Historically, expenditures for indirect materials and services have received the same
level of management attention as have direct materials.
a. True
b. False
_____ mean(s) that no duties or quota charges will be placed on goods that are
reexported from the FTZ.
a. Inverted tariff
b. Duty deferral
c. EXW
d. Duty exemption
e. Streamlined customs procedures
Which of the following is not one of the objectives in supplier performance
management?
a. Selecting suppliers that are competitive.
b. Identifying new suppliers that have the potential for excellent performance and
developing closer relationships with these suppliers.
c. Improving existing suppliers.
d. Developing new suppliers that are not competitive with current suppliers.
e. Ensuring timely and accurate payment of supplier invoices.
_____ agreements require the seller to purchase some agreed-uponpercentage of goods
from a country over a specified period but allow a company to fulfill its countertrade
requirement with any company or industry in the country.
a. Offset
b. Compensation trading
c. Switch trading
d. Buy-back
e. Barter
Being an effective team leader means satisfying a demand set of essential operating
responsibilities and requirements while still promoting the creativity, leadership ability,
and cohesiveness of team members.
a. True
b. False
Which of the following is not an advantage of written and implied policies?
a. Policies are a means for executive management to communicate its leadership and
views.
b. Policies provide a framework for consistent decision making and action.
c. Policies are very easy to communicate throughout an organization.
d. Policies help ensure that personnel act in a manner consistent with executive or
functional managements expectations.
e. High level policy statements provide guidance that to employees at all levels.
[A] _____ is a process in which all data files that include a specific address are
automatically updated within the system.
a. Batch updating
b. MRP
c. Real-time updating
d. Data bucket
e. EDI system
Value analysis traditionally applies to tangible products, and there are many reasons
why companies cannot VA techniques to services.
a. True
b. False
According to Shook, lean is a philosophy that seeks to shorten the time between when
the customer order and the shipment to the customer by eliminating waste.
a. True
b. False
All of the following are examples of how supply management should monitor and
anticipate activity in its supply market except _____.
a. ensuring that cost accounting keeps track of historical prices paid
b. forecasting long-term supply and prices for its basic commodities
c. monitoring technological innovations that impact its primary materials or make
substitute materials economically attractive
d. evaluating not only its existing suppliers but also other potential suppliers
e. providing timely visibility to new-product requirements
The goal of spend analysis is to determine what goods and services are purchased, what
suppliers they are purchased from, and where the demand for the items originates in the
organization.
a. True
b. False
All of the following are examples of commonly used environmental performance
criteria except _____.
a. disclosure of any environmental infractions
b. attainment of ISO 9000 certification
c. formal hazardous and toxic waste reduction programs exist
d. programs to control or eliminate ozone-depleting substances
e. attainment of ISO 14000 certification
Time-related capabilities will drive the next generation of order winners in the eyes of
the customer.
a. True
b. False