With a _____, both parties agree that payment occurs as long as exchange rates do not
fluctuate outside an agreed-upon range or band.
a. hedging agreement
b. payment in a foreign currency
c. speculation agreement
d. currency adjustment clause
e. payment in U.S. dollars
All of the following are typical processes involved in supply chain management except
_____.
a. new-product development
b. customer-order fulfillment
c. supplier evaluation and selection
d. demand and supply planning
e. cash flow management
Most inventory waste results from underlying problems that blue collar workers have
failed to correct.
a. True
b. False
Experience reveals that cross-functional sourcing teams are usually
part-time/continuous assignments, making the use of sourcing teams a challenging way
to work.
a. True
b. False
The _____ is a normalization factor for the supplier performance index (SPI) that
eliminates high-dollar lot bias.
a. Cp
b. MRO
c. Q adjustment factor
d. Cpk
e. Rfx
Which of the following is an example of an operational activity?
a. Manage relationships with critical suppliers.
b. Generate and forward material releases and expedite.
c. Develop electronic purchasing systems.
d. Negotiate company-wide supply contracts.
e. Manage critical commodities.
Integration does not require that people create a common understanding of the end goal
or purpose.
a. True
b. False
Buyers should avoid the practice of routinely tolerating suppliers that breach purchase
contracts because doing so may result in the buyer forfeiting the right to legal action.
a. True
b. False
In the use of [a] _____, a group of operating units buys common items, typically
because they produce common products.
a. procurement cards
b. regional buying council
c. global sourcing council
d. lead division buying
e. corporate purchasing council
A _____ is used in regularly scheduled review meetings with suppliers, so that
deficiencies in performance can be noted, discussed, and acted upon.
a. supplier scorecard
b. make-buy analysis
c. competitive bidding process
d. portfolio analysis
e. cost analysis
A/An _____ is a person or entity who has been authorized to act on behalf of some
other person or entity.
a. principal
b. manager
c. agent
d. employee
e. sales representative
According to Ohno and Toyota, _____ is a category of waste that occurs when
employees are standing about and inventory is at a standstill.
a. waiting time
b. defect
c. overproduction
d. unnecessary movement
e. over-processing