BUS 230 Week 3 Quiz – Strayer (All Possible Questions With Answers)
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11. An effective supply strategy primarily focuses on linking:
a. current needs to current markets.
b. future needs to future markets.
c. current needs to future markets.
d. future needs to current markets.
e. current and future needs to current and future markets.
12. Organizational objectives and supply objectives typically are expressed:
a. differently, making it difficult to translate organizational objectives into supply objectives.
b. differently, providing the supply manager multiple opportunities to tap into organizational resources.
c. the same (survival, growth, financial, and environmental), making it easy to translate organizational objectives into supply objectives.
d. the same factors (quality, quantity, price, delivery and service), but long-term at the organizational level and short-term at the supply level.
e. in ways that are very specific to the organization, making it difficult to convey objectives to suppliers.
13. Which one of the following is NOT one of the six major supply strategy areas:
a. competitive-edge strategies.
b. environmental-change strategies.
c. new-product design strategies.
d. risk-management strategies.
e. cost-reduction strategies.
14. When developing supply strategies related to “how to buy,” decisions must be made
i. systems and procedures
ii. goals and objectives.
iii. make or buy.
iv. large or small inventories.
v. none of the above.
15. The key question in strategic supply management is:
a. How can supply strategy be kept separate from and equal to organizational strategy?
b. How can first tier suppliers contribute to the buying organization’s objectives and strategy?
c. How can first, second, third- and subsequent tiers of suppliers contribute to the buying organization’s objectives and strategy?
d. How can the supply manager develop a network of suppliers that contribute to the buying organization’s strategies and goals?
e. How can supply and the supply chain contribute effectively to organizational objectives and strategy?
16. Three major challenges exist when setting supply objectives and strategies:
a. adopting efficient electronic transaction systems, designing effective strategic supply processes, and increasing internal compliance with both.
b. effectively interpreting corporate and supply objectives, selecting appropriate actions to achieve objectives, and integrating supply information into organizational strategies.
c. hiring professionals educated specifically in supply management, providing them with technical expertise, and developing leadership skills for the long-term.
d. emphasizing strategic cost management, involving key suppliers early in the process, and measuring the reduction in total cost of ownership.
e. identifying internal stakeholders, building consensus among these stakeholders, and selling top management on the results.
17. To effectively manage supply risks, the supply manager must:
a. inform the corporate risk officer of a potential risk, await instructions, and implement the directive.
b. seek input from senior executives in other functional areas, propose a risk mitigation plan, and await instructions from senior management.
c. identify and classify risks, assess the potential impact, and develop a risk mitigation strategy.
d. review the commodity strategy, revise it as needed, and implement the strategy revision.
e. confer with the organization’s management consultant, provide all requested data, and implement the consultant’s plan.
18. Linking supply strategy to corporate strategy is:
a. essential only in manufacturing, and most have the mechanisms to link them..
b. essential only in the service sector, and most lack the mechanisms to link them.
c. essential in all organizations, and most have the mechanisms to link them.
d. essential in all organizations, and many lack the mechanisms to link them.
e. non-essential in most types of organizations.
19. Strategic planning can be defined as:
a. how each functional area will achieve its specific goals and objectives.
b. a procedure for allocating resources to appropriate functions in the organization.
c. taking big risks to maximize current period benefits.
d. an action plan to achieve specific long-term goals and objectives.
e. an action plan to achieve specific operational and tactical goals.
20. Supply strategies that are based on changes in demand and supply are known as:
a. risk-management strategies.
b. assurance-of-supply strategies.
c. cost-reduction strategies.
d. environmental-change strategies.
e. supply chain support strategies.
True and False
1. The three levels of strategic planning are: function, unit, and corporate.
2. Environmental-change strategies are designed to anticipate and recognize shifts in the natural world that affect supply availability.
3. Even if a supply manager identifies and eliminates the causes of uncertainty and risk in the supply chain, the organization may still need to carry the same amount of inventory.
4. Risks in the supply chain can be classified into three main categories: (1) operational, (2) financial, and (3) strategic.
5. There is a growing emphasis on strategic supply management processes and less on purchase transactions.
6. A corporate risk management group headed by a chief risk officer has emerged in many organizations to assess total risk exposure and develop strategies to best manage all risks.
7. Assurance-of-supply strategies emphasize quality over all other considerations.
8. The most fundamental question facing an organization is whether to make or buy.
9. Supply managers may be able to provide information to identify risks to the organization and they can develop strategies to mitigate those risks.
10. Seldom do the actions of supply managers impact the organization’s reputation either positively or negatively.
21. Close to 70 percent of the value of any given requirement is established when needs are recognized and described. Therefore, the following functions should work together during need recognition and description:
a. the primary user and specifier.
b. the primary user and supply.
c. the primary user, design engineering and supply.
d. the primary user, design engineering, supply and accounting.
e. the primary user, design engineering, supply and all other relevant functional areas such as accounting/finance, marketing and operations.
22. A change in how supply is organized and structured is the result of:
a. the changing preference of the Chief Purchasing Officer.
b. an assessment of the best purchasing structure given the supply base.
c. a change in the overall corporate organizational structure.
d. a determination of the easiest change to manage internally.
e. a consensus among the supply management professionals in the company.
3. Which factors have a major influence on supply’s level in the organization:
a. the ratio of purchased material and services costs as a percentage of total costs or income.
b. the size of the supply base.
c. the nature of the products or services acquired.
d. the extent to which supply and suppliers can provide competitive advantage.
e. the credentials of the existing supply personnel.
a. a and b
b. c and d.
c. d and e
d. a, c and d.
e. a, d and e.
4. Organizations commit resources to cross-functional team development to:
a. give internal users ownership of tasks and problems.
b. achieve time, quality, or cost-reduction targets
c. promote diversity in the workplace.
d. give supply ownership of tasks and problems.
e. cross-train employees in case of downsizing.
5. Supply can provide an uninterrupted flow of materials, supplies and services by:
a. holding large inventories.
b. holding small inventories.
c. standardizing capital equipment, materials, MRO and services.
d. b and c.
e. a and c
6. A purchasing consortium:
a. speeds up the purchasing process, but does not usually result in price concessions from suppliers.
b. consists of two or more independent organizations that combine requirements for materials, services and capital goods to gain better pricing, service and technology from suppliers.
c. results in price concessions from suppliers, but usually does not speed up the purchasing process.
d. consists of two or more divisions of the same organization that combine requirements for materials, services and capital goods to gain better pricing, service and technology from suppliers.
e. is a form of collaborative purchasing used only by the public sector to deliver a wider range of services at a lower total cost.
7. Hybrid supply structures typically:
a. amplify the disadvantages of centralization.
b. amplify the advantages of decentralization.
c. capture the benefits of both centralized and decentralized structures.
d. are used in small to medium-sized organizations.
e. are used in service organizations of all sizes.
8. The organizational structure (centralized, decentralized, or hybrid) of the supply function:
a. has little influence on supply processes, internal cross-functional relationships, or the procedures and systems employed.
b. influences supply processes, internal cross-functional relationships, and the procedures and systems employed.
c. influences supply processes, but not internal cross-functional relationships, or the procedures and systems employed.
d. influences internal cross-functional relationships, and the procedures and systems employed, but not supply processes.
e. influences the procedures and systems employed, but not supply processes or internal cross-functional relationships.
9. Supply’s contribution to the organization’s competitive position depends on its ability to:
a. reduce costs.
b. enhance revenues.
c. manage assets.
d. a and c.
e. a, b and c.
10. Specialization within the supply function:
a. allows staff to develop expertise in particular areas.
b. is unnecessary because most tasks are transactional.
c. has no impact on talent management or organization within supply.
d. increases operating costs beyond the benefits of specialization.
e. is seldom required now that so many tasks are automated.
True and False
1. Eliminating process inefficiencies is the best way to accomplish supply objectives at the lowest total operating costs.
2. Decentralization refers to a supply organization that is physically located at corporate headquarters from which all organizational spending decisions are made.
3. There is an inherent conflict between supply’s objective to provide an uninterrupted flow of materials, supplies and services required to operate the organization and the objective to keep inventory investment and loss at a minimum.
4. Products, services and processes can be standardized and, if done effectively, will lower total cost of ownership.
5. The executive to whom the Chief Supply Officer reports has no relationship to the status of purchasing and the degree to which it is emphasized within the organization.
6. The supply process and structure for managing indirect spend is typically different than that for managing direct spend.
7. In a decentralized purchasing structure, those tasks which are more effectively handled at the business unit level include establishing policies, procedures, controls, and systems.
8. Some of the disadvantages of decentralization are narrow specialization and job boredom, lack of job flexibility, and a tendency to minimize legitimate differences in requirements.
9. Supply should obtain needed goods and services at the lowest total cost of ownership meaning that other cost factors—such as quality levels, after-sales service, warranties, inventory and spare parts requirements, and downtime—must be considered even though in the long term these factors seldom have a cost impact greater than the original purchase price.
10. The degree of centralization is reflected by the number of supply professionals working throughout all functional areas of the organization.