The _____ buys from the OEM and resells, therefore incurring a transaction cost, and it
must make a profit.
a. vendo
b. customer
c. preferred supplier
d. single source supplier
e. distributor
Using a traditional pricing approach, the selling price profit = allowable product cost.
a. True
b. False
A/An _____ has demonstrated its performance capabilities through previous purchase
contracts and, therefore, receives preference during the supplier selection process.
a. commodity supplier
b. preferred supplier
c. sole source supplier
d. new supplier responding to a RFQ
e. marginal supplier
The price paid for purchased products and services has no direct impact on the end
customers perception of value provided by the organization.
a. True
b. False
Which of the following is not one of the factors driving an emphasis on supply chain
management?
a. An increasing emphasis on domestic sourcing due to the longer lead times and higher
levels of pipeline inventories associated with global sourcing.
b. The cost and availability of information resources among entities in the supply chain
that allow easy linkages that eliminate time delays in the network.
c. The level of competition in both domestic and international markets requires
organizations to be fast, agile, and flexible.
d. Customer expectations and requirements that are becoming much more demanding.
e. The ability of an organizations supply chain to identify and mitigate risk minimizes
disruptions in both supply and downstream product or services to mitigate the impact
on lost sales.
Organizations should use teams selectively due to limited resource availability.
a. True
b. False
Purchasers should not accept any of the blame for delivery uncertainty.
a. True
b. False
Central to the design of all supplier measurement systems is the decision about what to
measure and how to weight various performance categories.
a. True
b. False
Routine items available from many different sources are seldom purchased through
competitive bidding.
a. True
b. False
Category strategies will become less complex, requiring only internal and functional
executive engagement, including review and approval.
a. True
b. False