Q&A Hero

Q: Multiple sourcing uses more than one supplier in hopes of increased competition, improved market intelligence, and ____ a. greater supply risk mitigation b. lower costs per unit c. increased cooperation d. increased communication

Q: What is the final step in the supplier selection and evaluation process? a. provide feedback b. select suppliers c. implement decision d. evaluate decision

Q: The text outlines a supplier selection and evaluation process that consists of ____ steps. a. 4 b. 5 c. 6 d. 7

Q: With respect to the supplier selection and evaluation process, ____ looks at both the internal and external environment within which the supply decision is to be made. a. identify the need for supply b. identify suppliers c. situation analysis d. evaluate suppliers

Q: Buying the right products, at the right price, from the right source, at the right specifications, in the right quantity, for delivery at the right time to the right internal customer is associated with what procurement objective? a. managing the supply base b. managing the purchasing process effectively and efficiently c. supporting operational requirements d. supporting organizational goals and objectives

Q: A focus on satisfying internal customers is associated with which procurement objective? a. managing the supply base b. supporting operational requirements c. supporting organizational goals and objectives d. managing the purchasing process effectively and efficiently

Q: Which of the following is not a potential procurement objective? a. minimizing procurement costs b. supporting organizational goals and objectives c. managing the supply base d. supporting operational requirements e. all of the above are potential objectives

Q: Which of the following is not a potential challenge of using procurement cards (p-cards) in non-domestic markets? a. currency differences b. cultural issues c. difference in card acceptance policies d. availability of technology e. all of the above are challenges

Q: Which of the following is not a potential benefit associated with procurement cards (p-cards)? a. a reduced number of invoices b. users can make purchases in a more timely fashion c. suppliers can be paid in a more timely fashion d. ability to use them in non-domestic markets e. all of the above are potential benefits

Q: Procurement and ____ are viewed as synonymous terms. a. materials management b. supply management c. purchasing d. inbound logistics

Q: Procurement's historical focus in many organizations was to ____. a. incur minimal supply disruptions b. use a limited number of suppliers c. minimize loss and damage d. achieve the lowest possible cost

Q: Procurement costs often range between ____ of an organization's revenues. a. 60-80% b. 50-70% c. 40-60% d. 30-50%

Q: ____ refers to the raw materials, component parts, and supplies bought from outside organizations to support a company's operations. a. inbound logistics b. procurement c. materials management d. supply management e. none of the above

Q: Should investment recovery be the responsibility of the procurement manager? If yes, why? If not, which party (parties) should be responsible for investment recovery?

Q: Distinguish between excess, obsolete, scrap, and waste materials.

Q: Discuss some of the ethical issues that are associated with procurement.

Q: Name, and give an example of, the five dimensions of socially responsible purchasing.

Q: Why are some firms considering near-sourcing?

Q: What is total cost of ownership and why is it important to consider?

Q: Pick, and discuss, two components of the global sourcing development model presented in this chapter.

Q: What are some of the challenges of implementing a global sourcing strategy?

Q: What are the components of the global sourcing development model presented in this chapter?

Q: Define supplier development and explain why it is becoming more prominent in some organizations.

Q: Describe Kraljic's Portfolio Matrix. What are the four categories of this segmentation approach?

Q: Distinguish between supplier audits and supplier scorecards. When should each be used?

Q: Discuss the factors that make supplier selection and evaluation difficult.

Q: What are the two primary approaches for evaluating suppliers? How do they differ?

Q: Distinguish between a single sourcing approach and a multiple sourcing approach.

Q: Name and describe the steps in the supplier selection and evaluation process.

Q: Discuss three potential procurement objectives.

Q: Discuss the benefits and potential challenges of using electronic procurement cards.

Q: Contrast procurement's historical focus to its more strategic orientation today.

Q: What is procurement? What is its relevance to logistics?

Q: What is the difference between a lean and an agile supply chain? Under which circumstances is each an appropriate supply chain approach to pursue?

Q: What are four key enablers of supply chain management?

Q: Discuss how the logistics function contributes to the supply chain management processes established in the SCOR and GSCF models.

Q: Discuss the SCOR and GSCF models of supply chain management.

Q: Discuss the differences between a supply chain and supply chain management.

Q: Until the policy you recommend in your answer to Question 3 takes effect, how would you handle the immediate problem of retailers wanting to return unsold Jungle Jim the Jogger dolls?

Q: Assume that you are Cheryl Guridi, the firm's logistics manager. Do you think that the returns policy favored by the logistics manager would differ from what would be best for the firm? Why or why not?

Q: On the basis of the policy in your answer to Question 3, develop instructions for the Johnson Toy Company distribution and accounting departments with respect to their roles and procedures in the handling of returns.

Q: Assume that it is decided to prepare a statement on returns to be distributed to all retailers and that it should be less than a single double-spaced page. Prepare such a statement.

Q: Should this policy, if adopted, be printed and distributed to all of the retailers who handle Johnson Toy Company products? Why or why not? If it should not be distributed to them, who should receive copies?

Q: Propose a policy for handling returns that should be adopted by the Johnson Toy Company. Be certain to list circumstances under which exceptions would be allowed. Should it apply to the Jungle Jim dolls?

Q: Answer Question 1, but from the standpoint of an individual interested in marketing.

Q: From the standpoint of an individual concerned with accounting controls, discuss and evaluate Johnson Toy Company's present policies for handling returned items.

Q: Broadly speaking, organizations can pursue three primary methodsvertical integration, formal contracts, informal agreementswhen attempting to integrate their supply chains.

Q: Horizontal integration refers to where one organization owns multiple participants in a supply chain.

Q: Supply chain agreements should be designed to reward all participants when collaborative ventures are successful and all participants should share the consequences when these ventures are less successful than desired.

Q: An individual firm can only be involved in one supply chain at a time.

Q: Supply chain integration tends to be more challenging in global, as opposed to domestic, supply chains.

Q: Corporate cultures should not be considered when designing a supply chain.

Q: A best-of-breed approach chooses the best software application for a particular function.

Q: Today, computer hardware is a larger barrier than computer software to interorganizational collaboration.

Q: Although customer loyalty programs can provide highly detailed data to companies, there are some who believe that these programs potentially violate a customer's right to privacy.

Q: Supply chain analytics combines technology with manual employee effort to identify trends, perform comparisons, and highlight opportunities in supply chain processes, even when large amounts of data are involved.

Q: One cause of the bullwhip effect is asymmetrical information among supply chain participants.

Q: Actual senior management commitment to supply chain management occurs in one of every two organizations.

Q: Top management is sometimes hesitant to fully commit to supply chain management.

Q: The overall global climate for business has shifted toward allowing more cooperation among firmswhich should help supply chain management.

Q: Regulatory considerations represent a bigger obstacle than political considerations to supply chain management.

Q: A fourth-party logistics provider is a supply chain facilitator that has achieved ISO 9000 certification.

Q: The decision to use third-party logistics companies can be driven by strategic or tactical considerations.

Q: The general idea behind third-party logistics is that one company allows a specialist company to provide it with one or more logistics functions.

Q: Enhanced communications across organizations in a supply chain is only dependent on the technological capabilities of the organizations

Q: The Internet has been referred to as the greatest force of commodization known to man, for both goods and services.

Q: A willingness to share information and buying decisions based on value rather than cost or price are two characteristics of supply chain partnerships.

Q: Tactical information sharing offers the best opportunity for improving supply chain performance.

Q: Coopetition refers to cooperative relationships between members of a supply chain to enhance the overall business performance of all parties.

Q: A primary objective of supply chain management is to optimize the performance of the supply chain as a whole.

Q: Big-box retailers have been at the center of changes taking place that affect the supply chain.

Q: Relational changes cannot be successful without information sharing among various participants.

Q: Supply chain disruptions (e.g., terrorist attacks, natural disasters) have caused some supply chains to reassess their emphasis on inventory reduction.

Q: The boomerang effect refers to variability in demand orders among supply chain members.

Q: Leagility refers to a supply chain that combines the lean and agile paradigms.

Q: A perfect order simultaneously achieves relevant customer metrics.

Q: With respect to supply chains, relevancy focuses on an organization's ability to respond to changes in demand with respect to volume and variety.

Q: Because customer needs and wants change relatively quickly, supply chains should be fast and lean.

Q: The Global Supply Chain Forum (GSCF) Model identifies eight relevant processes associated with supply chain management.

Q: The Supply Chain Operations Reference (SCOR) model identifies five key processes associate with supply chain management.