Supply Chain Exam 2 Fall 2023 with complete solution
Strategic Sourcing is a comprehensive approach for locating and sourcing key
suppliers, which often includes the business process of analyzing the total-spend
by material category
True
A purchase order is legally binding once it is officially issued by the buyer to the
supplier
True
In the context of Total Cost of Manufacturing, production per unit costs go down
as volume goes up
True
In-sourcing is defined as reverting to in-house production when external quality,
delivery, and services do not meet expectations
True
Supplier Relationship Management is a term that encompasses many of the
activities beyond supplier selection and purchase order execution
True
Co-sourcing is the sharing of a process or function between internal staff and an
external provider
True
One of the issues associated with outsourcing is the burden of managing a
manufacturing site
True
A supplier's financial stability is not an important factor in supplier selection
False
Sourcing teams purchase raw materials for conversion. They do not purchase
services or capital equipment
False
The goal of Six Sigma is the elimination of waste and the minimization of the
amount of all resources (including time) used in the operation of a company
False
One of the sustainable sourcing strategies is to build intangible assets such as
social and environmental responsibility
True
In a Spend analysis, purchases that involve items representing a low percentage
of the firm's total spend and having very little supply risk, are categorized as non-
critical items
True
Among other advantages, preferred suppliers may provide capacity for meeting
unexpected demand, and also provide cost efficiency due to economies of scale
True
Companies that lack the expertise necessary to produce an item should consider
insourcing
False
Strategic Sourcing is a comprehensive approach for locating and sourcing key
suppliers, which often includes the business process of analyzing the total-spend
by material category
True
A purchase order is legally binding once it is officially issued by the buyer to the
supplier
True
In the context of Total Cost of Manufacturing, production per unit costs go down
as volume goes up
True
In-sourcing is defined as reverting to in-house production when external quality,
delivery, and services do not meet expectations
True
Supplier Relationship Management is a term that encompasses many of the
activities beyond supplier selection and purchase order execution
True
Co-sourcing is the sharing of a process or function between internal staff and an
external provider
True
One of the issues associated with outsourcing is the burden of managing a
manufacturing site
True
A supplier's financial stability is not an important factor in supplier selection
False
Sourcing teams purchase raw materials for conversion. They do not purchase
services or capital equipment
False
The goal of Six Sigma is the elimination of waste and the minimization of the
amount of all resources (including time) used in the operation of a company
False
One of the sustainable sourcing strategies is to build intangible assets such as
social and environmental responsibility
True
In a Spend analysis, purchases that involve items representing a low percentage
of the firm's total spend and having very little supply risk, are categorized as non-
critical items
True
Among other advantages, preferred suppliers may provide capacity for meeting
unexpected demand, and also provide cost efficiency due to economies of scale
True
Companies that lack the expertise necessary to produce an item should consider
insourcing
False
