_____ is a negotiation tactic that involves not immediately responding when the other
party makes an offer in the hope that an awkward silence will encourage further offers
or concessions from the other party.
a. Trial balloon
b. Silence
c. High ball
d. Questions
e. Planned concessions
_____ is a negotiation tactic that signals that it is now the other partys turn to
reciprocate and make a concession on an important issue.
a. Venue
b. Low ball
c. Honesty and openness
d. Best and final offer
e. Planned concessions
Which of the following is false concerning Demings philosophy on numerical quotas
and measurement by objective?
a. Workers may game the system to make their individual production and output goals.
b. Many numerical based goals and objectives are often developed arbitrarily.
c. Goals are often short term in their focus.
d. Output standards fully support TQM improvements and other quality initiatives.
e. Many numerically-based goals and objectives are beyond the control of the worker.
A consortium is a voluntary group where buyers are in the same industry and conduct
business with many of the same suppliers.
a. True
b. False
Building a TCO model is an easy task.
a. True
b. False
When _____ is present, the total group effort is _____ the expected sum of the
individual parts.
a. process loss¦.less than
b. groupthink¦.more than
c. process loss¦.more than
d. collaboration¦.less than
e. synergy¦.the same as
One of the primary causes of nonconforming supplier quality involves inconsistent
communication and the resultant misunderstanding of specifications, expectations, and
requirements between supply chain members.
a. True
b. False
A data warehouse, in theory, is organized around informational subjects rather than
specific business processes.
a. True
b. False
In most cases, the sales representative is a general agent who can solicit orders and
change price, terms, or conditions as well.
a. True
b. False
Because of widespread industry differences, one companys indirect spend may be
considered direct spend for another.
a. True
b. False
Which of the following is a rule of ethical behavior in purchasing?
a. Buyers must commit their attention and energies for the organizations benefit rather
than personal enrichment at the expense of the organization.
b. A buyer must act ethically toward suppliers or potential suppliers.
c. Buyers must uphold the ethical standards set forth by both their organization and the
purchasing profession.
d. All of the above.
e. None of the above.
Competitive bidding is most effective when all of the following conditions apply except
when _____.
a. the buying firm can provide qualified suppliers with clear descriptions of the items or
services to be purchased
b. volume is high enough to justify the cost and effort
c. the firm does not have a preferred supplier
d. the item is new or technically complex, with only vague specifications
e. None of the above conditions apply to competitive bidding.