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
several days and then shipped.
A. True
B. False
Most of the equipment costs are pegged to ____________.
A. an industry “blue bookâ€
B. the financial analysis process
C. an industrial price listing
D. the going rate
E. industry norms
The critical path is the path through the project network in which none of the activities
have _______, that is, the path for which ________ for all activities in the path.
A. sack / AS = FS and FE = FL
B. compression / CS = LS and CE = LF
C. better timed / LS = ES and LF = EF
D. crashed / SE = SL and FE = FL
E. slack / ES = LS and EF = LF
Conflict is present in the supply chain when one supply chain member ________ goal
attainment and performance of another. Conflict is an omnipresent factor in any supply
chain relationship.
A. hinders
B. blocks
C. facilitates
D. enhances
E. fosters
The name of the game, whatever the firm’s classification, is ____________.
A. customer satisfaction
B. profits
C. customer relations
D. return on sales
E. return on investment
Two factors that are used in the application of all methods of inventory management are
problematic for the health care system: (1)inaccurate demand estimations or forecasts
and (2)safety stock.
A. True
B. False
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There are several instances in which hospitals may be interested in the _________
method: (1) when there is frequent ordering, calling for stringent control; (2) when it is
convenient to order many items from one supplier; (3) when serving the needs of
discrete or irregular usage; (4) when there are large-volume orders that represent a large
portion of the supplier’s capacity; and (5) when storeroom balances are calculated
only periodically. This will be a particularly important method for hospitals that move
increasingly into assembly and “production†of their supplies.
A. predetermined inventory level (PIL)
B. Fulbright Order Quantity (FOQ)
C. fixed order interval (FOI)
D. fixed inventory level (FIL)
E. professional order quantity (POQ)
An FOB shipment, means ___________ at a named place.
A. freight on board
B. FedEx on board
C. freight on bill
D. free on board
E. free on border
The quality of material can deteriorate between the time it leaves the production floor
and the time it arrives at the customer’s storeroom. Packaging, loading, transport,
and unloading can all take a toll. Although damages can be claimed, materials received
in poor condition can be recycled for processing.
A. True
B. False
The _____________________ process is based on the idea of efficient resource
coordination and teamwork.
A. re-supply management
B. supply chain management
C. wholesale chain management
D. supply chain assistance
E. strategic chain management
Relationships with strategic suppliers need to be closely managed. One way to keep up
on supplier relationships is for a __________ organization is to compile ___________
for each strategic __________.
A. supplier / buyer profiles / partner
B. manufacturing / supplier standards / partner
C. buying / supplier profiles / partner
D. buying / supplier profiles / supplier
E. partner / buyer profiles / supplier
A firm can compete in two broad alternate ways. It can either seek competitive
advantages on ________ or _______________ itself from its competitors.
A. cost / distinguish
B. cost / choose to differentiate
C. quality / choose to differentiate
D. price / separate
E. quality / distinguish
While internal coordination costs are unique to external sourcing alternatives, they must
be contrasted against the _______________ and ____________ associated with
internally sourcing a product or service.
A. management time / turnover costs
B. internal coordination / overhead costs
C. external coordination / implementing costs
D. external coordination / expected benefits
E. external coordination / overhead costs
In society, some people are respected based on the amount of money they have,
regardless of the money’s sources and methods of obtaining it. However, in
business environments, ethical behavior is the foundation of ______.
A. trust
B. goodwill
C. long term relationships
D. good customer service
E. a good reputation
The shorter the ______ cycle, the quicker the customer is served and the less inventory
the customer needs.
A. order
B. production
C. transportation
D. shipping
E. delivery
Purchasing decisions or actions that constitute purchasing strategy are determined by
the firm’s ___________________________________.
A. competitive priorities
B. its resource capabilities
C. marketing initiatives
D. all the above
E. “A†and “B†only
The critical path can be identified by determining the following four parameters for
each activity:
•ES – earliest start time
•EF – earliest finish time
•LF – latest finish time
•LS – latest start time
A. True
B. False
Negotiation activities are influenced by the characteristics of ____________.
A. the current business environment
B. the organization
C. the individuals
D. all of the above
E. “A†and “B†only
Since JIT purchasing has gained popularity within the United States, the purchasing
function has been preoccupied with trimming the overall supplier base in quest of so
called __________ suppliers.
A. mega
B. super
C. superior
D. high quality
E. prominent
Which of the following items should be applied as criteria to the cash-flow analysis?
A. The economic life of the project.
B. The net cash flow.
C. The net cash investment.
D. All the above
E. “B†and “C†only
China is now a _______ player in the world economy and accounts for more than 6
percent of world trade. This is remarkable for a developing economy. There has been
strong import growth, both for processing trade and for domestic consumption.
A. relatively new
B. minor
C. major
D. major-minor
E. first class
As inventory levels are reduced throughout the supply chain, each member becomes
more insulated from demand variation.
A. True
B. False
The purchasing manager is (a) n ___________ for the firm.
A. agent
B. title
C. responsible position
D. expert
E. executive officer
Expanding existing equipment is also a way to increase ________. The other categories
of capital investment revolve around the plant, facilities, and construction.
A. market share
B. efficiency
C. output
D. input
E. quality
Conceding only in response to a strike threat by the other side gives the impression that
one is strong, while sometimes reciprocating a concession gives the impression that one
is tough. This leads to the general conclusion that every agreement ought to lie
somewhere between the two starting points of the bargainers.
A. True
B. False
JIT emphasizes scheduling flexibility by aiming for __________________.
A. reduced waste and shorter setup times
B. reduced purchasing lead times and setup times
C. faster delivery and smaller orders
D. increased purchasing lead times and shorter setup times
E. short purchasing lead times and lower costs
Companies are spending an increasingly larger percentage of their revenue dollars for
__________________.
A. the acquisition of goods and services
B. labor
C. advertising and promotion
D. supplies
E. advanced technology
Traditional thinking about the most appropriate form of governance has cast the
decision as somewhat of a dichotomous choice between hierarchy (i.e., internal
sourcing) and market (i.e., external sources). Prior works have developed the image of
____________ governance as an arm’s length relationship between the customer
and the supplier organization.
A. supplier
B. buyer
C. stakeholder
D. local
E. market
In developing a negotiation strategy, the __________ must identify the type of
relationship desired with the third party. As with any other buying situation, the
________ must establish a set of desires (costs) and demand (services) expected from
the carrier.
A. buyer / buyer
B. producer / producer
C. shipper / shipper
D. carrier / supplier
E. supplier / shipper
The heart of the __________ philosophy is the quality _________. ________ defines
the cost of poor quality as the losses a product imparts to society from the time a
product is shipped.
A. Tanner / improvement function / Tanner
B. Taguchi / loss function / Taguchi
C. Truk / loss function / Truk
D. Transactional / improvement function / Transactional
E. Tasmania / loss department / Tasmania
__________ materials are directly related to the production of the finished goods.
A. Raw
B. Custom
C. Finished
D. Direct
E. Indirect
Since the lease payment is fixed and other costs associated with the lease (salvage
value, operating expenses, and interest rates) are highly uncertain, it is important to
evaluate the _______________ rate for a lease-versus-buy decision.
A. discount
B. fixed
C. current
D. standard
E. implicit interest
The customer perception of _______________ is also important when determining
market prices.
A. the company
B. value
C. quality and service
D. competition
E. value and quality