In a regular reverse auction, prices are anonymous, and the identity of the competitors
is provided to all sellers.
a. True
b. False
For some purchased items, such as bulk raw materials, speed of transportation is the
most important factor.
a. True
b. False
If total costs are less than target costs, the design must change or costs must be reduced.
a. True
b. False
Which of the following is not one of the policies used to improve design simplification
and reduce complexity?
a. Increase the number of suppliers.
b. Establish premium pricing for customization.
c. Establish geographic-specific options and standards.
d. Do not eliminate frequently requested options.
e. Utilize business modeling and TCO tools to support complexity reduction decisions.
Sophisticated customers, both industrial and consumer, no longer talk about price
increases – they demand price reductions!
a. True
b. False
A category strategy is a decision process used to identify which suppliers should
provide a group of products or services, the form of the contract, the performance
measures used to measure supplier performance, and the appropriate level of price,
quality, and delivery arrangements that should be negotiated.
a. True
b. False
Outsourcing products through low cost country sourcing environments or contract
manufacturers is very much the same as sourcing in North American buyer-seller
situations.
a. True
b. False
By definition, _____ is a broad term describing the purchase of raw materials,
components, finished goods, or services from suppliers, some of whom can be another
operating unit within the organization.
a. expediting
b. negotiating
c. insourcing
d. value analysis
e. buying
In pre-ERP environments, every functional area had its own set of software
applications, often running on completely different systems.
a. True
b. False
All processes or items can benefit from, or exhibit improvement from, learning.
a. True
b. False