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Supply Chain Management Quiz

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

Which of the following would NOT typically be considered as part of a manufacturing firm's supply chain?

a)

suppliers

b)

distributors

c)

wholesalers

d)

retailers

e)

landscaping contractors

2.

Among which of the following industries are purchasing costs the LOWEST percentage of sales?

a)

automobile

b)

petroleum

c)

restaurants

d)

chemical

3.

Which of the following is a primary supplier selection criterion for a firm pursuing a differentiation strategy?

a)

product development skills

b)

cost

c)

capacity

d)

speed

4.

For which corporate strategy should supply chain inventory be minimized?

a)

low cost

b)

response

c)

differentiation

d)

low cost and differentiation

5.

Which one of the following is NOT one of the six sourcing strategies?

a)

negotiation with many suppliers

b)

vertical integration

c)

keiretsu

d)

short-term relationships with few suppliers

6.

A disadvantage of the 'few suppliers' sourcing strategy is:

a)

the risk of not being ready for technological change.

b)

the lack of cost savings for customers and suppliers.

c)

possible violations of the Sherman Antitrust Act.

d)

the high cost of changing partners.

7.

Which sourcing strategy is particularly common when the products being sourced are commodities?

a)

few suppliers

b)

many suppliers

c)

keiretsu

d)

vertical integration

8.

Which of the following is NOT an advantage of the 'few suppliers' sourcing strategy?

a)

suppliers have a learning curve that yields lower transaction and production costs

b)

suppliers are more likely to understand the broad objectives of the end customer

c)

less vulnerable trade secrets

d)

creation of value by allowing suppliers to have economies of scale

9.

Which of the following is NOT a condition that favors the success of vertical integration?

a)

availability of capital

b)

availability of managerial talent

c)

sufficiently high demand

d)

small market share

10.

A fried chicken fast-food chain that acquired feed mills and poultry farms has performed which of the following?

a)

horizontal integration

b)

forward integration

c)

backward integration

d)

current transformation

11.

Japanese manufacturers often pursue a strategy that is part collaboration, part purchasing from a few suppliers, and part vertical integration. What is this approach called?

a)

kanban

b)

keiretsu

c)

samurai

d)

poka-yoke

12.

Which of the following is NOT an advantage of a virtual company?

a)

speed

b)

total control over every aspect of the organization

c)

specialized management expertise

d)

low capital investment

13.

When Daimler and BMW pooled resources to develop standardized auto components, the sourcing strategy could best be described by which of the following?

a)

keiretsu

b)

virtual companies

c)

joint venture

d)

vertical integration

14.

Which of the following is NOT one of the risk mitigation tactics for the supply chain risk category of suppliers failing to deliver?

a)

use multiple suppliers

b)

effective contracts with penalties

c)

subcontractors on retainer

d)

require overnight delivery

15.

Which of the following devices represents an opportunity for technology to improve security of container shipments?

a)

devices that identify truck and container location

b)

devices that sense motion

c)

devices that measure radiation or temperature

d)

all of the above

16.

E-procurement:

a)

works best in long-term contract situations but is not suited for auctions.

b)

is purchasing facilitated through the Internet.

c)

has many benefits but requires a lot of paperwork.

d)

is illegal in all states except Nevada and New Jersey.

17.

What are the three classic types of negotiation strategies?

a)

supplier evaluation, supplier development, and supplier selection

b)

Theory X, Theory Y, and Theory Z

c)

many suppliers, few suppliers, and keiretsu

d)

cost-based price model, market-based price model, and competitive bidding

18.

Which of the following is NOT a typical benefit of centralized purchasing?

a)

leverage purchase volume for better pricing

b)

develop specialized staff expertise

c)

reduce the duplication of tasks

d)

reduce lead times

19.

Which one of the following distribution systems offers speed and reliability when emergency supplies are needed overseas?

a)

trucking

b)

railroads

c)

airfreight

d)

waterways

20.

While freight rates are often based on very complicated pricing systems, in general, the primary freight price factor is based on which of the following attributes?

a)

damage record

b)

on-time delivery

c)

door-to-door service

d)

speed of shipment