Competition today is no longer between firms; it is between the supply chains of those
firms.
a. True
b. False
_____ refers to the process of comparing supplier prices against external price
benchmarks, without direct knowledge of the suppliers costs.
a. Cost analysis
b. Make-buy analysis
c. Target costing
d. Price analysis
e. Total cost analysis
_____ occurs whenever value is added to a product or service as it moves through
transformation processes in the supply chain.
a. Six Sigma
b. Process capability
c. Kaizen
d. Supply base rationalization
e. Quality at the source
In TCO, _____ is the amount paid to the supplier for the product, service, or capital
equipment.
a. acquisition cost
b. usage cost
c. end-of-life cost
d. purchase price
e. opportunity cost
Purchasing is becoming less responsible for sourcing indirect goods and services
required by internal groups.
a. True
b. False
_____ is money the plaintiff actually paid to the defendant in connection with the
contract.
a. Reliance
b. Restitution
c. Expectancy
d. Due diligence
e. None of the above.
In value stream mapping, the flow diagram that depicts the process and shows the times
and resources used at each step and the time delay between each step is called a/an
_____.
a. anticipated state map
b. future state map
c. ideal state map
d. current state map
e. None of the above.
The _____ the term of the purchase agreement, the _____ firm fixed-price contracts
will be acceptable to the supplier.
a. shorter¦.less likely
b. longer¦.more likely
c. longer¦.less likely
d. longer¦.same likelihood that
e. There is no relationship between contract term and acceptability to the supplier.
Buyers are never reluctant to shift business from domestic sources to unknown offshore
sources.
a. True
b. False
Contracts between two or more parties do not allow the shifting of risk between the
entities and do not constitute the foundation and fabric for every type of supply chain
relationship.
a. True
b. False
In TCO for a service, _____ include all costs associated with the performance of the
service that are not included in the purchase price.
a. invoice costs
b. usage costs
c. acquisition costs
d. end of life costsend of life costs
e. interest costs
According to the CISG, a/an _____ is one of the countries that have ratified the treaty.
a. rogue state
b. independent commonwealth
c. trading block
d. contracting state
e. The CISG is no longer in force.
Which of the following is not a requirement of being an effective team member?
a. Understands the teams task the member has task-relevant knowledge.
b. Has the time to commit to the team.
c. Has the right corporate political connections.
d. Has the ability to work with others in a group.
e. Can assume an organizational rather than strict functional perspective.
Accepting gifts and favors from a supplier is the most common ethical infraction
involving buyers.
a. True
b. False
Firm fixed price contracts are generally applicable when the goods or services procured
are expensive, complex, and important to the purchasing party or when there is a high
degree of uncertainty regarding labor and material costs.
a. True
b. False
Participants in blog sites are free to post their reactions, and individuals can respond to
other participants responses.
a. True
b. False