Because of the huge quantities involved, deciding on the use of pipeline is rarely
something a buyer needs to consider.
a. True
b. False
A/An _____ demonstrates the impact of purchasing and supply strategies and actions
on revenues of the firm.
a. income measure
b. target cost
c. revenue measure
d. target price
e. cost avoidance measure
Reverse logistics flow requires companies to find innovative methods of recovering and
recycling products to minimize potential negative impacts on the natural environment.
a. True
b. False
Which of the following is not an element of culture?
a. Language.
b. Religion.
c. Values and attitudes.
d. Infrastructure.
e. Social institutions.
_____ essentially describe who is responsible for the selection of a carrier, payment of
the freight bill, and the method in which the title of goods passes between the purchaser
and the supplier.
a. Freight bills
b. Bills of lading
c. Prepaid shipments
d. Collect shipments
e. Delivery terms
The goal of DRP systems is to integrate all business function planning and processing,
and to avoid data interruption to make better business decisions and run the business
more effectively and efficiently.
a. True
b. False
The major benefits from cost-reduction efforts occur when supply management is not
involved in the new-product/service development cycle.
a. True
b. False
When the contract is reduced to writing, the written document itself is the actual
contract and not simply hard evidence of the existence of the underlying contractual
relationship.
a. True
b. False
Using _____, the suppliers engineers work cooperatively with the buying companys
engineers to jointly design the product.
a. shadow box design
b. gray box design
c. red box design
d. white box design
e. black box design
In some societies, such as Thailand and Indonesia, saying yes is merely being polite and
does not necessarily mean that they agree with what you are saying.
a. True
b. False
_____ is a process of visually presenting the flow of materials and information to
identify wasted time and actions in a manufacturing or service process.
a. Make-buy analysis
b. QDA
c. Value stream mapping
d. TCO
e. None of the above.
In purchasing professional services, it is not important for a standard contract template
or format to be developed by the organizations legal department because there are so
many types of professional services and providers.
a. True
b. False
A/An _____ has demonstrated its performance capabilities through previous purchase
contracts and therefore receives preference during the supplier selection process.
a. internal supplier
b. new supplier
c. capable supplier
d. final supplier
e. preferred supplier
A/An _____ organizational structure combines a centralized approach for purchased
items common to several business units and a decentralized approach to unique
requirements.
a. centralized
b. focused
c. decentralized
d. outsourcing
e. center-led
_____ is the ability of a process to generate outputs that meet engineering specifications
and/or customer requirements and refers to the normal behavior of a process when
operating in a state of statistical control.
a. Process optimization
b. Six Sigma
c. Supplier certification
d. Quality at the source
e. Process capability