The most basic and the easiest inventory-related cost to quantify and track is unit cost.
a. True
b. False
The objective of supplier certification is to ensure that nonconforming items are not
created or do not leave a suppliers facility.
a. True
b. False
In general, supply management should provide and manage suppliers e-catalogs.
a. True
b. False
_____ are the action plans designed to help achieve a desired result.
a. Arguments
b. Questions
c. Strategies
d. Objectives
e. Tactics
[A/An] _____ is a form of presentation, involving an exchange of information between
managers from each organization involved in the dispute.
a. mediation
b. arbitration
c. rent-a-judge
d. mini trial
e. dispute prevention
Maintaining small quantities of inventory has been the traditional methods of dealing
with supply base risk.
a. True
b. False
For the most part, the UCC is a gap filler and is only pertinent if the parties themselves
do not supply a contract term, or the term is left open.
a. True
b. False
The _____ strategy is based on determining the highest price that can be offered to the
supply manager that will still be lower than the price offered by competitors.
a. penetration pricing model
b. market-share model
c. cash discount
d. revenue pricing model
e. competition pricing model
Good reasons for allowing other departments to view purchase orders and incoming
receipts does not include which of the following?
a. The accounting department gains visibility to future accounts payable obligations.
b. The requestor can refer to the purchase order number when inquiring into the status
of an order.
c. Receiving has a record of the order to match against the receipt of the material.
d. Traffic becomes aware of inbound delivery requirements and can make arrangements
with carriers or use the companys own vehicles to schedule material delivery.
e. There is never a good reason for purchasing to allow other departments access to
purchase orders and incoming receipts due to the confidential nature of the price and
delivery terms.
All of the following are examples of e-transaction measures except _____.
a. days/weeks/months of supply of inventory
b. absolute number of suppliers
c. percentage of suppliers
d. percentage of advanced shipping notices
e. electronic funds transfer
Which of the following is not one of the basic levels of service that a systems supplier
can provide to the buyer?
a. Turnkey.
b. Modular.
c. Shared.
d. All of the above.
e. None of the above.
_____ are those expenses incurred by the purchaser because the goods were not
delivered when expected or as specified.
a. Incidental damages
b. General damages
c. Consequential damages
d. Specific damages
e. None of the above.