ANSWERS
1. What do lean operations involve?
Lowering productivity to maintain quality
reducing waste throughout the entire supply chain
Decreasing the need for skilled labor
cutting costs to improve the business's image
2. If a company wants to improve its responsiveness in the supply chain, which
performance measure should it focus on enhancing?
Technology/Innovation measures
Cost measures
Time/Delivery/Responsiveness measures
Quality measures
3. What is the primary agreement made between the supplier and customer in
Vendor Managed Inventory?
Inventory turnover rates and sales forecasts
Product specifications and quality standards
Reorder points and economic order quantities
Delivery schedules and payment terms
4. Describe the difference between an RFQ and an RFP in procurement.
,An RFQ is used for routine items, while an RFP is used for more
complex products.
, An RFQ is issued only to existing suppliers, while an RFP can be
issued to new suppliers.
An RFQ is a formal contract, while an RFP is an informal inquiry.
An RFQ is for services, while an RFP is for goods.
5. A company-wide quality process that focuses on measuring the number of
defects that occur and systematically eliminating them in order to get as
close to "zero defects" as possible.
Total Quality Management
ISO 9000
Inventory management
Six Sigma
6. Describe how biofuels contribute to ethical sustainable sourcing.
Biofuels are primarily used for transportation and have no impact on
sustainability.
Biofuels are only beneficial for economic growth, not for
sustainability.
Biofuels are derived from non-renewable resources, making them
unsustainable.
Biofuels provide a renewable energy source that reduces reliance
on fossil fuels, promoting sustainability.
7. What are finished goods?
Raw materials for production
Packaging materials
, Products ready for shipment
Defective items
8. Which of the following would be a good reason to outsource (buy) versus
making?
To utilize existing capacity within a company's own firm
A firm lacks the technology or expertise to produce an item
To have more direct control over the design and production of an
end item
No competent supplier presently produces the needed item
9. A document or electronic form that identifies the requisitioner; specifies the
delivery location and date needed; identifies the item numbers,
descriptions, quantity, and price of each item requested; and may suggest a
supplier.
purchase requisition
A document or electronic form that identifies the requisitioner;
specifies the delivery location and date needed; identifies the item
numbers, descriptions, quantity, and price of each item requested;
and may suggest a supplier.
10. Describe what is meant by 'partially processed materials' in the context of
WIP inventory.
Partially processed materials are raw materials that have not yet
entered production.
Partially processed materials are products that have been sold but
not yet delivered.