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Contemporary Logistics, 11th Edition, 2015, Paul R. Murphy - Quiz 06

MBA Logistics and SCM

LOGISTICS, GLOBAL LOGISTICS, SUPPLY CHAIN MANAGEMENT 2016

Test Bank, Discussion, Case study guides and Online Resources (2016)

Logistis, Global Logistics, International Logistics, Supply Chain Management

 

 

 

CHAPTER 6: PROCUREMENT

 

Multiple Choice Questions (correct answers are bolded)

 

  1. ____ refers to the raw materials, component parts, and supplies bought from outside organizations to support a company’s operations.

 

  1. inbound logistics
  2. procurement
  3. materials management
  4. supply management
  5. none of the above

 

  1. Procurement costs often range between ____ of an organization’s revenues.

 

  1. 60-80%
  2. 50-70%
  3. 40-60%
  4. 30-50%

 

  1. Procurement’s historical focus in many organizations was to ____.

 

    1. incur minimal supply disruptions
    2. use a limited number of suppliers

 

  1. minimize loss and damage
  2. achieve the lowest possible cost

 

  1. Procurement and ____ are viewed as synonymous terms.

 

  1. materials management
  2. supply management
  3. purchasing
  4. inbound logistics

 

  1. Which of the following is not a potential benefit associated with procurement cards (p-cards)?

 

  1. a reduced number of invoices
  2. users can make purchases in a more timely fashion
  3. suppliers can be paid in a more timely fashion
  4. ability to use them in non-domestic markets
  5. all of the above are potential benefits

 

  1. Which of the following is not a potential challenge of using procurement cards (p-cards) in non-domestic markets?

 

  1. currency differences
  2. cultural issues
  3. difference in card acceptance policies
  4. availability of technology
  5. all of the above are challenges

 

  1. Which of the following is not a potential procurement objective?

 

  1. minimizing procurement costs
  2. supporting organizational goals and objectives
  3. managing the supply base
  4. supporting operational requirements
  5. all of the above are potential objectives

 

  1. A focus on satisfying internal customers is associated with which procurement objective?

 

  1. managing the supply base
  2. supporting operational requirements
  3. supporting organizational goals and objectives
  4. managing the purchasing process effectively and efficiently

 

  1. Buying the right products, at the right price, from the right source, at the right specifications, in the right quantity, for delivery at the right time to the right internal customer is associated with what procurement objective?

 

  1. managing the supply base
  2. managing the purchasing process effectively and efficiently
  3. supporting operational requirements
  4. supporting organizational goals and objectives

 

  1. With respect to the supplier selection and evaluation process, ____ looks at both the internal and external environment within which the supply decision is to be made.

 

  1. identify the need for supply
  2. identify suppliers
  3. situation analysis
  4. evaluate suppliers

 

  1. The text outlines a supplier selection and evaluation process that consists of ____ steps.

 

  1. 4
  2. 5
  3. 6
  4. 7

 

  1. What is the final step in the supplier selection and evaluation process?

 

  1. provide feedback
  2. select suppliers
  3. implement decision
  4. evaluate decision

 

  1. Multiple sourcing uses more than one supplier in hopes of increased competition, improved market intelligence, and ____

 

  1. greater supply risk mitigation
  2. lower costs per unit
  3. increased cooperation
  4. increased communication

 

  1. Single sourcing consolidates purchase volume with a single supplier in hopes of increasing cooperation and communication in the supply relationship as well as ____.

 

  1. greater supply risk mitigation
  2. increased amounts of competition
  3. improved market intelligence
  4. lower costs per unit

 

  1. Which of the following statements is false?

 

  1. supplier selection and evaluation generally involves multiple criteria
  2. the evolution of business practices and philosophies may require new supplier selection criteria
  3. selecting suppliers is the final step of the supplier selection and evaluation process
  4. some supplier selection criteria may be contradictory

 

  1. Kraljic’s Portfolio Matrix ____.

 

  1. provides a framework for evaluating warehousing decisions
  2. is used by many managers to classify corporate purchases in terms of their importance and supply complexity
  3. allows managers to evaluate whether to add, or not add, product lines
  4. is synonymous with the total cost of ownership

 

 

 

  1. Which of the following is not a category associated with Kraljic’s Portfolio Matrix?

 

  1. bottleneck
  2. leverage
  3. noncritical
  4. strategic
  5. all of the above are categories associated with Kraljic’s Portfolio Matrix

 

  1. A degree of aggressive procurement involvement not normally encountered in supplier selection refers to ____.

 

  1. supply management
  2. supplier development
  3. materials management
  4. physical supply

 

  1. Supplier development is synonymous with ____.

 

  1. supplier selection and evaluation
  2. procurement
  3. materials management
  4. reverse marketing

 

  1. Which of the following is not a reason for why purchasers are adopting a more proactive and aggressive role in the procurement process?

 

  1. there are myriad inefficiencies associated with suppliers initiating marketing efforts towards purchasers
  2. achieving competitive advantage in the supply chain
  3. an excess number of suppliers currently exist
  4. purchasers may be aware of important benefits that are not known to the supplier
  5. all of the above are reasons

 

  1. Which of the following is false?

 

  1. in the factor-input strategy, an organization is seeking low costs or high quality sources of supply
  2. global procurement refers to buying components and inputs anywhere in the world
  3. planning is the first step in global procurement
  4. global procurement is driven by the factor-input and the market-access strategies
  5. all of the above are true

 

  1. What is the first step in a global sourcing development model?

 

  1. planning
  2. specification
  3. situation analysis
  4. problem recognition

 

  1. ____ is often a major shortcoming to many global procurement plans.

 

  1. monitoring and improving
  2. specification
  3. implementation
  4. evaluation

 

  1. What concept refers to when firms consider all the costs that can be assigned to the acquisition, use, and maintenance of a purchase?

 

  1. activity-based costing
  2. cost trade-offs
  3. the systems approach
  4. total cost of ownership

 

  1. Procuring products from suppliers close to one’s own facilities refers to ____.

           

  1. agglomeration
  2. near-sourcing
  3. dovetailing
  4. outsourcing

 

  1. Which of the following is not a dimension associated with socially responsible procurement?

 

  1. profit
  2. safety
  3. the environment
  4. human rights
  5. all of the above are dimensions associated with socially responsible procurement

 

  1. With respect to gift giving and gift receiving, ____ refers to money paid before an exchange.

 

  1. a kickback
  2. agglomeration
  3. a bribe
  4. dovetailing

 

  1. With respect to gift giving and gift receiving, ____ refers to money paid after an exchange.

 

  1. a kickback
  2. agglomeration
  3. a bribe
  4. dovetailing

 

  1. ____ identifies opportunities to recover revenues or reduce costs associated with scrap, surplus, obsolete, and waste materials.

 

  1. recycling
  2. reuse
  3. reverse logistics
  4. investment recovery

 

  1. ____ materials refer to stock that exceeds the reasonable requirements of an organization.

 

  1. waste
  2. excess
  3. obsolete
  4. scrap

 

  1. ____ materials are no longer serviceable, have been discarded, or are a by-product of the production process.

 

  1. waste
  2. obsolete
  3. scrap
  4. excess

 

  1. ____ materials have no economic value.

 

  1. waste
  2. scrap
  3. obsolete
  4. excess

 

True-False Questions

 

  1. Procurement refers to the raw materials, component parts, and supplies bought from outside organizations to support a company’s operations. (True)

 

  1. Procurement’s costs often range between 40 – 60% of an organization’s revenues. (False)

 

  1. Procurement’s historical focus in many organizations was to minimize the total number of outside suppliers. (False)

 

  1. A contemporary procurement manager might have responsibility for reducing cycle times and for generating additional revenues by collaborating with the marketing department. (True)

 

  1. Procurement and purchasing are viewed as synonymous terms. (True)

 

  1. A reduction in the number of invoices is one benefit to procurement cards. (True)

 

  1. One benefit to procurement cards is that they are easily used outside their domestic market. (False)

 

  1. First and foremost, procurement’s objectives must manage the purchasing process effectively and efficiently. (False)

 

  1. One of procurement’s most important responsibilities involves supplier selection and evaluation. (True)

 

  1. The first step in supplier selection and evaluation is situation analysis. (False)

 

  1. Trade shows, trade publications, and the Internet are sources that can be used to identify possible suppliers. (True)

 

  1. A benefit to multiple sourcing is increased cooperation and communication in a supply relationship. (False)

 

  1. Single sourcing consolidates purchase volume with a single supplier with the hopes of enjoying lower costs per unit. (True)

 

  1. The final step of the supplier selection process is to evaluate the decision. (True)

 

  1. Supplier scorecards can involvement assessments of a supplier’s structure, resources, technology, health, and responsibility. (False)

 

  1. Supplier scorecards can be categorical, weighted point, or cost based in nature. (True)

 

  1. Supplier selection and evaluation generally involve multiple criteria, and these criteria can vary in both number and importance, depending on the particular situation. (True)

 

  1. The Optimal Cost Reliability Model is used by many managers to classify corporate purchases in terms of their importance and supply complexity. (False)

 

  1. Bottleneck refers to the low importance, low complexity category of Kraljic’s Portfolio Matrix. (False)

 

  1. Leverage refers to the high importance, low complexity category of Kraljic’s Portfolio Matrix. (True)

 

  1. Supply management refers to a degree of aggressive procurement not normally encountered in supplier selection. (False)

 

  1. Supplier development is synonymous with reverse marketing. (True)

 

  1. One reason for the growth of the supplier development concept is that achieving competitive advantage in the supply chain is predicated on purchasers adopting a more aggressive approach. (True)

 

  1. Global procurement refers to buying components and inputs anywhere in the world. (True)

 

  1. Global procurement is primarily driven by the input-output and market-access strategies. (False)

 

  1. Problem recognition is the first step in global procurement. (False)

 

  1. Because global sourcing increases the distance that components and inputs must be moved, managers must consider the tradeoff between transportation and holding costs. (True)

 

  1. Implementation is often a major shortcoming of many global procurement plans. (True)

 

  1. When taking an activity-based costing approach, firms consider all the costs that can be assigned to the acquisition, use, and maintenance of a purchase. (False)

 

  1. Dovetailing refers to procuring products from suppliers closer to one’s own facilities. (False)

 

  1. Sustainable procurement refers to the integration of social and environmental considerations into all stages of the purchasing process. (True)

 

  1. Diversity and philanthropy are two dimensions of socially responsible procurement. (True)

 

  1. With respect to gift giving and gift receiving, bribes refer to money paid after an exchange. (False)

 

  1. The relevance, importance, and challenges associated with socially responsible procurement are likely to lessen in the coming years. (False)

 

  1. Investment recovery identifies opportunities to recover revenues or reduce costs associated with scrap, surplus, obsolete, and waste materials. (True)

 

  1. Investment recovery is often the responsibility of the finance manager. (False)

 

  1. Excess materials refer to stock that exceeds the reasonable requirements of an organization. (True)

 

  1. Scrap materials are no longer serviceable, have been discarded, or are a by-product of the production process. (True)

 

  1. Obsolete materials have no economic value. (False)

 

  1. The ways that organizations manage the investment recovery for excess, obsolete, scrap, and waste materials should be influenced by the materials’ classification. (True)

 

 

 


 

 

 

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Free Online LOGISTICS, GLOBAL LOGISTICS AND INTERNATIONAL LOGISTICS MANAGEMENT

Learning marterial and resources for courses in:

1. See full list of videos: Link

2. Free Logistics, Global Logistics, International Logistics - 2016 Ebooks (free download)

GLOBAL LOGISTICS MANAGEMENT, A Competitive Advantage for the 21st Century, 2nd Edition, 2006, Kent N. Gourdin - Link download free 

INTERNATIONAL LOGISTICS AND SUPPLY MANAGEMENT, Allan Carrol, 2016 - Link download free

Logistics & Supply Chain Management, 4th Edition, 2011, Martin Christopher, Prentice Hall - Link download free

Logistics Management, 2012, David B. Grant, Prentice Hall - Link download free

The Supply Chain Management Casebook, Comprehensive Coverage and Best Practices in SCM, 2013, Chuck Munson Link download free

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Logistics & Supply Chain Management, 5th Edition, 2016, Martin Christopher, Prentice Hall
Contemporary Logistics, 11th Edition, 2015, Paul R. Murphy, A. Michael Knemeyer
Production and Logistics in Meeting, Expositions, Events and Conventions, 2015, George G. Fenich
Supply Chain and Logistics Management Made Easy: Methods and Applications for Planning, Operations, Integration, Control and Improvement, and Network Design, 2015, Paul A. Myerson

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The world merchant fleet in 2014 Statistics from Equasis - Link download free
Review of MaRitime Transport, 2015 - Link download free

3. Website and All articles about Logistics, Global Logistics, International Logistics and Supply Chain Management

http://top20mba.com 

4. Case Study Guides

5. Link to power point slides (Free Download)

Contemporary Logistics, 11th Edition, 2015, Paul R. Murphy, A. Michael Knemeyer

Murphy - Link download free

Production and Logistics in Meeting, Expositions, Events and Conventions, 2015, George G. Fenich

Fenich  - Link download free

6. Test Bank - Free download

Murphy 2015 - link

Fenich - link 

Murphy 2016 - link 

 

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2018

Contemporary Logistics, 12th Edition, Paul R. Murphy, 2018
Part I: An Overview of Logistics
1. An Overview of Logistics
2. Logistics and Information Technology
3. Strategic and Financial Logistics
4. Organizational and Managerial Issues in Logistics
Part II: Supply Chain Management
5. The Supply Chain Management Concept
6. Procurement
Part III: Elements of Logistics Systems
7. Demand Management, Ordered Management, and Customer Service
8. Inventory Management
9. Facility Location
10. Warehousing Management
11. Packaging and Materials Handling
12. Transportation
13. Transportation Management
14. International Logistics

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