MGMT 5370 QUESTIONS AND ANSWERS
According to the textbook, conditions which must be present for successful supply chain
management include: - Answers -High level of trust among firms
The following strategy is usually employed by lean organizations in an effort to ensure
continued quality compliance among suppliers and with internal production facilities: -
Answers -Six Sigma
Encouraging or helping a firm's suppliers to perform in a desired fashion can be referred
to as: - Answers -Supplier management
Which of the following activities would fall under the foundational element of operation?
- Answers -Demand management
Supply chain management includes the planning and management of all activities
involved in sourcing and procurement, conversion, and all logistics management
activities. It also includes: - Answers -Coordination and collaboration with channel
partners
Blanket or open-end purchase orders are suitable for buying - Answers -Office supplies
Inventory Turnover can be calculated by: - Answers -Ratio of cost of goods sold over
average inventory cost
Which of the following would decrease purchase spend? - Answers -Purchasing
materials at a lower total acquisition cost
When calculating Return on Investment, fixed assets include: - Answers -Equipment,
Buildings, and Real Estate
Which of the following refers to the measurement of the impact of change in purchase
spend on a firm's profit before taxes, assuming gross sales and other expenses remain
unchanged? - Answers -Profit-Leverage Effect
Which of the following companies are indirectly involved in most supply chains? -
Answers -All of these
The following is an example of the bullwhip effect: - Answers -Nike includes safety
stock of 5,000 units of shoestrings in its demand forecast causing its shoestring supplier
to increase their normal output for Nike.
When a particular item is in short supply accompanied by rising prices, a firm might find
it beneficial to: - Answers -Align itself with one of the suppliers to ensure a continued
supply of the scarce item.
, Which of the following would be considered a third party logistics provider? - Answers -
A firm that leases storage warehousing
Which of the following would be a good reason to outsource (buy) versus making? -
Answers -A firm is running at or near capacity and is unable to meet demand
requirements
Which of the following is NOT a potential challenge for global sourcing? - Answers -
Reduction of international trade barriers
Which of the following states is NOT governed by the Uniform Commercial Code (UCC)
in the purchase and sale of goods in the United States? - Answers -Louisiana
Return on assets (ROA) can be calculated by: - Answers -Ratio of net income over total
assets
Which of the following statements is TRUE? - Answers -Strategic partnerships are seen
as one of the foundations of supply chain management.
Which of the following is a reverse logistics activity? - Answers -Recycling products and
components
Lean production is typically associated with which of the following company's production
systems? - Answers -Toyota
Which of the following acronyms is NOT paired with its correct "translation"? - Answers
-TLS − Third-party Logistics Services
According to the Buy American Act, which of the following does the Buy American Act
apply to? - Answers -All of the choices are correct
Which of the following is a reason that single sourcing is considered risky/bad? -
Answers -There could be supplier interruptions due to political instability
Which of the following is a form of purchasing that is placed directly to the supplier and
suitable when firms use the same components to make standard goods over a relatively
long period of time? - Answers -Planned order release
Which of the following illustrates Forward Vertical Integration? - Answers -Dell
Computers buying retail computer stores to sell computers to the public
The primary goals of purchasing include all EXCEPT: - Answers -Ensure the highest
quality raw materials are purchased
According to the textbook, conditions which must be present for successful supply chain
management include: - Answers -High level of trust among firms
The following strategy is usually employed by lean organizations in an effort to ensure
continued quality compliance among suppliers and with internal production facilities: -
Answers -Six Sigma
Encouraging or helping a firm's suppliers to perform in a desired fashion can be referred
to as: - Answers -Supplier management
Which of the following activities would fall under the foundational element of operation?
- Answers -Demand management
Supply chain management includes the planning and management of all activities
involved in sourcing and procurement, conversion, and all logistics management
activities. It also includes: - Answers -Coordination and collaboration with channel
partners
Blanket or open-end purchase orders are suitable for buying - Answers -Office supplies
Inventory Turnover can be calculated by: - Answers -Ratio of cost of goods sold over
average inventory cost
Which of the following would decrease purchase spend? - Answers -Purchasing
materials at a lower total acquisition cost
When calculating Return on Investment, fixed assets include: - Answers -Equipment,
Buildings, and Real Estate
Which of the following refers to the measurement of the impact of change in purchase
spend on a firm's profit before taxes, assuming gross sales and other expenses remain
unchanged? - Answers -Profit-Leverage Effect
Which of the following companies are indirectly involved in most supply chains? -
Answers -All of these
The following is an example of the bullwhip effect: - Answers -Nike includes safety
stock of 5,000 units of shoestrings in its demand forecast causing its shoestring supplier
to increase their normal output for Nike.
When a particular item is in short supply accompanied by rising prices, a firm might find
it beneficial to: - Answers -Align itself with one of the suppliers to ensure a continued
supply of the scarce item.
, Which of the following would be considered a third party logistics provider? - Answers -
A firm that leases storage warehousing
Which of the following would be a good reason to outsource (buy) versus making? -
Answers -A firm is running at or near capacity and is unable to meet demand
requirements
Which of the following is NOT a potential challenge for global sourcing? - Answers -
Reduction of international trade barriers
Which of the following states is NOT governed by the Uniform Commercial Code (UCC)
in the purchase and sale of goods in the United States? - Answers -Louisiana
Return on assets (ROA) can be calculated by: - Answers -Ratio of net income over total
assets
Which of the following statements is TRUE? - Answers -Strategic partnerships are seen
as one of the foundations of supply chain management.
Which of the following is a reverse logistics activity? - Answers -Recycling products and
components
Lean production is typically associated with which of the following company's production
systems? - Answers -Toyota
Which of the following acronyms is NOT paired with its correct "translation"? - Answers
-TLS − Third-party Logistics Services
According to the Buy American Act, which of the following does the Buy American Act
apply to? - Answers -All of the choices are correct
Which of the following is a reason that single sourcing is considered risky/bad? -
Answers -There could be supplier interruptions due to political instability
Which of the following is a form of purchasing that is placed directly to the supplier and
suitable when firms use the same components to make standard goods over a relatively
long period of time? - Answers -Planned order release
Which of the following illustrates Forward Vertical Integration? - Answers -Dell
Computers buying retail computer stores to sell computers to the public
The primary goals of purchasing include all EXCEPT: - Answers -Ensure the highest
quality raw materials are purchased
