In some cases, a firm may be looking to develop a long-term relationship with a
potential supplier, particularly if the supplier is in the Routine quadrant of the Strategy
Portfolio Matrix and the category of spend is low volume and routine to the companys
business.
a. True
b. False
In the _____ of the process of supplier segmentation, the attractiveness of the buyer as a
customer is significant and important to the supplier, but perhaps the historical volume
of business with the buyer has been relatively low.
a. EXPLOIT segment
b. CORE segment
c. DEVELOP segment
d. PRICE segment
e. NUISANCE segment
A single, overall productivity measure representing purchasing and supply chain
performance is feasible.
a. True
b. False
If purchasing authority for the majority of purchase expenditures is at the divisional,
business unit, or site level, then a firm has a more _____ structure.
a. center-led
b. centralized
c. globalized
d. decentralized
e. Organizational structure has no relationship with the location of purchasing authority.
Because of the nature of many cost accounting systems, quality costs are rarely
aggregated into various overhead accounts, which would mask their real impact on the
finances and operations of a company.
a. True
b. False
The supply base will be viewed not only as tier one suppliers but also as supply
networks that extend beyond the tier one suppliers.
a. True
b. False
Which of the following is not one of the six phases of a project?
a. Precompletion.
b. Project definition.
c. Preliminary studies.
d. Performance.
e. Post-completion.
The downside of poor forecasting includes all of the following except _____.
a. higher inventory volumes
b. poor customer service as inventory is misallocated across locations and products
c. higher inventory carrying charges
d. excessive safety stock levels
e. decreased customer service costs
The _____ clause of a contract outlines the relationship between the Agreement and any
other purchase orders issued by the company to the supplier.
a. specifications, quality, and health, safety, environment
b. most favored customer
c. statistics
d. effective date and termination
e. purchase orders
The primary objective of deregulation in the United States was to make its domestic
transportation systems more efficient by dramatically increasing marketplace
competition within the transportation and logistics industry and increasing economic
regulation.
a. True
b. False
An in-depth evaluation of all potential supply sources should be conducted for every
purchase.
a. True
b. False