Which of the following is not one of the eight key principles of total quality
management?
a. Strive for zero defects.
b. Define quality in terms of customers and their requirements.
c. Focus on output rather than process.
d. Make quality everyones responsibility.
e. Stress objective rather than subjective analysis.
The concept of damages in the UCC is based on the remedy of a party being made
whole.
a. True
b. False
_____ involves unbundling the price paid and understanding the total cost of ownership
over the life cycle of a product or service to deliver a target cost and a unit rate to
determine if it is priced competitively in the marketplace.
a. Cost management
b. Procure-to-pay
c. Supplier relationship management
d. Category management
e. Spend management
_____ include(s) the materials required to pack and ship final products, such as pallets,
boxes, master shipping containers, tape, bags, wrapping, inserts, and other packaging
material.
a. Raw materials
b. Production support items
c. Semifinished products
d. Components
e. Work-in-process inventory
A major concern with international purchasing is managing the risk associated with
international currency fluctuations.
a. True
b. False
In a pull system, an upstream work center or operation will create output regardless
whether a downstream center directly requests that output.
a. True
b. False
The need for confidentiality regarding financial, product, and process information is the
most frequently cited reason for not developing closer supplier relationships.
a. True
b. False
In a firm fixed price contract, if market prices for a purchased good or service _____
the stated contract price, the _____ bears the brunt of the financial loss.
a. rise above¦.purchaser
b. rise above¦.seller
c. fall below¦.seller
d. stay the same¦.seller
e. None of the above.
In a firm fixed price contract, if market prices _____ the stated contract price because
of outside factors such as competition, changes in technology, or raw material prices,
the _____ assumes the risk or financial loss.
a. rise above¦.purchaser
b. stay the same¦.seller
c. stay the same¦.purchaser
d. fall below¦.purchaser
e. None of the above.
In forward-thinking enterprises, supply management seldom plays a key role in the
development of new products and services.
a. True
b. False
A supplier quality manual may delineate the maximum process required for the supplier
regarding inspections, use of statistical process control, continuous improvement,
testing, sample evaluations, performance improvement, and the like.
a. True
b. False
The _____ clause of a contract stipulates whether the supplier can assign its rights
described in the agreement to another party, and whether subcontracting is permissible.
a. key performance indicators and compensation
b. assignment and contracting
c. supply and delivery
d. scope of agreement
e. None of the above.
Accepting a suppliers outside gifts and favors in exchange for special treatment is not a
form of corruption.
a. True
b. False
The _____ clause of a contract stipulates whether either party has the ability to
terminate the contract at any time, and how much advance notice must be given.
a. effective date and termination
b. payment
c. third-party rights
d. most favored customer
e. force majeure
Which of the following is not one of the reasons that negotiators frequently fall short of
their goals or reach an impasse?
a. They neglect the other partys problems.
b. They focus too much on price.
c. They focus too much on common ground.
d. They neglect their BATNAs.
e. They focus on interests rather than on positions.
_____ seeks to expand the value or resources of outcomes available to all parties
through cooperative negotiation.
a. Win-win negotiation
b. Distributive bargaining
c. Competitive bargaining
d. Lose-lose negotiation
e. Open-table bargaining
Increased redundancy of information between files allows different systems to
cross-reference and efficiently use the data contained in all files.
a. True
b. False
When creating a forecast for a needed product or service, internal customers may not
always be able to express exactly what it is they will need at a future point in time.
a. True
b. False