MBA 6205 - Quiz Ch 8 and Ch 9 UPDATED ACTUAL Exam Questions and CORRECT Answers

MBA 6205 - Quiz Ch 8 and Ch 9 UPDATED
ACTUAL Exam Questions and CORRECT
Answers
False - TCO (Total Cost of Ownership) - CORRECT ANSWER - TCO in context of
supply chain management is an acronym for Total Cost of Outsourcing.


- True
- False


frequency - CORRECT ANSWER - A major difference between critical projects and
strategic items is the _________________ of the purchase.


- volume
- cost
- frequency
- quality


competitive - CORRECT ANSWER - Companies may decide to insource previously
outsourced activities based on the dynamics of the market and their _______________ strategy.


- supplier
- competitive
- financial
- global


False - cost drivers are not inherently good or bad - CORRECT ANSWER - Costs and cost
drivers are inherently bad; they must always be analyzed in relation to the value that they add to
the organization.

, - True
- False


non standard - CORRECT ANSWER - In general, ______________ items are more costly
because there aren't as great of economies of scale.


- MRO
- forged
- fabricated
- non standard


True - CORRECT ANSWER - Contract manufacturing involves a third party that makes
an end product or major components under another company's brand.


- True
- False


False - TCO also applies to services as well as capital acquisitions - CORRECT
ANSWER - TCO applies strictly to the purchase of materials, parts, and services and not
to capital acquisitions.


- True
- False


True - CORRECT ANSWER - There are many potential risks associated with outsourcing
that need to be identified and investigated both in the feasibility phase of outsourcing and during
the make-or-buy analysis phase.


- True