An important factor to consider when hiring an outside consultant to perform contract
services for a company is that such a person is the purchasing companys employee, not
its agent.
a. True
b. False
The currently dominant decentralized model for supply management will continue to be
a key strategy and likely the norm for the foreseeable future.
a. True
b. False
A common misconception is that a performance evaluation system should not measure
every activity.
a. True
b. False
To be considered capable, the outputs from a process must fall outside upper and lower
specification limits.
a. True
b. False
_____ is the organized and systematic study of every element of cost in a part, material,
process, or service to ensure that it fulfills its design and operational functions at the
lowest possible total cost.
a. Six Sigma
b. Process capability
c. New product development
d. CAD/CAM
e. VA/VE
Cost-sharing contracts are especially important during a period when raw material
prices are decreasing.
a. True
b. False
The format of a supplier evaluation should not provide any flexibility across different
types of purchase requirements.
a. True
b. False
A clear trend is that many carriers now market themselves simply as providers of
physical transportation services.
a. True
b. False
More complex logistics and currency fluctuations require measuring all relevant costs
before committing to a worldwide source.
a. True
b. False
A public cloud is a proprietary network or a data center that supplies hosted services to
a limited number of people.
a. True
b. False
In the _____ contract, if the supplier can demonstrate actual cost savings through
production efficiencies or substitution of materials, the resulting savings from the initial
price targets are shared between the supplier and the purchaser at a predetermined rate.
a. time and materials
b. cost plus fixed fee
c. fixed-price with incentives
d. firm fixed price
e. fixed-price with escalation
Most processes do not cross functional boundaries.
a. True
b. False
What is an illegal activity in the United States is never an accepted business practice in
many other regions.
a. True
b. False
Which of the following is not one of the five elements in the Six Sigma performance
improvement model?
a. D(efine).
b. M(easure).
c. A(ccess).
d. I(mprove).
e. C(ontrol).
A/An _____ system provides the means for tracking organizational resources, including
people, processes, and technology.
a. MRP
b. ERP
c. EDI
d. legacy
e. decision support
The buyer and the supplier must agree on how to divide or share the costs and benefits
from the supplier development project.
a. True
b. False
During an international negotiation, an interpreter might verbally communicate yet not
fully convey the significance of unspoken actions, signals, and customs that may be
invisible to the foreign or nonnative negotiator.
a. True
b. False
An apparently low-cost carrier may actually end up costing far more than a seemingly
higher-cost carrier when the total associated costs are calculated.
a. True
b. False
In a/an _____, prices are completely visible and revealed to all sellers; only the identity
of the competitors remains anonymous to the sellers.
a. regular reverse auction
b. rank reverse auction
c. e-catalog
d. third-party marketplace
e. horizontal portal
Top management should consider internal buy-in from affected employees and other
stakeholders before defining the final scope of the project.
a. True
b. False