_____ systems kick off and control the movement of materials among supply chain
partners.
a. Network design
b. EDI
c. MRP
d. Execution
e. Transaction processing
Which of the following is not one of the common assumptions typically used in
break-even analysis?
a. Fixed costs are never considered.
b. Fixed costs remain constant over the period and volumes considered.
c. Variable costs fluctuate in a linear fashion.
d. Revenues vary directly with volume.
e. Break-even analysis considers total costs rather than average costs.
_____ are based on the notion that as purchase volume increase, cost structures change.
a. Short-term contracts
b. Firm fixed price contracts
c. Long-term contracts with incentives
d. Time and materials contracts
e. Blanket orders
_____ means that customer orders start the work process, which ripples down through
the supply chain.
a. Make-to-stock
b. Push
c. MRP
d. DRP
e. Pull
A major outcome from transportation economic deregulation has been the shift of
pricing information garnered from public tariffs and rate bureaus to the negotiating
table.
a. True
b. False
_____ essentially determines the nature of agreements that are enforceable and create
legal rights between the parties.
a. Agency law
b. Contract law
c. Civil law
d. Litigation
e. None of the above.
It is important to ensure that an arbitrators opinion will not be binding on both parties to
the dispute.
a. True
b. False
A buyer should delay reporting a suppliers poor performance until the next annual
performance review.
a. True
b. False
_____ refers to the accuracy and on-time consistency of the transportation service,
arriving neither late nor early.
a. Reliability
b. Capability
c. Accessibility
d. Total cost
e. Speed
An integral part of negotiation involves each party trying to persuade the other party to
do something that is in its best interests.
a. True
b. False
_____ refers to the process of assessing and selecting the structure and formal system of
communication, division of labor, coordination, control, authority, and responsibility
required to achieve organizational goals and objectives, including supply chain
objectives.
a. Supply chain orientation
b. Human resource management
c. Demand planning
d. Organizational design
e. Extended value chain
Perhaps the most obvious area where firms are concentrating their time-reduction
efforts is during new-product and process development along with achieving
innovation.
a. True
b. False
Which of the following is not a method used to further evaluate and select suppliers
once the initial evaluation has taken place?
a. Evaluation of supplier-provided information.
b. Supplier visits.
c. Use of preferred, certified, and partnered suppliers.
d. Trade journals.
e. External or third party information.
_____ is the tendency of a rational group or team to arrive at a bad decision when other
information is available.
a. Serendipity
b. Collusion
c. Process loss
d. Maverick spend
e. Groupthink
Companies will decreasingly use value-focused sourcing approaches to evaluate how a
supplier or group of suppliers may be utilized to gain competitive advantage for
categories with high business impact.
a. True
b. False
In a _____, the supplier is reimbursed all of their actual costs plus some agreed on
operational margin and overhead amount.
a. RFP
b. cost-based contract
c. material purchase release
d. fixed-price contract
e. reverse auction
If both parties mutually agree to terminate the contract, then they have, in effect,
created another contract with the intent of nullifying the first agreement.
a. True
b. False
One argument against rotating buyers too frequently between product lines or types of
purchases is that a buyer may lose the expertise built up over the years.
a. True
b. False