_____ inventory includes the items purchased from suppliers or produced internally to
directly support production requirements.
a. Work-in-process
b. Finished-goods
c. MRO suppliers
d. Pipeline/in-transit
e. Raw material and semifinished items
All of the following are categories of inventory except _____.
a. lean inventory
b. raw material and semifinished item inventory
c. work-in-process inventory
d. MRO supplies inventory
e. pipeline/in-transit inventory
The United States is still the undisputed product and process technology leader in the
world.
a. True
b. False
Escalation clauses allow only increases in the base price.
a. True
b. False
_____ is the process of incorporating or bringing together different groups, functions, or
organizations, either formally or informally, physically or by information technology, to
work jointly and often concurrently on a common business-related assignment or
purpose.
a. Cooptation
b. Program management
c. Collaboration
d. Collusion
e. Integration
The most basic contractual pricing mechanism is called a/an _____ contract.
a. fixed price with escalation
b. cost plus incentive fee
c. firm fixed price
d. cost-sharing
e. fixed price with redetermination
The actual expediting process frequently provides new value within the purchasing
process.
a. True
b. False
The prime reason for hedging is to protect the buyer against major swings in the value
of a future purchase.
a. True
b. False
Which of the following is not one of the hurdles that can affect how well an
organization uses teams?
a. Many organizations form teams using functional group employees as part-time
members.
b. There are increased requirements for the use of social networks.
c. Many organizations fail to recognize and reward the effort team members put forth
towards their assignments.
d. It is not the nature of our individualistic national culture, except perhaps for sporting
events, to be group or team focused.
e. All of the above are hurdles that affect how well an organization uses teams.
All of the following are examples of how a finance department can support
international currency requirements except _____.
a. pay in U.S. dollars
b. identify the currency a firm should use for payment based on projections of currency
fluctuations
c. provide advice about hedging and currency forecasts
d. act as a clearinghouse for offshore currencies to make payment for offshore
purchases
e. provide advice as to whether to seek a new contract or renegotiate an existing one
because of currency changes
_____ are calculated as Average Inventory in Units x Unit Price x Carrying Cost per
Year.
a. Quality costs
b. Ordering costs
c. Inventory carrying costs
d. MRO costs
e. Cycle counting costs
_____ deals with the role of managers as individual representatives acting on behalf of
their organizations.
a. Contract law
b. Civil law
c. Mediation
d. Agency law
e. None of the above.
A/An _____ system provides status alerts, via e-mail, fax, pager, and so on, to a buyer
or salesperson that a particular shipment has been delayed and that this may affect other
entities in the supply chain.
a. event-based
b. MRP
c. ERP
d. DRP
e. None of the above.
Suppliers seldom attempt to influence the decisions of supply professionals.
a. True
b. False
_____ seeks to improve forecast accuracy, optimize production scheduling, reduce
working capital costs, shorten cycle times, cut transportation costs, and improve
customer service; while _____ helps obtain materials and manage physical flows from
suppliers through downstream distribution to ensure that customers receive the right
products at the right location, time, and cost.
a. RFID¦.GPS
b. Execution software¦.planning software
c. Customer service¦.inbound transportation
d. The process approach¦.cost management
e. Planning software¦.execution software
Total cost of ownership typically includes costs associated with late delivery, poor
quality, or other forms of supplier nonperformance.
a. True
b. False
The issues that are most critical to a supplier are likely to be those most critical to a
buyer.
a. True
b. False
The purchasing agency relationship is created between the employer and employee
when the company hires an individual to perform the purchasing job.
a. True
b. False
A negotiator should ensure that his or her BATNA is revealed to the other party,
because the final settlement is unlikely to vary much from that point.
a. True
b. False
Firms, not supply chains, compete.
a. True
b. False