SCM FINAL EXAM QUESTIONS AND ANSWERS
Evidence of the growth and influence of supply management in an organization
includes: - Answers - involvement in strategic planning and executive status of the chief
supply officer.
Total Quality Management: (Choose all that apply)
Is managed proactively
Involves only production processes
Focuses on the customer
Ensures on-time delivery - Answers - Managed Proactively
Focuses on the customer
The document that lists and details the contents and conditions of a shipment is called
______. - Answers - the bill of lading
Company image may be directly influenced by: - Answers - treating suppliers in a fair
and equitable manner, complying with regulatory requirements and sustainability
practices of suppliers.
The consignee is ______. - Answers - the customer receiving the product
Which of these is not a cost of quality?
External failure cost
Prevention cost
Design cost
Inspection cost - Answers - design cost
The use of the concepts of purchasing, procurement, supply, and supply chain
management will vary from organization to organization depending on: - Answers - the
organization's stage of development and/or sophistication, the industry in which they
operate and the organization's competitive position.
If you want the consignee to be responsible for goods while they are in-transit you
should ship products ______. - Answers - to FOB origin
,Design-for-Six-Sigma programs offer a set of quality standards accepted by all
industries.
True or False - Answers - False
All of the following represent external failure cost EXCEPT the cost of:
Scrapping defective raw material.
Repairing items covered by warranty.
Replacing defective items found by customers.
Loss of goodwill and reputation. - Answers - Scrapping Defective Raw Material
The design and management of seamless, value-added processes across
organizational boundaries to meet the needs of the end customer is called: - Answers -
Supply chain management
Generally the least costly method of moving product that is not gaseous, liquid, or slurry
is: - Answers - Water
Supply has the potential to contribute to: - Answers - profitability, competitive position
and sustainability performance.
If a transportation vehicle has completed a delivery and is returned empty, the situation
is called a: - Answers - deadhead
Rachel loves to bake cookies, but she has an old oven that has trouble maintaining a
constant temperature. If the acceptable temperature range for making the cookies is
350 plus or minus 5 degrees, what is the allowable standard deviation in the
temperature of her oven in order to achieve a Six Sigma level of quality?
Standard Dev = ??? - Answers - Standard Dev = .833 degrees
= 10 degree range / (6*2)
For an organization with revenue of $100 million, purchases of $60 million, and profit of
$8 million before tax, a 10 percent reduction in purchase spend would result in an
increase in profit of: - Answers - 75%
Among the following choices which is typically the most expensive transportation mode:
, Air
Water
Truck
Rail - Answers - air
Persons with responsibilities in which business function will make decisions regarding
new product testing programs? - Answers - Marketing
Why is product quality sometimes poorly defined in a firm? - Answers - Managers are
not clear on what characteristics customers care most about.
Holistic measures of quality are difficult to develop.
Managers in different functional areas tend to emphasize different dimensions of quality.
All these answers are correct.
Since 1995 the use of intermodal transportation has: - Answers - increased significantly
Interest in the supply function as a managerial activity began: - Answers - during World
Wars I and II because of global materials shortages.
The return on assets effect (ROA) quantifies and measures: - Answers - the impact of
supply actions on inventory and the balance sheet.
The mode of transportation hauling the most tonnage is: - Answers - truck
Suppose that the Dallas School District wants to achieve Six Sigma quality levels of
performance in delivering students to school. They have established a 33-minute
window as an acceptable range within which buses carrying students should arrive at
school.
a. What is the maximum allowable standard deviation of arrival times required in order
to achieve this standard of quality? (Round your answer to 2 decimal places.)
Standard Dev= ???
b. If they achieve this standard, about how many times out of a million deliveries will a
bus deliver students either too early or too late? (Round your answer to 1 decimal
place.)
Evidence of the growth and influence of supply management in an organization
includes: - Answers - involvement in strategic planning and executive status of the chief
supply officer.
Total Quality Management: (Choose all that apply)
Is managed proactively
Involves only production processes
Focuses on the customer
Ensures on-time delivery - Answers - Managed Proactively
Focuses on the customer
The document that lists and details the contents and conditions of a shipment is called
______. - Answers - the bill of lading
Company image may be directly influenced by: - Answers - treating suppliers in a fair
and equitable manner, complying with regulatory requirements and sustainability
practices of suppliers.
The consignee is ______. - Answers - the customer receiving the product
Which of these is not a cost of quality?
External failure cost
Prevention cost
Design cost
Inspection cost - Answers - design cost
The use of the concepts of purchasing, procurement, supply, and supply chain
management will vary from organization to organization depending on: - Answers - the
organization's stage of development and/or sophistication, the industry in which they
operate and the organization's competitive position.
If you want the consignee to be responsible for goods while they are in-transit you
should ship products ______. - Answers - to FOB origin
,Design-for-Six-Sigma programs offer a set of quality standards accepted by all
industries.
True or False - Answers - False
All of the following represent external failure cost EXCEPT the cost of:
Scrapping defective raw material.
Repairing items covered by warranty.
Replacing defective items found by customers.
Loss of goodwill and reputation. - Answers - Scrapping Defective Raw Material
The design and management of seamless, value-added processes across
organizational boundaries to meet the needs of the end customer is called: - Answers -
Supply chain management
Generally the least costly method of moving product that is not gaseous, liquid, or slurry
is: - Answers - Water
Supply has the potential to contribute to: - Answers - profitability, competitive position
and sustainability performance.
If a transportation vehicle has completed a delivery and is returned empty, the situation
is called a: - Answers - deadhead
Rachel loves to bake cookies, but she has an old oven that has trouble maintaining a
constant temperature. If the acceptable temperature range for making the cookies is
350 plus or minus 5 degrees, what is the allowable standard deviation in the
temperature of her oven in order to achieve a Six Sigma level of quality?
Standard Dev = ??? - Answers - Standard Dev = .833 degrees
= 10 degree range / (6*2)
For an organization with revenue of $100 million, purchases of $60 million, and profit of
$8 million before tax, a 10 percent reduction in purchase spend would result in an
increase in profit of: - Answers - 75%
Among the following choices which is typically the most expensive transportation mode:
, Air
Water
Truck
Rail - Answers - air
Persons with responsibilities in which business function will make decisions regarding
new product testing programs? - Answers - Marketing
Why is product quality sometimes poorly defined in a firm? - Answers - Managers are
not clear on what characteristics customers care most about.
Holistic measures of quality are difficult to develop.
Managers in different functional areas tend to emphasize different dimensions of quality.
All these answers are correct.
Since 1995 the use of intermodal transportation has: - Answers - increased significantly
Interest in the supply function as a managerial activity began: - Answers - during World
Wars I and II because of global materials shortages.
The return on assets effect (ROA) quantifies and measures: - Answers - the impact of
supply actions on inventory and the balance sheet.
The mode of transportation hauling the most tonnage is: - Answers - truck
Suppose that the Dallas School District wants to achieve Six Sigma quality levels of
performance in delivering students to school. They have established a 33-minute
window as an acceptable range within which buses carrying students should arrive at
school.
a. What is the maximum allowable standard deviation of arrival times required in order
to achieve this standard of quality? (Round your answer to 2 decimal places.)
Standard Dev= ???
b. If they achieve this standard, about how many times out of a million deliveries will a
bus deliver students either too early or too late? (Round your answer to 1 decimal
place.)
