LSCM 3960 Exam 2 Answered
In the Evaluate Supply Source step of the Strategic Sourcing Process, the firm -
Answer- identifies all possible suppliers that might be able to satisfy the user's needs.
Procurement and materials management are related activities in supply chain
management. - Answer- True
In the Implement Sourcing Strategy step, the most important thing is to - Answer-
choose a supplier or suppliers, depending on the objectives of the sourcing decision.
Strategic sourcing as a process is far more broad and comprehensive than
procurement. Overall, the process starts with the formation of a - Answer- committee.
Which is not a form of purchasing? - Answer- process improvement
____ exist for basic raw materials such as grain, oil, and sugar. - Answer- commodity
markets
In the Item Procurement Importance Matrix, what describes high risk, low value? -
Answer- Distinctive
Total procurement price includes (choose the best answer): - Answer- product price,
transaction costs, and transportation costs
Six Sigma has an objective of making sure that companies have standard processes in
place that they follow: "Document what you do and do what you document" - Answer-
False
TQM represents a strategy in which the entire organization focuses on an examination
of process variability and continuous improvement. - Answer- True
There are several classifications of purchased items. Which of the following is NOT one
of these? - Answer- collaborative
In the Item Procurement Importance Matrix, what item is described as low risk, low
value? - Answer- Generics
Strategic source is same as procurement. - Answer- False
Landed costs are independent of FOB terms. - Answer- False
Which order does a strategic evolution to the sourcing process follow - Answer-
Traditional sourcing, strategic sourcing, e-enabled procurement, integrated sourcing
, One of the primary tradeoffs in DC design is space versus equipment. - Answer- True
Organizations may benefit substantially from the establishment of one or several
warehouses to reduce transportation costs. - Answer- True
The most important trade-off of the number of distribution centers is with ... - Answer-
transportation
The primary tradeoffs and relationships include the following - Answer- All of these
answers
1. Space vs. equipment
2. Equipment vs. people
3. People vs. space
Product handling includes both receiving and shipping. - Answer- True
The primary facility operations focus is - Answer- on the movement and storage of
product.
Inventory handling, storage, and processing facilities help supply chains create time and
place utility. - Answer- True
Distribution facilities can provide numerous services, depending on the requirements of
the supply chain. Which does not belong? - Answer- Activity
All of the following are important support functions for distribution execution EXCEPT -
Answer- Human resources management
According to the textbook, total cost of distribution is affected by all of the following
EXCEPT - Answer- IT investment
The roles of the distribution center include ____ (choose the best answer): - Answer-
balancing supply and demand, protecting against uncertainty, and promoting
transportation economies.
Speed is of the essence; running efficient distribution facilities and networks are not
nearly as critical. - Answer- False
Contract warehousing is different than 3PL warehousing. - Answer- False
Order accuracy and order completeness are the same. - Answer- False
The security function seeks to protect the organization from merchandise theft and
fraud. - Answer- True
Durability refers to - Answer- a characteristic that influences mode selection.
In the Evaluate Supply Source step of the Strategic Sourcing Process, the firm -
Answer- identifies all possible suppliers that might be able to satisfy the user's needs.
Procurement and materials management are related activities in supply chain
management. - Answer- True
In the Implement Sourcing Strategy step, the most important thing is to - Answer-
choose a supplier or suppliers, depending on the objectives of the sourcing decision.
Strategic sourcing as a process is far more broad and comprehensive than
procurement. Overall, the process starts with the formation of a - Answer- committee.
Which is not a form of purchasing? - Answer- process improvement
____ exist for basic raw materials such as grain, oil, and sugar. - Answer- commodity
markets
In the Item Procurement Importance Matrix, what describes high risk, low value? -
Answer- Distinctive
Total procurement price includes (choose the best answer): - Answer- product price,
transaction costs, and transportation costs
Six Sigma has an objective of making sure that companies have standard processes in
place that they follow: "Document what you do and do what you document" - Answer-
False
TQM represents a strategy in which the entire organization focuses on an examination
of process variability and continuous improvement. - Answer- True
There are several classifications of purchased items. Which of the following is NOT one
of these? - Answer- collaborative
In the Item Procurement Importance Matrix, what item is described as low risk, low
value? - Answer- Generics
Strategic source is same as procurement. - Answer- False
Landed costs are independent of FOB terms. - Answer- False
Which order does a strategic evolution to the sourcing process follow - Answer-
Traditional sourcing, strategic sourcing, e-enabled procurement, integrated sourcing
, One of the primary tradeoffs in DC design is space versus equipment. - Answer- True
Organizations may benefit substantially from the establishment of one or several
warehouses to reduce transportation costs. - Answer- True
The most important trade-off of the number of distribution centers is with ... - Answer-
transportation
The primary tradeoffs and relationships include the following - Answer- All of these
answers
1. Space vs. equipment
2. Equipment vs. people
3. People vs. space
Product handling includes both receiving and shipping. - Answer- True
The primary facility operations focus is - Answer- on the movement and storage of
product.
Inventory handling, storage, and processing facilities help supply chains create time and
place utility. - Answer- True
Distribution facilities can provide numerous services, depending on the requirements of
the supply chain. Which does not belong? - Answer- Activity
All of the following are important support functions for distribution execution EXCEPT -
Answer- Human resources management
According to the textbook, total cost of distribution is affected by all of the following
EXCEPT - Answer- IT investment
The roles of the distribution center include ____ (choose the best answer): - Answer-
balancing supply and demand, protecting against uncertainty, and promoting
transportation economies.
Speed is of the essence; running efficient distribution facilities and networks are not
nearly as critical. - Answer- False
Contract warehousing is different than 3PL warehousing. - Answer- False
Order accuracy and order completeness are the same. - Answer- False
The security function seeks to protect the organization from merchandise theft and
fraud. - Answer- True
Durability refers to - Answer- a characteristic that influences mode selection.
