SCM Full key Exam with 100% Correct
Answers
1.Which of the following is not one of the features of the new model of progressive
purchasing?
a. Developing closer relationships with important suppliers.
b. Performing due diligence on suppliers before awarding longer-term contracts.
c. Focusing primarily on price analysis and short term contracts.
d. Conducting worldwide Internet searches for the best sources of supply.
e. Inviting key suppliers to participate in product and process development. - ANSWER-
C
2. Which of the following is not one of the factors driving an emphasis on supply chain
management?
a. An increasing emphasis on domestic sourcing due to the longer lead times and
higher levels of pipeline inventories associated with global sourcing.
b. The cost and availability of information resources among entities in the supply chain
that allow easy linkages that eliminate time delays in the network.
c. The level of competition in both domestic and international markets requires
organizations to be fast, agile, and flexible.
d. Customer expectations and requirements that are becoming much more demanding.
e. The ability of an organization's supply chain to identify and mitigate risk minimizes
disruptions in both supply and downstream product or services to mitigate the impact on
lost sales. - ANSWER-a
3. _____ is a functional group (i.e., a formal entity on the organizational chart as well as
a functional activity (i.e., buying goods and services).
a. Engineering
b. Purchasing
c. Quality assurance
d. Logistics
e. Treasury operations - ANSWER-B
4. The _____ is a change index, and generally a rating over 50 indicates that the
economy is expanding.
a. Consumer Price Index
b. Producer Price Index
c. ISM Report on Business
d. rate of inflation
e. None of the above. - ANSWER-C
,5. According to the Institute for Supply Management, _____ is the identification,
acquisition, access, positioning, and management of resources and related capabilities
an organization needs or potentially needs in the attainment of its strategic objectives.
a. supply chain management
b. procurement
c. logistics
d. supply management
e. distribution - ANSWER-D
6. Instead of adversarial relationships which characterize _____, _____ features a long-
term, win-win relationship between a buying company and specially selected suppliers.
a. traditional purchasing....supply management
b. traditional purchasing....logistics management
c. supply management....traditional purchasing
d. strategic sourcing....supply management
e. supply chain management....strategic sourcing - ANSWER-A
7. A _____ is a set of three or more organizations linked directly by one or more of the
upstream or downstream flows of products, services, finances, and information from a
source to a customer.
a. process
b. manufacturing system
c. value chain
d. social media chain
e. supply chain - ANSWER-E
8. All of the following are typical processes involved in supply chain management
except _____.
a. new-product development
b. customer-order fulfillment
c. supplier evaluation and selection
d. demand and supply planning
e. cash flow management - ANSWER-E
9. According to Michael Porter, a firm's _____ is composed of primary and secondary
support activities that can lead to competitive advantage when configured properly.
a. supply chain
b. process
c. value chain
d. marketing channel
e. core competency - ANSWER-C
10. The _____ states that success is a function of effectively managing a linked group
of firms past first-level suppliers or customers.
a. supply chain orientation
,b. value chain concept
c. traditional purchasing perspective
d. extended enterprise concept
e. process orientation - ANSWER-D
11. _____ are those items provided by suppliers and used directly during production or
service delivery.
a. Direct materials
b. Indirect materials
c. Indirect services
d. Internal materials
e. Vendor managed inventories - ANSWER-A
12. Which of the following is an example of a purchased direct item for a manufacturing
firm?
a. Parts and components.
b. Travel.
c. Office and janitorial supplies.
d. Advertising and media.
e. Personal computers. - ANSWER-A
13. Within the downstream portion of a supply chain, _____ are responsible for the
actual movement of materials between locations.
a. buyers
b. trucking firms
c. logistics managers
d. accountants
e. purchasing managers - ANSWER-C
14.Which of the following is not an example of a typical resource shared between a
buyer and supplier?
a. Dedicated capacity.
b. Specific information.
c. Technological capabilities.
d. Direct financial support.
e. Advertising and media. - ANSWER-E
15. All of the following are examples of demand planning activities except _____.
a. forecasts of anticipated demand
b. accounts payable
c. inventory adjustments
d. orders taken but not filled
e. spare parts and aftermarket requirements - ANSWER-B
, _____ schedules the firm's output; while _____ is the process of taking demand data
and developing a supply, production, and logistics network capable of satisfying
demand requirements.
a. Inventory control....quality control
b. Quality control....supply planning
c. Order processing....material control
d. Demand planning....customer service
e. Demand planning....supply planning - ANSWER-E
17. _____ involves generating the materials release, contacting a supplier directly
concerning changes, and monitoring the status of inbound shipments.
a. Order processing
b. Material control
c. Warehousing
d. Customer service
e. Quality control - ANSWER-B
18._____ helps ensure that customers receive material when and where they require it
and represents the key link between the producer and the external customer.
a. Order processing
b. Inbound transportation
c. Customer service
d. Scheduling
e. Inventory control - ANSWER-A
19. The _____ activity involves physically getting a product ready for distribution to the
customer.
a. customer service
b. material control
c. materials handling
d. quality control
e. shipping - ANSWER-E
20. Which of the following is not one of the four enablers of purchasing and supply chain
management?
a. Sufficient cash flow and large on-hand cash deposits.
b. Capable human resources.
c. Proper organizational design.
d. Real-time collaborative technology capabilities.
e. Right measures and measurement systems. - ANSWER-A
21.Recent research indicates that all of the following are top knowledge areas for
purchasers except _____.
a. supplier relationship management
b. total cost analysis
c. supplier analysis
Answers
1.Which of the following is not one of the features of the new model of progressive
purchasing?
a. Developing closer relationships with important suppliers.
b. Performing due diligence on suppliers before awarding longer-term contracts.
c. Focusing primarily on price analysis and short term contracts.
d. Conducting worldwide Internet searches for the best sources of supply.
e. Inviting key suppliers to participate in product and process development. - ANSWER-
C
2. Which of the following is not one of the factors driving an emphasis on supply chain
management?
a. An increasing emphasis on domestic sourcing due to the longer lead times and
higher levels of pipeline inventories associated with global sourcing.
b. The cost and availability of information resources among entities in the supply chain
that allow easy linkages that eliminate time delays in the network.
c. The level of competition in both domestic and international markets requires
organizations to be fast, agile, and flexible.
d. Customer expectations and requirements that are becoming much more demanding.
e. The ability of an organization's supply chain to identify and mitigate risk minimizes
disruptions in both supply and downstream product or services to mitigate the impact on
lost sales. - ANSWER-a
3. _____ is a functional group (i.e., a formal entity on the organizational chart as well as
a functional activity (i.e., buying goods and services).
a. Engineering
b. Purchasing
c. Quality assurance
d. Logistics
e. Treasury operations - ANSWER-B
4. The _____ is a change index, and generally a rating over 50 indicates that the
economy is expanding.
a. Consumer Price Index
b. Producer Price Index
c. ISM Report on Business
d. rate of inflation
e. None of the above. - ANSWER-C
,5. According to the Institute for Supply Management, _____ is the identification,
acquisition, access, positioning, and management of resources and related capabilities
an organization needs or potentially needs in the attainment of its strategic objectives.
a. supply chain management
b. procurement
c. logistics
d. supply management
e. distribution - ANSWER-D
6. Instead of adversarial relationships which characterize _____, _____ features a long-
term, win-win relationship between a buying company and specially selected suppliers.
a. traditional purchasing....supply management
b. traditional purchasing....logistics management
c. supply management....traditional purchasing
d. strategic sourcing....supply management
e. supply chain management....strategic sourcing - ANSWER-A
7. A _____ is a set of three or more organizations linked directly by one or more of the
upstream or downstream flows of products, services, finances, and information from a
source to a customer.
a. process
b. manufacturing system
c. value chain
d. social media chain
e. supply chain - ANSWER-E
8. All of the following are typical processes involved in supply chain management
except _____.
a. new-product development
b. customer-order fulfillment
c. supplier evaluation and selection
d. demand and supply planning
e. cash flow management - ANSWER-E
9. According to Michael Porter, a firm's _____ is composed of primary and secondary
support activities that can lead to competitive advantage when configured properly.
a. supply chain
b. process
c. value chain
d. marketing channel
e. core competency - ANSWER-C
10. The _____ states that success is a function of effectively managing a linked group
of firms past first-level suppliers or customers.
a. supply chain orientation
,b. value chain concept
c. traditional purchasing perspective
d. extended enterprise concept
e. process orientation - ANSWER-D
11. _____ are those items provided by suppliers and used directly during production or
service delivery.
a. Direct materials
b. Indirect materials
c. Indirect services
d. Internal materials
e. Vendor managed inventories - ANSWER-A
12. Which of the following is an example of a purchased direct item for a manufacturing
firm?
a. Parts and components.
b. Travel.
c. Office and janitorial supplies.
d. Advertising and media.
e. Personal computers. - ANSWER-A
13. Within the downstream portion of a supply chain, _____ are responsible for the
actual movement of materials between locations.
a. buyers
b. trucking firms
c. logistics managers
d. accountants
e. purchasing managers - ANSWER-C
14.Which of the following is not an example of a typical resource shared between a
buyer and supplier?
a. Dedicated capacity.
b. Specific information.
c. Technological capabilities.
d. Direct financial support.
e. Advertising and media. - ANSWER-E
15. All of the following are examples of demand planning activities except _____.
a. forecasts of anticipated demand
b. accounts payable
c. inventory adjustments
d. orders taken but not filled
e. spare parts and aftermarket requirements - ANSWER-B
, _____ schedules the firm's output; while _____ is the process of taking demand data
and developing a supply, production, and logistics network capable of satisfying
demand requirements.
a. Inventory control....quality control
b. Quality control....supply planning
c. Order processing....material control
d. Demand planning....customer service
e. Demand planning....supply planning - ANSWER-E
17. _____ involves generating the materials release, contacting a supplier directly
concerning changes, and monitoring the status of inbound shipments.
a. Order processing
b. Material control
c. Warehousing
d. Customer service
e. Quality control - ANSWER-B
18._____ helps ensure that customers receive material when and where they require it
and represents the key link between the producer and the external customer.
a. Order processing
b. Inbound transportation
c. Customer service
d. Scheduling
e. Inventory control - ANSWER-A
19. The _____ activity involves physically getting a product ready for distribution to the
customer.
a. customer service
b. material control
c. materials handling
d. quality control
e. shipping - ANSWER-E
20. Which of the following is not one of the four enablers of purchasing and supply chain
management?
a. Sufficient cash flow and large on-hand cash deposits.
b. Capable human resources.
c. Proper organizational design.
d. Real-time collaborative technology capabilities.
e. Right measures and measurement systems. - ANSWER-A
21.Recent research indicates that all of the following are top knowledge areas for
purchasers except _____.
a. supplier relationship management
b. total cost analysis
c. supplier analysis
