For companies that routinely use or produce hazardous materials, the law requires a
policy that outlines in detail the legal requirements and conditions for the handling of
toxic waste.a. True
b. False
A process that is stable and in control (i.e., no special and correctable causes of
variation) can be expected to produce virtually all of its output within its natural
tolerance limits.
a. True
b. False
Which of the following is not one of the categories of products in the strategic cost
management matrix?
a. Commodities.
b. One-time buys.
c. Critical products.
d. Unique products.
e. Generics.
Which of the following is false regarding when to use the learning curve?
a. Learning-curve analysis is appropriate when a supplier uses a new production
process.
b. Learning-curve analysis is appropriate when a supplier produces any item for the first
time.
c. The learning curve is appropriate when a supplier produces a technically complex
item for the first time.
d. All processes and items can benefit from or exhibit improvement from learning.
e. The human factors present at the beginning of production must remain fairly constant
over time to apply the learning curve.
In ISO 9000:2008, (the) _____ consists of a quality manual, related procedures, and
work instructions.
a. third-party registration
b. quality management system
c. environmental management system
d. supplier certification
e. All of the above.
When a negotiator is planning an upcoming negotiation, it is imperative to prioritize all
of the potential issues to be negotiated into needs and wants, thereby knowing what
must be achieved and what can be exchanged for something else of value.
a. True
b. False
All of the following are examples of entry qualifiers that suppliers must possess before
they proceed to the next phase of the evaluation and selection process except _____.
a. appropriate sales and marketing activities
b. financial strength
c. proven manufacturing or service capability
d. capable and supportive management
e. adequate facilities
With pure ______ contracts, allowable costs are shared between the parties on a
predetermined percentage basis.
a. cost-sharing
b. time and materials
c. fixed-price with incentives
d. cost plus incentive fee
e. fixed-price with redetermination
Managing the purchase of semifinished components is not a critical purchasing
responsibility because components rarely affect product quality and cost.
a. True
b. False
Centralization of professional service procurement can increase the accountability of
outside consultants to the buyer by increasing the monitoring and auditing of services
provided.
a. True
b. False
_____ refers to a modes or carriers ability to provide service over a geographic area.
a. Speed
b. Capability
c. Total cost
d. Accessibility
e. Reliability
Which of the following is not one of the steps in the strategic sourcing process?
a. Build the team and the project charter.
b. Conduct market intelligence research on suppliers.
c. Increasing revenues.
d. Strategy development.
e. Supplier relationship management.
For routine, off-the-shelf items, the purchase requisition may contain all the information
that purchasing requires.
a. True
b. False
In overcoming the barriers to supplier development, which of the following is not one
of the approaches typically used?
a. Direct-involvement activities.
b. Single sourcing.
c. Incentives and rewards.
d. Warnings and penalties.
e. All of the above are typical approaches.
Offering a supplier a longer-term contract with guaranteed volumes encourages
investment in equipment that results in lower production costs.
a. True
b. False
According to Kaplan and Norton, a balanced scorecard includes all of the following key
performance measurement areas except the _____.
a. customer satisfaction perspective
b. operational excellence perspective
c. innovation perspective
d. human resource perspective
e. financial perspective
Which of the following is not an appropriate performance criterion to be used when
evaluating suppliers?
a. Ability to develop process and product technology.
b. Commitment to quality.
c. Management capability and commitment.
d. Cost performance.
e. Commitment to effective marketing and promotion.
A preferred supplier list database should be set up to generate a list of preferred
suppliers based on previous project performance criteria.
a. True
b. False
Which of the following is not a risk of selecting a supplier in poor financial condition?
a. The supplier is unwilling to share its technical expertise with the purchaser.
b. The supplier will go out of business.
c. The supplier may not have the resources to invest in plant, equipment, or research
that is necessary for longer-term technological or other performance improvements.
d. The supplier may become too financially dependent on the purchaser.
e. Financial weakness is usually an indication of other underlying problems.