A primary objective of using teams is to bring together individuals with common
perspectives and expertise to perform better on a task compared to individuals or
departments acting along.
a. True
b. False
E-negotiators generally ask more questions and tend to make fewer assumptions during
the negotiation.
a. True
b. False
In essence, blog posting encompasses any subscription-based or pay-per-use service
that is in real time and over the Internet.
a. True
b. False
_____ is the organized study of an items function as it relates to value and cost.
a. Buying
b. Purchasing intelligence
c. New product development
d. Inventory control
e. Value analysis
As a product reaches its end of life, supply management cannot ignore the potential
value of environmental initiatives to remanufacture, recycle, or refurbish products that
are becoming obsolete.
a. True
b. False
Formal organizational charts portray the entirety of the workings of an organization.
a. True
b. False
Many organizations are attempting to develop new products concurrently rather than
sequentially, which not only saves time and money but also allows agreement on major
issues early in the process.
a. True
b. False
Which of the following is not one of the management uses for the data derived from a
comprehensive cost-base supplier evaluation system?
a. Such a system provides the necessary information that allows a buyer to justify
buying from a preferred supplier despite a higher unit price.
b. The system allows a buyer to communicate the cost of specific nonperformance
events to the originating supplier, which then helps identify improvement opportunities.
c. Quantifying nonconformance costs can result in a chargeback to the offending
supplier for unplanned costs.
d. The system allows customized assignment of cost accounting codes depending on
how much money is left in the annual budget.
e. A buyer can use this data to identify longer-term sources of supply based on a
suppliers total cost performance history.
With _____, a products allowable cost is strictly a function of what a market segment is
willing to pay less the profit goals for the product.
a. penetration pricing
b. target pricing
c. market-share pricing
d. should-cost modeling
e. revenue pricing
Once a purchaser and a supplier reach agreement on a longer-term purchase contract,
material releasing responsibility should shift to _____.
a. marketing
b. purchasing
c. the supplier
d. user groups
e. accounts payable
A/An _____ specifies that business units within a corporate organization must buy from
specific suppliers during the term of the contract.
a. corporate agreement
b. open-ended order
c. online MRO catalog
d. blanket order
e. open-ended order
One factor that is increasing the risk exposure to supply chain disruption is the
decreasing propensity of companies to outsource processes to global suppliers.
a. True
b. False