The effectiveness of the sourcing team leader is one of the weakest predictors of team
success.
a. True
b. False
The supplier performance index (SPI) equals (_____ plus _____) divided by _____.
a. Total Purchases¦.Nonperformance Costs¦.Total Purchases
b. Nonperformance Costs¦.Total Purchases¦.Nonperformance Costs
c. Total Purchases¦.Appraisal Costs¦.External Failure Costs
d. External Failure Costs¦.Internal Failure Costs¦.Total Purchases
e. TransportationCosts¦.Appraisal Costs¦.Prevention Costs
A/An _____ is generally thought of as a decision support tool for collecting information
from multiple sources and making that information available to end users in a
consolidated, consistent manner.
a. database
b. data warehouse
c. EDI system
d. e-catalog
e. reverse auction
Scenario analysis is technically considered forecasting and attempts to explore and
prepare for possible future scenarios that may have a significant negative impact on the
costs and operations of an organization.
a. True
b. False
From the financial accounting perspective, inventory has historically been considered a
current asset.
a. True
b. False
Trade shows are often one of the worst ways to gather information on many suppliers at
one time.
a. True
b. False
The authority to review and challenge specifications (for products or for services) is
within purchasings span of control in managing demand, although internal stakeholders
sometimes dispute this right.
a. True
b. False
In TCO, _____ includes all costs associated with bringing the product, service, or
capital equipment to the customers location.
a. purchase price
b. opportunity costs
c. acquisition costs
d. usage costs
e. end of life costs
_____ means that supply chains must have perfect quality.
a. DRP
b. Flow
c. Pull
d. Push
e. Striving for excellence
The cost-based system is the most thorough and least subjective of the three supplier
performance measurement systems.
a. True
b. False
Long-term contracts should be written to avoid incentive or cost-sharing arrangements.
a. True
b. False
Carrying costs do not vary with the level of inventory, which makes these costs fixed.
a. True
b. False
Which of the following is not one of the features of the new model of progressive
purchasing?
a. Developing closer relationships with important suppliers.
b. Performing due diligence on suppliers before awarding longer-term contracts.
c. Focusing primarily on price analysis and short term contracts.
d. Conducting worldwide Internet searches for the best sources of supply.
e. Inviting key suppliers to participate in product and process development.
Because a project usually has a defined scope with agreed-upon tasks, responsibilities,
and deliverables, it is often more difficult to measure project success compared with
other types of work.
a. True
b. False
Each location of an organization must use the same performance objectives or
performance criteria.
a. True
b. False
Supply base optimization usually refers to increasing the number of suppliers used.
a. True
b. False
Before committing time to evaluate a supplier in depth, suppliers should satisfy certain
entry qualifiers.
a. True
b. False