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1. Supply strategies that are based on changes in demand and supply are known as: (Points : 1)       risk-management strategies.

assurance-of-supply strategies.

cost-reduction strategies.

environmental-change strategies.

supply chain support strategies.

Question 2. 2. Even if a supply manager identifies and eliminates the causes of uncertainty and risk in the supply chain, the organization may still need to carry the same amount of inventory. (Points : 1)



Question 3. 3. Supply can provide an uninterrupted flow of materials, supplies and services by: (Points : 1)

holding large inventories.

holding small inventories.

standardizing capital equipment, materials, MRO and services.

b and c.

a and c

Question 4. 4. Sustainability initiatives include the effective and efficient capture and disposition of downstream products from customers and the reduction of the impact of the organization’s supply chains on the natural environment (Points : 1)



Question 5. 5. Risks in the supply chain can be classified into three main categories: (1) operational, (2) financial, and (3) strategic. (Points : 1)



Question 6. 6. A purchasing consortium: (Points : 1)

speeds up the purchasing process, but does not usually result in price concessions from suppliers.

consists of two or more independent organizations that combine requirements for materials, services and capital goods to gain better pricing, service and technology from suppliers.

results in price concessions from suppliers, but usually does not speed up the purchasing process.

consists of two or more divisions of the same organization that combine requirements for materials, services and capital goods to gain better pricing, service and technology from suppliers.

is a form of collaborative purchasing used only by the public sector to deliver a wider range of services at a lower total cost.

Question 7. 7. There is a growing emphasis on strategic supply management processes and less on purchase transactions. (Points : 1)



Question 8. 8. One of the most important steps in achieving the potential of the supply function in a company is elevation of the chief supply officer to executive status. (Points : 1)



Question 9. 9. The profit-leverage effect of supply savings means that: (Points : 1)

a reduction in money tied up in inventory improves profits.

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

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

the buyer gains leverage over suppliers when purchases are standardized.

efficient and effective supply management processes will  increase profits.

Question 10. 10. When developing supply strategies related to “how to buy,” decisions must be made about: (Points : 1)

systems and procedures

goals and objectives.

make or buy.

large or small inventories.

none of the above.

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