Facing increased cost pressure, organizations rely more on people to replace systems.
a. True
b. False
The use of force or coercion to reach an agreement is acceptable in signing a contract,
because both parties do not have to enter into the agreement on their own free will.
a. True
b. False
The problem with measuring behavior is that there is no guarantee the behavior will
lead to desired results.
a. True
b. False
Which of the following is not one of the essential elements to an enforceable contract?
a. Offer.
b. Acceptance.
c. Consideration.
d. Due diligence.
e. None of the above.
Which of the following is not an advantage of using a 3PL?
a. Economies of scale and increased flexibility.
b. Improve service performance levels.
c. Loss of dedicated in-house managed staff.
d. Release capital from sale of assets.
e. Concentrate on core business activities.
Perhaps the simplest method of resolving a contractual disagreement involves
straightforward, face-to-face negotiation between the two parties involved.
a. True
b. False
Which of the following is not one of the potential disadvantages of using long-term
contracts?
a. Supplier volume uncertainty.
b. Volume leveraging.
c. Buyer is unreasonable.
d. Selecting the wrong supplier.
e. Supplier foregoes other business.
_____ involves proactively integrating and coordination common items and materials,
processes, designs, technologies, and suppliers across worldwide purchasing,
engineering, and operating locations.
a. International purchasing
b. Sole sourcing
c. Nearshoring
d. Re-shoring
e. Global sourcing
External collaboration will signal a shift from cooperation to pure competition for some
segments of a companys supply base.
a. True
b. False
Developing countries offer effective protection against the piracy of intellectual
property.
a. True
b. False
_____ inventory includes the items used to support production and operations and are
not physically part of a finished product.
a. Raw materials
b. WIP
c. Semifinished items
d. MRO
e. Pipeline/in-transit
_____ can be defined as the sum of all purchased goods and services that are not a
direct part of products or services delivered to the customer.
a. Direct spend
b. MRO
c. Indirect spend
d. Consignment inventory
e. Kanban
Which of the following is not a buyer-specific barrier to supplier development?
a. The buying companys purchase volume from the supplier does not justify
development investment.
b. No immediate benefit to supplier development is evident to the buying organization.
c. Lack of executive support within the buying organization for supplier development.
d. Importance of purchased item does not justify development efforts.
e. Suppliers management agrees to improvement but fails to implement the proposals.
The use of forward exchange contracts encourages speculation.
a. True
b. False