Chap001 - Chapter 01 - Purchasing and Supply Management...

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Chapter 01 - Purchasing and Supply Management C HAPTER 1 Purchasing and Supply Management Chapter Outline Purchasing and Supply Management Supply Management Terminology Supply and Logistics The Size of the Organization’s Spend and Financial Significance Supply Contribution The Operational versus Strategic Contribution of Supply The Direct and Indirect Contribution of Supply The Nature of the Organization Supply Qualifications and Associations Challenges Ahead Supply Chain Management Measurement Risk Management Sustainability Growth and Influence Effective Contribution to Organizational Success The Organization of This Text Conclusion Questions for Review and Discussion References Cases 1–1 Qmont Mining 1–2 Erica Carson 1–3 Southeastern University 1-1
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C HAPTER 1 P URCHASING AND S UPPLY M ANAGEMENT Q UIZ I NSTRUCTOR M ANUAL D 1. The design and management of seamless, value-added processes across organizational boundaries to meet the real needs of the end customer is called: a. strategic sourcing. b. value management. c. customer relationship management. d. supply chain management. e. strategic process management. E 2. As supply chains have become more global, the risk of supply disruptions has: a. decreased because risk is spread among suppliers all over the world. b. decreased because there are also more international laws and treaties. c. stayed the same because the issues are similar wherever suppliers are located. d. increased because other countries lack the business ethics of the U.S. e. increased because of financial and exchange rate fluctuations. B 3. Performance of the supply management function can be viewed in two contexts: a. operational and trouble-avoidance. b. operational and strategic. c. operational and transactional. d. strategic and opportunistic. e. strategic and future-oriented. C 4. The return on assets effect (ROA) quantifies and measures: a. the indirect contribution of supply management to profitability. b. any increase in sales that occurs at a greater rate than the cost of assets. c. the impact of supply actions on inventory and the balance sheet. d. reductions in the allocations to the operating budget of the supply department. e. the effect on profitability of reduced spend compared to a sales increase.
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A 5. Supply has the potential to contribute to: a. cost management, profitability, return on assets, competitive position and corporate social policy. b. cost management, profitability, return on assets and competitive position. c. cost management, profitability and return on assets. d. cost management and profitability. e. cost management. B 6. In manufacturing organizations, the dollars spent with suppliers fall into what range as a percent of revenues? a.
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Chap001 - Chapter 01 - Purchasing and Supply Management...

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