_____ includes movement and handling of materials between production facilities
within the same organization as well as movement into and out of intermediary storage
facilities.
a. Inbound logistics
b. Recovery
c. Outbound logistics
d. Intraorganizational movement
e. Recycling
A carefully worded and prepared contract is not subject to any form of dispute or
disagreement.
a. True
b. False
_____ is any activity undertaken by a buyer to improve a suppliers performance or
capabilities to meet the buyers short- and long-term supply needs.
a. Supply base rationalization
b. The twenty/eighty rule
c. Supply base optimization
d. Supplier development
e. Six Sigma
Projects have certain characteristics that make them unique compared with other forms
of work.
a. True
b. False
Which of the following is not a disadvantage of written and implied policies?
a. Personnel only follow policies to ingratiate themselves with executive management.
b. Employees may view policies as a substitute for effective management.
c. Policies are not a set of how-to instructions designed to provide specific answers for
every business decision.
d. Policy development can restrict innovation and flexibility.
e. Policies are often difficult to communicate throughout large organizations.
_____ is the determination of the dollar amount and volume of expenditures that an
organization makes to provide its products and services and support its operations.
a. TCO
b. Kanban
c. Price forecasting
d. Spend analysis
e. Market analysis
Which of the following is not one of the disadvantages of water carrier over other
modes of transportation?
a. Limited flexibility.
b. Seasonal availability.
c. Very long lead times.
d. Poor reliability.
e. Cannot be used for large volumes.
In an absence of competition situation, a supplier may hold the buyer hostage by unduly
raising prices without justification or becoming too complacent, particularly when there
are higher switching costs.
a. True
b. False
_____ refers to the assumption that local personnel understand and support the
objectives of the business unit or division and feel a personal commitment to a
particular operation.
a. Centralization of purchasing authority
b. Hybrid structure
c. Correlation
d. Specialization
e. Ownership
Progressive purchasing groups increasingly anticipate rather than react to supplier
selection needs.
a. True
b. False
A shipper should necessarily negotiate a contract with every carrier it uses, even if it is
considered a small or infrequent shipper.
a. True
b. False
[A/An] _____ is any misrepresentation by a buyer that falls just short of actual fraud.
a. Ethics
b. sharp practice
c. Bribery
d. conflict of interest
e. None of the above.
Organizations should not use process mapping to redesign or reengineer processes.
a. True
b. False
_____ helps ensure that customers receive material when and where they require it and
represents the key link between the producer and the external customer.
a. Order processing
b. Inbound transportation
c. Customer service
d. Scheduling
e. Inventory control
A _____ visually displays the tasks and times associated with a project and consists of a
horizontal bar chart with activities listed vertically and times or dates displayed
horizontally.
a. PERT tool
b. Gantt chart
c. CPM tool
d. TCO chart
e. networking tool
Technical sections of the contract are typically the least source of misinterpretation of
terms and conditions.
a. True
b. False
All of the following are major issues to be considered with respect to e-commerce
contract issues except _____.
a. parity between electronic and paper records
b. enforceability of shrinkwrap, clickwrap, and boxtop agreements and licenses
c. attribution procedures
d. digital signatures
e. location of the suppliers facility in relationship to the buyers location
_____ is the end-to-end process of managing a supplier through the entire sourcing life
cycle, which includes first identifying the abilities of a particular company with regard
to performing a service for the internal customer, completing a sourcing event,
negotiating a contract, executing an order, and determining payment.
a. P2P
b. CRM
c. Outsourcing
d. Competitive bidding
e. SRM