Which of the following is a disadvantage of a categorical supplier evaluation system?
a. Least reliable.
b. Cost accounting system required.
c. Less frequent generation of evaluations.
d. Most subjective.
e. Usually manual.
The most common price performance measures include actual purchase price versus
planned purchase price comparisons, actual purchase price(s) compared to a market
index, comparisons of actual-to-actual purchase prices for individual and aggregated
items between operating plants or divisions within an organization, and target prices
achieved.
a. True
b. False
Purchasing managers cannot be held personally liable for their damaging and illegal
activities even if they perform them with the authority of their firm.
a. True
b. False
A performance-based logistics system seeks to drive the logistics service providers
performance by clearly delineating the buyers preferred outcomes, not by transaction,
but in terms of provider value-added and overall systems costs.
a. True
b. False
Which of the following is not one of the principles that support positive buyer-supplier
relationships?
a. Treating suppliers fairly and with integrity.
b. Providing prompt payment to suppliers.
c. Encouraging suppliers to submit innovative ideas with joint sharing of benefits.
d. Establishing a fair process to award purchase contracts.
e. Providing engineering and manufacturing technical assistance.
Transportation is a highly specialized activity with its own set of requirements.
a. True
b. False
Generally speaking, the more complex the nature of the contract and the greater the
dollar amounts involved, the more likely it is that a future dispute over interpretation of
the terms and conditions will occur.
a. True
b. False
Supplier site visits are relatively inexpensive and require minimal buyer time in travel
and information collection.
a. True
b. False
In a/an _____ market structure, there exist identical products with minimal barriers for
new suppliers to enter the market, and price is solely a function of the forces of supply
and demand.
a. monopolistic
b. oligopolistic
c. communistic
d. perfect competition
e. Price is never solely a function of supply and demand, regardless of market structure.
_____ include anything that does not go directly into an organizations product.
a. MRO items
b. Raw materials
c. Production support items
d. Services
e. Semifinished products and components
Some individuals resist the benchmarking process because of a reluctance to recognize
the value of a competitors way of doing business – the not invented here syndrome.
a. True
b. False
In a PERT network, a/an _____ is the earliest point in time an activity can begin.
a. late start
b. on time start
c. early finish
d. early start
e. late finish
Which of the following information is not generally maintained in a supplier
informational database?
a. Current products.
b. Suppliers future technology roadmap.
c. Process capability ratios.
d. Advertising campaign information.
e. Past performance.