1. _______ analysis relates to what processes, activities, and decisions actually create costs in your supply chain. A. Cost driver C. Cost reduction B. Value proposition D. Target costing 2. In the 1980s, Toyota and Honda outcompeted American carmakers because they relied on suppliers for approximately _______ percent of a car’s value. A. 30 C. 60 B. 45 D. 80 3. The new skill set required by purchasing agents in support of outsourcing includes all of the following except A. improving communication with the supplier. B. developing metrics for soft performance issues. C. contract management and negotiation skills. D. listening to the supplier’s concerns. 4. The _______ has made it possible for other companies to eliminate intermediaries and sell directly to the end consumer. A. SCM C. competition B. Internet D. global sourcing 5. Value stream mapping is an application of process mapping, developed to apply _______ principles to process improvement. A. management C. supply chain B. lean D. cycle time 6. A supply chain is made up of a series of processes that involve an input, a _______, and an output. A. shipment C. customer B. supplier D. transformation 7. In the _______ quadrant, because you’re buying products that are available from many sources in relatively large quantity, a little effort in careful purchasing makes a big difference in cost. A. low-cost C. leverage B. strategic D. critical-projects 8. _______ is a tool to chart how individual processes are currently being conducted and to help lay out new improved processes. A. Process mapping C. Supply chain design B. Pareto charting D. Design chain mapping 9. Identify from the following list a major strategic risk associated with outsourcing. A. Outsourcing landed cost is usually higher than insourcing cost. B. The supplier is purchased by a competitor. C. The business loses sight of market trends. D. The cost of supplied material is passed on to the customer. 10. _______ is the design of seamless value-added processes across organization boundaries to meet the real needs of the end customer. A. Operations C. Process engineering B. Supply chain management D. Value charting 11. The impact of cost reduction on profits is much larger than the impact of increased A. innovation. C. information. B. production. D. sales. 12. _______ considers how your organization competes and is an essential element of corporate strategy. A. Value proposition analysis C. A consultant B. Leadership D. A competitor 13. 3PL” involves using a supplier to provide _______ services. A. marketing C. logistics B. design D. contract manufacturing 14. The collective learning in the organization, especially how to coordinate diverse production skills and integrate multiple streams of technologies, is called A. innovative constraint. C. corporate skill. B. second-tier competency. D. core competency. 15. One way of managing SKU complexity is through a postponement strategy, which means that the company A. postpones shipment of goods until full payment is received. B. postpones final manufacturing or other value-added activities until an order is received. C. doesn’t begin making the product until a customer has ordered it. D. doesn’t order parts for its product until it has enough backlogged orders to use them all up quickly. 16. Which company’s ambitious goal to become the world’s largest automaker by 2010 forced it to expand worldwide operations at a pace that strained its human and technological resources? A. Toyota C. Ford B. GM D. Chrysler 17. _______ is the acquisition and use of information about events, trends, and relationships in an organization’s internal and external environments. A. Environmental scanning C. Consolidation B. Research D. Reconciliation 18. Which of the following is the most important reason for single sourcing? A. To avoid the risk of a supply disruption caused by a disaster B. To drive down the price of the supplier’s part through competition C. To avoid becoming too dependent on a supplier D. To attain the benefits of collaboration 19. Companies have competed on the basis of _______ since the just-in-time revolution. A. inventory C. speed B. supplier base D. profits 20. Shifting roles to the supply chain member best positioned to perform them is called A. rationalization. C. realization. B. functional shiftability. D. supplier certification.