The _____ group includes the activities supporting the day-to-day operations of the
purchasing or materials function.
a. material handling
b. market intelligence and research
c. administration and data management
d. operational support and follow-up
e. sourcing, negotiation, and contract management
A projects scope does not need to include any nondisclosure statements to protect the
buying companys interests.
a. True
b. False
EDI is considered a highly interactive communications medium.
a. True
b. False
Strategic working relationships between buyers and suppliers will not have to change
for increased value creation.
a. True
b. False
_____ is the continuous measuring of products, services, processes, activities, and
practices against a firms best competitors or those companies recognized as industry or
functional leaders.
a. Benchmarking
b. TCO
c. TQM
d. Effectiveness
e. Efficiency
A well-defined supplier evaluation scoring systems takes criteria that may be highly
subjective and develops a quantitative scale for measurement.
a. True
b. False
Few trade consulates have trade experts who are eager to do business with American
buyers.
a. True
b. False
Which of the following is not one of Demings 14 points?
a. Create a vision and demonstrate commitment.
b. Utilize fear to motive workers.
c. Improve constantly and forever.
d. Optimize the efforts of teams.
e. Remove barriers to pride in workmanship.
The _____ clause of a contract generally specifies who is responsible if there are
injuries or damage, over the course of the contract, and any damages to be paid.
a. supply and delivery
b. key performance indicators and compensation
c. definitions
d. free trade areas
e. liability
In rapidly changing industries or those where purchased goods and services comprise a
_____ portion of product or service costs, management usually recognizes the need to
place purchasing in a _____ position in the organizational hierarchy.
a. smaller¦.higher
b. larger¦.lower
c. larger¦.higher
d. median¦.lower
e. There is no relationship between the level of purchases and the placement of
purchasing in the organizational hierarchy.
Organizations do not need to be cautious about liabilities associated with accepting and
using ideas provided by suppliers interested in doing business with a purchaser.
a. True
b. False
If the carrier has refused to pay a freight claim, then the claimant has _____ from the
time the claim was disallowed to file for legal relief in the courts.
a. 10 days
b. 1 month
c. 2 years
d. 10 years
e. There is no time limit for pursuing freight claims in the courts.
The _____ clause in a contract provides specific details on how the suppliers
performance will be measured and if any compensation will be awarded by the supplier
to the buyer if these certain defined levels of performance are not maintained.
a. key performance indicators and compensation
b. liability
c. notices
d. third-party rights
e. assignment and contracting
The ability to respond quickly to user and customer requirements has always been a
major justification for centralized purchasing authority.
a. True
b. False
Assigning and maintaining accurate and representative commodity codes for indirect
goods and services across an enterprise is relatively easy.
a. True
b. False
Inconsistency is the enemy of total quality.
a. True
b. False
Since people make agreements every day, every agreement can be considered a
contract.
a. True
b. False
Domestic purchasing must include the additional costs associated with conducting
domestic transactions.
a. True
b. False
A reverse auction is a software tool that extends the tradition bid process to permit
suppliers to configure their bids in any number of alternatives ways.
a. True
b. False
_____ is defined as the present value of all costs associated with a product, service, or
capital equipment that are incurred over its expected life.
a. Cash flow analysis
b. Total cost of ownership
c. Make-buy analysis
d. Revenue pricing
e. Competition pricing