A _____ is defined as a purchase that is made on a nonrecurring or limited basis with
little or no attention of developed an ongoing relationship with the supplier.
a. purchasing alliance
b. long-term contract
c. short-term contract
d. spot contract
e. JIT contract
Long-term contracts can help the buyer to gain exclusive access to proprietary supplier
technology, and blocking competitor access can result in a short-term competitive
advantage.
a. True
b. False
There is minimal danger in stereotyping or oversimplifying the cultural characteristics
of different countries or regions.
a. True
b. False
People seldom show the tendency to fill in the gaps when a discussion encounters
silence.
a. True
b. False
The _____ clause of a contract specifies method of manufacture and quality
requirements and may include language specific to terms of quality.
a. liability
b. specifications, quality, and health, safety, environment
c. intellectual property
d. assignment and contracting
e. confidentiality
Which of the following is not an example of a prevention cost?
a. Incoming material inspections.
b. Quality planning.
c. Equipment calibration.
d. Development of a quality manual.
e. Maintenance of a quality management system.
To be successful, a good long-term contract needs to only consider the needs of the
buyer.
a. True
b. False
In general, the lower purchasing is in the corporate structure, the greater the role it plays
in supporting organizational objectives.
a. True
b. False
The availability of low-cost domestic supplier alternatives has led to the shift away
from outsourcing and offshoring.
a. True
b. False
Because so few processes move across functional boundaries, it is illogical to have
those groups connected with the process involved with mapping and improving the
process.
a. True
b. False
Purchasing will play a lesser role in time-based competition because of its inability to
affect time-related processes and activities.
a. True
b. False
All the following are expected growth areas in e-commerce except _____.
a. transmitting purchase orders to suppliers
b. submitting requests for quotes to suppliers
c. placing orders with suppliers
d. making electronic funds transfer payments
e. submitting written check requests to accounts payable
Developing countries seldom rely on personal relations and trust to cover many legal
issues because of an adequate legal system.
a. True
b. False
Which of the following is not one of the disadvantages of rail carrier over other modes
of transportation?
a. Seasonal availability.
b. Limited access to rail line.
c. Longer in-transit lead times.
d. Less flexible – may not have rails to all locations.
e. Limited access to rail spur.