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Cards In This Set
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One advantage of outsourcing is that it:
a. gives the company a high degree of control over its operations.
b. increases the company’s access to state-of-the-art products and processes.
c. protects the company’s proprietary designs and processes.
d. encourages the development of the company’s core competencies.
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increases the company’s access to state-of-the-art products and processes.
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Which of these is a direct cost associated with outsourcing?
a. Direct material
b. Direct labor
c. Variable overhead
d. Price from invoice
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Price from invoice
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Which of these is an indirect cost associated with insourcing?
a. Maintenance
b. Purchasing
c. Receiving
d. Quality control
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Maintenance
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A company using portfolio analysis correctly decides to streamline the purchasing process for a few items by use of EDI and automated requisitions to the greatest extent possible. The quadrant that these items fall in is most probably the:
a. Bottleneck quadrant.
b. Critical quadrant.
c. Leverage quadrant.d. Routine quadrant
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Routine quadrant
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Competitive bidding, active sourcing, and using industry standards are all actions that are appropriate if the sourcing strategy is to:
a. Form partnerships with suppliers.
b. Maximize commercial advantage.
c. Simplify the acquisition process.d. Ensure supply continuity
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Maximize commercial advantage.
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An item that is expensive, complex, and has few qualified suppliers can be described as having:
a. high value potential and high complexity.
b. high value potential and low complexity.
c. low value potential and high complexity.d. low value potential and low complexity
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high value potential and high complexity.
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When compared with single sourcing, multiple sourcing has the advantage of:
a. spreading risk.
b. volume leveraging.
c. lower transportation costs.
d. reduced quality variability.
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spreading risk.
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Single sourcing is a better choice than multiple sourcing from the perspective of:
a. increased competition.
b. ensuring that a supplier will not become complacent.
c. spreading risk.
d. access to the supplier’s design and engineering capabilities.
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access to the supplier’s design and engineering capabilities.
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A sourcing strategy in which two suppliers are used for the same purchased product or service is:
a. cross sourcing.
b. dual sourcing.
c. contingency sourcing.
d. Multi sourcing.
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dual sourcing.
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This table contains a list of three companies that have been rated on four weighted performance dimensions. Which of the following statements regarding this information is best?
Performance Dimension
Strickland
Thatherton
Mega-Low
Amerigas
Quality (W=0.5)
4
4
2
4
Cost (W=0.4)
4
3
5
3
Speed (W=0.1)
2
2
4
5
a. Strickland is superior to Mega-Low.
b. Thatherton is superior to Amerigas.
c. Amerigas is superior to Strickland.
d. Mega-Low is superior to Thatherton.
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Strickland is superior to Mega-Low.
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Which of these statements about supply base trends is best?
a. The decrease in supply base is realized primarily at the lowest level as the number of third and fourth tier suppliers has been dramatically slashed during the last few years.
b. Although the supply base has fallen considerably, the number of first-tier suppliers in most supply chains has actually increased.
c. A recent trend is to rely on a large supplier to design and build entire subsystems.
d. The supply base has actually increased when inflation is taken into account.
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A recent trend is to rely on a large supplier to design and build entire subsystems.
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A recent survey of executives at Global 1000 companies uncovered what fear?
a. The fear of a supply chain disruption.
b. The fear of the unknown.
c. The fear of improperly weighting performance dimensions.
d. The fear of misclassifying direct and indirect costs.
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The fear of a supply chain disruption.
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Which of these factors is most likely to increase the risk of a missed shipment, communication problem, or human error?
a. Supply base reduction.
b. Global outsourcing.
c. Multi criteria decision models.
d. Electronic data interchange.
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Global outsourcing.
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The use of supply chain partners to provide products or services is called:
a. In sourcing.
b. offloading.
c. partnering.
d. outsourcing.
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outsourcing.
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__________ are high level, often strategic decisions regarding which products or services will be provided internally and which will be provided by external supply chain members
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Sourcing decisions
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