A smaller supplier with limited capacity for growth may need to eliminate some
existing customers to meet the increased requirements of a larger customer.
a. True
b. False
Under the UCC, the risk of loss is with the buyer until the title passes to the seller.
a. True
b. False
Transportation carriers use a/an _____ to record the quantity of goods delivered to a
facility.
a. electronic transfer of funds
b. material packing slip
c. receiving discrepancy report
d. bill of lading
e. purchase order
A _____ program is the formal process of verifying, usually through an intensive
cross-functional on-site audit, that a suppliers processes and methods actually produce
consistent and conforming quality.
a. supplier selection and evaluation program
b. supplier certification
c. Six Sigma
d. process capability
e. zero defects
The most common method of establishing a budget uses the current administrative
budget as a starting point.
a. True
b. False
Todays emphasis on supplier quality has shifted from detecting defects at the time of
receipt or use to prevention early in the materials-sourcing process.
a. True
b. False
Which of the following is an example of a strategic activity?
a. Manage transactions with suppliers.
b. Source items that are unique to the operating unit.
c. Manage risk monitoring programs.
d. Generate and forward material releases and expedite.
e. Provide supplier performance feedback.
According to Ohno and Toyota, _____ is a category of waste that produces items for
which there are no orders.
a. excess inventory
b. overproduction
c. unnecessary movement
d. waiting time
e. defect
In TCO for capital equipment, _____ are all costs associated with operating the
equipment during its life.
a. usage costs
b. end of life costs
c. opportunity costs
d. acquisition costs
e. training costs
All of the following are considered barriers to worldwide sourcing except _____.
a. use of simplified Incoterms compared to complex domestic terms of sale
b. lack of knowledge and skills concerning global sourcing
c. different business customs, language, and culture
d. currency fluctuations
e. resistance to change
The area of overlapping positions among issues, when there is one, between the
negotiators is termed the _____.
a. concurrent zone
b. agreement possibility
c. positive position
d. objective
e. bargaining zone
For standard items, the negotiation process is an efficient method to purchase relatively
straightforward requirements.
a. True
b. False
A/An _____ is a basic component that suppliers must possess before they proceed to
the next phase of the evaluation and selection process.
a. core competency
b. technology roadmap
c. Internet website
d. entry qualifier
e. triple bottom line
The Federal Trade Commission Act makes price discrimination illegal and prohibits
sellers from exclusive arrangements with purchasers or product distributors.
a. True
b. False
Whether the purchase transaction is with a domestic or offshore producer, there are
certain common costs.
a. True
b. False
_____ is a communications standard that supports inter-organizational electronic
exchange of common business documents and information.
a. MRP
b. DRP
c. SMAC
d. RFID
e. EDI
Buyers use material purchase releases to order items covered by blanket purchase
orders.
a. True
b. False
A long-term contract does not provide an incentive for a supplier to invest in new plants
and equipment.
a. True
b. False
The negotiators _____ is the unspoken motivation or reason that underlies any given
negotiation position.
a. want
b. need
c. interest
d. BATNA
e. bargaining zone