The whole point of collecting _____ is to understand the prevailing market conditions
and the ability of current or potential new suppliers to deliver the product or service
effectively.
a. customer data
b. secondary data
c. internal data
d. spend analysis data
e. market research
All of the following are examples of why organizations source worldwide except
_____.
a. cost/price benefits
b. access to product and process technology
c. quality
d. introduce competition to domestic suppliers
e. ability to influence domestic consumers
In a CPM or PERT project, a network is a graphical representation that shows how each
individual activity relates in time and sequence to all other activities.
a. True
b. False
A major advantage of a rail carrier is the wide range of items it is capable of carrying.
a. True
b. False
_____ is/are the ability to influence another person or organization to do something.
a. Positions
b. Planning
c. Strategy
d. Power
e. None of the above.
Copyright is automatically assumed.
a. True
b. False
Which of the following is not one of the criteria used to determine whether to buy direct
vs. using a distributor?
a. Size of the purchase.
b. Manufacturers policies regarding direct sales.
c. Storage space available at the purchasers facility.
d. Distance between the manufacturer and the distributor.
e. Extent of services required.
_____ of inventory pertains to the unit cost of the inventory.
a. Volume
b. Velocity
c. Value
d. Virtue
e. None of the above.
Which of the following is not one of the examples of Porters power of suppliers?
a. Prices of major inputs.
b. Ability to pass along price increases.
c. Supplier concentration.
d. Availability of skilled workers.
e. Threat of forward or backward integration.
In general, the less important the category, the more critical it is that internal
stakeholders will be involved.
a. True
b. False
_____ is used when a product or service is proprietary or when there is a perceived
advantage to using a particular suppliers products or services.
a. Description by market grade
b. Description by industry standard
c. Description by specification
d. Description by performance characteristics
e. Description by brand
By limiting internal requisitioners to previously approved catalogs of already contracted
goods and services from preselected and approved suppliers, volume commitments to
approved suppliers can be achieved and maverick spending reduced.
a. True
b. False
Lean is an easy approach to implement.
a. True
b. False
SMAC is the new enterprise IT model delivering an organization that is more
connective, collaborative, real-time, and productive.
a. True
b. False
According to Cialdini, _____ is a principle which states that people feel an obligation to
give something back of equal or greater value to someone else after we have received
something of perceived value from them.
a. social proof
b. authority
c. consistency
d. reciprocation
e. scarcity
When purchasing works directly with internal stakeholders to anticipate future
requirements, such as during new-product development, or with physician councils in a
health care provider, purchasing is acting reactively.
a. True
b. False
Many firms are now colocating supply management personnel directly at operating
locations so supply management can respond quickly to operations needs.
a. True
b. False
Which of the following statements regarding cost-savings sharing is false?
a. Cost-sharing approaches require joint identification of the full cost to produce an
item.
b. Profit is a function of the productive investment committed to the purchased item and
a suppliers asset return requirements.
c. The cost-based approach provides a supplier with incentives to pursue continuous
performance improvement to realize shared cost savings and invest in productive assets.
d. Profit is a direct function of cost.
e. In the traditional market-based pricing approach, one party (usually the purchaser)
seeks to capture all cost savings resulting from a suppliers improvement effort.
On-time delivery or responsiveness measures indicate the degree to which suppliers are
able to meet customer schedule requirements.
a. True
b. False