Many negotiators fail to prepare adequately before entering into a formal negotiation
oftentimes because of a very short timeframe in which to make a deal.
a. True
b. False
_____ can be defined as how supply chain members communicate and collaborate
regarding sources of risk, utilizing risk management tools to mitigate and minimize risk
and uncertainty across the supply chain.
a. PERT/CPM
b. Scenario analysis
c. Hedging
d. SCRM
e. None of the above.
Cultural differences between countries seldom result in unwelcome surprises when
buying internationally.
a. True
b. False
Whenever a supplier ships FOB destination, the buyer often loses the ability to track or
control its inbound transportation expenses which also artificially increases the value of
the buyers inventory.
a. True
b. False
Negotiation _____ refers to the overall approach used to reach a mutually beneficial
agreement with a supplier that holds different points of view from the buyer.
a. tactics
b. positioning
c. strategy
d. conflict
e. None of the above.
It is illegal for sellers to exaggerate the merits of their products during their sales pitch.
a. True
b. False
The average North American manufacturing firm spends _____ percent of its cost of
goods sold on purchased goods and services.
a. < 10
b. 25
c. 55
d. 75
e. > 90
Which of the following is not an example of an internal failure cost?
a. Process troubleshooting.
b. Equipment calibration.
c. Re-inspection following detection of a defect.
d. Production downtime caused by defects.
e. Scrap and process waste.
Working with more suppliers allows the supply manager to concentrate on building
trusting, collaborative relationships and supplier loyalty while improving quality in
purchased goods and services.
a. True
b. False
The strategic sourcing process ends when a contract is signed with a supplier.
a. True
b. False
Which of the following is not one of the seven wastes identified by the Honda BP
process?
a. Overproduction.
b. Delivery.
c. Waste in the work itself.
d. Inventory.
e. Product advertising and promotion.
In the _____ approach to a systems suppliers level of service, the service provider and
the client company share resources and operational control over the outsourced service.
a. shared
b. commonality
c. evergreen
d. modular
e. turnkey
All of the following are examples of Porters power of buyers except _____.
a. buyer concentration
b. exit barriers
c. price sensitivity
d. brand identity
e. buyer volume
Resources as diverse as formulas, supplier and customer lists, procedures, and training
programs could all be regarded as trade secrets.
a. True
b. False
Increasing revenues involves either raising prices or keeping prices stable and
increasing volume.
a. True
b. False