Ordering costs are a composite of the costs associated with the release of a material
order.
a. True
b. False
A/An _____ system takes a period-by-period set of master production schedule
requirements (anticipated or booked customer orders) and produces a time-phased set of
material, component, and subassembly requirements timed to support an expected build
schedule.
a. kanban
b. DRP
c. just-in-time
d. perfect order
e. MRP
The _____ is a solicitation document that is used by organizations to obtain general
information about services, products, or suppliers and is used generally before a
specific requisition of an item is issued.
a. e-RA
b. PO
c. RFP
d. RFI
e. RFQ
_____ is a negotiation tactic that involves taking a time out.
a. Silence
b. Venue
c. Caucus
d. Take-it-or-leave-it
e. Low ball
The original premise of the balanced scorecard was that a total reliance on financial
measures was leading organizations to make poor decisions.
a. True
b. False
Which of the following is not one of the four enablers of purchasing and supply chain
management?
a. Sufficient cash flow and large on-hand cash deposits.
b. Capable human resources.
c. Proper organizational design.
d. Real-time collaborative technology capabilities.
e. Right measures and measurement systems.
_____ involves frequent deliveries of smaller quantities directly to the point of use at
the purchaser.
a. Lean supply
b. Lean transportation
c. Lean warehousing
d. Lean ordering
e. None of the above.
Purchasing personnel cannot become experts in all categories of spend, especially as the
purchasing function becomes more complex and sophisticated.
a. True
b. False
As some suppliers view cost data as highly proprietary, buyers will often develop
reverse pricing models that provide estimates of the suppliers cost structure during the
initial supplier evaluation.
a. True
b. False
Demings quality philosophy has often been criticized because it does not prescribe
specific firm-level actions and programs for management to follow.
a. True
b. False
Suppliers seldom offer quantity discounts to encourage larger orders from purchasers.
a. True
b. False
Interacting as a team requires the same set of skills as the skills required for traditional
work.
a. True
b. False
The goal of _____ is to be able to understand, identify, and exploit cost savings
opportunities that may have been overlooked by business unit managers or even by
suppliers in bringing the products and services to the appropriate location.
a. Marketing research
b. Make-buy analysis
c. Value chain analysis
d. Price analysis
e. Cost analysis
The work force factor of the learning curve refers to the ability of the worker on the job
to learn and improve through repetitive effort and increased efficiency, but not the effort
by management to pursue productivity gains.
a. True
b. False