Supplier certification applies only to entire companies or products, rather than a specific
part, process, or site.
a. True
b. False
_____ represents the ability to meet or exceed current and future customer (i.e., buyer
and eventually end customer) expectations or requirements within critical performance
areas on a consistent basis.
a. Kaizen
b. Supplier quality
c. Strategic sourcing
d. Process capability
e. Supply base rationalization
Performance measurement systems receiving their data from automated or
computerized systems are generally more susceptible to data manipulation.
a. True
b. False
Carriers will generally not consider the availability of backhauls when quoting one-way
freight rates on a particular traffic lane.
a. True
b. False
_____ actions and resources are everything done in the process, which contribute no
value to the customer, but which they are forced to pay for when they buy the product
or service.
a. Value-adding
b. Excess inventory
c. Necessary non-value-adding
d. Waiting time
e. Non-value-adding
Which of the following is not one of the key principles of the lean concept?
a. Maximize the use of people.
b. Simplify first, and only then apply new technology.
c. Focus on gradual, but continuous, improvement.
d. Minimize waste (including poor quality).
e. All of the above.
_____ is the process of identifying potential negative events, assessing the likelihood of
their occurrence, heading off these events before they occur or reducing the probability
that they will occur, and making contingency plans to mitigate the consequences if they
do occur.
a. Supplier selection
b. Supplier evaluation
c. Supplier categorization
d. Global sourcing
e. Risk management
Although policies are usually documented in writing, unwritten or informal policies can
also exist.
a. True
b. False
Which of the following is not an example of a contingency element of a long-term
contract?
a. Initial price.
b. Price-adjustment mechanisms.
c. Delivery dates and times.
d. Supplier performance improvement.
e. Evergreen, penalty, and escape clauses.
Each activity in PERT has three time estimates: (1) most likely, (2) pessimistic, and (3)
optimistic.
a. True
b. False
Cost management is no longer an integral part of purchasing and supply chain
management.
a. True
b. False
A sound measurement and evaluation system provides sporadic reporting of
performance results.
a. True
b. False
When firms produce goods in anticipation of future customer orders, they are operating
in a/an _____ environment.
a. assemble-to-order
b. make-to-order
c. make-to-stock
d. just-in-time
e. None of the above.
_____ involves inventing new options that satisfy each partys needs.
a. Expand the pie
b. Find a bridge solution
c. Logroll
d. Cut the costs for compliance
e. Use non-specific compensation
_____ techniques are primarily applied to existing products and services, while _____
is the application of value principles during product or service design.a. Value
analysis¦.total cost of ownership
b. Value engineering¦.price analysis
c. Value analysis¦.value engineering
d. Price analysis¦.cost analysis
e. Value engineering¦.value analysis
_____ involves generating the materials release, contacting a supplier directly
concerning changes, and monitoring the status of inbound shipments.
a. Order processing
b. Material control
c. Warehousing
d. Customer service
e. Quality control
Which of the following key financial ratios is calculated as Current assets/Current
liabilities?
a. Inventory turnover.
b. Debt to equity.
c. Current ratio.
d. Total asset turnover.
e. Quick ratio.
The key to the success of any company is the quality of its employees.
a. True
b. False