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| 1 | |
Evidence of the growth and influence of supply management in an organization includes: |
| | A) | fewer activities under the management or span of control of supply. |
| | B) | more meaningful involvement at the operational level. |
| | C) | more involvement in strategic planning and mergers and acquisitions. |
| | D) | responsibility for less of the organization's total spend. |
| | E) | all of the above. |
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| 2 | |
Company image may be directly influenced by: |
| | A) | treating suppliers in a fair and equitable manner. |
| | B) | complying with regulatory requirements. |
| | C) | labor, environmental, and ethical practices of suppliers. |
| | D) | none of the above. |
| | E) | a, b and c. |
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| 3 | |
The use of the concepts of purchasing, procurement, supply, and supply chain management will vary from organization to organization depending on: |
| | A) | the organization's stage of development and/or sophistication. |
| | B) | the industry in which they operate. |
| | C) | the organization's competitive position. |
| | D) | a and c. |
| | E) | a, b and c. |
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| 4 | |
The design and management of seamless, value-added processes across organizational boundaries to meet the real needs of the end customer is called: |
| | A) | strategic sourcing. |
| | B) | supply chain management. |
| | C) | value management. |
| | D) | customer relationship management. |
| | E) | strategic process management. |
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| 5 | |
Supply has the potential to contribute to: |
| | A) | profitability. |
| | B) | profitability and competitive position. |
| | C) | profitability, competitive position and corporate social policy. |
| | D) | competitive position and corporate social policy. |
| | E) | none of the above. |
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| 6 | |
For an organization with revenue of $100,000,000, purchases of $60,000,000, and profit of $8,000,000 before tax, a 10 percent reduction in purchase spend would result in an increase in profit of: |
| | A) | 75 percent, giving a profit leverage effect of 7.5. |
| | B) | 60 percent, giving a profit leverage effect of 6.0. |
| | C) | 57 percent, giving a profit leverage effect of 5.7. |
| | D) | 36 percent, giving a profit leverage effect of 3.6. |
| | E) | 10 percent, giving a profit leverage effect of 1.0. |
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| 7 | |
Interest in the supply function as a managerial activity began: |
| | A) | before 1900 when railroads recognized it as an important function. |
| | B) | during World Wars I and II because of global materials shortages. |
| | C) | in the 1970s during a period of high inflation and fuel prices. |
| | D) | In the 1980s and 1990s with the rise of electronic commerce. |
| | E) | recently when inventories had to be sold off during the Great Recession. |
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| 8 | |
The return on assets effect (ROA) quantifies and measures: |
| | A) | the indirect contribution of supply management to profitability. |
| | B) | any increase in sales that occurs at a greater rate than the cost of assets. |
| | C) | reduction in the allocations to the operating budget of the supply department. |
| | D) | the impact of supply actions on inventory and the balance sheet. |
| | E) | the effect on profitability of reduced spend compared to a sales increase. |
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| 9 | |
In manufacturing organizations, the dollars spent with suppliers fall into what range as a percent of revenues? |
| | A) | 65 to 75. |
| | B) | 50 to 80. |
| | C) | 45 to 75. |
| | D) | 30 to 60. |
| | E) | 25 to 35. |
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| 10 | |
A successful supply chain management strategy integrates: |
| | A) | processes and systems within and across organizations. |
| | B) | processes and systems within the organization. |
| | C) | the flow of materials within an organization. |
| | D) | the flow of information within the buying organization. |
| | E) | the flow of information with first tier suppliers. |
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