MQM 227 Ch. 16 Exam Questions and Answers 100% Correct
Sourcing activities can vary greatly and depend on what? —Answer: The item being purchased
The custom-made Apple AirPods case is an example of a _____-specificity item. —Answer:
high
______ available products can be purchased using a relatively simple process. —Answer:
Widely
Which of the following is not a common constraint regarding vendor managed inventory?
Required service level
Maximum inventory level
Shipping terms
Billing transaction process —Answer: Shipping terms
What term is used to describe a practice where a customer purchases excess parts in advance?
—Answer: Forward buying
A one-time purchase is called what? —Answer: Spot purchase
_____ ______ is a program for automatically supplying groups of items to a customer on a
regular basis —Answer: Continuous
Replacement
A generic pizza box that can be used by multiple pizza shops is an example of a product with
____________ specificity. —Answer: low
In a _____ auction, vendors actually bid on the item in real time and often using Internet
software. —Answer: reverse
When the supplier takes full responsibility to manage items for the customer, the supplier is
performing —Answer: vendor managed inventory.
What are the drawbacks to forward buying? Check all that apply.
Shipment bulge
Lower purchase price
Higher supply chain costs
Large carrying costs —Answer: Shipment bulge
Higher supply chain costs
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, Large carrying costs
Which of the following terms describes the phenomenon of variability magnification as one
moves down the supply chain from customer to producer? —Answer: Bullwhip effect
Relative to evolving manufacturing (supply) process, stable processes have _____ quality
problems. —Answer: less
A solicitation that asks for a detailed proposal from a vendor interested in supplying an item —
Answer: Request for proposal
Specific criteria for identifying functional products include which of the following? Check all
that apply.
Few (10-20) variations
Long product life cycle
High contribution margins
Forecast errors below 1-2% —Answer: Few (10-20) variations
Long product life cycle
What type of products have a life cycle of just a few months? —Answer: Innovative
The bullwhip effect indications a lack of what among supply chain members? —Answer:
Synchronization
Which type of supply process is one where the manufacturing and technology base are mature?
—Answer: Stable
Relative to evolving manufacturing (supply) process, stable processes have ____ breakdowns.
—Answer: fewer
A _____ ____ ____ is commonly used for purchasing items that are more complex or expensive
and where there may be a number of potential vendors. —Answer: request for proposal
What type of products include staples that people buy in a wide range of retail outlets? —
Answer: Functional
Which of the following is an innovative product?
Personal computer
Breakfast cereal
Diapers
Pens —Answer: Personal computer
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Sourcing activities can vary greatly and depend on what? —Answer: The item being purchased
The custom-made Apple AirPods case is an example of a _____-specificity item. —Answer:
high
______ available products can be purchased using a relatively simple process. —Answer:
Widely
Which of the following is not a common constraint regarding vendor managed inventory?
Required service level
Maximum inventory level
Shipping terms
Billing transaction process —Answer: Shipping terms
What term is used to describe a practice where a customer purchases excess parts in advance?
—Answer: Forward buying
A one-time purchase is called what? —Answer: Spot purchase
_____ ______ is a program for automatically supplying groups of items to a customer on a
regular basis —Answer: Continuous
Replacement
A generic pizza box that can be used by multiple pizza shops is an example of a product with
____________ specificity. —Answer: low
In a _____ auction, vendors actually bid on the item in real time and often using Internet
software. —Answer: reverse
When the supplier takes full responsibility to manage items for the customer, the supplier is
performing —Answer: vendor managed inventory.
What are the drawbacks to forward buying? Check all that apply.
Shipment bulge
Lower purchase price
Higher supply chain costs
Large carrying costs —Answer: Shipment bulge
Higher supply chain costs
© 2025 All rights reserved
, Large carrying costs
Which of the following terms describes the phenomenon of variability magnification as one
moves down the supply chain from customer to producer? —Answer: Bullwhip effect
Relative to evolving manufacturing (supply) process, stable processes have _____ quality
problems. —Answer: less
A solicitation that asks for a detailed proposal from a vendor interested in supplying an item —
Answer: Request for proposal
Specific criteria for identifying functional products include which of the following? Check all
that apply.
Few (10-20) variations
Long product life cycle
High contribution margins
Forecast errors below 1-2% —Answer: Few (10-20) variations
Long product life cycle
What type of products have a life cycle of just a few months? —Answer: Innovative
The bullwhip effect indications a lack of what among supply chain members? —Answer:
Synchronization
Which type of supply process is one where the manufacturing and technology base are mature?
—Answer: Stable
Relative to evolving manufacturing (supply) process, stable processes have ____ breakdowns.
—Answer: fewer
A _____ ____ ____ is commonly used for purchasing items that are more complex or expensive
and where there may be a number of potential vendors. —Answer: request for proposal
What type of products include staples that people buy in a wide range of retail outlets? —
Answer: Functional
Which of the following is an innovative product?
Personal computer
Breakfast cereal
Diapers
Pens —Answer: Personal computer
© 2025 All rights reserved
