_____ focus on achieving standardization of components, systems, and services and
application of currently used purchased items or the use of industry-standard versus
unique items.
a. First insight measures
b. Standardization measures
c. Responsiveness measures
d. Cycle time reduction measures
e. Flexibility measures.
Global sourcing can be used to access new markets or to gain access to the same
suppliers that are helping global companies become more competitive.
a. True
b. False
Which of the following is not one of the major transportation service linkages
throughout a typical supply chain?
a. Production planning.
b. Inbound logistics
c. Intraorganizational movements.
d. Outbound logistics.
e. Recovery and recycling.
Most large firms base purchase decisions and evaluation suppliers on only the cost
elements of unit price, transportation, and tooling.
a. True
b. False
Supply base rationalization and optimization often involves eliminating those suppliers
who are unwilling to achieve (or are incapable of achieving) supply management
performance objectives, either currently or expected in the near future.
a. True
b. False
Which of the following is not a reason for negotiating with suppliers?
a. The total contract value or volume is large.
b. The purchase is for widely available, commodity-like goods.
c. The purchase involves utilization of capital-intensive plant and equipment.
d. The purchase involves a special or collaborative relationship.
e. The supplier will perform important or significant value-added activities.
All of the following are advantages of decentralized purchasing except _____.
a. ownership of decisions affecting purchases
b. understanding unique operational requirements
c. speed and responsiveness
d. reduced duplication of purchasing effort
e. new-product development support
The remaining suppliers in a rationalized and optimized supply base are seldom capable
of performing additional tasks or providing other products and services that add value
to the buyer-supplier relationship.
a. True
b. False
According to Armand Fiegenbaum, _____ is defined as the total composite of product
and service characteristics of marketing, engineering, manufacturing, and maintenance
through which the product or service in use will meet or exceed the expectations of the
customer.
a. productivity
b. process capability
c. zero defects
d. quality
e. supply base optimization
In the _____, pricing is based on the assumption that long-run profitability depends on
the market share obtained by the supplier.
a. price volume model
b. market-share model
c. open market model
d. target pricing model
e. market skimming model
A/An _____ clause allows the buyer (and possibly the supplier) to terminate the
contract if either side fails to live up to contractual requirements.
a. penalty
b. evergreen
c. systems contract
d. time and materials
e. escape
According to Philip Crosby, the only true performance standard that defines total
quality is _____, which he defined as conformance to requirements.
a. zero defects
b. Six Sigma
c. process capability
d. optimization
e. rationalization