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 for the
supplier development activities. There are two main categories for the supplier
evaluation. Identify the two correct evaluations.
A. promotional-based evaluations and productivity-based evaluations
B. production-based evaluations and effectiveness-based evaluations
C. specification-based evaluations and goal attainment based evaluations
D. customer service-based evaluations and customer relations-based evaluations
E. process-based evaluations and performance-based evaluations
______ reaches much wider than the traditional quality view of incoming inspection
and process control—it means that the entire organization is working as a team,
including top management and each and every employee.
A. TQM
B. MBO
C. TMQ
D. OB
E. PODS
In order to orchestrate the various aspects of the implementation process of an EDI
system, _________________ various project teams is recommended. The
________________ acts as the overseer of the entire project and represents the
functional groups of the enterprise.
A. a steering committee guiding / steering committee
B. an executive managing / executive
C. a consultant guiding / consultant
D. a manager supervising / manager
E. a manager managing / manager
The choice of transportation mode is the most important element in
________________.
A. production management
B. operations management
C. distribution management
D. supply chain management
E. strategic management
A _____ bond condition is usually motivated by a federal or state regulation. Bonding is
used to protect governmental agencies from unqualified bidders.
A. governmental
B. bid
C. municipal
D. AAA
E. savings
The ___________ method evaluates supplier performance by using standard cost
analysis.
A. price-cost ratio
B. cost-ratio
C. performance
D. process
E. categorical
The _____ step in choosing the right supplier is to derive the total cost of the equipment
over its expected life by weighting for service and installation.
A. final
B. second
C. first
D. fifth
E. fourth
The new or modified part agreement between the buying and the selling firm is usually
complete after ________________________ has been _____________.
A. a sample / produced
B. prototype / created and tested
C. an acceptable final test sample / generated and verified
D. production / set up and is in operation
E. the design / approved by engineering
The purchasing manager administers the purchasing function. The purchasing function
consists of many tasks within the business entity, including supporting the company
with the required:
A. materials
B. supplies
C. services
D. all the above
E. “A†and “B†only
The ________ on which the buyer’s performance is evaluated can influence the
effectiveness of purchasing actions and effectiveness in making the firm competitive.
A. expectations
B. criterion
C. contract
D. plan
E. statistics
Outsourcing risks include breaches in intellectual property, provider shirking, and
opportunistic renegotiation. The combination of contractual incompleteness, asset
specificity, and uncertainty gives rise to these risks when firms pursue external
sourcing. Outsourcing organizations must have a clear _____________________.
A. legally binding contract
B. understanding of the contract
C. understanding of true supplier intentions
D. definition of supplier roles and responsibilities
E. understanding of the supplier’s role and responsibilities
Another study reported similar findings from a Bain survey of large and medium-sized
firms. They found that only ____ percent of the firms were highly satisfied with the
costs they were saving, and nearly _____ percent failed to achieve cost savings
expectations
A. 5 / 44
B. 6 / 60
C. 10 / 75
D. 10 / 50
E. 12 / 50
Buyers can gain from higher quality, and transportation costs may be reduced through
economies of scale, decreased administrative and switching efforts, process integration,
coordination of processes, and quantity discounts.
A. True
B. False
_________ standards can be applied to both manufacturing and service firms using the
same methodology. SPC provides input to the _________ approach.
A. Eight alpha / eight alpha
B. Sigma nine / sigma nine
C. One omega / one omega
D. Six epsilon / six epsilon
E. Six-sigma / six-sigma
Without high-quality raw materials or component parts from suppliers, a (n)
_____________ program will not be successful.
A. quality management
B. strategic management
C. organizational development
D. production management
E. operations management
The just-in-time (JIT) system is no longer a (n) _______________ in the manufacturing
world today. In the face of intense global competition, many firms in the United States
are looking at improved techniques to manage their manufacturing operations.
A. manufacturing theory
B. production concept
C. management concept
D. untried theory
E. esoteric concept
Implementing TQM also requires the following:
•Negotiating __________ requirements.
•Developing a “supplier specification†that details ___________ requirements
and expectations.
•Determining the necessary activities required to fulfill those requirements and
____________.
A. product / supplier / goals
B. labor / labor / standards
C. customer / customer / expectations
D. project / employees’ / responsibilities
E. supplier / sellers’ / goals
Despite the differences in opinions about the size of the supplier base, the major issue
remains that a closer relationship with suppliers facilitates ____________.
A. a reduced number of sales representatives
B. improved performance of all involved
C. a closer bond with supply firms
D. a reduced number of suppliers
E. JIT deliveries of needed supplies
The Internet has revolutionized ___________.
A. commodity purchasing
B. home entertainment
C. stock trading
D. manufacturing
E. retailing
There is little doubt that the system that would be most useful may not be one of the
pure systems discussed (in the textbook) but a combination of all of them. This is
particularly true because of the ________________ of the different departments of the
hospital.
A. people and personalities
B. complex and various needs
C. make-up
D. goals and objectives
E. mission
Supply chain partnerships bridge the barrier between buyer and seller, leading
manufacturers to ________________.
A. share more information with their suppliers
B. ally with a reduced supplier base
C. ally with an improved supplier base
D. choose suppliers more wisely
E. choose suppliers more carefully
It is not enough to set as an objective to negotiate a percentage improvement from the
seller’s original price proposal. The buyer should never reveal (his/her) objectives
to the seller. The negotiation’s objectives should also use a data driven approach to
determine minimum and maximum pricing strategies.
A. True
B. False
Ultimate dissolution of the partnership may be necessary if the firms are able to
successfully work through the critical steps of partnership formation or synergies can be
recognized.
A. True
B. False
Oral contracts occur everyday. However, oral contracts have no place in the
professional purchasing arena. If a supplier refuses to perform, there is
______________ for the buyer.
A. limited recourse
B. no recourse
C. legal recourse
D. small claims court
E. professional help
Some of the tasks involved in a typical complex project are given below:
•Labor productivity, or effectiveness, should be tracked for each of the direct labor
accounts.
•Schedule control is essential to the success of any complex project.
•Major projects are a complex effort to mobilize and coordinate large numbers of
personnel, materials, and equipment.
A. True
B. False
The absence of ______ of the components mentioned in the previous question results in
an unenforceable agreement in a court of law.
A. all
B. two
C. any
D. three
The _________ stage also will identify mismanagement and flaws in the process. If the
process has been unsatisfactory, it should be revised or replaced.
A. audit
B. budgeting
C. decision
D. implementation
E. purchasing
Time pressure in psychological experiments has been exerted in various ways:
•High or low probability that the present round of offers would be the last.
•Warning that time was almost up.
•Number of offers remaining before penalties for additional offers.
•Cost of each of the trial offers.
A. True
B. False
Outsourcing can be defined as the ___________ transfer of a business process that has
been traditionally ________________ internally to an independently owned external
service provider.
A. partial / owned and supported
B. complete / operated and managed
C. first / supervised
D. business / owned and managed
E. process / owned and supervised