SCM 330 EXAM 2 CH. 9 QUESTIONS & ANSWERS
The process of hiring other suppliers to handle specific processes other than
manufacturing is ______.
outsourcing
business process outsourcing (BPO)
horizontal integration
backward integration - Answer -business process outsourcing (BPO)
Approximately ______ of outsourcing relationships fail.
10-15%
25-50%
75-80%
90-95% - Answer -25-50%
Strategic benefits of outsourcing include which of the following?
cost minimization
diversifying the supply base
reduction in inventory levels
reduction in manufacturing throughput time - Answer -cost minimization
In order for an outsourcing proposal to be attractive, ______.
the cost reduction must be significantly lower than the current direct operating costs
the prospective labor costs should be less than half of the current labor costs
the transportation costs should be no more than 10% of the operating expenses
the fewest number of suppliers are required - Answer -the cost reduction must be
significantly lower than the current direct operating costs
One of the costs of quality, the costs of internal failure, refers to ______.
scrap, rework, and internal downtime
machine repair expenses
damage to reputation when the customer is dissatisfied
the cost of replacing damaged goods - Answer -scrap, rework, and internal downtime
One of the costs of quality, the costs of external failure, refers to ______.
failure as perceived by management
machine repair expenses
damage to reputation when the customer is dissatisfied
downtime related to retooling manufacturing setups - Answer -damage to reputation
when the customer is dissatisfied
Relationship building and coordination activities to maintain external sourcing
relationships is referred to as the cost of ______.
managing the supply relationship
contracting
The process of hiring other suppliers to handle specific processes other than
manufacturing is ______.
outsourcing
business process outsourcing (BPO)
horizontal integration
backward integration - Answer -business process outsourcing (BPO)
Approximately ______ of outsourcing relationships fail.
10-15%
25-50%
75-80%
90-95% - Answer -25-50%
Strategic benefits of outsourcing include which of the following?
cost minimization
diversifying the supply base
reduction in inventory levels
reduction in manufacturing throughput time - Answer -cost minimization
In order for an outsourcing proposal to be attractive, ______.
the cost reduction must be significantly lower than the current direct operating costs
the prospective labor costs should be less than half of the current labor costs
the transportation costs should be no more than 10% of the operating expenses
the fewest number of suppliers are required - Answer -the cost reduction must be
significantly lower than the current direct operating costs
One of the costs of quality, the costs of internal failure, refers to ______.
scrap, rework, and internal downtime
machine repair expenses
damage to reputation when the customer is dissatisfied
the cost of replacing damaged goods - Answer -scrap, rework, and internal downtime
One of the costs of quality, the costs of external failure, refers to ______.
failure as perceived by management
machine repair expenses
damage to reputation when the customer is dissatisfied
downtime related to retooling manufacturing setups - Answer -damage to reputation
when the customer is dissatisfied
Relationship building and coordination activities to maintain external sourcing
relationships is referred to as the cost of ______.
managing the supply relationship
contracting
