SCM Final Exam Questions And
Answers
A
R
U
LA
C
O
D
,Evidence of the growth and influence of supply management in an organization includes: - ANS
involvement in strategic planning and executive status of the chief supply officer.
Total Quality Management: (Choose all that apply)
Is managed proactively
A
Involves only production processes
R
Focuses on the customer
Ensures on-time delivery - ANS Managed Proactively
U
Focuses on the customer
The document that lists and details the contents and conditions of a shipment is called ______.
LA
- ANS the bill of lading
Company image may be directly influenced by: - ANS treating suppliers in a fair and
equitable manner, complying with regulatory requirements and sustainability practices of
suppliers.
C
The consignee is ______. - ANS the customer receiving the product
Which of these is not a cost of quality?
O
External failure cost
Prevention cost
Design cost
D
Inspection cost - ANS design cost
The use of the concepts of purchasing, procurement, supply, and supply chain management will
vary from organization to organization depending on: - ANS the organization's stage of
development and/or sophistication, the industry in which they operate and the organization's
competitive position.
If you want the consignee to be responsible for goods while they are in-transit you should ship
products ______. - ANS to FOB origin
, Design-for-Six-Sigma programs offer a set of quality standards accepted by all industries.
True or False - ANS False
All of the following represent external failure cost EXCEPT the cost of:
Scrapping defective raw material.
Repairing items covered by warranty.
A
Replacing defective items found by customers.
R
Loss of goodwill and reputation. - ANS Scrapping Defective Raw Material
U
The design and management of seamless, value-added processes across organizational
boundaries to meet the needs of the end customer is called: - ANS
management
Supply chain
LA
Generally the least costly method of moving product that is not gaseous, liquid, or slurry is: -
ANS Water
Supply has the potential to contribute to: - ANS profitability, competitive position and
sustainability performance.
C
If a transportation vehicle has completed a delivery and is returned empty, the situation is called
a: - ANS deadhead
O
Rachel loves to bake cookies, but she has an old oven that has trouble maintaining a constant
temperature. If the acceptable temperature range for making the cookies is 350 plus or minus 5
degrees, what is the allowable standard deviation in the temperature of her oven in order to
D
achieve a Six Sigma level of quality?
Standard Dev = ??? - ANS Standard Dev = .833 degrees
= 10 degree range / (6*2)
For an organization with revenue of $100 million, purchases of $60 million, and profit of $8
million before tax, a 10 percent reduction in purchase spend would result in an increase in profit
of: - ANS 75%
Answers
A
R
U
LA
C
O
D
,Evidence of the growth and influence of supply management in an organization includes: - ANS
involvement in strategic planning and executive status of the chief supply officer.
Total Quality Management: (Choose all that apply)
Is managed proactively
A
Involves only production processes
R
Focuses on the customer
Ensures on-time delivery - ANS Managed Proactively
U
Focuses on the customer
The document that lists and details the contents and conditions of a shipment is called ______.
LA
- ANS the bill of lading
Company image may be directly influenced by: - ANS treating suppliers in a fair and
equitable manner, complying with regulatory requirements and sustainability practices of
suppliers.
C
The consignee is ______. - ANS the customer receiving the product
Which of these is not a cost of quality?
O
External failure cost
Prevention cost
Design cost
D
Inspection cost - ANS design cost
The use of the concepts of purchasing, procurement, supply, and supply chain management will
vary from organization to organization depending on: - ANS the organization's stage of
development and/or sophistication, the industry in which they operate and the organization's
competitive position.
If you want the consignee to be responsible for goods while they are in-transit you should ship
products ______. - ANS to FOB origin
, Design-for-Six-Sigma programs offer a set of quality standards accepted by all industries.
True or False - ANS False
All of the following represent external failure cost EXCEPT the cost of:
Scrapping defective raw material.
Repairing items covered by warranty.
A
Replacing defective items found by customers.
R
Loss of goodwill and reputation. - ANS Scrapping Defective Raw Material
U
The design and management of seamless, value-added processes across organizational
boundaries to meet the needs of the end customer is called: - ANS
management
Supply chain
LA
Generally the least costly method of moving product that is not gaseous, liquid, or slurry is: -
ANS Water
Supply has the potential to contribute to: - ANS profitability, competitive position and
sustainability performance.
C
If a transportation vehicle has completed a delivery and is returned empty, the situation is called
a: - ANS deadhead
O
Rachel loves to bake cookies, but she has an old oven that has trouble maintaining a constant
temperature. If the acceptable temperature range for making the cookies is 350 plus or minus 5
degrees, what is the allowable standard deviation in the temperature of her oven in order to
D
achieve a Six Sigma level of quality?
Standard Dev = ??? - ANS Standard Dev = .833 degrees
= 10 degree range / (6*2)
For an organization with revenue of $100 million, purchases of $60 million, and profit of $8
million before tax, a 10 percent reduction in purchase spend would result in an increase in profit
of: - ANS 75%
