It is easy to develop common ground in the negotiation without knowing what the other
party is seeking.
a. True
b. False
Which of the following is not one of the usual roles of an international purchasing
office (IPO)?
a. Identify potential suppliers.
b. Solicit quotes or proposals..
c. Obtain product samples.
d. Manage countertrade requirements.
e. Conduct overseas sales and marketing-related activities.
Purchasing and supply will be expected to play a growing role in sustainability efforts
of the firms, many of which closely involve suppliers.
a. True
b. False
Spend analysis involves using systems software to identify items purchased in common
among divisions or business units.a. True
b. False
On _____, the freight bill is presented on the effective day of the shipment.
a. FOB origin shipments
b. collect shipments
c. prepaid shipments
d. FOB destination shipments
e. None of the above.
In the firm fixed price contract, the price stated in the agreement does not change,
regardless of fluctuations in general overall economic conditions, industry competition,
levels of supply, market prices, or other environmental changes.
a. True
b. False
A negotiator with _____ is recognized as having accumulated and mastered a high level
of knowledge about a particular subject, often coupled with verifiable credentials and
stature to document that mastery.
a. referent power
b. legitimate power
c. coercive power
d. reward power
e. expert power
Analyzing the other party requires a thorough assessment of the relative strengths and
weaknesses of the parties, as well as the particulars for each individual issue to be
negotiated.
a. True
b. False
In a _____ system, decisions are automated, with exceptions dealt with manually.
a. transaction processing
b. routine decision making
c. strategic decision making
d. decision support
e. None of the above.
Supplier performance measurement differs somewhat from the process used to initially
evaluate and select a supplier as it is a continuous process as opposed to a unique,
one-time event.
a. True
b. False
A _____ specifies how supply management will (1) support the desired competitive
business-level strategy and (2) complement other functional strategies.
a. supply management strategy
b. corporate strategy
c. marketing strategy
d. category strategy
e. business unit strategy