Perhaps the most compelling reason to consider a short-term contract, from the buyers
perspective, is that such contracts may reduce the level of risk incurred if longer-term
contracts are employed.
a. True
b. False
Buyers do not need to consider a suppliers ability to comply with environmental
regulations as a condition for selection.
a. True
b. False
_____ are more responsive to the buying firms changing needs and can economically
make frequent smaller deliveries.
a. Local suppliers
b. International suppliers
c. Global suppliers
d. National suppliers
e. There is no relationship with the location of the supplier and customer
responsiveness.
Which of the following is not one of the elements of financial risk in a supply base?
a. Inventory carrying costs.
b. Currency exchange rates.
c. INCOTERMS
d. Hard vs. soft currencies.
e. Legal systems.
Social culture and laws, personnel skills and abilities, and business culture are three
areas where differences are the greatest across different geographic units.
a. True
b. False
If indirect spend is to be leveraged, supply management must have a clear
understanding of exactly what indirect goods and services are being purchased by
individual SBUs.
a. True
b. False
Parties may behave differently when negotiating electronically than they do in person.
a. True
b. False
Supply chain management does not require the coordination of activities and flows that
do not extend across boundaries.
a. True
b. False
The manner in which a negotiator approaches concession making is an important part of
every successful negotiation strategy.
a. True
b. False
Effective supply market intelligence involves all of the following except _____.
a. updating supply markets and trends and translating their impacts on key business
outcomes
b. ensuring that purchasing does not exceed its annual operating budget
c. identifying emerging materials and service technologies to support company
strategies in key performance areas
d. developing supply options and contingency plans to reduce risk
e. supporting the organizations requirements for a diverse and globally competitive
supply base
Supply chains are insensitive to changes in markets, including changes in the
availability of material supply as well as price changes.
a. True
b. False
In the _____, the supplier simply takes its estimate of costs and adds a markup
percentage to obtain the desired profit.
a. margin pricing model
b. cost markup pricing model
c. total cost analysis model
d. penetration pricing model
e. revenue pricing model
_____ is Internet-based, and users share software and other information that is provided
to computers and mobile devices on demand.
a. ERP
b. EDI
c. Cloud computing
d. A value-added network
e. None of the above.
Which of the following is not one of the advantages of a rationalized and optimized
supply base?
a. Buying from world-class suppliers.
b. Use of full-service suppliers.
c. Lower supply base administrative costs.
d. Reduction of supply base risk.
e. Absence of competition.
_____ of inventory refers to the amount of inventory that a firm owns at any given time.
a. Volume
b. Velocity
c. Value
d. Vigor
e. None of the above.