The purchasing cycle begins with identifying (or anticipating) a specific need or
requirement for a part component, raw material, subassembly, service, piece of
equipment, or finished good to be sourced to conduct or support organizational
operations.
a. True
b. False
Users must be able to extract from databases the information they need to make better
supply chain decisions.
a. True
b. False
Everyone negotiates something every day.
a. True
b. False
_____ applications address such long-term, strategic questions as Where should we
locate warehouses?, and How large should our transportation fleet be?, often making
use of simulation and optimization modeling.
a. Execution
b. Network design
c. MRP
d. JIT
e. None of the above.
A _____ is limited to a select group of suppliers who provide critical high value items
to the firm.
a. disqualified supplier
b. sole source supplier
c. preferred supplier
d. single source supplier
e. partnered supplier
The _____ was passed by Congress in 1977 to prevent companies from making
questionable or illegal payments to foreign government officials, politicians, and
political parties.
a. Foreign Corrupt Practices Act (FCPA)
b. Sherman Antitrust Act
c. CISG
d. Incoterms Act
e. Clayton Act
The _____ clause of a contract stipulates the court of law where any disputes will be
settled.
a. third-party rights
b. notices
c. assignment and contracting
d. governing law
e. liability
At the most basic level, information flows record and retrieve critical data, then execute
and control physical and monetary flows, and are referred to as _____.
a. Internet-based information technology
b. EDI
c. strategic decision making
d. DSSs
e. transaction processing
In the _____ approach to a systems suppliers level of service, the outsource service
supplier takes on only two or three small functions from the client, using a stepping
stone approach.
a. evergreen
b. turnkey
c. shared
d. modular
e. time and materials
Purchasing from competitors may limit information sharing between the parties.
a. True
b. False
_____ is a competition and implies that a winning organization excels not only in
quality management but also in quality achievement.
a. ISO 9001:2008
b. MBNQA
c. ISO 14001:2004
d. Six Sigma
e. Zero defects
It is harder to increase a material release by 10 percent or carry safety stock to cover
supplier quality problems than to correct the root cause of a problem.
a. True
b. False
All of the following are advantages of a cost-based supplier evaluation system except
_____.
a. total cost approach
b. specific areas of supplier nonperformance identified
c. objective supplier ranking
d. greatest potential for long-range improvement
e. good for firms with limited resources
All of the following are types of information a 3PL should provide to the buyer except
_____.
a. choice of mode
b. number of carriers providing inbound, intraorganizational, and outbound
transportation services
c. total transportation expenditures by specific carrier and mode of transportation
d. breakdowns of volumes by commodity or type of material
e. percentage of shipments arranged by suppliers versus by buyers
All of the following are elements of successful supplier suggestion programs except
_____.
a. the savings from the suggestion are often shared 50/50, not kept solely by the buying
company
b. the program focuses on cost improvement, not simply cutting the suppliers margins
c. successful buying companies provide prompt feedback to the supplier on its
suggestion and also implement good suggestions promptly
d. it is critical to acknowledge the suppliers suggestion, through an awards program,
newsletter, or announcement at a supplier conference
e. the supplier should be allowed to keep 100% of the savings since it came up with the
idea
Sustainability reflects only the importance of strategic environmental practices of an
organizations suppliers but not the management of social responsibility in the supply
base.
a. True
b. False