_____ are those that result if the terms of the contract are not fulfilled and must be
defined prior to the breach under the terms of the contract.
a. Consequential damages
b. General damages
c. Incidental damages
d. Reliance damages
e. Liquidated damages
It is always a good idea to double-check all attachments to the contract, because many
of the technical details are included here.
a. True
b. False
Before actual negotiations begin, the parties need to believe realistically that they can
reach an agreement.
a. True
b. False
Buyers should not underestimate the potential effects of extended distances on their
ability to plan and manage a worldwide supply chain.
a. True
b. False
The _____ supplier evaluation system seeks to identify and quantify the total cost of
doing business with a given supplier, as the lowest purchase price may not always result
in the lowest total cost for an item or service.
a. Six Sigma
b. zero defects
c. cost-based
d. categorical
e. weighted-point
When firms produce goods in response to a customer order, they are operating in a/an
_____ environment.
a. make-to-order
b. make-to-stock
c. make-to-forecast
d. WIP
e. None of the above.
The MBNQA is a competition and implies that a winning organization excels not only
in quality management but also in quality achievement.
a. True
b. False
Recent research indicates that all of the following are top knowledge areas for
purchasers except _____.
a. supplier relationship management
b. total cost analysis
c. supplier analysis
d. consumer behavior
e. competitive market analysis
The _____ is a change index, and generally a rating over 50 indicates that the economy
is expanding.
a. Consumer Price Index
b. Producer Price Index
c. ISM Report on Business
d. rate of inflation
e. None of the above.
Purchasing offices were once corporate backwaters, filled with people who didnt dream
of advancing to the top rungs of their organization.
a. True
b. False
The underlying emphases of lean- to eliminate all forms of uncertainty and waste – are
relevant to all organizations, regardless of the specific planning and control tools that
are used.
a. True
b. False
_____ is a process that the purchasing function follows when it performs benchmarking
comparisons.
a. Strategic benchmarking
b. Support-activity benchmarking
c. Process capability
d. Operational benchmarking
e. Outsourcing
A/An _____ is considered to be a negotiated outcome that the negotiator must have in
order to reach a successful outcome to the negotiation.
a. want
b. need
c. BATNA
d. position
e. interest
A _____ system is often used to search for patterns or relationships in the data.
a. routine decision making
b. strategic decision making
c. transaction processing
d. decision support
e. None of the above.
Which of the following is a question that companies will need to carefully establish
their supply bases?
a. What current and future supplier capabilities are required?
b. How many suppliers are required to support company needs?
c. Should we establish/require specific suppliers at the Tier 2 and Tier 3 levels?
d. All of the above.
e. None of the above.
Competition is no longer between fast and agile and slow firms but between big and
small firms.
a. True
b. False
Well-defined measures use data that are available and accurate.
a. True
b. False
The true cost of MRO inventory often goes unnoticed because firms fail to track these
items with the same intensity as production inventory.
a. True
b. False
In the _____, prices are set to achieve a high profit on each unit by selling to supply
managers who are willing to pay a higher price because of a lack of supply management
sophistication or who are willing to pay for products or services of perceived higher
value.
a. market skimming model
b. revenue pricing model
c. promotional pricing model
d. price volume model
e. competition pricing model