A win-lose negotiation approach works best for items or services that are important to
the buyers products or business or when the item involves high-dollar items or services
where cost control is critical.
a. True
b. False
A _____ refers to a specific family of products or services that is used in delivering
value to the end customer.
a. spend analysis
b. decentralized structure
c. category
d. centralized structure
e. hybrid structure
Air freight has a high variable-cost-to-fixed-cost ratio because of the high costs of
operating a flight.
a. True
b. False
It is only the supervisors responsibility, and not the employees, to ensure that the
purchasing employee is familiar with and follows the procedures covering legal
contracts.
a. True
b. False
A _____ is designed to provide information about the performance of the process under
stable operating conditions, i.e., when no special causes of variation are present.
a. make-buy analysis
b. process capability study
c. price analysis
d. cost analysis
e. Six Sigma project
Under the UCC, [the] _____ applies to contracts for goods worth more than $500 or
any contract that cannot be fully performed in one year.
a. Statute of Frauds
b. FCPA
c. Clayton Act
d. boilerplate
e. CISG
All of the following are examples of the different methods that supply management will
apply to achieve integration except _____.
a. Cross-functional or cross-organizational committees and teams
b. Hiring English majors into supply management to correct document language
c. Information systems such as videoconferencing and webmail
d. Process-focused organizations that are dedicated to certain processes
e. Colocation of suppliers and customers
The _____ measure expresses a maximum number (in absolute or percentage terms) of
level of defects allowable for any particular product, assembly, or service.
a. Effectiveness
b. Efficiency
c. TQM
d. Cost avoidance
e. PPM
Which of the following is not one of the potential advantages of using long-term
contracts?
a. Assurance of supply.
b. Volume leveraging.
c. Access to cost/price information.
d. Access to supplier technology.
e. Supplier opportunism.
Which of the following is not one of the formal approaches to supply base
rationalization?
a. Twenty/eighty rule.
b. Improve or else approach.
c. Global sourcing.
d. Triage approach.
e. Competency staircase approach.