In recent years, the concept of quality has changed radically from meeting customer
requirements or expectations to exceeding them.
a. True
b. False
Which of the following is not a common organizational mechanism to enable center-led
organization design?
a. Lead division buying.
b. Restricted use of procurement cards.
c. Regional buying council.
d. Global sourcing council.
e. Consortiums and group purchasing organizations.
_____ refers to the process of assessing and selecting the structure and formal system of
communication, division of labor, coordination, control, authority, and responsibility
required to achieve organizational goals and objectives, including supply management
objectives.
a. Cross-functional teaming
b. Reciprocity
c. Organizational design
d. Purchasing authority
e. Supply chain integration
_____ involves the identification of the steps, activities, time, and costs involved within
a process.
a. Data warehousing
b. Co-location
c. Process mapping
d. Supply base optimization
e. TQM
_____ is the process of identifying how many and which suppliers a buyer will
maintain.
a. Supply base optimization
b. Supply base rationalization
c. Six Sigma
d. Zero defects
e. Strategic sourcing
A _____ is concerned with (1) the scope or boundaries of each business and the links
with corporate strategy and (2) the basis on which the business unit will achieve and
maintain a competitive advantage within an industry.
a. commodity strategy
b. category strategy
c. business unit strategy
d. functional strategy
e. supply management strategy
_____ is the new enterprise IT model delivering an organization that is more
connective, collaborative, real-time, and productive.
a. RFID
b. SMAC
c. EDI
d. E-sourcing
e. None of the above.
A/An _____ refers to those negotiated outcomes that a negotiator would like to have as
opposed to those outcomes that must be achieved.
a. need
b. BATNA
c. position
d. interest
e. want
When a process crosses functional boundaries, there is a risk that no one actually owns
or takes responsibility for the entire process.
a. True
b. False
In the final and most advanced stage of supply management strategy development,
supply management has assumed a tactical orientation with reporting directly to
lower-level management and a simple internal, rather than a strong external, customer
focus.
a. True
b. False
Activities on the critical path in a PERT network will have slack.
a. True
b. False
The _____ describes the origin of the shipment, provides specific directions for the
carrier, delineates the transportation contract terms, and functions as a receipt for the
shipment.
a. bill of lading
b. implied warranty of transportation
c. freight bill
d. acknowledgment
e. implied warranty of merchantability
A shift to a more trusting buyer-supplier relationship is easy.
a. True
b. False
_____ are those items provided by suppliers and used directly during production or
service delivery.
a. Direct materials
b. Indirect materials
c. Indirect services
d. Internal materials
e. Vendor managed inventories
Moving to a centralized process for procuring professional services does not allow the
buying company to leverage its corporate buying power.
a. True
b. False
A major source of information on potential supply sources comes from current or
existing suppliers.
a. True
b. False
The most significant advantage of a motor carrier is its relatively lower variable cost.
a. True
b. False