A/An _____ occurs in situations in which a buyer is allowed to automatically discount
the published purchase price by a negotiated percentage for all purchases from a given
price list or catalog during the contract period.
a. pricing agreement
b. international contract
c. national contract
d. open-ended order
e. None of the above.
Which of the following is not one of the four categories found in a portfolio analysis
matrix?
a. Critical.
b. Routine.
c. Leverage.
d. Commodity.
e. Bottleneck.
The PPM measure indicates the incidence of failures of components, assemblies, and
systems or services when actually incorporated into the final product or service and
supplied to external customers.
a. True
b. False
In the _____, the desired profit is added to the estimated costs.
a. penetration pricing model
b. revenue pricing model
c. margin pricing model
d. rate-of-return pricing model
e. TCO model
The traditional approach to purchasing and supply management is to build relations
with suppliers to jointly pull costs out of the product or service and expect suppliers to
contribute innovate ideas that continually add value to a firms products and services.
a. True
b. False
Deming indicates that the only proper way of dealing with defects is to inspect for and
remove them from the process.
a. True
b. False
Leading sustainability efforts with suppliers and their suppliers will decrease in
importance.
a. True
b. False
Even if the client company does not withhold income taxes, a consultant will normally
be viewed as an employee, not as an independent contractor.
a. True
b. False
According to ISM, _____ is defined as the ability to meet current needs without
hindering the ability to meet the needs of future generations in terms of economic,
environmental, and social challenges.
a. Sustainability
b. Scenario analysis
c. Social responsibility
d. Supply chain risk management
e. Standardization
Regional buying groups are most advantageous where geographic concentration exists
within a company.
a. True
b. False
A repeatable lean transportation schedule, also called a _____, moves goods from
supplier to purchaser and then from purchaser back to supplier with return material.
a. MRO system
b. pull system
c. push system
d. closed-loop system
e. None of the above.
A large supply base means the duplication of a wide range of supply management
activities, adding to acquisition cost without a corresponding increase in value added to
the customer.
a. True
b. False
Membership on a team can have negative effects on individuals.
a. True
b. False
Purchasers often perform a first cut or preliminary evaluation of potential suppliers to
narrow the list before conducting an in-depth formal evaluation.
a. True
b. False
The concept of _____ consists of rework and disposal efforts that increase cost and
decrease productivity.
a. the hidden factory
b. Six Sigma
c. continuous improvement
d. zero defects
e. kaizen
Which of the following is not an example of typical charge-back costs associated with
supplier responsibility for defective material shipments?
a. Sales, general, and administrative costs.
b. Cost of material rework.
c. Repackaging for return shipment.
d. Return shipping costs.
e. Costs associated with lost or delayed production.