Which of the following is not one of the conditions under which negotiation is
effective?
a. When the purchase requires agreement about a wide range of performance factors,
such as price, quality, delivery, risk sharing, and product support.
b. When the buyer requires early supplier involvement.
c. When the specifications or requirements are clear to the seller.
d. When the supplier cannot determine risks and costs.
e. When the supplier requires a long period of time to develop and produce the items
purchased.
_____ is a simultaneous engineering approach that occurs between buyer and seller and
seeks to maximize the benefits received by taking advantage of the suppliers design
capabilities.
a. Supplier development
b. Early supplier design involvement
c. Total cost of ownership
d. Supplier relationship management
e. Supply base optimization
According to Ohno and Toyota, _____ is a category of waste that makes the wrong
product.
a. overproduction
b. waiting time
c. defect
d. unnecessary movement
e. over-processing
A _____ is concerned with (1) the definition of businesses in which the corporation
wishes to participate and (2) the acquisition and allocation of resources to these
business units.
a. business unit strategy
b. supply management strategy
c. human resource management strategy
d. corporate strategy
e. functional strategy
_____ = (Quality + Technology + Service + Cycle Time) · Price.
a. Cost
b. Efficiency
c. Value
d. Total cost
e. Target cost
Which of the following elements is true regarding Phase 4, Fully Integrated Supply
Chains, of supply management strategy development?
a. Cross-functional sourcing teams.
b. Cross-enterprise decision making.
c. Quality/cost teams.
d. International sourcing.
e. Total cost of ownership.
Suppliers are more often being paid through _____, which is the automatic transfer of
payment from the buyers bank account to the suppliers bank account.
a. RFQ
b. EFT
c. MRO
d. PO
e. None of the above.
Which of the following is an example of WIP inventory?
a. Waiting to be moved to another process.
b. Currently being worked on at a work center.
c. Lining up at a processing center due to a capacity bottleneck or machine breakdown.
d. All of the above.
e. None of the above.
The performance appraisal systems in most organizations create real barriers to pride in
workmanship as they promote competitive behavior and quantity of work over quality.
a. True
b. False
In a PERT network, a/an _____ is the earliest time a project can finish given the
expected activity time.
a. late finish
b. on time start
c. on time finish
d. early start
e. early finish
In the _____, suppliers are typically concerned about capacity utilization, covering
fixed cost, and retaining skilled labor during market slowdowns, when they are willing
to reduce their prices until market conditions change.
a. revenue pricing model
b. market skimming model
c. penetration pricing model
d. market-share model
e. competition pricing model
The use of 3PLs is increasingly becoming a viable option for smaller shippers and
infrequent shipments
a. True
b. False
Purchasing and supply management has a major impact on product and service quality.
a. True
b. False