By identifying unnecessary steps and resources, value stream mapping streamlines
processes for greater efficiency.
a. True
b. False
When using negotiating a/an _____, it is necessary to include a/an _____ that allows a
buyer to terminate the contract in the event of persistently poor quality, delivery
problems, and so on.
a. spot buy contract¦.evergreen clause
b. RFP¦.RFQ
c. purchase order¦.purchase agreement
d. blanket purchase order¦.escape clause
e. online catalog¦.RFP
The problem with secondary data is that they are often outdated and may not provide
the specific information for which the team is looking.
a. True
b. False
Joint participation means that the personnel responsible for each measure participate in
developing the measure or establishing the measures performance objective.
a. True
b. False
Actual prices for similar items should not be compared between plants, divisions, or
business units due to differing market conditions.
a. True
b. False
The buyer should assume that the purchasing cycle ends with the receipt of an ordered
item or the selection of a supplier.
a. True
b. False
Identifying the major suppliers in a market is an important first step of any supplier
analysis.
a. True
b. False
Additional railcars can be added to a freight train with only a minimal increase in its
total variable cost, absent any limitations on train length.
a. True
b. False
Today, buyers seldom use the Internet to help locate potential sources that might qualify
for further evaluation.
a. True
b. False
In win-win negotiation, if one party gains, it is only at the expense of the other party.
a. True
b. False
Oftentimes, a single mode of transportation may prove inadequate for a specific
shipment.
a. True
b. False
Which of the following is not one of the typical uses of supplier measurement data?
a. Supporting supply base rationalization and optimization.
b. Identifying those highly capable suppliers that may qualify for consideration of
longer-term partnerships or designation as preferred suppliers.
c. Identifying those suppliers that are not performing at expected levels so that
appropriate remedial or development actions can be taken.
d. Deciding where to locate supplier facilities.
e. Determining a suppliers future purchase volume based on its past performance.