SCMN 3730: Exam 1 (Cole) Questions
and Answers Graded A+
Question : purchase of products or services at the right place,
delivered at the right time, of the right quality, in the right quantity, from the right source
CORRECT ANSWER : procurement
Question : cost reductions increase _
CORRECT ANSWER : margin
Question : procurement is a (primary/support) activity
CORRECT ANSWER : support
Question : lead times _, _ and _ the amount of time it takes
for the product to arrive
CORRECT ANSWER : stabilize, reduce, ensure
Question : value advantages
CORRECT ANSWER : quicker response, improved quality,
increased reliability, improved relationships, manage and mitigate risks, source innovation, tailored service, reliability, responsiveness
Question : cost advantages
CORRECT ANSWER : efficiency gains/utilization, reduce
purchasing costs, reduction in inventory levels, sharing capital investment, reduced waste, capacity utilization, asset turnover, schedule integration
Question : decentralized procurement organization with no
corporate role
CORRECT ANSWER : decentralized
Question : decentralized sourcing, but center led strategy,
voluntary commodity strategy collaboration across BU
CORRECT ANSWER : coordinated
Question : decentralized transactions, but center led strategy
and sourcing control
CORRECT ANSWER : hybrid
Question : central procurement organization for all
commodities with a single upward reporting structure
CORRECT ANSWER : centralized
Question : efficient supply chain + functional products
(match/mismatch)
CORRECT ANSWER : match (lean)
Question : efficient supply chain + innovative products
(match/mismatch)
CORRECT ANSWER : mismatch (too slow)
Question : responsive supply chain + functional products
(match/mismatch)
CORRECT ANSWER : mismatch (unnecessarily expensive)
Question : responsive supply chain + innovative products
(match/mismatch)
CORRECT ANSWER : match (agile)
Question : physically efficient approach to choosing suppliers
CORRECT ANSWER: cost and quality
Question : market responsive approach to choosing suppliers
CORRECT ANSWER : speed, flexibility and quality
Question : goal of postponement
CORRECT ANSWER : to delay product manufacturing or
distribution until consumer demand arrives to minimize inventories
Question : types of postponement
CORRECT ANSWER : manufacturing, geographic,
combined
Question : type of postponement: manufacturing one order at a time