All buyer-supplier negotiations are relatively straightforward, only requiring
rudimentary preparation and planning.
a. True
b. False
A/An _____ contract is designed to provide access to expensive computer networks and
software that single companies are unable to afford on their own.
a. time and materials
b. systems
c. firm fixed price
d. cost-sharing
e. evergreen
The planning phase of a project is particularly critical because there is a strong
correlation between effective planning and successful project outcomes.
a. True
b. False
Which of the following is not one of the benefits of simplified designs?
a. Fewer suppliers.
b. Increased number of manual transactions.
c. Reduced transactions to support the inventory.
d. Fewer part numbers.
e. Lower inventory management costs.
The objectives of a world-class purchasing organization do not need to evolve beyond
the traditional mantra of ensuring we get a good price!
a. True
b. False
Examples of monopolies in the United States include the steel, automobile, and
appliance industries.
a. True
b. False
Strategic responsibilities lack the immediacy of tactical duties and, as a result, are often
ignored.
a. True
b. False
On supplier assessments, performance data should be weighted in such a manner that
they are aligned with customer performance requirements.
a. True
b. False
With the current budget plus adjustment approach, the administrative budget for
purchasing is a percentage of another measure that reflects purchasings workload.
a. True
b. False
A/An _____ provision stipulates the mechanism to be used in determining any costs
and damages to the injured party in the event of a breach of contract.
a. mutual assent
b. restitution
c. liquidated damages
d. reliance
e. expectancy
The longer the term of the purchase agreement, the less likely firm-fixed price contracts
will be acceptable to the supplier.
a. True
b. False