Successfully using teams does not require extensive planning before a team should be
allowed to pursue an assignment.
a. True
b. False
Early visibility to product requirements allows supply management to share critical
information with suppliers that can help avoid delays.
a. True
b. False
All of the following are advantages of a categorical supplier evaluation system except
_____.
a. easy to implement
b. requires minimal data
c. different personnel can contribute
d. low-cost system
e. greatest potential for long-range improvement
Which of the following is not one of Demings 14 points?
a. Institute training.
b. Drive out fear.
c. Optimize the efforts of individuals working alone. (LO #4)
d. Stop making decisions purely on the basis of price.
e. Improve constantly and forever.
_____ involves spending more time in the initial contracting stages to fully understand
stakeholder requirements, expectations, and repeated communication of expectations, to
gain a full understanding of elements.
a. Arbitration
b. Mediation
c. Contingency contracting
d. Preventive contracting
e. None of the above.
Cost-based contracts are inappropriate for situations in which there is a risk that a large
contingency fee might be included.
a. True
b. False
Which of the following is not one of the advantages of motor carrier over other modes
of transportation?
a. High flexibility.
b. Good reliability.
c. Good for JIT delivery.
d. Good speed.
e. Low cost.
Historical data provide substantial insight about the performance capabilities of
competitors or other leading firms.
a. True
b. False
All of the following are elements of total cost for worldwide sourcing except _____.
a. payment terms
b. customs brokers fees
c. additional fees or commissions
d. domestic income taxes
e. inventory carrying costs
The _____ in the strategic sourcing process is a clear statement of the goals and
objectives of the sourcing project, which is officially announced shortly after the teams
first few meetings.
a. triangulation phase
b. optimization process
c. spend analysis
d. project charter
e. price analysis
A/An _____ is typically organized around specific e-sourcing suite modules that
interact with different elements of the purchasing database, elements of the ERP
system, and integration of data obtained through external EDI or web-based
communications with suppliers or customers.
a. EDI system
b. SRM system
c. third-party marketplace
d. sell-side system
e. buy-side system
A/An _____ involves picking smaller amounts of materials from a series of nearby
suppliers to be used in a just-in-time or lean manufacturing environment.
a. common carrier
b. exempt carrier
c. milk run
d. private carrier
e. contract carrier