_____ is a function of the professionals ability to translate supply market data into
compelling insights that solve business problems and to enable organizational
connections and networking that accelerate business success.
a. SRM
b. Groupthink
c. Reciprocity
d. Process gain
e. Relationship capital
If a suppliers components are defective and causing problems for manufacturing, then
purchasing must find ways to improve supplier quality.
a. True
b. False
Which of the following is not true regarding establishing sourcing team goals?
a. Teams with established goals often use those goals as a basis for evaluating how well
the team is performing.
b. Teams will establish, on average, challenging rather than easy goals.
c. External pressure on a team to set goals usually results in the setting of more
challenging goals.
d. Teams establish goals only because they have to.
e. Teams with goals perform better, on average, than teams that are asked simply to
perform their best without explicit end goals.
If team members receive delayed reinforcement, they will exert greater effort than if the
reinforcement is immediate.
a. True
b. False
[A] _____ establishes the rate of improvement because of learning as producers realize
direct-labor cost improvements as production volumes increase.
a. leverage
b. learning curve
c. knowledge curve
d. product life cycle
e. short-term contract
Duty rates vary widely over seemingly small differences between items.
a. True
b. False
_____ represents the funds committed to operating a business, including the purchase
and holding of inventory.
a. Pipeline inventory
b. WIP
c. MRP
d. Working capital
e. None of the above.
Customer defects per supplier is a measure of the number of defects from individual
suppliers to indicate comparative quality performance among competing suppliers.
a. True
b. False
The _____ is an attempt by the United Nations to facilitate international trade by
removing legal barriers.
a. U.C.C.
b. CISG
c. FCPA
d. FTCA
e. UNICEF
Purchasing should consider only suppliers that capable of meeting rigid quality and
delivery standards, although far too often price differentials become the primary
criterion behind an offshore sourcing decision.
a. True
b. False
The _____ contract is generally used in plant and equipment maintenance agreements,
where the supplier cannot determine accurate costs prior to the repair service.
a. fixed-price with redetermination
b. firm fixed price
c. cost-sharing
d. time and materials
e. cost plus fixed-fee
Virtually all of indirect spend is normally purchased throughthe organizations formal
sourcing function or using well-established supply management processes.
a. True
b. False
All of the following are general categories of supply base risk except _____.
a. political risk
b. market risk
c. sourcing risk
d. financial risk
e. employee hiring risk
Which of the following is not one of the eight key principles of total quality
management?
a. Define quality in terms of customers and their requirements.
b. Inspect for quality at the end of the production line.
c. Stress objective rather than subjective analysis.
d. Strive for zero defects.
e. Make quality everyones responsibility.
The _____ task involves identifying company spend and matching to the best potential
suppliers, negotiating with selected suppliers, and finally managing the contract.
a. market intelligence and research
b. operational support and follow-up
c. administration and data management
d. sourcing, negotiation, and contract management
e. material handling
Which of the following is not one of the actions a firm can take to enhance ethical
behavior?
a. Wiretapping and security cameras.
b. Developing a statement of ethics.
c. Closer buyer-seller relationships.
d. Internal reporting of unethical behavior.
e. Commodity rotation and limits of authority.
A team may pressure an individual to support or conform to a lower production norm
than the individuals personal norm.
a. True
b. False
The _____ clause in a contract stipulates that any benefits attributed to a third party
(other than the buyer or supplier) identified in the contract must be enforced.
a. governing law
b. severability
c. most favored customer
d. assignment and contracting
e. third-party rights
_____ within the supply chain is the process of sharing critical data required to manage
the flow of products, services, and information in real time between suppliers and
customers.
a. Information visibility
b. Tweeting
c. EDI
d. SRM
e. CRM
_____ can be defined as that amount of an organizations total procurement budget that
is purchased from unauthorized sources.
a. Indirect spend
b. Direct spend
c. PBL
d. E-commerce
e. Maverick spend