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Buying firms select _____________ based on their capabilities, and not purely on the competitive process. A. employees B. materials C. the workforce D. managers and supervisors E. suppliers Purchasers and buyers determine which commodities or services are best, choose the […]

In a __________ schedule bargaining situation, the profits (and/or losses) of the respective bargainers, when added together, need not always equal the same fixed amount. A. standard-sum B. routine-sum C. fixed-sum D. floating-sum E. varying-sum Broadly, risk can be defined […]

As the size of a shipment increases, the transportation charge per unit of weight will fall. To take advantage of these rate economies, the carrier should attempt to consolidate shipments. Instead of shipping each day, the shipments are accumulated for […]

___________ involves facilitating the movements of raw materials and component parts from suppliers through the firm’s manufacturing process to the ultimate customers. A. Production B. Processing C. Production management D. Process management E. Transportation In most instances, the purchasing official […]

The problem with _____________________ is the lack of standardization, tedious paper work, delays, and errors. A. direct buying B. direct purchasing C. centralized buying D. indirect purchasing E. decentralized purchasing The buyer’s evaluation of the supplier’s performance is a catalyst […]

The __________________ is especially concerned with how to coordinate diverse production skills and integrate multiple streams of technology. A. lean production system B. PDF concept C. strength and weakness system D. RAP concept E. core competency concept Any business or […]

In collaboration, the two organizations truly realize the benefits of working together to optimize outcomes for both organizations. The two firms work together to develop a ___________ to deliver a high-quality product or service on time and under budget. A. […]

Companies on a growth pattern fueled by ______________ acquire new equipment to expand into a newly introduced product line. Investment in capital equipment for expansion purposes should increase incremental revenue. A. innovation B. competition C. increased sales D. technology E. […]

The list of factors considered in rating freight is compounded by the specific commodity that is being shipped. The basic steps involved in the determination of the applicable rates are listed below, with one exception. Which is the exception? A. […]

The average rate of return is the average cash flow after tax ________ the initial investment: The ARR is the most popular evaluation criterion used today. A. subtracted from B. divided by C. multiplied by D. added to ____________ occurs […]

The most significant trend in the area of supply management in hospital settings is simply the magnitude of the importance and resulting attention to efficiency and cost-effectiveness. A. True B. False A more devastating downside of ______________ is the buyer/seller […]

It is a good idea to implement e-procurement on systems that have a high supply risk and low profit impact, especially if there are a very limited number of suppliers to choose from. A. True B. False Critical items and […]

___________ is/are identified as the longest-duration path through the network. A. The sequence of activities B. The network diagram C. The events D. The essential path E. The critical path The duties and responsibilities of the project or contract manager […]

A Harvard Business School study concluded that a key driver in the decline of U.S. competitiveness in the international marketplace has originated from investing _______________, such as supplier relations. A. more in tangible benefits B. less in tangible benefits C. […]

A supplier secures a bonding company to guarantee that the supplier will enter into a contract if they are awarded the contract. A ____ bond enlists a ______ party into the transaction. A. government / second B. municipal / third […]

The purchasing professional must understand the dynamic nature of ________ cost. A. indirect B. direct C. variable D. labor E. advertising The objective of the purchasing department is to buy the _______ materials from the ______ supplier at the ______ […]

To be eligible to participate in some federal programs, a company must be certified as at least one of the following: •Women-owned business •Minority-owned business A. True B. False The suppliers’ ___________ systems must be consistent with the in-house quality […]

Supplier lead time affects a firm’s flexibility and service to its own customers. Firms that compete in ________ markets and face rapidly changing ________________ require greater flexibility than firms competing in _______ markets. A. volatile / consumer demands / stable […]

The CPM network consists of arcs and nodes. The ______ represent the actual activities while the ______ (events) represent when the activity starts and finishes. A. nodes / arcs B. arcs / nodes Tax effect. Lease payments are expenses that […]

The federal Electronic Signatures in Global and National Commerce Act (ESGICA), or E-Sign, went into effect on October 1, 2000. The law made online contracts for a variety of business transactions more ________________. A. clearly enforceable B. consistent C. easily […]

The competitive bidding process must begin with an assessment sizing up the suppliers’ _________________. A. labor and materials costs B. pricing strategies on competitive positions C. power D. need for sales E. competitive strength Primary sources assume most of the […]

In order to be successful, the project must come in meeting the SPA, on time and within budget. A. True B. False The ratios of materials related costs are increasing for all of the following reasons with one exception. A. […]

Outsourcing is also sometimes thought to be similar to subcontracting, joint venturing, and contract manufacturing. Contracting is the purchasing of goods or services to facilitate a business process owned by the buyer. The outsourcing point of departure from these concepts […]

The seven (7) steps to effectively implement e-procurement are: 1. Start with non-critical items. 2. Bring all internal stakeholders on board with your new procurement process to establish internal customer behavior. 3. Streamline, map, test, troubleshoot, and improve the process […]

The actual payoff system that bargainers face in an interaction must certainly be a major determinant of bargaining behavior. Several different factors related to the payoff system have been studied. •The amount that has to be exceeded if the bargainer […]

The most important task that the purchasing officer is involved in is representing the ________ in the development and negotiation of contracts with __________. A. manufacturer / second parties B. principal / second parties C. principal / third parties D. […]

The primary objective of a supply management program is to ensure systems are adequate to keep departments supplied ___________. A. with essentials B. without delays C. with low cost goods D. with high quality supplies E. without stockouts Communication can […]