Study Resource Strayer BUS 230 Purchasing & Material Mgmt Week 2 Quiz 2017 1

Strayer BUS 230 Purchasing & Material Mgmt Week 2 Quiz 2017

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  1. Mike Arthtom
    1. 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

    2. The profit-leverage effect of supply savings means that:

    a. a reduction in money tied up in inventory improves profits.

    b. a reduction in purchase spend increases profit more than an equal sales increase.

    c. effective price negotiations with a supplier will lower the supplier’s profits.

    d. the buyer gains leverage over suppliers when purchases are standardized.

    e. efficient and effective supply management processes will increase profits

    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 b.

    e. a, b and c

    4. Performance of the supply management function can be viewed in the context of:

    a. operational and trouble-avoidance.

    b. operational and strategic.

    c. operational and transactional.

    d. strategic and opportunistic.

    e. strategic and future-oriented

    5. Evidence of the growth and influence of supply management in an organization includes:

    a. fewer activities under the management or control of supply.

    b. more intense involvement in fewer supply chain activities.

    c. involvement in strategic planning and mergers and acquisitions.

    d. a clear delineation between supply and accounting.

    e. merging of supply and accounts payable

    6. As supply chains have become more global, the risk of supply disruptions has:

    a. decreased because risk is spread among suppliers all over the world.

    b. decreased because there are also more international laws and treaties.

    c. stayed the same because the issues are similar wherever suppliers are located.

    d. increased because other countries lack the business ethics of the U.S.

    e. increased because of financial and exchange rate fluctuations.

    7. 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.

    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.

    9. The design and management of cost and lead time minimization across tiers of the supply chain to the benefit of the final customer is called:

    a. managing the sourcing and selection process, and developing and maintaining relationships with key suppliers.

    b. a systems approach to managing the entire flow of information, materials, and services from raw materials suppliers through factories and warehouses to the end-customer.

    c. managing supplies for maintenance, repairs, and operations (MRO) in the manufacturing sector only.

    d. managing the flow of materials, services, and information from key suppliers, their suppliers, and their suppliers’ suppliers into the buying organization.E.managing and monitoring the status of raw materials as a current asset all the way through to finished goods inventory

    10. Supply management may indirectly contribute to the organization’s competitive advantage by:

    a. the profit-leverage effect.

    b. the return on assets effect.

    c. reducing annual spend.

    d. improving process efficiency.

    e. all of the above

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