Certi ed Internation... (CIPM-Sep-19-TB) (https://tasklms.

com/learner/courseinfo/id:139)

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You completed this test on 13/10/2019, 12:07
Out of 7 people that took the test, you rank 6th
Your score is 50.00%, while the average test score is 80.45%

WRONG

The rst step in the internal supply chain is:

 receiving

inspection

payment

supplier performance evaluation

 expediting.

CORRECT

Supply chain management is:

externally focused from supply management to suppliers.

externally focused from supply management to suppliers, and from suppliers to their suppliers.

internally focused from supply management to internal users/customers.

internally focused from supply management to senior management.

 internally focused to align with other functions and externally focused upstream through the supplier network and
downstream through the customer network.

CORRECT /
Reverse marketing is:

when the buying organization has decided to stop making something inhouse and identi es a supplier from its
existing supply base.

an aggressive, marketing-initiated approach to nding and developing world class suppliers.

 an aggressive, purchaser-initiated approach to nding and developing world class suppliers.

is when the supply department sells internal users on a speci c supplier that the user was opposed to initially.

when the marketing department tries to convince the supply department to stop buying from a speci c supplier.

WRONG

In the portfolio matrix, characteristics of goods and services in the bottleneck quadrant are:

 item substitution and switching suppliers are di cult because few suppliers are available with the capability to meet
the unique speci cation requirements.

 item substitution and switching are di cult, but many available suppliers can meet the technical or capacity needs.

item substitution and switching suppliers are possible, and several sources of supply are readily available.

substitution is possible, but switching suppliers is di cult even though many suppliers are available.

substitution and switching suppliers are relatively easy, but few suppliers have the technical expertise.

WRONG

Sustainability is the ability to:

sustain economic prosperity through long-term relationships with key suppliers.

 achieve economic prosperity and a higher quality of life and protect natural systems.

develop a supply base that meets requirements and protects natural systems.

 sustain long term bottomline growth with a stable supply base.

achieve economic prosperity for the company and its shareholders and avoid environmental litigation.

WRONG

In portfolio analysis, the goal when purchasing non-critical or routine spend is to:
/
 assure quality at expected levels.

 minimize acquisition time and cost.

minimize price per unit.

reduce or eliminate customization.

 assure continuous supply at lowest total cost of ownership.

WRONG

In portfolio analysis, the goal when purchasing bottleneck items is:

assure quality at expected levels.

 reduce or eliminate customization.

 minimize acquisition time and cost.

minimize price per unit.

assure continuous supply at lowest total cost of ownership.

CORRECT

The fairest possible means of treating all suppliers alike in a competitive bidding situation is to:

allow all bidders to change their bids prior to the bid opening.

allow for negotiation after all bids are received.

relate imaginary bids to give prospective suppliers a number to work with.

 establish a policy of rm bidding.

none of the above because competitive bidding is not fair.

WRONG

CPFR stands for:

 Continuous Planning, Forecasting and Replenishment

Continuous Planning For Replenishment

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 Collaborative Planning, Forecasting and Replenishment

Collaborative Planning For Replenishment

Collaborative Planning, Forecasting and Recycling

WRONG

The characteristic of a service that has the greatest impact on the ability to de ne, measure and control
service quality is:

 monetary value of the service.

degree of repetitiveness.

 degree of tangibility.

direction of the service.

nature of the demand.

CORRECT

A requirement typically is considered strategic if:

revenue enhancement.

risk reduction.

access to new technology.

a and b

 a, b, and c.

WRONG

In terms of corporate social responsibility, the role of supply managers is:

 broadly de ned as actions at home and o shore.

limited because few supply decisions impact issues of social responsibility.

extensive because of the perceptions of consumers.

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 limited to supplier selection decisions.

narrowly de ned as actions within the home country, but not o shore.

WRONG

The inability to store services:

 means timing is critical to successful service acquisition.

makes it easier to acquire services than goods.

facilitates supplier performance measurement.

makes it easier to evaluate the quality of the service.

is of little importance at the time of acquisition.

WRONG

About 70 percent of the opportunity for value improvement lies in:

need identi cation.

speci cation.

 need identi cation and speci cation.

speci cation and supplier selection.

supplier selection and performance evaluation.

WRONG

When buying with a performance or function speci cation:

most of the risk is borne by the buyer.

it is fairly easy to ensure that potential suppliers are quoting for exactly the same material or service.

the opportunity exists to purchase identical requirements from several sources.

the focus is on design more than results.

 it may be di cult to compare quotations and the supplier may include a risk allowance in the price.
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WRONG

A request for quotation that asks for a "brand or equal":

is one way internal users ensure that they will get the brand they prefer.

is the least risky and lowest cost approach to attaining "best value."

 shifts responsibility for establishing equality or superiority to the bidder.

requires the buyer to assume the costs of developing detailed speci cations.

should always be discouraged by the buyer.

WRONG

The decision to make or buy a good or service is:

 a decision of strategic importance that deserves careful evaluation.

a one-time decision never to be reconsidered.

primarily an operational decision.

the same as deciding to insource or outsource.

typically made by the chief supply o cer and his or her executive team.

WRONG

The three options for soliciting business from potential suppliers are:

 request for information (RFI), request for quotation (RFQ) and request for proposal (RFP).

request for quotation (RFQ), request for proposal (RFP) and request or invitation for bid (RFB or IFB)

request for quotation (RFQ), request for con rmation (RFC) and request for proposal (RFP).

request for information (RFI), request for proposal (RFP), and request or invitation for bid (RFB or IFB)

request for quotation (RFQ), request for price (RFP), and request or invitation for bid (RFB or IFB).

WRONG

Corporate purchasing cards are issued to:

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 internal customers to purchase high-dollar, production materials of a highly technical nature.

 internal customers to purchase low-dollar, high-volume goods and services.

supply department personnel to speed up the acquisition of rush orders and small value orders.

internal customers to purchase either high or low dollar, high or low-volume, production or non-production goods
and services.

 supply department personnel to eliminate purchase orders and individual invoices.

CORRECT

If the buyer has a clear and unambiguous description or speci cation and wants to nd out which supplier
can deliver the best value when and where needed, he or she will typically issue a:

 request for quotation (RFQ).

request for proposal (RFP).

request for information (RFI).

request for bid (RFB).

request for suggestions (RFS).

CORRECT

The need recognition and description phases of the supply process:

are best performed by the user or speci er.

are of less importance than the actual selection of suppliers.

have limited impact on total cost of ownership.

are most e ective when they are automated

 are when most of the cost and quality are determined.

CORRECT

Internal business partnerships between supply and other functional areas such as marketing/sales,
nance/accounting, operations and engineering are

easily developed because all functional areas share goals and metrics. /
 di cult to develop because supply has little impact on organizational goals.

 desirable because of the interdependencies between and among functions.

unimportant because one area has no impact on the others.

not worth the time it takes to develop them.

CORRECT

The objectives of supply are to obtain:

the right material at the right quality, quantity, price and cost at the right place from the right source with the right
service.

the right material, at the right place, time, price, cost, and terms and conditions.

the right material or service at the right quality, quantity, place, and time from the right source at the right service.

 the right quality and quantity at the right price and cost delivered to the right place at the right time from the right
source.

the right quality materials in the right quantity at the right time and place from the right source at the right service
level and at the right price.

CORRECT

The objectives of supply management focus on:

operational issues such as price, supply availability, and inventory levels.

internal supply processes and relationships with key suppliers.

strategic issues only, such as competitive position and pro tability.

 operational and strategic issues.

supply's contribution to strategic players in the organization.

CORRECT

In manufacturing companies:

supply and operations coordination is not essential to operational excellence.

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 supply and operations coordination is essential to operational excellence.

most purchases are for resale.

purchases may represent a small percentage of total expenditures.

production purchasing is outsourced and expertise in non-production purchasing is developed in house.

CORRECT

Three major challenges facing the supply executive when setting supply objectives and strategies are:

(1) Should we have a centralized or decentralized purchasing structure? (2) Should we hire managers trained in
supply management or in technical elds? and (3) Should we outsource any or all of the purchasing function?

 (1) What is the e ective interpretation of corporate objectives and supply objectives? (2) What is the appropriate
action plan or strategy to achieve the desired objectives? and (3) How can supply issues be identi ed and integrated
into organizational objectives and strategies?

(1)How many suppliers should we do business with? (2) Which suppliers should we select? and (3) What type of
relationship should we have with these suppliers?

(1) Should we precertify suppliers? (2) Should we allow internal users to purchase certain categories of purchases?
and (3) Should we increase or decrease the number of suppliers in our supply base?

(1) How can we simultaneously provide uninterrupted supply and minimize inventory? (2) How can we improve
quality while reducing our supply base? and (3) How can we increase our involvement in outsourcing decisions?

WRONG

A strategy is:

an action plan to maximize rewards in the current period in return for big risks.

a vision of the future of an organization.

 an action plan to achieve speci c long-term goals and objectives.

 a procedure for allocating resources among functions in the organization.

an action plan to achieve speci c operational and tactical goals.

WRONG

Supply strategies that are designed to anticipate and recognize shifts in the economy, organization,
people, laws, regulations, and systems availability are: /
 change management strategies.

total cost strategies.

 environmental change strategies

 internal management strategies.

supply assurance strategies.

CORRECT

When developing supply strategies, the supply manager must determine:

what to make or buy.

who should make it

how it should be made.

how well it should be made.

 all of the above.

WRONG

Which of the following is one of the ve major supply strategy areas:

price-reduction strategies.

 performance-improvement strategies.

engineering-support strategies.

 risk-management strategies.

new-product design strategies.

CORRECT

For an organization with revenue of $100,000,000, purchases of $60,000,000, and pro t of $8,000,000 before
tax, a 10 percent reduction in purchase spend would result in an increase in pro t of:

10 percent, giving a pro t leverage e ect of 1.0

/
 36 percent, giving a pro t leverage e ect of 3.6

57 percent, giving a pro t leverage e ect of 5.7

60 percent, giving a pro t leverage e ect of 6.0

 75 percent, giving a pro t leverage e ect of 7.5

CORRECT

Supply chain management refers to a systems approach to managing:

the sourcing and selection process, and developing and maintaining relationships with key suppliers.

supplies for maintenance, repairs, and operations (MRO) in the manufacturing sector only.

the ow of information, materials, and services from key suppliers, their suppliers, and their suppliers' suppliers into
the buying organization.

 the ow of information, materials, and services from suppliers, their suppliers, and their suppliers' suppliers through
the buying organization to their customers, and their customers' customers.

and monitoring the status of raw materials as a current asset all the way through to nished goods inventory.

CORRECT

Company image may be directly in uenced by:

treating suppliers in a fair and equitable manner.

complying with regulatory requirements.

labor, environmental, and ethical practices of suppliers.

none of the above.

 a, b and c.

CORRECT

On average, the dollars spent with suppliers as a percent of revenues is:

greater in service organizations than in manufacturing.

about equal in service organizations and manufacturing.

/
 is greater in manufacturing than in service organizations.

depends on the type of manufacturing process.

depends on the type of service.

CORRECT

To contribute to organizational strategy, the supply department should:

meet expectations of internal customers.

 seek opportunities to provide competitive advantage.

execute current tasks as designed.

routinize and automate transactions.

streamline the process.

WRONG

Performance of the supply management function can be viewed in two context

image-building and cost-driven.

price sensitive and hard-nosed negotiating.

trouble causing and reactive.

 quality oriented and value-driven.

 trouble avoidance and opportunistic.

CORRECT

Interest in the performance of the supply function began:

 before 1900 when railroads recognized it as an important function.

during the 1940s when world war II led to global material shortages.

in the 1970s during a period of high in ation and fuel prices.

In the 1980s and 1990s with the rise of electronic commerce.

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 recently when inventories had to be sold o during the Great Recession.

CORRECT

The role of supply management is best captured by the following question:

how can supply help suppliers decrease costs?

how can supply and suppliers help decrease costs?

 how can supply and suppliers help decrease costs and increase revenues?

how can supply help decrease costs and increase revenues?

how can supply help decrease costs?

Passed. Let's continue.