_____ takes place when the offeree incurs a legal detriment in response to the offerors
offer.
a. Consideration
b. Acceptance
c. Rejection
d. Anticipatory breach
e. None of the above.
Longer-term relationships are sought with suppliers that have exceptional performance
or unique technological expertise.
a. True
b. False
The advantage of a Gantt chart is that for larger projects, it can be easy to use and keep
up to date.
a. True
b. False
Which of the following is not one of the advantages of rail carrier over other modes of
transportation?
a. Lower cost.
b. Good for expediting/emergency situations.
c. Can handle a wide range of items.
d. Piggyback service can increase flexibility.
e. Direct between major cities.
Which of the following is not true concerning the purposes of a procedure manual?
a. The manual outlines the broad set of purposes, principles, and rules of action that
guide an organization.
b. The manual is a reference guide for purchasing personnel and is especially valuable
to new employees who require training in how to accomplish different activities or
assignments.
c. For experienced personnel, the manual provides clarification or simply reinforces
knowledge about different topics.
d. The manual provides consistency and order by documenting the steps and activities
required to perform a task.
e. The manual may specify industry best practices to follow that are identified through
benchmarking comparisons with leading firms.
In many respects, the cost of quality should actually be considered as the cost of poor
quality.
a. True
b. False
[A] _____ is comprised of group of buyers who purchase similar items at various
facilities.
a. decentralized purchasing structure
b. lead division buying
c. corporate purchasing council
d. corporate steering committee
e. There is no such group.
Effective negotiators are unwilling to make counterproposals.
a. True
b. False
Strong hard-side skills, such as a collaborative working style, innovative supply
approaches and leadership abilities versus a narrow process view, will be necessary to
lead supply efforts and achieve results.
a. True
b. False
_____ focuses attention on the outcomes the customer wants, not on the precise
configuration of the product or service.
a. Description by industry standard
b. Description by brand
c. Description by specification
d. Description by performance characteristics
e. Description by market grade
Contract management should be used to trigger proactive sourcing events only after a
contract expires.
a. True
b. False
A procedure is ineffective if it specifies too many steps to carry out or presents
unnecessary detail.
a. True
b. False
Many buyers are beginning to question the sustainability of cost reductions achieved
through reverse auctions over time once the initial reductions are made.
a. True
b. False
In ERP, all processes use unique databases, and information is captured multiple times.
a. True
b. False
In agreeing to perform the purchasing duties for the employer, purchasing managers
imply that they will never make a mistake.
a. True
b. False
Designed-in systemic variation is a managerial concern, not a labor issue.
a. True
b. False
The extensive use of corrective action requests supports prevention of nonconforming
defects.
a. True
b. False
Which of the following is not one of the broad features of the ideal future procurement
organizational model?
a. A flatter hierarchy for faster decision making and freer flow of ideas along with joint
ventures and alliances with key supply chain members.
b. Requirement of having cost accounting personnel present on all cross-functional
teams.
c. Increased use of center-led structures that enable consolidation of common purchases
coupled with decentralization of unique and transactional buying activities.
d. Co-location of purchasing personnel with internal customers that will provide lower
costs and improved service.
e. Rotation of business managers across business units and functional groups.
Sharing currency fluctuation risk with a supplier works best on items that have a set
delivery date such as with capital equipment.
a. True
b. False
In a PERT network, a/an _____ is the latest point in time an activity can begin without
delaying the entire project.
a. late start
b. late finish
c. early start
d. early finish
e. on time finish