An organization is partnering with a supplier. The most appropriate tool to ensure that the supplier has the necessary capabilities is:
A. a supplier-input-process-output-customer diagram.
B. supplier certification.
C. supplier relationship management.
D. supplier performance evaluation.
A firm experiences a supply chain interruption from a second-tier supplier. Which of the following actions is the firm likely to take to minimize future interruptions?
A. Require the supplier to submit weekly cycle count reports.
B. Require the supplier to implement a sales and operations planning process.
C. Map the supplier's supply chain to identify risks and opportunities.
D. Conduct an ISO 14001 audit of the supplier.
A company recently implemented a new supplier rating system. Data was collected from the enterprise resources planning system about each vendor's rating for cost, quality, and delivery over 12 months. A cutoff point was established for poor performers. The responsible purchasing agent then scheduled meetings with each supplier. Which of the following actions is most appropriate to take with suppliers whose ratings were below the cutoff point?
A. Discuss ways to raise the ratings for the next review period.
B. Tell the suppliers they are on probation for 3 months.
C. Immediately cancel outstanding contracts with those suppliers.
D. Ask the suppliers to explain the poor performance.
Which of the following statements best identifies the value of using a supplier rating system?
A. It provides an objective means for a company to determine outstanding suppliers.
B. It allows customers to post chargebacks to suppliers.
C. It offers a company an effective way to control suppliers' delivery processes.
D. It ensures that all suppliers are using the same quality standards to manufacture products.
Which of the following outcomes is an expected benefit of effectively implementing supply chain event management software?
A. Inventory data are captured in real time.
B. Files are transferred from one corporation to another.
C. Notifications of variances from plans are triggered.
D. Communication protocols between companies are standardized.
The practice of purchasing items in large quantities and requesting that shipments be delivered directly to customers is referred to as:
A. drop shipping.
B. cross-docking.
C. breaking bulk.
D. freight equalization.
Which of the following types of lead times is related most closely to a supplier performance measure?
A. Fulfillment
B. Replenishment
C. Overall
D. Process
Which of the following strategies is most appropriate for managing unknown risks in a global supply chain?
A. Vertical integration
B. Technology integration with suppliers
C. Investing in redundancy
D. Strengthening supplier relationships
Which of the following performance indicators can be used to measure the effectiveness of a vendor-managed inventory program?
A. Number of inventory receipts
B. Inventory usage
C. Inventory returns
D. In-stock rate
An information technology system that couples enterprise resources planning and an advanced planning system would be most appropriate for which of the following types of business operations?
A. Multiple plants in multiple industries
B. Multiple plants in the same supply chain
C. Multiple supply chains of different products
D. Multiple supply chains of the same product
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