Q&A Hero

Q: Order retrieval is the final phase of the order cycle.

Q: Pick-to-light technology is an order picking technique that has grown in popularity in recent years.

Q: Travel time accounts for a majority of an order picker's total pick time.

Q: Order processing often represents the best opportunity to improve the effectiveness and efficiency of the order cycle.

Q: A commonsense approach is to fill an order from the facility location that is closest to the customer, with the idea that this should generate lower transportation costs as well as a shorter order cycle time.

Q: The order triage function refers to correcting mistakes that may occur with order picking.

Q: Order information is checked for completeness and accuracy in the order processing component of the order cycle.

Q: There are four possible ways to transmit orders.

Q: The order cycle is usually the time from when a customer places an order to when the firm receives the order.

Q: In general terms, order management refers to how a firm handles incoming orders.

Q: To date, most implementations of collaborative planning, forecasting, and replenishment (CPFR) have resulted in increased sales revenues and increased safety stock.

Q: Forecasting accuracy refers to the relationship between the actual and forecasted demand.

Q: Judgmental forecasting is appropriate when there is little or no historical data.

Q: What do you suggest should be done to bring moral values into the situation so that the developing countries are somewhat in accordance with Western standards? Keep in mind that the risks involved in such environments are much higher than the risks of conducting business in Western markets. Also, note that some cultures see bribery as a way to better distribute wealth among their citizens.

Q: If Terim puts together this transaction, is he acting ethically? Discuss.

Q: Regarding the supply chain, howif, at allshould bribes be included? What functions do they serve?

Q: What other costs and risks are involved in these proposed transactions, including some not mentioned in the case?

Q: Which option should Terim recommend? Why?

Q: What are the total costs given in the case for the option of moving via Syria?

Q: What are the total costs given in the case for the option of moving via Romania?

Q: Should Terim let somebody else complete the transaction because he knows that if he does not sell to the North Koreans somebody else will?

Q: The ways that organizations manage the investment recovery for excess, obsolete, scrap, and waste materials should be influenced by the materials' classification.

Q: Obsolete materials have no economic value.

Q: Scrap materials are no longer serviceable, have been discarded, or are a by-product of the production process.

Q: Excess materials refer to stock that exceeds the reasonable requirements of an organization.

Q: Investment recovery is often the responsibility of the finance manager.

Q: Investment recovery identifies opportunities to recover revenues or reduce costs associated with scrap, surplus, obsolete, and waste materials.

Q: The relevance, importance, and challenges associated with socially responsible procurement are likely to lessen in the coming years.

Q: With respect to gift giving and gift receiving, bribes refer to money paid after an exchange.

Q: Diversity and philanthropy are two dimensions of socially responsible procurement.

Q: Sustainable procurement refers to the integration of social and environmental considerations into all stages of the purchasing process.

Q: Dovetailing refers to procuring products from suppliers closer to one's own facilities.

Q: When taking an activity-based costing approach, firms consider all the costs that can be assigned to the acquisition, use, and maintenance of a purchase.

Q: Implementation is often a major shortcoming of many global procurement plans.

Q: Because global sourcing increases the distance that components and inputs must be moved, managers must consider the tradeoff between transportation and holding costs.

Q: Problem recognition is the first step in global procurement.

Q: Global procurement is primarily driven by the input-output and market-access strategies.

Q: Global procurement refers to buying components and inputs anywhere in the world.

Q: One reason for the growth of the supplier development concept is that achieving competitive advantage in the supply chain is predicated on purchasers adopting a more aggressive approach.

Q: Supplier development is synonymous with reverse marketing.

Q: Supply management refers to a degree of aggressive procurement not normally encountered in supplier selection.

Q: Leverage refers to the high importance, low complexity category of Kraljic's Portfolio Matrix.

Q: Bottleneck refers to the low importance, low complexity category of Kraljic's Portfolio Matrix.

Q: The Optimal Cost Reliability Model is used by many managers to classify corporate purchases in terms of their importance and supply complexity.

Q: Supplier selection and evaluation generally involve multiple criteria, and these criteria can vary in both number and importance, depending on the particular situation.

Q: Supplier scorecards can be categorical, weighted point, or cost based in nature.

Q: Supplier scorecards can involvement assessments of a supplier's structure, resources, technology, health, and responsibility.

Q: The final step of the supplier selection process is to evaluate the decision.

Q: Single sourcing consolidates purchase volume with a single supplier with the hopes of enjoying lower costs per unit.

Q: A benefit to multiple sourcing is increased cooperation and communication in a supply relationship.

Q: Trade shows, trade publications, and the Internet are sources that can be used to identify possible suppliers.

Q: The first step in supplier selection and evaluation is situation analysis.

Q: One of procurement's most important responsibilities involves supplier selection and evaluation.

Q: First and foremost, procurement's objectives must manage the purchasing process effectively and efficiently.

Q: One benefit to procurement cards is that they are easily used outside their domestic market.

Q: A reduction in the number of invoices is one benefit to procurement cards.

Q: Procurement and purchasing are viewed as synonymous terms.

Q: A contemporary procurement manager might have responsibility for reducing cycle times and for generating additional revenues by collaborating with the marketing department.

Q: Procurement's historical focus in many organizations was to minimize the total number of outside suppliers.

Q: Procurement's costs often range between 40 " 60% of an organization's revenues.

Q: Procurement refers to the raw materials, component parts, and supplies bought from outside organizations to support a company's operations.

Q: ____ materials have no economic value. a. waste b. scrap c. obsolete d. excess

Q: ____ materials are no longer serviceable, have been discarded, or are a by-product of the production process. a. waste b. obsolete c. scrap d. excess

Q: ____ materials refer to stock that exceeds the reasonable requirements of an organization. a. waste b. excess c. obsolete d. scrap

Q: ____ identifies opportunities to recover revenues or reduce costs associated with scrap, surplus, obsolete, and waste materials. a. recycling b. reuse c. reverse logistics d. investment recovery

Q: With respect to gift giving and gift receiving, ____ refers to money paid after an exchange. a. a kickback b. agglomeration c. a bribe d. dovetailing

Q: With respect to gift giving and gift receiving, ____ refers to money paid before an exchange. a. a kickback b. agglomeration c. a bribe d. dovetailing

Q: Which of the following is not a dimension associated with socially responsible procurement? a. profit b. safety c. the environment d. human rights e. all of the above are dimensions associated with socially responsible procurement

Q: Procuring products from suppliers close to one's own facilities refers to ____. a. agglomeration b. near-sourcing c. dovetailing d. outsourcing

Q: What concept refers to when firms consider all the costs that can be assigned to the acquisition, use, and maintenance of a purchase? a. activity-based costing b. cost trade-offs c. the systems approach d. total cost of ownership

Q: ____ is often a major shortcoming to many global procurement plans. a. monitoring and improving b. specification c. implementation d. evaluation

Q: What is the first step in a global sourcing development model? a. planning b. specification c. situation analysis d. problem recognition

Q: Which of the following is false? a. in the factor-input strategy, an organization is seeking low costs or high quality sources of supply b. global procurement refers to buying components and inputs anywhere in the world c. planning is the first step in global procurement d. global procurement is driven by the factor-input and the market-access strategies e. all of the above are true

Q: Which of the following is not a reason for why purchasers are adopting a more proactive and aggressive role in the procurement process? a. there are myriad inefficiencies associated with suppliers initiating marketing efforts towards purchasers b. achieving competitive advantage in the supply chain c. an excess number of suppliers currently exist d. purchasers may be aware of important benefits that are not known to the supplier e. all of the above are reasons

Q: Supplier development is synonymous with ____. a. supplier selection and evaluation b. procurement c. materials management d. reverse marketing

Q: A degree of aggressive procurement involvement not normally encountered in supplier selection refers to ____. a. supply management b. supplier development c. materials management d. physical supply

Q: Which of the following is not a category associated with Kraljic's Portfolio Matrix? a. bottleneck b. leverage c. noncritical d. strategic e. all of the above are categories associated with Kraljic's Portfolio Matrix

Q: Kraljic's Portfolio Matrix ____. a. provides a framework for evaluating warehousing decisions b. is used by many managers to classify corporate purchases in terms of their importance and supply complexity c. allows managers to evaluate whether to add, or not add, product lines d. is synonymous with the total cost of ownership

Q: Which of the following statements is false? a. supplier selection and evaluation generally involves multiple criteria b. the evolution of business practices and philosophies may require new supplier selection criteria c. selecting suppliers is the final step of the supplier selection and evaluation process d. some supplier selection criteria may be contradictory

Q: Single sourcing consolidates purchase volume with a single supplier in hopes of increasing cooperation and communication in the supply relationship as well as ____. a. greater supply risk mitigation b. increased amounts of competition c. improved market intelligence d. lower costs per unit