Sanpson Products
Chapter 1 The Progression to Professional Supply Management
True/False Questions
Note to students, select the answer that is true or false “most of the time”, few situations in social sciences are simply black or white.
1. Purchasing is primarily a clerical activity. 2. Supply management is also known as procurement at many firms and government agencies. 3. Strategic sourcing starts with the analysis of the supply market. 4. Materials have always been vital in the history of industrial growth. 5. In the history of power source relationships, percentage wise, labor costs went down while materials costs went up. 6. Supply management plays a major role in improving the “bottom line” by driving sales up and costs down. 7. Generally speaking, firms with the fasted time to market with new products by using cross functional teams including suppliers, enjoy higher profits. 8. Some 75% of many manufacturer’s quality problems can be traced back to defects in purchased materials. 9. Of the factors that make up total cost of ownership (TCO), the big majority of this cost is in the acquisition cost. 10. “Lean thinking” is primarily concerned with conversion cost. 11. When supply savings and increased sales due to superior supply chain management are combined, it is not uncommon to increase ROI 50%. 12. The term “supply chain” means all the members are linked together in one master contract covering a long time period. 13. The term “value chain” includes both the upstream and downstream portion of the supply chain. 14. The extended enterprise means a group of firms collaborating as a supply alliance, i.e. a strategic network or virtual corporation. 15. The key role of a supply management professional is one of leadership. 16. The final step in the typical purchasing cycle for materials in to audit the invoice. 17. Supply management must be a core competency based on its impact on the bottom
True/False Questions
Note to students, select the answer that is true or false “most of the time”, few situations in social sciences are simply black or white.
1. Purchasing is primarily a clerical activity. 2. Supply management is also known as procurement at many firms and government agencies. 3. Strategic sourcing starts with the analysis of the supply market. 4. Materials have always been vital in the history of industrial growth. 5. In the history of power source relationships, percentage wise, labor costs went down while materials costs went up. 6. Supply management plays a major role in improving the “bottom line” by driving sales up and costs down. 7. Generally speaking, firms with the fasted time to market with new products by using cross functional teams including suppliers, enjoy higher profits. 8. Some 75% of many manufacturer’s quality problems can be traced back to defects in purchased materials. 9. Of the factors that make up total cost of ownership (TCO), the big majority of this cost is in the acquisition cost. 10. “Lean thinking” is primarily concerned with conversion cost. 11. When supply savings and increased sales due to superior supply chain management are combined, it is not uncommon to increase ROI 50%. 12. The term “supply chain” means all the members are linked together in one master contract covering a long time period. 13. The term “value chain” includes both the upstream and downstream portion of the supply chain. 14. The extended enterprise means a group of firms collaborating as a supply alliance, i.e. a strategic network or virtual corporation. 15. The key role of a supply management professional is one of leadership. 16. The final step in the typical purchasing cycle for materials in to audit the invoice. 17. Supply management must be a core competency based on its impact on the bottom