Professional Documents
Culture Documents
116. Reducing the obsolescence and waste of maintenance, repair, and operating
(MRO) supplies through better materials and inventory management will:
a.
reduce the costs of disposing of MRO items that are obsolete or waste.
b.
reduce carrying cost by lowering inventory levels, especially of obsolete
items.
c.
improve environmental performance by reducing waste that goes into landfills
or incinerators.
d.
simultaneously reduce costs and improve environmental performance.
e.
have little impact because MRO is a small percentage of annual spend and the
items usually have low environmental low-impact.
117. Warehousing and inventory storage:
a.
b.
c.
d.
e.
118. One of the reasons why companies are paying more attention to the effective,
efficient, and profitable recovery and disposal of scrap, surplus, obsolete, and waste
materials is that:
a.
consumers overwhelmingly demand environmental responsibility.
b.
it is easy to administer and highly profitable.
c.
most organizations generate little scrap, surplus, obsolete and waste materials.
d.
disposal costs are rising and environmental legislation is strengthening.
e.
disposal is a fairly simple problem that is easily resolved.
c.
encouraging and participating in designing products that do not use or
generate hazardous waste.
d.
a and b.
e.
a, b and c.
True and False
1. Production planning relies heavily on forecasts from operations to anticipate
demand for products and services..
2. To ensure maximum return for its investment, the process and procedures for
selling scrap and surplus must cover a broad range of activities including segregation
and storage, weighing and measuring, delivery, negotiation, supplier selection, and
payment.
3. If material has been declared surplus, the only option is to sell it.
4. Obsolete is in the eyes of the beholder. Something that has been declared obsolete
in one organization may be perfectly acceptable and useable in another.
5. It makes no sense to assign responsibility for disposal to the supply management
function because the personnel usually have no selling experience.
6. The total cost of hazardous waste for a company does not include the costs of new
plant and equipment to reduce waste and deal with contaminated plants.
7. Escalator clauses in contracts for scrap disposal are necessary because the prices of
primary metals fluctuate.
8. An organizations Enterprise Resource Planning (ERP) system may be used to
develop a national or global database for company personnel at different locations to
post and purchase spare parts, obsolete materials, and surplus.
9. Waste is created when a change in the production process occurs, or when a better
material is substituted for the material originally used.
10. As more people come to believe that it makes economic sense to practice
environmentally sound operations, business and government may be able to work
together for common goals.
CHAPTER 17
SUPPLY FUNCTION EVALUATION AND TRENDS
123. Research on the supply management process focuses on:
a.
b.
c.
d.
e.
126. When cross-functional teams are used to conduct research, it is best if:
a.
the team has strong leadership.
b.
the team has total autonomy to decide objectives and set expectations.
c.
team members are randomly selected from departments.
d.
performance evaluation and reward systems foster individual contributions.
e.
each team member develops time management skills to handle the
assignment.
127. In terms of measuring and validating supply savings:
1.
2.
3.
4.
5.
128. Supply can play a leadership role in corporate social responsibility (CSR) by:
1.
2.
3.
4.
5.
1.
enables the development of risk minimization strategies.
2.
predicts the probability of the supplier encountering financial problems.
3.
is done primarily to ensure the supplier has the cash to pay its bills.
4.
usually is unnecessary if the supplier has been in business for more than 5
years.
5.
is required before a contract can be ratified.
4. Effectiveness metrics which emphasize price may lead to behavior that drives up
total cost of ownership.
5. The supply planning process is initiated by the supply managers assessment of the
supply base.
6. Industry benchmarking allows an individual company to compare itself to its major
competitor.
7. Financial efficiency is indicated by the asset and inventory turnover ratios.
8. Supplier performance management systems should be designed to capture and
communicate the failures of suppliers so penalties can be assessed.
9. Supply managements contribution may be measured along three dimensions:
revenue enhancement, asset management, and cost management.
10. Internal validation of supplys financial contribution increases joint ownership of
goals and outcomes.