According to Genichi Taguchi, any deviation from a target value carries with it some
level of opportunity loss due to scrap, rework, and customer dissatisfaction.
a. True
b. False
Hedging is a form of risk insurance that can protect both parties from currency
fluctuations.
a. True
b. False
Perhaps the most important clause of a consulting contract to the consultant is the
assurance of payment.
a. True
b. False
A sellers cost structure affects price because, in the long run, the seller must price at a
level that covers all variable costs of production, contributes to some portion of fixed
costs, and contributes to some level of profit.
a. True
b. False
According to Michael Porter, a firms _____ is composed of primary and secondary
support activities that can lead to competitive advantage when configured properly.
a. supply chain
b. process
c. value chain
d. marketing channel
e. core competency
Which of the following is not a common obstacle to closer buyer-seller relationships?
a. Long-term contracts.
b. Confidentiality.
c. Limited interest by suppliers.
d. Legal barriers.
e. Resistance to change.
Price analysis focuses simply on a sellers price with little or no consideration given to
the actual cost of production.
a. True
b. False
Which of the following elements is false regarding Phase 3, Limited Integration, of
supply management strategy development?
a. Supplier quality focus.
b. Global sourcing.
c. Ad hoc supplier alliances.
d. Volume leveraging.
e. Long-term contracts.
Web-based EDI is a much less expensive system than traditional EDI and presents
fewer standards issues.
a. True
b. False
A preferred supplier designation indicates that the selected supplier should receive the
business for a critical commodity under all possible conditions.
a. True
b. False
Record integrity is the result of various activities and procedures designed to ensure that
the amount of _____ is equal to the computerized record of _____.
a. MRP¦.kanban
b. DRP¦.MRP
c. ROH¦.POH
d. POH¦.ROH
e. None of the above.
Within its supply chains, supply management does not merely buy parts or services
from suppliers it buys (and sometimes must help manage and improve) current and
anticipated supplier capabilities that will result in quality products and services.
a. True
b. False
In the _____, the seller is willing to take a lower price because of the potential mass
market appeal of the product, resulting in substantially higher sales volumes.
a. revenue pricing model
b. promotional pricing model
c. revenue pricing model
d. cash discount model
e. market-share model
Local suppliers are less responsive to the buying firms changing needs and cannot
economically make frequent smaller deliveries.
a. True
b. False