Shipping a high-priced component via air is never a cost-effective option.
a. True
b. False
Few measures drive behavior that is not what is intended or needed.
a. True
b. False
In its most basic form, a _____ is defined as a promise or representation made by the
seller, which, if necessary, can be legally enforced.
a. statement of fact
b. verbal agreement
c. verbal agreement
d. warranty
e. buyers right of rejection
Purchasers cannot rely on an arbitration clause contained in their forms, particularly if
the suppliers forms do not contain such a clause.
a. True
b. False
Negotiation is a simple skill that applies to only a few purchasing and supply managers.
a. True
b. False
An individual supplier focus (as opposed to a supply network focus) for category
strategy development will be increasingly applied.
a. True
b. False
_____ is the process of identifying cost considerations beyond unit price, transport, and
tooling.
a. Total cost of ownership
b. Price analysis
c. Make-buy analysis
d. Portfolio analysis
e. Low-cost country sourcing
In _____, demand for an item is not directly dependent upon the demand for any other
item that is produced.
a. dependent demand
b. independent demand
c. codependent demand
d. Six Sigma
e. just-in-time
According to Cialdini, _____ is a principle which states that we look to the behavior of
others to determine what is desirable, appropriate, and correct.
a. social proof
b. liking
c. consistency
d. scarcity
e. authority
_____ is might be the best choice for standard items, where the requirements are well
understood and there is common agreement between supply chain partners about what
certain terms mean.
a. Description by market grade
b. Description by brand
c. Description by performance characteristics
d. Use of prototypes
e. Description by specification
At the highest levels of the organization, top management uses break-even analysis as a
strategic planning tool.
a. True
b. False
Traditional purchasers understand the risk/reward tradeoff and are prepared to manage
it better to attain overall lower costs.
a. True
b. False
A _____ is a set of three or more organizations linked directly by one or more of the
upstream or downstream flows of products, services, finances, and information from a
source to a customer.
a. process
b. manufacturing system
c. value chain
d. social media chain
e. supply chain
The skills required for a strategic focus are the same as those required for an operational
focus.
a. True
b. False