_____ inventory is in transit to a customer or is located throughout distribution
channels.
a. Pipeline/in-transi
b. MRO
c. WIP
d. Raw materials and semifinished items
e. Just-in-time
An emphasis on finished product rather than process demands that a supplier provide
evidence of its process capability to the buyer on an ongoing, regular basis.
a. True
b. False
Step 1 of Triangle Talk is _____.
a. know exactly what they want
b. propose action in a way they can accept
c. know exactly what you want
d. apply tactics to win the negotiation
e. None of the above.
It is often difficult to quantify the total costs associated with ordering and carrying
physical inventory.
a. True
b. False
Using _____, suppliers are provided with functional specifications and are asked to
complete all technical specifications, including materials to be used, blueprints, and so
on.
a. shadow box design
b. white box design
c. gray box design
d. red box design
e. black box design
Objectives drive goals, whether at the highest levels of an organization or at the
functional or department level.
a. True
b. False
The bargaining zone represents the heart of the negotiation process, as any proposal or
counterproposal offered outside of this range is likely to be rejected by the other party
because it is not what he or she is willing to settle for.
a. True
b. False
All of the following are required elements in a purchase requisition except _____.
a. quantity and date required
b. estimated unit cost
c. operating account to be charged
d. authorized signature
e. identification and approval of a supplier by the end user
If positive work is never recognized or reinforced through rewards, the positive effort
will likely be extinguished.
a. True
b. False
_____ is a functional group (i.e., a formal entity on the organizational chart as well as a
functional activity (i.e., buying goods and services).
a. Engineering
b. Purchasing
c. Quality assurance
d. Logistics
e. Treasury operations
Measuring and evaluating performance historically has had certain problems and
limitations.
a. True
b. False