_____ refers to the relationship between planned and actual sacrifices made to realize a
previously agreed-upon goal.
a. Strategic benchmarking
b. Effectiveness
c. Efficiency
d. Operational benchmarking
e. None of the above.
If the requested item is complex or requires an untested or new production process,
purchasing can include additional information or attachments on its RFQ to assist the
supplier, which might include detailed blueprints, samples, or technical drawings.
a. True
b. False
A two-day shipment by truck can often take a week or more by railbecause of the extra
handling involved.
a. True
b. False
The purchasing cycle begins with the _____.
a. selection of an appropriate supplier
b. issuance of a purchase order
c. receipt of a suppliers acknowledgement
d. identification of a need (a requirement)
e. determination of who can authorize the purchase
Acceptance of the contracted goods by the purchaser means that ownership of the goods
has been transferred.
a. True
b. False
A major concern with many outsourced systems contracts today is that much of this
work is going overseas to countries such as India.
a. True
b. False
The _____ requires the systematic evaluation of the performance of individual suppliers
and ultimate placement into one of three categories.
a. twenty/eighty rule
b. competency staircase approach
c. improve or else approach
d. triage approach
e. zero defects approach
When companies map what they believe a process looks like, they discover that the
actual process is quite different from what they thought it would look like.
a. True
b. False
In supplier measurement, the basic logic of the _____ is built around the calculation of
a/an _____.
a. categorical system¦supplier performance index
b. cost-based system¦process capability index
c. weighted-point system¦Q adjustment factor
d. weighted-point system¦cost accounting system
e. cost-based system¦supplier performance index (SPI)
The mission of a decentralized purchasing structure is to facilitate the consolidation of
similar buying requirements and standardize buying processes at the various facilities.
a. True
b. False
A/An _____ is designed to afford protection for persons who create original works,
such as books, software, songs, and films.
a. patent
b. trademark
c. trade secret
d. copyright
e. None of the above.
Having too little data is the most common problem an organization has with its
measurement system.
a. True
b. False
Overall reduction in material usage and disposal can be accomplished through
engineering design changes and reuse and recycle programs.
a. True
b. False
[The] _____ refers to the suppliers guarantee that the goods being exchanged do not
illegally violate another partys patent protection.
a. Warranty of title
b. Express warranty
c. Warranty of infringement
d. Implied warranty of fitness for use
e. Implied warranty of merchantability
Direct involvement in a suppliers operations by buyer personnel is the most challenging
part of any supplier development process.
a. True
b. False
Databases allow the purchaser to quickly identify suppliers potentially qualified to
support a requirement and may contain information on current products, the suppliers
future technology roadmap, process capability ratios, and past performance.
a. True
b. False