Archives: Quiz

It is easy to develop common ground in the negotiation without knowing what the other party is seeking. a. True b. False Which of the following is not one of the usual roles of an international purchasing office (IPO)? a. […]

_____ inventory includes the items purchased from suppliers or produced internally to directly support production requirements. a. Work-in-process b. Finished-goods c. MRO suppliers d. Pipeline/in-transit e. Raw material and semifinished items All of the following are categories of inventory except […]

Which of the following is not one of the network rules for PERT/CPM? a. Networks start and finish at multiple events. b. Identify each unique activity within a project by a capital letter that corresponds only to that activity. c. […]

A/An _____ occurs in situations in which a buyer is allowed to automatically discount the published purchase price by a negotiated percentage for all purchases from a given price list or catalog during the contract period. a. pricing agreement b. […]

The _____ buys from the OEM and resells, therefore incurring a transaction cost, and it must make a profit. a. vendo b. customer c. preferred supplier d. single source supplier e. distributor Using a traditional pricing approach, the selling price […]

_____ can be defined as how easy the professional service provider is to do business with. a. Wavelength b. Collaboration c. Cooperation d. Preference e. None of the above. A negotiator can automatically assume that the other party thinks the […]

Barter requires trading parties to enter into a series of contracts to fulfill trading requirements. a. True b. False The longest path (in time) through a PERT network is the critical path. a. True b. False Answer: True Under traditional […]

Unless the parties specify differently, the term FOB delineates the point at which the supplier is responsible for freight charges and where the purchaser assumes title to the shipment. a. True b. False In collaborative relationships, buyers and suppliers can […]

The emphasis of the _____ is on obtaining sufficient current revenue to pay for operating cost rather than on profit. a. price volume model b. promotional pricing model c. revenue pricing model d. market skimming model e. competition pricing model […]

The whole point of collecting _____ is to understand the prevailing market conditions and the ability of current or potential new suppliers to deliver the product or service effectively. a. customer data b. secondary data c. internal data d. spend […]

Very few organizations use distributors to provide at least some portion of their inventory requirements, particularly maintenance, repair, and operating supplies. a. True b. False All of the following are phases in the benchmarking process except _____. a. planning b. […]

The effectiveness of the sourcing team leader is one of the weakest predictors of team success. a. True b. False The supplier performance index (SPI) equals (_____ plus _____) divided by _____. a. Total Purchases¦.Nonperformance Costs¦.Total Purchases b. Nonperformance Costs¦.Total […]

The _____ clause of a contract specifies conditions regarding who own any IP rights that comes out of the agreement, and who owns what IP going into the agreement. a. liability b. confidentiality c. intellectual property d. technology improvements e. […]

Which of the following is not an example of cost differentials that arise between countries? a. Lower labor rates. b. Fewer documentation requirements. c. Possible willingness to accept a lower profit margin. d. Exchange rate differences. e. Government subsidies. There […]

Trade shows are seldom an ineffective way to gain exposure to a large number of suppliers at one time. a. True b. False According to Porter, a firms value chain is composed of primary and support activities that can lead […]

In a PERT network, a/an _____ is the latest time an activity can finish without delaying the entire project. a. late start b. late finish c. on time finish d. early start e. late start Purchasers impact price at the […]

All of the following are important factors to consider when negotiating with a supplier over contract type except _____. a. component market uncertainty b. degree of trust between buyer and seller c. process or technology uncertainty d. suppliers ability to […]

Which of the following is not one of Demings 14 points? a. Encourage education and self-improvement. b. Take action. c. Institute leadership. d. Optimize the efforts of teams. e. Utilize numerical quotas and measurement by objective to motivate management. _____ […]

Which of the following is not one of the eight key principles of total quality management? a. Strive for zero defects. b. Define quality in terms of customers and their requirements. c. Focus on output rather than process. d. Make […]

The purchasing cycle begins with identifying (or anticipating) a specific need or requirement for a part component, raw material, subassembly, service, piece of equipment, or finished good to be sourced to conduct or support organizational operations. a. True b. False […]

If WIP builds up at a workstation, a scheduler should not have to reroute the flow of material to another work center. a. True b. False Which of the following is not an item or product that is an appropriate […]

An important factor to consider when hiring an outside consultant to perform contract services for a company is that such a person is the purchasing companys employee, not its agent. a. True b. False The currently dominant decentralized model for […]

Pursuing supplier development activities directly with suppliers is both quick and easy. a. True b. False _____ involves contracting with independent suppliers outside the organization (domestic or foreign) to provide products or services that were performed inside the organization. a. […]

_____ indicates whether a seller can lower its cost as a result of the repetitive production of an item. a. Process capability analysis b. Market analysis c. Price analysis d. Break-even analysis e. Learning-curve analysis In a PERT network, the […]

Excessive formality in negotiation can effectively constrain the parties and restrict the free exchange of ideas and solutions. a. True b. False All of the following are common measures used to manage currency fluctuation in international purchasing except _____. a. […]

Perhaps the most compelling reason to consider a short-term contract, from the buyers perspective, is that such contracts may reduce the level of risk incurred if longer-term contracts are employed. a. True b. False Buyers do not need to consider […]

_____ is a broad term that refers to all international and domestic trade where buyer and seller have at least a partial exchange of goods for goods. a. Six Sigma b. Countertrade c. Re-shoring d. IPO e. CISG Identification of […]

To be most effective, cost-based contracts should include cost productivity improvements in order to drive continuous cost reduction over the life of the contract. a. True b. False There is automatic determination of copyright ownership unless the consultant and the […]

_____ includes movement and handling of materials between production facilities within the same organization as well as movement into and out of intermediary storage facilities. a. Inbound logistics b. Recovery c. Outbound logistics d. Intraorganizational movement e. Recycling A carefully […]

_____ relates to a commercial purchase transaction between a buyer and a supplier located in different countries. a. International purchasing b. Re-shoring c. Global sourcing d. Nearshoring e. None of the above. On _____, the freight bill is presented on […]

Ordering costs are a composite of the costs associated with the release of a material order. a. True b. False A/An _____ system takes a period-by-period set of master production schedule requirements (anticipated or booked customer orders) and produces a […]

In value stream mapping, the flow diagram that depicts process improvements to optimize the value and minimize the non-value-added streams is called a/an _____. a. current state map b. future/ideal state map c. variation map d. anticipated state map e. […]

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 […]

Successfully using teams does not require extensive planning before a team should be allowed to pursue an assignment. a. True b. False Early visibility to product requirements allows supply management to share critical information with suppliers that can help avoid […]

A buying firm frequently wants the seller to become more dependent on its business. a. True b. False Project scopes should be very detailed for all service providers, including those who have previously performed work for the organization. a. True […]

_____ are those that result if the terms of the contract are not fulfilled and must be defined prior to the breach under the terms of the contract. a. Consequential damages b. General damages c. Incidental damages d. Reliance damages […]

Historically, expenditures for indirect materials and services have received the same level of management attention as have direct materials. a. True b. False _____ mean(s) that no duties or quota charges will be placed on goods that are reexported from […]

In supplier evaluation, reliability refers to the different individuals or groups reviewing the same items and measurement scales will arrive at the same conclusion. a. True b. False A/An _____ is a method or scheme devised for making or doing […]

The dangers of poor execution of supply chain processes include increased lead and cycle times, higher costs, and less-informed decision making. a. True b. False The value of money spent any time in the future does not depend on the […]

A win-lose negotiation approach works best for items or services that are important to the buyers products or business or when the item involves high-dollar items or services where cost control is critical. a. True b. False A _____ refers […]

The degree of effort associated with supplier selection is inversely related to the importance of the required good or service. a. True b. False The process that buyers use to select suppliers does not vary widely depending on the required […]

Most purchase contracts address areas that are similar. a. True b. False _____ is defined by CSCMP as that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, […]

Which of the following is a disadvantage of a cost-based supplier evaluation system? a. Least reliable. b. Most complex so implementation costs are high. c. Less frequent generation of evaluations. d. Most subjective. e. Tends to focus on unit price. […]

Shipping a high-priced component via air is never a cost-effective option. a. True b. False Few measures drive behavior that is not what is intended or needed. a. True b. False Answer: False In its most basic form, a _____ […]

Air carriers haul the most amount of commercial freight because of their inherent speed advantages. a. True b. False A supplier can draw against the letter of credit upon presentation of the required documents. a. True b. False Answer: True […]

The implied warranty of _____ means when the seller at the time of contracting has reason to know of any particular purpose for which the goods are required, and the buyer is relying on the sellers skill or judgment to […]

Buyers can minimize supply disruption risk from a single suppler by selecting a supplier with multiple production facilities. a. True b. False In organizations where new product development occurs at the divisional or business unit level, a centralized purchasing structure […]

The most basic and the easiest inventory-related cost to quantify and track is unit cost. a. True b. False The objective of supplier certification is to ensure that nonconforming items are not created or do not leave a suppliers facility. […]

All of the following are characteristics of the post-completion phase of a project except _____. a. confirm that the final project meets the expectations of management or customers b. reassign project personnel to other positions or other projects c. restore […]

Participation on a team may present a personal risk and create conflict once members realize that supporting a team takes time away from activities that are recognized and rewarded. a. True b. False _____ is defined as the process by […]