Excessive formality in negotiation can effectively constrain the parties and restrict the
free exchange of ideas and solutions.
a. True
b. False
All of the following are common measures used to manage currency fluctuation in
international purchasing except _____.
a. letters of credit
b. purchase in U.S. dollars
c. sharing currency fluctuation risk
d. currency adjustment contract clauses
e. currency hedging
Designation as a preferred supplier means that a supplier consistently satisfies the
performance and service standards defined by the buyer and responds to unexpected
changes.
a. True
b. False
Because MRP and DRP systems are primarily external, an additional electronic linkage
to suppliers and customers is not needed.
a. True
b. False
_____ occurs when suppliers are pressured to purchase the buyers products or services
as a condition of securing a purchase contract.
a. Negotiation
b. Competitive bidding
c. Reciprocity
d. Irregular business dealing
e. None of the above.
In _____, a buyer selects or develops suppliers with multiple or redundant capabilities.
a. single sourcing
b. cross-sourcing
c. global sourcing
d. strategic sourcing
e. sole sourcing
All of the following are examples of elements that must be part of an environmental
management system required by the ISO 14000 certification process except _____.
a. create an environmental policy
b. set appropriate objectives and targets
c. provide evidence of financial stability
d. help design and implement a program aimed at achieving environmental goals and
objectives
e. monitor and measure the effectiveness of general environmental management
activities within the firm
Organizations that rely on part-time teams typically do not maintain their existing
functional structure while adding additional team-related duties.
a. True
b. False
_____ include the direct, out-of-pocket costs of measuring quality, specifically checking
for possible defects.
a. Six Sigma costs
b. Internal failure costs
c. Appraisal costs
d. External failure costs
e. Prevention costs
All of the following are elements of total cost for worldwide sourcing except _____.
a. domestic corporate sales, general, and administrative expenses
b. packaging
c. base price
d. inventory carrying cost
e. insurance premiums
Although many sources exist to discover information about a potential supplier, visiting
the actual facility provides the most complete way to ensure an accurate assessment of
the supplier.
a. True
b. False
Which of the following is not one of the factors to consider when deciding which
dispute-resolution mechanism to use?
a. Status of the relationship between the parties in the dispute.
b. Type of outcome desired by the purchaser.
c. Type of contract leading to the dispute.
d.
e. None of the above.
All organizations need to pursue supplier development.
a. True
b. False
All purchase requirements will require buyers and sellers to conduct a thorough,
detailed, and time-consuming negotiation.
a. True
b. False
When a non-agent, such as a maintenance supervisor, engineer, or finance analyst
makes a commitment with a supplier, this is termed _____.
a. implied authority
b. actual authority
c. apparent authority
d. limited authority
e. None of the above.