Archives: Quiz

In a transshipment problem, items may be transported from sources through transshipment points on to destinations. In portfolio selection problems, risk is measured by the variance of the return on the portfolio. Answer: TRUE In a transshipment problem, items may […]

Management science modeling techniques focus on model construction and problem solution. Answer: TRUE In solving the facility location problem, the objective is to locate a centralized facility that serves customers or other facilities such that the distance traveled between the […]

In a balanced transportation model, supply equals demand such that all constraints can be treated as equalities. In a transportation problem, a demand constraint (the amount of product demanded at a given destination) is a less-than-or equal-to constraint (≤). Answer: […]

The minimal spanning tree problem is to connect all nodes in a network so that the total branch lengths are minimized. Answer: TRUE The appropriate criterion is dependent on the risk personality and philosophy of the decision maker. Answer: TRUE […]

The most important task that the purchasing officer is involved in is representing the ________ in the development and negotiation of contracts with __________. A. manufacturer / second parties B. principal / second parties C. principal / third parties D. […]

The actual payoff system that bargainers face in an interaction must certainly be a major determinant of bargaining behavior. Several different factors related to the payoff system have been studied. •The amount that has to be exceeded if the bargainer […]

In a __________ schedule bargaining situation, the profits (and/or losses) of the respective bargainers, when added together, need not always equal the same fixed amount. A. standard-sum B. routine-sum C. fixed-sum D. floating-sum E. varying-sum Broadly, risk can be defined […]

To be eligible to participate in some federal programs, a company must be certified as at least one of the following: •Women-owned business •Minority-owned business A. True B. False The suppliers’ ___________ systems must be consistent with the in-house quality […]

Supplier lead time affects a firm’s flexibility and service to its own customers. Firms that compete in ________ markets and face rapidly changing ________________ require greater flexibility than firms competing in _______ markets. A. volatile / consumer demands / stable […]

Buying firms select _____________ based on their capabilities, and not purely on the competitive process. A. employees B. materials C. the workforce D. managers and supervisors E. suppliers Purchasers and buyers determine which commodities or services are best, choose the […]

In collaboration, the two organizations truly realize the benefits of working together to optimize outcomes for both organizations. The two firms work together to develop a ___________ to deliver a high-quality product or service on time and under budget. A. […]

The purchasing professional must understand the dynamic nature of ________ cost. A. indirect B. direct C. variable D. labor E. advertising The objective of the purchasing department is to buy the _______ materials from the ______ supplier at the ______ […]

The CPM network consists of arcs and nodes. The ______ represent the actual activities while the ______ (events) represent when the activity starts and finishes. A. nodes / arcs B. arcs / nodes Tax effect. Lease payments are expenses that […]

The most significant trend in the area of supply management in hospital settings is simply the magnitude of the importance and resulting attention to efficiency and cost-effectiveness. A. True B. False A more devastating downside of ______________ is the buyer/seller […]

The competitive bidding process must begin with an assessment sizing up the suppliers’ _________________. A. labor and materials costs B. pricing strategies on competitive positions C. power D. need for sales E. competitive strength Primary sources assume most of the […]

A supplier secures a bonding company to guarantee that the supplier will enter into a contract if they are awarded the contract. A ____ bond enlists a ______ party into the transaction. A. government / second B. municipal / third […]

___________ involves facilitating the movements of raw materials and component parts from suppliers through the firm’s manufacturing process to the ultimate customers. A. Production B. Processing C. Production management D. Process management E. Transportation In most instances, the purchasing official […]

The problem with _____________________ is the lack of standardization, tedious paper work, delays, and errors. A. direct buying B. direct purchasing C. centralized buying D. indirect purchasing E. decentralized purchasing The buyer’s evaluation of the supplier’s performance is a catalyst […]

As the size of a shipment increases, the transportation charge per unit of weight will fall. To take advantage of these rate economies, the carrier should attempt to consolidate shipments. Instead of shipping each day, the shipments are accumulated for […]

___________ is/are identified as the longest-duration path through the network. A. The sequence of activities B. The network diagram C. The events D. The essential path E. The critical path The duties and responsibilities of the project or contract manager […]

The list of factors considered in rating freight is compounded by the specific commodity that is being shipped. The basic steps involved in the determination of the applicable rates are listed below, with one exception. Which is the exception? A. […]

The primary objective of a supply management program is to ensure systems are adequate to keep departments supplied ___________. A. with essentials B. without delays C. with low cost goods D. with high quality supplies E. without stockouts Communication can […]

Companies on a growth pattern fueled by ______________ acquire new equipment to expand into a newly introduced product line. Investment in capital equipment for expansion purposes should increase incremental revenue. A. innovation B. competition C. increased sales D. technology E. […]

A Harvard Business School study concluded that a key driver in the decline of U.S. competitiveness in the international marketplace has originated from investing _______________, such as supplier relations. A. more in tangible benefits B. less in tangible benefits C. […]

Outsourcing is also sometimes thought to be similar to subcontracting, joint venturing, and contract manufacturing. Contracting is the purchasing of goods or services to facilitate a business process owned by the buyer. The outsourcing point of departure from these concepts […]

The seven (7) steps to effectively implement e-procurement are: 1. Start with non-critical items. 2. Bring all internal stakeholders on board with your new procurement process to establish internal customer behavior. 3. Streamline, map, test, troubleshoot, and improve the process […]

The federal Electronic Signatures in Global and National Commerce Act (ESGICA), or E-Sign, went into effect on October 1, 2000. The law made online contracts for a variety of business transactions more ________________. A. clearly enforceable B. consistent C. easily […]

The __________________ is especially concerned with how to coordinate diverse production skills and integrate multiple streams of technology. A. lean production system B. PDF concept C. strength and weakness system D. RAP concept E. core competency concept Any business or […]

In order to be successful, the project must come in meeting the SPA, on time and within budget. A. True B. False The ratios of materials related costs are increasing for all of the following reasons with one exception. A. […]

The average rate of return is the average cash flow after tax ________ the initial investment: The ARR is the most popular evaluation criterion used today. A. subtracted from B. divided by C. multiplied by D. added to ____________ occurs […]

It is a good idea to implement e-procurement on systems that have a high supply risk and low profit impact, especially if there are a very limited number of suppliers to choose from. A. True B. False Critical items and […]

Which of the following is the primary reason that managers of conventional foodservices have made changes in the form in which foods are purchased? A) to reduce production time B) to reduce food cost C) to improve quality of outputs […]

The best definition of productivity is: A) measurement of quality of service rendered B) level of output for a given degree of input C) number of full-time equivalents available for a given task D) number of man-hours worked per pay […]

The fundamental accounting formula is: A) current ratio = current assets to current liabilities B) beginning inventory + purchases – ending inventory = food used C) assets = liability + equity D) net profit = gross profit – expenses Match […]

The master menu best represents which component of the systems model? A) Outputs B) Controls C) Feedback D) Memory Which of the following wording on a menu would not be allowed under the Truth in Menu legislative guidelines? A) 10 […]

Match the letter of the one term that best corresponds to the following statements: 1> A process step at which a preventive or control measure can be applied that would eliminate, prevent, or minimize a hazard. 2> An incident of […]

TQM requires that management operate on Theory X assumptions. Federal grades are mandated for all commodities that enter interstate commerce. Answer: False Currently there is no method for recycling #10 steel cans. Answer: False A foodservice operation must be computerized […]

Because of energy costs, air-conditioned kitchens are not common. Truth-in-Menu standards are mandated by federal law. Answer: False The human body may be thought of as a system. Answer: True Upward communication channels are a source of feedback. Answer: True […]

Nonionic synthetics may be used to saponify fat particles on soiled dishes during the dishwashing process. An organization’s mission statement should be written after its objectives have been developed. Answer: False Foodservice is the number-two retail employer in the country. […]

Scientific management theory held that social and psychological factors were important to worker satisfaction and productivity. Advantages of cooking in a convection oven compared to conventional include uniform heating and reduced cooking time. Answer: True Market segmentation defines a group […]

Preventive maintenance is a documented program of routine checks or inspections of facilities and equipment to ensure sanitary, safe, and efficient operation. Some insulated tray systems are designed to maintain temperatures by using the concept of synergy. Answer: True The […]

Light intensity is measured in watts. Interviewing is a means of communicating. Answer: True Radiant heat barriers are able to both reduce summer heat gain and reduce winter heat loss. Answer: True Vendors are not allowed to offer gifts to […]

Nonionic synthetics may be used to saponify fat particles on soiled dishes during the dishwashing process. The number etched into a scoop corresponds to the approximate number of servings the scoop will yield from a gallon of product. Answer: False […]

A physical inventory is an actual count of items held in storage. Foodservice is the number-two retail employer in the country. Answer: False A foodservice operation must be computerized in order to successfully implement forecasting. Answer: False A Pareto chart […]

A junior colleague of yours has prepared the following pro forma to indicate his forecasts for a firm (in millions of dollars): The interest expense relates to bonds payable with an effective interest rate of 5% equal to the coupon […]

The concept of a human or moral right is central to the utilitarian ethical tradition. From a strict market economic perspective, resources are ‘finite,’ and have to be used efficiently to gain maximum economic benefits. Answer: False Feedback: From a […]

The well-being promoted by ethical values is not a personal and selfish well-being. Ethical business leadership is the skill to create circumstances in which bad people are taught to do good. Answer: False Feedback: Ethical business leadership is the skill […]

Standards are fundamentally a social approach that can address public policy questions ignored by markets. ‘Enlightened self-interest’ presumes that good ethics is also good business. Answer: True Feedback: Is good ethics also good business? One important justification offered for CSR, […]

It is discriminatory to refuse to hire someone about whom you simply have a ‘bad feeling,’ even if that bad feeling is not based on their difference in race or gender. COSO is one of the first efforts to address […]

The conservation movement advocated a more restrained and prudent approach to the natural world. Volunteering and charitable work are examples of the most demanding responsibility. Answer: False Feedback: Volunteering and charitable work are typical examples of responsibilities to do good. […]