A/An _____ is a set of promises between two or more parties the performance of which
the law expects, the breach of which the law provides remedies.
a. offer
b. agreement
c. acceptance
d. contract
e. breach
Most of the features that make their way into final products originate with suppliers.
a. True
b. False
Inventors seeking to expand their patent protection to other countries must file
appropriate patent applications in each country in which protection is desired.
a. True
b. False
Most specifications are precise and succinct.
a. True
b. False
Which of the following is not a category of contract cancellation?
a. Cancellation for default.
b. Cancellation for convenience of the purchaser.
c. Cancellation by mutual assent.
d. Liquidated damages.
e. Liquidated damages.
The _____ helps protect the carrier against wrongful allegations that the carrier
somehow damaged, lost, or otherwise tampered with a shipment.
a. bill of lading
b. material packing slip
c. invoice
d. material purchase release
e. blanket purchase order
One property of normally distributed data is that 99.7 percent of all possible
observations of process output occur within plus-or-minus standard deviations of the
process mean.
a. True
b. False
[A/An] _____ consists of personnel from different functions and increasingly from
suppliers who are brought together to achieve supply management or supply
chain-related tasks.
a. Big R
b. External RM
c. cross-functional sourcing team
d. Little r
e. Internal RM
In the _____ of the process of supplier segmentation, the supplier views the buyer as a
core customer, as the size of the account is significant to the supplier, and the account is
also important from a strategic perspective.
a. COMMODITY segment
b. DEVELOP segment
c. EXPLOIT segment
d. NUISANCE segment
e. CORE segment
_____ systems attempt to allocate fixed logistics capacity in the best possible way,
given business requirements.
a. MRP
b. Network design
c. SRM
d. Transportation and warehouse planning
e. Execution
Using _____, the supplier is given blueprints and told to make the product from them.
a. black box design
b. gray box design
c. red box design
d. white box design
e. shadow box design
_____ are those costs incurred when production processes are designed or modified to
prevent defects from occurring in the first place.
a. Appraisal costs
b. Internal failure costs
c. External failure costs
d. Prevention costs
e. Six Sigma costs
The Consumer Price Index (CPI) tracks material price movements from quarter to
quarter, is scaled to a base year (1988), and tracks the percentage increase in material
commodity prices based on a sample of industrial purchasers.
a. True
b. False
[A] _____ is a tool to structure and segment the supply base and is used as a means of
classifying suppliers into one of four types.
a. Supplier scorecard
b. Portfolio analysis
c. Make-buy analysis
d. Price analysis
e. Value chain analysis
The opportunity cost of taking the suppliers cash discount is almost always higher than
the opportunity cost of not taking the cash discount.
a. True
b. False