Supply managers should emphasize purchasing efficiency over purchasing effectiveness
as a strict measure of performance.
a. True
b. False
Which of the following is one of the reasons for measuring performance?
a. Support better decision making.
b. Support better communication.
c. Provide performance feedback.
d. Motivate and direct behavior.
e. All of the above.
Measurement fails to motivate and direct behavior toward desired end results.
a. True
b. False
Because the UCC calls for full compensation for a party that is a victim of breach of
contract, attorneys fees are collectible.
a. True
b. False
Which of the following is not one of the primary ways that companies create
shareholder value?
a. Increase volume.
b. Reduce cost of employees (downsize).
c. Reduce cost of process and waste.
d. Reduce cost of goods and services.
e. Lower prices.
Which of the following statements is false regarding category strategy?
a. Companies, in the future, will look beyond cost, quality and delivery as purchase
category strategy goals.
b. Companies will increasingly use value-focused sourcing approaches to evaluate how
a supplier or group of suppliers may be utilized to gain competitive advantage for
categories with high business impact.
c. There will be increasing use of value chain mapping, data analytics to better
understand industry trends, cost modeling and scenario planning techniques to develop,
evaluate, and select from purchase category strategy alternatives.
d. Establishing core competencies and capabilities has influenced the strategic planning
process and category strategy development at most firms.
e. Groups of suppliers (versus supply networks) will become an increasing focus of
purchase category strategies.
Which of the following is false concerning Demings philosophy on fear in the
workplace?
a. Employees may be fearful of making a mistake and being reprimanded for it.
b. Fear-free organizations are very common as only takes a short time to develop and
maintain an organizational culture that promotes risk taking and change.
c. Most people have a fear of failure, so they dont want to try anything new or different.
d. People are creatures of habit and do not like to make changes in their routines.
e. Middle managers may be fearful of letting go of their traditional power based on
command and control.
Price should be a very important element of the reverse auction process but not the only
one.
a. True
b. False
Firms that centralize operational activities during global sourcing are likely to realize
lower total cost of ownership, better inventory management, and improved performance
to external customers.
a. True
b. False
In should-cost modeling, _____ include those components the company has direct
control or influence over.
a. direct costs
b. assumption variables
c. variable costs
d. decision variables
e. commodity prices
A reason for decentralization is a reduction in duplication of effort.
a. True
b. False
Which of the following is not one of the usual roles of an international purchasing
office?
a. Expedite and trace shipments.
b. Negotiate supply contracts.
c. Make payments and bribes to foreign officials to secure or retain business.
d. Represent the buying firm to suppliers.
e. Manage technical and commercial concerns.
Using a RFID system, if supplier quality and lead times are reliable, planners can time
the arrival of components just before production of the final part number.
a. True
b. False