The dangers of poor execution of supply chain processes include increased lead and
cycle times, higher costs, and less-informed decision making.
a. True
b. False
The value of money spent any time in the future does not depend on the organizations
cost of capital.
a. True
b. False
Perhaps the most dramatic difference between traditional quality control methods and
total quality management thinking involves a shift from a process orientation to a
product orientation.
a. True
b. False
All of the following are examples of why organizations source worldwide except
_____.
a. access to the only source available
b. react to buying patterns of competitors
c. higher ethics
d. cost/price benefits
e. establish a presence in another country market
_____ is something of value in the formation of the contract that gives it legal validity.
a. Apparent authority
b. Actual authority
c. Implied authority
d. Acceptance
e. Consideration
Purchasing never analyzes whether a new or existing purchase requirement should be
internally or externally sourced.
a. True
b. False
_____ refers the standard terms and conditions that are usually preprinted on the back
of forms used by the purchaser (and the seller).
a. RFQ
b. PO
c. RFI
d. Boilerplate
e. None of the above.
The _____ activity involves physically getting a product ready for distribution to the
customer.
a. customer service
b. material control
c. materials handling
d. quality control
e. shipping
All of the following action support reduced order-cycle time with suppliers except
_____.
a. expanded global sourcing
b. expanded electronic capability
c. supplier development support
d. order-cycle time measurement
e. focus on second- and third-tier suppliers
Not all observers agree that the use of teams is a guarantee of greater effectiveness.
a. True
b. False
A/An _____ is one that personnel cannot inappropriately influence the results of.
a. efficient measure
b. qualitative measure
c. quantitative measure
d. non-manipulable measure
e. None of the above.
_____ is the process of developing insights into stakeholder requirements, comparing
these to external industry intelligence, supply base capabilities and operational risks,
and developing a strategy to align internal requirements with external supply market
conditions.
a. Spend analysis
b. Cost management
c. Contract management
d. Category management
e. Procure-to-pay
All of the following are common methods for overcoming barriers to worldwide
sourcing except _____.
a. education and training
b. publicizing success stories
c. measurement and reward systems
d. payment only in foreign currency
e. use of third party or external agents
[A] _____ is similar to [a] _____ except that they tend to be more advisory in nature.
a. strategic sourcing group¦.lead division buying
b. corporate steering committee¦.lead division buying
c. lead division buying¦.corporate steering committee
d. corporate steering committee¦.corporate purchasing council
e. There is no difference between the two entities.
It is difficult to develop performance improvement plans without understanding the
areas in which performance falls short.
a. True
b. False
Separation of supply management duties into strategic and tactical job assignments
means that tactical responsibilities are more important.
a. True
b. False
Which of the following is not one of the benefits of benchmarking?
a. Helps identify the best business or functional practices to include in a firms business
plans.
b. Determines internal customer needs and wants.
c. Breaks down a reluctance to change.
d. Serves as a source of market intelligence.
e. Uncovers a previously unrecognized technological breakthrough.