All of the following are important factors to consider when negotiating with a supplier
over contract type except _____.
a. component market uncertainty
b. degree of trust between buyer and seller
c. process or technology uncertainty
d. suppliers ability to impact costs
e. physical distance between the buyer and supplier facilities
All buyers are encouraged to engage in currency hedging activities, regardless of their
level of experience.
a. True
b. False
Traditional pricing practices have supported cooperative efforts to make design,
product, and process improvements with suppliers.
a. True
b. False
In collaboration, the relationship is bilateral; both parties have the power to shape its
nature and future direction over time.
a. True
b. False
Historically, companies adopted a unified approach to system usage, such that each
function could communicate with each other in the company.
a. True
b. False
A/An _____ is new intellectual property (such as tools, methodologies, and knowledge)
developed as the result of the interaction between the enterprise and the consulting
company.
a. evergreen contract
b. output
c. good
d. service
e. residual
Which of the following elements is false regarding Phase 1, Basic Beginnings, of
supply management strategy development?
a. Quality/cost teams.
b. Longer-term contracts.
c. Volume leveraging.
d. Supply-base consolidation.
e. Early sourcing.
Due to resource constraints, the use of teams for supplier evaluation and selection is
decreasing.
a. True
b. False
The use of [a/an] _____, or third party, to help settle contractual disputes is the
fastest-growing method of conflict resolution among contracting parties, both in the
United States and overseas.
a. rent-a-judge
b. litigation
c. mediation
d. mini trial
e. outside arbitrator
It can take only a few months for a company to adequately develop a quality
management system that is competitive for the MBNQA.
a. True
b. False
_____ means continuous improvement and must be built into every single process in
the organization.
a. Banzai
b. Optimization
c. Gung ho
d. Kaizen
e. Bonsai
If the organizations strategy is to be responsive to individual customers in different
markets, then a more centralized approach is likely.
a. True
b. False
Enterprises are relying increasingly on external suppliers to provide only materials and
products, not information technology, services, and design activities.
a. True
b. False
_____ represents the difference between a price paid and a potentially higher price
(which might have occurred if purchasing had not obtained the lower price through a
specific effort or action).
a. Target cost
b. Cost reduction
c. Target price
d. Cost avoidance
e. None of the above.
Supplier size does become a factor when one firm decides to leverage its purchases
from one or a few suppliers.
a. True
b. False
The primary objective of value analysis is to increase the value of an item or service at
the lowest cost without sacrificing quality.
a. True
b. False
A set of SRM sourcing modules acts as an interactive system designed to support
purchasing managers in making effective decisions concerning supplier selection,
contract management, contract compliance, and so on.
a. True
b. False
In supplier evaluation, a _____ includes those systems that release, schedule, and
control the flow of work in an organization.
a. logistics system
b. cost accounting system
c. traffic management system
d. planning and control system
e. warehouse management system
A _____ contains the products or services of one or more suppliers.
a. sell-side system
b. buy-side system
c. deliver-side system
d. third-party marketplace
e. 3PL