The degree of effort associated with supplier selection is inversely related to the
importance of the required good or service.
a. True
b. False
The process that buyers use to select suppliers does not vary widely depending on the
required item and the relationship that a buyer has with its suppliers.
a. True
b. False
In the _____ approach to a systems suppliers level of service, the client company
essentially turns over the entire outsourced service at a given point in time.
a. modular
b. incremental
c. turnkey
d. shared
e. None of the above.
_____ is relocating sourcing to countries geographically closers to the United States.
a. Global sourcing
b. Nearshoring
c. Re-shoring
d. Single sourcing
e. Domestic sourcing
A/An _____ is defined as a contract purchase that is routinely made over a relatively
limited time horizon, typically one year or less.
a. short-term contract
b. alliance
c. spot contract
d. long-term contract
e. partnership
Purchase price versus market index measures are least appropriate for market-based
products where pricing is primarily a function of supply and demand.
a. True
b. False
According to ISM, _____ is a framework of measurable corporate policies and
procedures and resulting behavior designed to benefit the workplace and, by extension,
the individual, the organization, and the community.
a. supply chain risk management
b. sustainability
c. ISO 9000:2008
d. social responsibility
e. supplier development
A procurement negotiation seldom affects other stakeholders throughout the
organization who have an interest in or will be affected by the negotiation outcomes.
a. True
b. False
Cross-functional sourcing teams are a less-than-ideal way to promote
cross-organizational cooperation.
a. True
b. False
All of the following are objectives of a world-class purchasing organization except
_____.
a. ensure that all hard copies of purchase orders and other paper documents are filed
correctly in a secure area
b. develop integrated supply strategies that support business goals and objectives
c. manage the sourcing process efficiently and effectively
d. supplier performance management
e. supply assurance