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
suppliers of the product or services, negotiate the lowest price, and award contracts that
ensure that the correct amount of the product or service is received at the appropriate
time.
A. True
​B. False
________ is a way to measure supplier quality. Supplying firms that follow the core
philosophy of _________ will make excellent strategic partners.
A. Eight alpha / eight alpha
B. Sigma nine / sigma nine
C. Six sigma / six sigma
D. One omega / one omega
E. Six epsilon / six epsilon
If a buying firm is to be effective with an offshore sourcing strategy, it must either hire
experts or develop specialists that are assigned to offshore suppliers. Ideally, these
individuals must have experience in purchasing management, quality control, and basic
accounting. This cost also must be considered in the evaluation process.
A. True
B. False
The assumptions of constant uniform demand and the instantaneous replenishment of
stock at the zero level may reflect clearly the inventory situation faced by most
hospitals.
A. True
B. False
Once a relationship between a shipper and a third party is established, an agreement, the
third-party contract, should be executed by the shipper and the third party.
A. True
B. False
The switch to a JIT system presents formidable challenges. _________ must be
prepared to change their behavior when their customers are using the JIT system.
A. Marketing
B. Management
C. Finance
D. Operations
E. Manufacturing
___________ is the exchange of goods for goods in full or partial payment of a sales
transaction. Progressive companies must participate in ____________ or risk losing
market share.
A. Exporting / exporting
B. Exchange trading / exchange trading
C. Market trading / market trading
D. Import trading / importing
E. Counter trade / counter trade
Another special ICC category is the parcel delivery service and limited shipment size
category. _________ is the largest carrier in this sector.
A. UPS
B. FedEx
C. DHL
D. USPS
E. UES
Collaboration or collaborative relationships, usually found with the buying firm’s
strategic/tier-______ suppliers, include the ___________ component that is missing in a
cooperative relationship.
A. three / team
B. one / team
C. two / communication
D. one / communication
E. five / team
__________ is action without inherent desire, and, thus, _________ remains a
relatively easy factor to measure since it implies action, not feeling.
A. Involvement / involvement
B. Cooperation / cooperation
C. Compliance / compliance
D. Commitment / commitment
E. Response / response
____________ means that the shipper advances the charges to the carrier and then bills
the beneficiary an amount that approximates or equals the actual freight charges.
A. Prepaid
B. Prepay and collect
C. Freight on board
D. Paid in Advance
E. Prepay and add
The __________ method involves categorizing each supplier’s performance in
specific areas defined by a list of relevant performance variables.
A. performance-based
B. process-based
C. circular-ratio based
D. categorical-ratio based
E. categorical
The costs of satisfactory customer service are only partly identifiable and quantifiable.
Our knowledge of the opportunity costs of poor customer service is also incomplete.
Yet decisions must be made while recognizing the system wide decision criteria are
________________________.
A. multiple
B. complex
C. conflicting
D. none of the above
E. all of the above
LS – latest start time can be defined as:
A. equal to the earliest start time for the activity plus the time required to complete the
activity.
B. equal to the earliest start time for the activity plus the time required to complete the
activity.
C. equal to the latest finish time minus the time required to complete the activity.
D. the earliest time at which the activity can start given that its precedent activities must
be completed first.
In recent years, many manufacturing and service firms have been challenged to increase
their focus on ___________ and _____________. At the same time, these organizations
have had to increase productivity and quality, decrease cost of service, and deal with the
demands of changing technology.
A. competitive prices / customer service
B. reducing expenses / competitive prices
C. competition / quality products
D. customer satisfaction / quality of service
E. quality products / customer service
In order for good communication to exist between buyer and supplier, common ground
should exist in all of the following areas with one exception. Which is the exception?
A. management styles
B. control systems
C. quality philosophies
D. computer systems
E. technological abilities
Unique to health care is a classification of the stockout tolerances of a hospital,
categorized by Reisman as urgency requirements. They are as follows:
•Use-location urgency.
•Facility-location urgency.
•Regional-location urgency
•No urgency
A. True
B. False
As we look into the future the traditional purchasing approach will be transformed into
__________. _________ will be the tool that drives supply management. As the world
market for goods and services become a key competitive advantage _________ is
redefining the way companies manage their supply chains.
A. B2B sourcing / B2B sourcing / B2B sourcing
B. B2C sourcing / B2C sourcing / B2C sourcing
C. direct sourcing / Direct sourcing / direct sourcing
D. e-sourcing / E-sourcing / e-sourcing
E. out sourcing / Out sourcing / out sourcing
Economists, on the other hand, have seen ____________ bargaining as a problem that
only involves two parties dividing fixed resources with no opportunity for any outside
influence of third parties.
A. net-sum
B. zero-sum
C. distributive
D. routine
E. standard
_________ means that the title to the merchandise passes at the time and place of pick
up.
A. F.O.B. origin
B. F.O.B. destination
During the next decade, the ___________________ function is likely to contribute to
_________ more than any other function in the company.
A. supply management / profits
B. operations management / profits
C. marketing management / profits
D. supply management / costs
E. operations management / costs
The ___________ evaluation is an assessment of the supplier’s actual performance
on a variety of criteria, such as delivery reliability, cost, quality defect rate, etc.
A. productivity-based
B. customer service-based
C. customer relations-based
D. effectiveness-based
E. performance-based
For components of assembled products, the demands are not usually constant per unit
time, and depletion is anything but gradual. Inventory depletion for component parts
tends to occur in ____________.
A. random patterns
B. discernable patterns
C. predictable patterns
D. sharp inclines
E. discrete “lumpsâ€
Only premium and emergency goods are shipped via the air because air is clearly the
___________ shipping mode.
A. most flexible
B. most reliable
C. lowest cost
D. preferred
E. highest-cost
The word ___________ is derived from Latin and in civil law means “trading on
deliberations leading to an agreement.â€
A. bargaining
B. deliberating
C. discussion
D. negotiation
E. considering
_______________ occur where products or services transferred in an offset
arrangement are unrelated to the specific products referred to in the export agreement.
A. Offsets
B. Indirect offsets
C. Coproduction
D. Sub-contractorproduction
E. Licensed production
The JIT philosophy concept cannot be implemented successfully without total support
from ______________.
A. all involved
B. all employees
C. top management
D. middle management
E. the purchasing department
Gantt charts (or Bar charts) are useful tools for planning and scheduling projects. Gantt
charts:
•Allow you to assess how long a project should take.
•Lay out the order in which tasks need to be carried out.
•Help manage the dependencies between tasks.
•Determine the resources needed.
A. True
B. False
Giving a bargaining opponent the impression that tough bargaining is because of
one’s payoff system and that one is firm but fair is the _________ strategy.
A. worst
B. poorest
C. best
D. fairest
E. weakest
Very often, resistance is encountered because the employees are required to change
their _____________, or because they interpret the new system as being
_____________ jobs.
A. long-standing work habits / a threat to their
B. work stations / unnecessary to their
C. job descriptions / an intrusion in their
D. job standards / an evaluation of their
E. personal work habits / a change in the expectations of their
The negotiated agreement between buyers and sellers includes the following terms: the
type of material, ________________, stocking policy, and delivery requirements.
A. scope of contract
B. price
C. billing policy
D. all of the above
E. â€B†and “C†only