Chapter 16 Global Sourcing and Procurement

available products can be purchased using a relatively simple process. Blank 1: Commonly, Universally, or Widely A one-time purchase is called what? Spot purchase Which of the following is not a common constraint regarding vendor managed inventory? Shipping terms Which of the following processes for sourcing or purchasing an item have low transaction costs? Spot purchase The custom-made Apple AirPods case is an example of a -specificity item. Blank 1: high What term is used to describe a practice where a customer purchases excess parts in advance? Forward buying Inventory turnover is a way to evaluate supply chain efficiency. In a auction, vendors actually bid on the item in real time and often using Internet software. reverse The bullwhip effect indications a lack of what among supply chain members? Synchronization When the supplier takes full responsibility to manage items for the customer, the supplier is performing vendor managed inventory. What type of products include staples that people buy in a wide range of retail outlets? Functional Which of the following processes for sourcing or purchasing an item have high transaction costs? Strategic alliance Vendor managed inventory Request for proposal What are the drawbacks to forward buying? Check all that apply. Higher supply chain costs Large carrying costs Shipment bulge Inventory turnover is the ratio of the cost of goods sold to average aggregate inventory value What type of products have a life cycle of just a few months? Innovative is a program for automatically supplying groups of items to a customer on a regular basis. (Enter only one word per blank.) Blank 1: Continuous Blank 2: Replacement or replenishment Specific criteria for identifying functional products include which of the following? Check all that apply. Long product life cycle Which sourcing process is used for complex items where there are a number of potential vendors? Request for proposal What term is used to describe a practice where a customer purchases excess parts in advance? Forward buying Which of the following is an innovative product? Personal computer In a supply process, manufacturing complexity tends to be low or manageable. Blank 1: stable Relative to evolving manufacturing (supply) processes, stable manufacturing (supply) processes have lead times. Blank 1: dependable or reliable The bullwhip effect indications a lack of what among supply chain members? Synchronization What type of products include staples that people buy in a wide range of retail outlets? Functional With regards to demand characteristics, which type of product, functional or innovative, has the greater product variety? Innovative Few (10-20) variations Sourcing decisions are ______ decisions. strategic Which of the following supply chain strategies aims at creating the highest levels of cost efficiency through eliminating non–valueadded activities, pursuing scale economies, deploying optimization techniques to get the best capacity utilization in production and distribution, and establishing information linkages to ensure the most efficient, accurate, and cost-effective transmission of information across the supply chain? Efficient What term describes moving some of a firm's activities to outside providers? Outsourcing In an supply process, the manufacturing process requires a lot of fine-tuning and is often subject to breakdowns and uncertain yields. Blank 1: evolving Relative to evolving manufacturing (supply) processes, stable manufacturing (supply) processes have supply sources Blank 1: more or many With regards to demand characteristics, which type of product, functional or innovative, has the shorter product life cycle? Innovative Which of the following is not a reason why a firm may choose to outsource an activity? Turn variable costs into fixed costs Which type of supply chain strategy is aimed at being responsive and flexible to customer needs and hedges against supply shortages? Agile supply chains Which of the following resources may be transferred in outsourcing? Check all that apply. Technology People Equipment Facilities manufacturing processes tend to be highly automated, and long term supply contracts Blank 1: Stable are prevalent. Which of the following are financially driven reasons for outsourcing. Turn fixed costs into variable costs. Gain access to new markets, particularly in developing countries. Reduce costs through a lower cost structure. Improve return on assets by reducing inventory and selling unnecessary assets. Generate cash by selling low-return entities. Relative to evolving manufacturing (supply) processes, stable manufacturing (supply) processes have process changes. Blank 1: fewer, few, less, or lesser What term refers to the management functions that support the complete cycle of material flow? Logistics Which of the following should not be outsourced? The firm's core competencies Identify the three criteria that are used to evaluate whether an activity should be outsourced or not. Required coordination Intellectual property Strategic control Match these types of supply chains with their descriptions. Which type of activities are a key source of competitive advantage? Strategic What term describes moving some of a firm's activities to outside providers? Outsourcing Green sourcing can also help drive cost in a variety of ways, including product content substitution, waste reduction, and lower usage. Blank 1: reductions, lower, or down Which of the following are improvementdriven reasons to outsource. Improve quality and productivity. Improve risk management. Improve credibility and image by associating with superior providers. Obtain expertise, skills, and technologies that are not otherwise available. Shorten cycle time. There are six steps for the process for green sourcing. Please these steps in order where the first step is at the top. Assess the opportunity Engage sourcing agents Assess the supply base Develop the sourcing strategy Implement sourcing strategy Institutionalize the sourcing strategy What are some reasons that a firm might outsource logistics? Check all that apply. Lower costs Freight tracking using technology Reducing the number of employees The total cost of ownership includes which of the following? Check all that apply. Procurement costs Disposal costs Which of the following should not be considered when structuring a supplier relationship? Collaboration Which of the following is not a broad cost category in total cost of ownership? Pre-ownership What type of activities are key to the business Core but do not confer a competitive advantage? When calculating average aggregate Cost inventory value to use in calculating inventory turnover and weeks of supply, how is average aggregate inventory valued? Which of the following is considered in green sourcing? Check all that apply. Waste reduction Using recyclable materials A firm considers inventory an because the intent is for it to be used in the future. Blank 1: investment or asset During which step of the green sourcing process does the actual procurement process begin? Institutionalize the sourcing strategy When considering all costs of an item, we call it the total cost of ownership. Which cost of ownership includes maintenance and ergonomic factors? Ownership What term describes the annual cost for a company to produce the good or services provided to customers? Cost of goods sold Which of the following is used to weeks of supply. (Average Aggregate Inventory Value/Cost Of Goods Sold) ×52 Are the inventory turnover and weeks of supply measures related to another? Yes, they are mathematical inverses times 52.