Question 1

Which of the following best describes the difference between purchasing and supply management?

Accepted Answer

Purchasing is focused on transactional activities such as supplier selection and contracting, while supply management pursues strategic responsibilities aligned with the organization's mission and involves cross-functional collaboration.

Question 2

A cereal producer wants to reduce the risk of supply chain disruptions. Which strategy is most effective based on current supply environment challenges?

Accepted Answer

Develop business continuity plans and monitor supply base for risk exposure.

Question 3

According to Porter's value chain model, which of the following is considered a support activity?

Accepted Answer

Human resources management

Question 4

Which technological advancement is most likely to improve real-time collaboration in supply chain management?

Accepted Answer

Cloud-based data storage systems

Question 5

What is a major advantage of short supply chains in terms of price stability and delivery consistency?

Accepted Answer

Lower transportation and energy costs, and less susceptibility to global disruptions.

Question 6

Which of the following is NOT a recommended aspect of a good measurement system for supply chain excellence?

Accepted Answer

Use of goals that remain consistent with time.

Question 7

During which era did firms begin viewing suppliers as value-added partners rather than adversaries?

Accepted Answer

The Global Era (late 1970s-1999)

Question 8

A company is considering reshoring its manufacturing operations. Which limitation should it anticipate?

Accepted Answer

Higher prices for finished goods due to increased labor costs.

Question 9

Which activity is part of the supply chain umbrella and focuses on preventing defects rather than detecting them?

Accepted Answer

Quality control

Question 10

What is the primary role of purchasing and procurement in supply chain management?

Accepted Answer

Negotiating and contracting with suppliers to get the right quality, quantity, time, price, and source.

Question 11

Which supply chain management pillar is responsible for recruiting and retaining employees in key knowledge areas?

Accepted Answer

Capable human resources

Question 12

A company wants to improve its time-to-market for a new product. What supply management strategy should it use?

Accepted Answer

Involve suppliers early in product development to achieve cost reduction and quality improvement.

Question 13

Which of the following best describes a reverse supply chain?

Accepted Answer

A system for returning defective products back through the supply chain and delivering defect-free products to customers.

Question 14

What is the purchase-to-sales ratio range in the manufacturing sector, and why is it significant?

Accepted Answer

$50\%$ to $70\%$; it represents a major opportunity for cost savings.

Question 15

Which of the following is a key element of a strategic supply management model?

Accepted Answer

Conducting worldwide searches for the best supply sources.

Question 16

How does supply management contribute to a firm's competitive advantage?

Accepted Answer

By finding, developing, and retaining supply management talent.

Question 17

Which of the following is a primary activity in Porter's value chain model?

Accepted Answer

Operations

Question 18

A supply manager is tasked with improving supplier performance and expertise. What is the expected impact on the organization?

Accepted Answer

Differentiation of products and services, leading to improved performance.

Question 19

Which of the following is a challenge associated with long supply chains?

Accepted Answer

Lowered overall confidence due to higher volatility, uncertainty, complexity, and ambiguity (VUCA).

Question 20

What is the role of order processing in the supply chain umbrella?

Accepted Answer

It is the key link between producer and external customer.

Introduction to Purchasing and Supply Chain Management: Key Concepts and Evolution

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