of requisition
Date required
Authorized signature - ANSWER-What are the required elements of a purchase
requisition?
Answers
-developing closer relationships with important suppliers
-performing due diligence on suppliers before awarding longer term contracts
-conducting worldwide internet searches for the best sources of supply
-inviting key suppliers to participate in product and process development. - ANSWER-
What are the features of the new model of progressive purchasing?
A change index report on business
A score of 50 means the market is neither expanding nor contracting - ANSWER-What
index does ISM issue monthly, and what does a score of 50 represent?
Primary and secondary support activities that can lead to competitive advantage -
ANSWER-What is a value chain composed of?
A company does not operate in isolation because its success is dependent upon a
network of partner relationships - ANSWER-What is meant by extended enterprise?
Items provided by suppliers and used directly during production or service delivery;
specific in making a product and its final form - ANSWER-Direct Materials
Purchasing
Inbound transportation
Quality control
Demand and supply planning
Receiving, materials handling, and storage
Material or inventory control
Order processing
Production planning, scheduling, and control
Shipping/Warehousing/Distribution
Outbound transportation
Customer service - ANSWER-What are all the functional management activities under
the Supply Chain umbrella?
In manufacturing, purchased content is more than 55% of revenues - ANSWER-What is
the average percentage of purchases to sales in the manufacturing sector?
Buyer focuses on core competencies and outsources non-core activities and materials -
ANSWER-Explain the relationship between outsourcing and core competencies.
, Supply management is a more broad concept than purchasing - ANSWER-What is the
difference between Purchasing / Procurement and Supply Management?
The value chain is the entire production chain, and the supply chain is just a portion or
subset of the value chain process - ANSWER-What is the difference between a supply
chain and a value chain?
Identifying, evaluating, selecting, managing, and developing suppliers to improve
performance & moving across functional area boundaries - ANSWER-What is meant by
the term process approach?
Sharing information
Suppliers as an extension of the buying company - ANSWER-What is meant by the
term cross-functional?
Third party logistics
an independent logistics provider that performs any or all of the functions required to get
a client's product to market - ANSWER-What is meant by the term 3PL?
-User selects different supplier than supply management has approved
-May be acceptable when there is small chance of risk
-Loss of opportunity to control cost and/or leverage purchase volume
-Exposes firm to greater risk - ANSWER-What is meant by maverick spending?
Identify user requirements
Evaluate user needs effectively and efficiently
Identify suppliers to meet that need
Develop agreements with suppliers
Develop ordering mechanism
Ensure payment occurs promptly
Ascertain that need was effectively met
Drive continuous improvement - ANSWER-What are the steps in the purchasing cycle?
when an internal customer has a need that comes up suddenly, which is not planned for
and for which there is no preexisting supplier identified to provide the product or service
required. - ANSWER-Under what circumstances would a spot buy be appropriate?
Description of required material or service
Quantity required
Estimated unit cost
Operating account to be charged
Date of requisition
Date required
Authorized signature - ANSWER-What are the required elements of a purchase
requisition?
