Salaries traditionally take the largest share of the purchasing administrative budget.
a. True
b. False
A critical assessment of the increased supply risks associated with offshore sources
must be made after contracting, not before a commitment is made.
a. True
b. False
Many companies are encouraging suppliers to provide a permanent on-site
representative who can aid the company in improving customer order fulfillment
processes.
a. True
b. False
Negotiation is more appropriate when other issues besides price are important or when
competitive bidding will not satisfy the buyers requirements on various issues.
a. True
b. False
A negotiators _____ can be defined as his or her opening offer, which represents the
optimistic (or ideal) value of the issue being negotiated.
a. interest
b. need
c. BATNA
d. position
e. want
Which of the following is not a policy defining the conduct of purchasing personnel?
a. Mileage reimbursement policy.
b. Ethics policy.
c. Reciprocity policy.
d. Policy on contacts and visits to suppliers.
e. Policy on former employees representing suppliers.
Record integrity exists when the physical inventory on hand exceeds the electronic
record on hand, regardless of the quantity of inventory.
a. True
b. False
_____ is/are shared beliefs or group norms that are internalized and affect(s) the way
people think, while _____ is/are based on values and attitudes and affect(s) the people
act.
a. Behavior¦values
b. Culture¦infrastructure
c. Values¦behavior
d. Infrastructure¦behavior
e. Jurisprudence¦culture
There is no one best way to measure performance.
a. True
b. False
_____ schedules the firms output; while _____ is the process of taking demand data and
developing a supply, production, and logistics network capable of satisfying demand
requirements.
a. Inventory control¦.quality control
b. Quality control¦.supply planning
c. Order processing¦.material control
d. Demand planning¦.customer service
e. Demand planning¦.supply planning