_____ is a broad term that refers to all international and domestic trade where buyer and
seller have at least a partial exchange of goods for goods.
a. Six Sigma
b. Countertrade
c. Re-shoring
d. IPO
e. CISG
Identification of all costs provides the basis for establishing joint improvement targets.
a. True
b. False
Historically, the term _____ applies to the reduced direct-labor requirement per unit of
output because of the effects of learning, while the term _____ refers to the longer-term
factors of production that systematically reduce production costs.
a. learning curve¦.experience curve
b. learning curve¦.infinity curve
c. experience curve¦.Boeing curve
d. experience curve¦.learning curve
e. None of the above.
The _____ purchase category includes such items are petroleum, coal, lumber, and
metals such as copper and zinc.
a. semifinished products and components
b. finished products
c. MRO items
d. raw materials
e. capital equipment
All of the following are examples of customer order measures except _____.
a. percentage of on-time delivery
b. total time from customer order to customer delivery
c. returned orders
d. warranty claims
e. inventory turns
In Period 4 of the evolution of purchasing and supply chain management, firms faced
stable competition and had access to abundant material – conditions that historically
have diminished the overall importance of purchasing.
a. True
b. False
A purchase order can be an offer, acceptance, or counteroffer, depending on the
circumstances.
a. True
b. False
From a legal perspective, purchasing managers do not have a fiduciary obligation to act
in the best interests of their employer.
a. True
b. False
Which of the following is not an example of a question that should be asked when
evaluating a suppliers production scheduling and control systems?
a. Does the supplier use a requirements planning system as part of an ERP system to
ensure the availability of required components or meet service requests on a timely
basis?
b. What lead time does the suppliers production scheduling and control system require?
c. What is the suppliers on-time delivery performance history?
d. Does the suppliers scheduling system support a purchasers delivery requirements?
e. What safeguards are in place to protect the confidentiality of electronic transfers?
According to Ohno and Toyota, _____ is a category of waste that uses more steps to
produce a product than necessary.
a. excess inventory
b. defect
c. unnecessary movement
d. unnecessary transport
e. over-processing
Which of the following is not a best practice for inclusion in any minority supplier
development initiative?
a. Ensuring that all minority suppliers are located nearby the organizations facilities.
b. Mandating Tier 1 suppliers to have a Tier 2 diversity spend goal and incorporating
the terms in the contracts.
c. Including minority suppliers in all RFQs without exception.
d. Tying the goals and objectives of the supplier diversity program to supply chain
management strategies and supply chain job functions.
e. Incorporating all corporate functions in which suppliers are selected and procurement
commitments are made.