Air carriers haul the most amount of commercial freight because of their inherent speed
advantages.
a. True
b. False
A supplier can draw against the letter of credit upon presentation of the required
documents.
a. True
b. False
Which of the following are not considered relationship management skills?
a. Ability to conduct detailed price and cost analyses
b. Ability to act ethically.
c. Ability to listen effectively.
d. Ability to communicate.
e. Ability to use creative problem-solving.
In TCO for a product, _____ include(s) all costs associated with converting the
purchased part/material into the finished product and supporting it through its usable
life.
a. purchase price
b. acquisition costs
c. end of life costs
d. opportunity costs
e. usage costs
Supply departments that are building diversity into their supply base are likely to deal
with a decreased number of small suppliers.
a. True
b. False
_____ is the process of using unit and rate consumption levels to forecast and estimate
future consumption in an internal functional customer and providing guidance and input
on how to optimize usage and educating the user on the tradeoffs.
a. Specification management
b. Demand management
c. Category management
d. Supply market intelligence
e. Cost management
Target pricing is an innovative approach used in the final stages of the product life cycle
to establish a contract price between a buyer and a seller.
a. True
b. False
_____ inventory includes completed items or products that are available for shipment or
future customer orders.
a. WIP
b. Finished-goods
c. MRO
d. Pipeline/in-transit
e. Raw materials and semifinished items
The focal point of the Deming philosophy is that the entire organization should be
focused on satisfying customer needs, whether the customer is internal or external.
a. True
b. False
An important part of negotiation is realizing that the process involves relationships
between people, not just organizations.
a. True
b. False
Purchasing requires measures that reflect its ability to support overall corporate and
functional goals, which means a reduced emphasis on pure efficiency measures and
greater emphasis on effectiveness measures.
a. True
b. False
_____ occurs when a selling company agrees to accept goods from the buying country
as partial payment.
a. Compensation trading
b. Buy-back
c. Barter
d. Counterpurchase
e. Switch trading
Historically, most organizations have paid minimal attention to MRO items.
a. True
b. False
Which of the following are not examples of technology roadmaps?
a. Incorporation of new AICPA accounting standards into existing accounting systems.
b. Projected performance specifications for a class of products or processes.
c. An intention to integrate a new material or component.
d. Development of a product to meet customer requirements that is currently
unavailable in the market.
e. Integration of multiple complementary technologies that results in a radically new
product.
Use of electronic media such as e-mail, texting, and instant messaging, has no
measurable impact on the dynamics and effectiveness of a negotiation.
a. True
b. False
Only recently have senior executives begun to realize the increased risk attributed to the
higher probability of product and service flow disruptions in global sourcing networks.
a. True
b. False
The source of _____ comes from interpersonal appeal based on socially acceptable
individual qualities and attributes, such as ones personality or attractiveness.
a. informational power
b. expert power
c. coercive power
d. referent power
e. physical power
Negotiation is noncritical means to convey the buyers specific sourcing requirements
and specifications to its supply base.
a. True
b. False