If WIP builds up at a workstation, a scheduler should not have to reroute the flow of
material to another work center.
a. True
b. False
Which of the following is not an item or product that is an appropriate candidate for a
cost-based pricing approach?
a. An item in which the seller contributes high added value through direct or indirect
labor and specialized expertise.
b. A complex item customized to specific requirements.
c. A product requiring a conversion from raw material through value-added designs.
d. A product requiring supplier-provided design and engineering support.
e. Commodity-like items.
Which of the following is not a reason why an emphasis on outsourcing will continue?
a. High transportation costs will force manufacturers to only produce internally.
b. Cost-reduction pressures will continue and are forcing organizations to use their
productive resources most efficiently.
c. Firms will increasingly focus more on what they excel at to gain competitive
advantage along with outsourcing noncompetitive activities related to both production
and administration.
d. The need for customer responsiveness is increasingly causing companies to decide
how best to achieve greater flexibility and shorter lead times.Wall Street recognizes and
rewards firms that achieve higher return-on-investment.
e.
Continuous improvement involves small, daily improvements that ensure that the
process in moving forward.
a. True
b. False
According to the UCC, any affirmation of fact or promise made by the seller to the
buyer which relates to the goods and becomes part of the basis of the bargain creates
a/an _____ that the goods shall conform to the affirmation or promise.
a. implied warranty
b. express warranty
c. general warranty
d. warranty of merchantability
e. warranty of title
Instead of adversarial relationships which characterize _____, _____ features a
long-term, win-win relationship between a buying company and specially selected
suppliers.
a. traditional purchasing¦.supply management
b. traditional purchasing¦.logistics management
c. supply management¦.traditional purchasing
d. strategic sourcing¦.supply management
e. supply chain management¦.strategic sourcing
All of the following are examples of questions that should be asked when evaluating a
supplier for longer-term relationship potential except _____.
a. Has the supplier indicated a willingness or commitment to a longer-term
relationship?
b. Will the supplier engage in joint problem solving and improvement efforts?
c. What is the suppliers on-time delivery performance?
d. Is the supplier willing to come to us first with innovations?
e. Is the corporate culture similar between the two parties?
All of the following are considered to be the right reasons for investing in inventory
except _____.
a. avoid disruptions in operational performance
b. Unreliable supplier delivery
c. support customer service requirements
d. hedge against marketplace uncertainty
e. take advantage of order quantity discounts
In many instances, the alternatives to court adjudication are slower than litigation.
a. True
b. False
The _____ provides all suppliers, regardless of their performance history, a chance to
remain in the supply base.
a. improve or else approach
b. triage approach
c. competency staircase approach
d. twenty/eighty rule
e. Six Sigma approach
Which of the following is not a typical qualitative service factor in a supplier
performance measurement system?
a. Problem resolution ability.
b. Technical ability.
c. Process capability.
d. Ongoing progress reporting.
e. Wavelength.
According to research, the sharing of technology roadmaps often strongly influences
the type of buyer-supplier relationship that resulted in the integration process.
a. True
b. False
In many cases, the price charged by a seller may have little or no relationship to actual
costs.
a. True
b. False
On average, transportation costs easily comprise ten percentor more of a products total
cost.
a. True
b. False
Many supply management groups are recruiting commodity managers with very strong
technical backgrounds, who are able to talk the talk and walk the walk alongside their
engineering counterparts.
a. True
b. False
Which of the following is an example of a purchased direct item for a manufacturing
firm?
a. Parts and components.
b. Travel.
c. Office and janitorial supplies.
d. Advertising and media.
e. Personal computers.