The greatest competition between domestic transportation modes involves rail and
motor carriers.
a. True
b. False
Policies defining the role of purchasing often serve as a general or broad policy
statement from which more detailed or specific policies evolve.
a. True
b. False
Cross-functional teams will continue to be important to supply management strategy.
a. True
b. False
Perhaps the most important and challenging linkages exist between supply management
and marketing/sales.
a. True
b. False
Which of the following is not one of the components of material ordering cycle time
that supply chain management practices directly affect?
a. Transmission of requirements to suppliers.
b. Suppliers ordering and manufacturing cycle time.
c. Allocation of manufacturing overhead costs.
d. Delivery from suppliers.
e. Incoming receipt and inspection.
Closer buyer-supplier relationships interest all suppliers.
a. True
b. False
All delivery activities in a process can be considered wasteful.
a. True
b. False
A savvy buyer will want to control transportation costs internally instead of simply
allowing the shipper to pass them along in the form of a delivered price.
a. True
b. False
A/An _____ clause assumes the contract will be renewed every year unless the supplier
is otherwise notified that this is not the case.
a. evergreen
b. due diligence
c. penalty
d. escape
e. None of the above.
Failing to respond to the needs of internal customers will diminish the confidence these
users have in purchasing, and they may try to negotiate contracts themselves (a practice
known as _____).
a. strategic sourcing
b. spend management
c. maverick buying
d. outsourcing
e. internal sourcing
_____ involves a comparison of one firms market strategies against those of another.
a. Functional benchmarking
b. Strategic benchmarking
c. Operational benchmarking
d. Support-activity benchmarking
e. None of the above.
In a fixed price contract with escalation, all price changes should be keyed to a
third-party price index, preferably to a well-established, widely published index.
a. True
b. False
Which of the following is not an example of an appropriate use of a cross-functional
team?
a. New product development.
b. Preparing a RFQ for a routine commodity product.
c. Locating a new production facility.
d. Developing a commodity or purchase family strategy.
e. Establishing a new business unit.
A/An _____ is an aspiration or vision to work toward in the future.
a. need
b. objective
c. plan
d. BATNA
e. position
Although mode selection is usually not an issue for international ocean shipments, as in
all strategic supplier selection decisions, carrier selection is still paramount.
a. True
b. False
The use of automated online catalogs by major suppliers of MRO items allows users to
buy directly from blanket orders and national contracts from their desktops.
a. True
b. False
All of the following are examples of external failure costs except _____.
a. warranty costs
b. replacement of defective products to customers
c. liability lawsuits
d. quality planning
e. loss of customer goodwill
All of the following are typical reasons why a country imposes countertrade demands
except _____.
a. some countries simply lack the hard currency to purchase imported goods
b. countertrade provides a means of selling products in markets to which a company
may have otherwise lacked access
c. developing nations often require Western multinationals to accept goods as at least
partial payment for sales within their country
d. the country may need assistance to produce its own goods and services
e. All of the above.
The _____ is typically considered a _____ for the buying firm.
a. purchasing manager/buyer¦..general agent
b. sales representative¦..general agent
c. purchasing manager/buyer¦..special agent
d. All of the above.
e. None of the above.
According to Cialdini, _____ is a principle which states that we work well and are more
agreeable with people we like or who are like us.
a. leverage
b. liking
c. authority
d. reciprocation
e. consistency