The advantage of consignment to the buyer is the ability to defer ownership and avoid
committing working capital and incurring carrying charges.
a. True
b. False
In general, the more important the commodity, the less likely that cross-functional
members and user groups will be involved.
a. True
b. False
A/An _____ is the amount of time (in weeks or months) from concept to first shipment
or provision of a product or service to the external customer.
a. on-time delivery measure
b. time-to-market target
c. responsiveness measure
d. first insight measure
e. cost avoidance measure
A _____ is one in which the set of steps or activities that make up the activity occur one
after the other.
a. continuous process
b. sequential process
c. concurrent process
d. standardized process
e. None of the above.
More effective control of inbound shipment costs usually requires purchasing goods
under a shipping designation of FOB destination.
a. True
b. False
According to Cialdini, _____ is a principle which states that we are more likely to
accept the positions, arguments, and direction from recognized authority figures.
a. liking
b. consistency
c. scarcity
d. social proof
e. authority
All supplier measurement systems have some element of subjectivity.
a. True
b. False
Which of the following is not one of the functions of a distribution resource planning
system?
a. Forecasting finished-goods inventory requirements.
b. Establishing correct inventory levels at each stocking location.
c. Determining the timing and replenishment of finished-goods inventories.
d. Producing a time-phased set of material, component, and subassembly requirements
timed to support an expected build schedule.
e. Transportation planning and vehicle load scheduling.
Which of the following is not one of the unique features of Demings philosophy?
a. Variation is the primary source of quality nonconformance.
b. Although quality is everyones responsibility, senior management has the ultimate
responsibility for quality improvement.
c. Intrinsic motivation is more powerful than extrinsic motivation.
d. Interacting parts of a system must be treated individually, not as a whole.
e. Predictions must be grounded in theory that helps to understand cause-and-effect
relationships.
When purchasers find that suppliers capabilities are not high enough to meet current or
future expectations, those suppliers should always be eliminated from the supply base.
a. True
b. False
Private carriers are never utilized to make daily milk runs, picking up smaller amounts
of materials from a series of nearby suppliers to be used in a just-in-time or lean
manufacturing environment.
a. True
b. False
Face-to-face negotiation is best when all of the following conditions apply except when
_____.
a. the item is new or technically complex, with only vague specifications
b. the purchase requires agreement about a wide range of performance factors
c. the firm does not have a preferred supplier
d. the buyer requires the supplier to participate in the development effort
e. the supplier cannot determine risks and costs without additional input from the buyer
Cancellation by mutual consent indicates that the cancellation of a previously
agreed-upon contract automatically leads to legal action.
a. True
b. False
A/An _____ is an open order, usually effective for one year, covering repeated
purchases of an item or family of items.
a. outstanding order
b. pending order
c. blanket purchase order
d. completed order
e. order acceptance
Which of the following is not a question that value analysis teams should ask to
determine if opportunities exist for item, product, or service improvement?
a. Are there additional uses for this product?
b. Can we use a different color of paint?
c. Is there a better production method to produce the item or product?
d. If we are making an item now, can we buy it for less (or vice versa)?
e. Are packaging cost reductions possible?