According to Ohno and Toyota, _____ is a category of waste that moves material
unnecessarily or long distances.
a. unnecessary movement
b. over-processing
c. defect
d. unnecessary transport
e. overproduction
A _____ has unique requirements or niche suppliers, yet is significant to the business.
a. critical commodity
b. bottleneck commodity
c. matrix commodity
d. routine commodity
e. leverage commodity
All of the following are examples of problem factors that confront minority suppliers
except _____.
a. lack of access to capital
b. large firms efforts to optimize their supply bases
c. inability to attract qualified managers and other professionals
d. preference for bidding on government contracts
e. minority suppliers relatively small size leading to overreliance on large customer
firms
All of the following are conditions under which competitive bidding is effective except
_____.
a. the buyer has a preferred supplier for the item
b. volume is high enough to justify this method
c. the marketplace is competitive
d. the specifications or requirements are clear to the seller
e. adequate time is available for suppliers to evaluate the RFQs
A logical place to begin when managing inventory investment is to make sure there is
agreement between physical and electronic inventory.
a. True
b. False
Almost all firms establish blanket purchase orders with their suppliers.
a. True
b. False
Specifying customized parts when standardized parts are available adversely affects
material inventory because customized parts are usually more expensive.
a. True
b. False
When marketing wants to purchase an advertising media campaign, the _____ should
specify the work that is to be completed, when it is needed, and what type of service
provider is required.
a. reorder point
b. acknowledgement
c. traveling purchase requisition
d. statement of work
e. sales forecast
Many buyers have now concluded that, if they select suppliers carefully and develop
close and collaborative working relationships with fewer suppliers, supply risk can
actually decrease.
a. True
b. False
Reliance on a firms suppliers for raw materials, components, subassemblies, and even
finished products is steadily decreasing.
a. True
b. False