Supply management is a broader concept than purchasing.
a. True
b. False
How well suppliers purchase their goods and services has no direct impact on purchase
price levels.
a. True
b. False
The _____ clause in a contract provides guidelines regarding what type of reporting
statistics and measures the supplier must provide to the buyer on a regular basis,
defined clearly.
a. statistics
b. notices
c. most favored customer
d. confidentiality
e. third-party rights
Which if the following is one of the basic components of an EDI system?
a. A standard form.
b. A translation capability.
c. A mail service.
d. All of the above.
e. None of the above.
_____ are incurred following production or after the customer takes possession.
a. Inspection costs
b. Appraisal costs
c. Internal failure costs
d. Prevention costs
e. External failure costs
Center-led organizations have the same total authority that purely centralized units do.
a. True
b. False
Which of the following is not a feature that separates capital equipment purchases from
other purchases?
a. Capital equipment purchases do not occur with regular frequency.
b. Capital equipment investment requires large sums of money.
c. For accounting purposes, most capital equipment is not depreciable over the life of
the item.
d. Buyers can rarely switch suppliers in the middle of a large-scale project or dispose of
capital equipment after delivery because of dissatisfaction.
e. Capital equipment is highly sensitive to general economic conditions.
All negotiation settlements must ultimately be judged in light of the other viable
alternatives that existed at the time of the agreement.
a. True
b. False
All of the following are characteristics that define a collaborative buyer-supplier
relationship except _____.
a. one or a limited number of suppliers for each purchased item or family of items
b. a win-win approach to reward sharing
c. open exchange of information
d. a credible commitment to work together during difficult times
e. the buyer unilaterally resolving disputes
The purchasing agent is a general agent with broad authority to change prices, terms,
and conditions.
a. True
b. False
A _____ is an annual review of a firms entire set of purchases.
a. cost analysis
b. price analysis
c. make-buy analysis
d. technology roadmap
e. spend analysis
The Cpk value is always larger than the C index.
a. True
b. False
A/An _____ is also known as the negotiators bottom line or reservation point, that is,
that point in the negotiation where it is most advantageous for the negotiator to walk
away from the table and implement his or her next-best option.
a. BATNA
b. position
c. interest
d. need
e. want
A single source can never deliver cost and quality improvements over the life of a
contract even if a buyer manages that supplier effectively.
a. True
b. False
All of the following are examples of the future focus on supply chain performance
except _____.
a. accelerating and obtaining more innovation from suppliers
b. focusing more and more on day-to-day tactical purchasing activities
c. leveraging supplier capabilities and know-how to establish new sources of revenue
d. identifying and mitigating supply risks of any kind to ensure business continuity
e. expanding the breadth and depth of cost management efforts
Increasing the level of integration between logistics and other SCM applications
presents firms with both technical and organizational hurdles.
a. True
b. False
Which of the following is not an advantage of online ordering systems?
a. Immediate visibility to back-ordered items.
b. Longer order cycle time from input to delivery.
c. Faster order input time.
d. Reduced ordering errors.
e. Ability to batch multiple items from multiple users on a single order.
_____ is defined as that body of the law that refers to how business firms (parties) enter
into contracts with each other, execute contracts, and remedy problems that arise in the
process.
a. Civil law
b. Agency law
c. Commercial law
d. All of the above.
e. None of the above.
Purchasing and supply chain managers often use the historical approach with
effectiveness-related measures.
a. True
b. False
On the buying side, organizations are becoming much more focused and sophisticated
in making decisions involving investments in e-SCM systems.
a. True
b. False