Barter requires trading parties to enter into a series of contracts to fulfill trading
requirements.
a. True
b. False
The longest path (in time) through a PERT network is the critical path.
a. True
b. False
Under traditional pricing approaches, product cost + profit = selling price.
a. True
b. False
In order to be valid, freight claims must be filed within _____ of the date of actual or
reasonable date of delivery.
a. 10 days
b. 30 days
c. 9 months
d. 2 years
e. There is no time limit for filing freight claims.
When supply exceeds demand, a buyers market exists, and prices generally move
downward.
a. True
b. False
A comprehensive supplier quality manual does not need to describe the supplier
selection and evaluation processes.
a. True
b. False
Maintaining multiple suppliers for each item can actually increase the probability and
level of supply base risk.
a. True
b. False
It is difficult to maintain a trusting and collaborative relationship and receive quality
goods and services when suppliers do not enjoy working with the buying organization.
a. True
b. False
The organizations policy on contacts and visits to suppliers should address not only
purchasing personnel but also other departments or functions that visitor contact
suppliers.
a. True
b. False
A _____ specifies how a group tasked with developing the strategy for the specific
category being purchased will achieve goals that in turn will support higher level
strategies.
a. functional strategy
b. corporate strategy
c. business unit strategy
d. category strategy
e. None of the above.
A/An _____ is a series of tasks that requires the completion of specific objectives
within a certain time frame; has defined start and stop dates; consumes resources,
particularly time, personnel, and budget; and operates with limited resources.
a. process
b. work order
c. purchase order
d. project
e. team charter
The _____ process capability index quantifies the relationship between the processs
natural tolerance limits and the products specifications using a two-sided approach,
regardless of process centering.
a. Cpk
b. x-bar
c. MRP
d. C
e. Six Sigma
In the framework for strategic cost management, _____ are high-value products or
services and can be sourced through traditional bidding approaches that require price
analysis using market forces to do the work and identify what is a competitive price.
a. critical products
b. unique products
c. custom-made products
d. generics
e. commodities
Once written, policies do not have to be periodically reviewed for clarity and
conformance.
a. True
b. False
_____ focuses on the continued ability of the suppliers human, intellectual, and
physical capital to meet the buying firms requirements with respect to quality and
delivery.
a. Operational risk management
b. Global sourcing
c. Logistics risk management
d. Total quality management
e. Financial risk management
_____ occur before the product or service is provided to the customer.
a. Internal failure costs
b. Appraisal costs
c. External failure costs
d. Prevention costs
e. Total costs
Motor carriers are characterized by _____ variable costs, while rail carriers have
comparatively _____ fixed costs.
a. higher¦.high
b. lower¦.high
c. higher¦.low
d. lower¦.low
e. There is no difference in variable and fixed costing between motor and rail carriers.