Most purchase contracts address areas that are similar.
a. True
b. False
_____ is defined by CSCMP as that part of supply chain management that plans,
implements, and controls the efficient, effective forward and reverse flow and storage
of goods, services, and related information between the point of origin and the point of
consumption to meet customers requirements.
a. Supply management
b. Logistics management
c. Purchasing
d. Transportation management
e. None of the above.
Perhaps the least important factor contributing to purchasings position in the
organizational hierarchy is history.
a. True
b. False
Which of the following is not one of the benefits to the buyer of a supplier achieving
ISO 9001:2008 registration?
a. Few buying firms have sufficient size or resources to independently develop and
implement their own comprehensive supplier certification audits.
b. The supplier may develop interest from other buyers wanting to do business with it.
(LO #5)
c. Third party registration may provide insight into a suppliers quality system
conformance that a buyer may otherwise lack.
d. The buying firm receives the benefit of a supplier quality certification without
actually having to conduct its own quality certification audits.
e. The supplier assumes responsibility for meeting the ISO standards and paying its own
registration fees.
A FTZ _____ is typically housed in a port or an industrial park and is available to
multiple companies.
a. warehouse
b. twilight zone
c. subzone
d. general-purpose zone
e. None of the above.
A/An _____ would typically link to a contractual agreement whereby, for new
technologies, the buying firm may get insight, some period of time before new
technology developments are shared with other organizations.
a. TQM measure
b. first insight measure
c. cycle time reduction
d. responsiveness measure
e. None of the above.
The _____ the proportion of the final product that suppliers provide, the _____ the
impact they will have on overall product cost and quality.
a. smaller¦.greater
b. larger¦.lesser
c. smaller¦.more significant
d. larger¦.greater
e. There is no definitive relationship between proportion of final product provided by
suppliers and impact on overall product cost and quality.
The elimination of both marginal and small-purchase-volume suppliers is usually the
last phase of the rationalization process.
a. True
b. False
_____ can be defined as failure of one of the parties to live up to the terms and
conditions of the contract.
a. Cancellation for default
b. Cancellation for convenience of the seller
c. Cancellation for convenience of the purchaser
d. Cancellation by mutual assent
e. None of the above.
In a _____, the price stated in the agreement does not change, regardless of fluctuations
in general overall economic conditions, industry competition, levels of supply, market
prices, or other environmental changes.
a. blanket purchase order
b. RFQ
c. cost-based contract
d. material purchase release
e. fixed-price contract
Regarding the continuum of complete centralization and complete decentralization of
purchasing authority, few organizations lie at these polar extremes, and most
organizations lie somewhere toward one end or the other.a. True
b. False
Learning curves require the accurate collection of cost and labor data, particularly
during the latter stages of production.
a. True
b. False
All of the following are effective e-negotiating practices except _____.
a. use a blended negotiation, starting with an initial face-to-face meeting or a telephone
call to build essential rapport with the other party
b. establish common ground and interests to build mutual trust
c. use emoticons to counter the lack of nonverbal awareness
d. forward e-mail negotiations to the other partys immediate superior for verification
e. proofread the entire message, including addressees, before sending the e-mail out
Which of the following is false regarding concealed damage?
a. A user may discover concealed damages after opening a shipping container.
b. Responsibility for concealed damage is often difficult to establish.
c. The carrier may blame the supplier or maintain that the damage occurred after
delivery of the material.
d. The supplier may maintain total innocence and implicate the carrier.
e. The bill of lading protects the carrier against charges of concealed damage.