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 individual wanting to import goods into the United States will have to
work with the Export Administration (EA) of the U.S. Department of Commerce.
Several steps that (a company needs) to be aware of are the following:
1. Determine whether the item (s) in question is subject to the exclusive jurisdiction of
a State agency.
2. Determine if the technology or software is privately available.
3. For an item in a foreign country, the cost of the item must be determined.
4. For items made in a foreign country, determine whether it is a decontrolled item in
the US.
5. Determine whether the foreign made item is subject to selective prohibition.
A. True
B. False
Since materials constitute the largest single percentage of their purchasing dollars,
_____________ firms have turned to professionally operated purchasing departments to
make sure they are getting full value for their outlays on materials.
A. service
B. manufacturing
C. profit oriented retailing
D. results oriented
E. retailing
The law [Electronic Signatures in Global and National Commerce Act (ESGICA)] will
allow businesses to satisfy their obligation to provide legally required notices to buyers
and sellers by sending notices electronically, once respondents provide consent for such
online communication.
A. True
B. False
It is no easy task for management to decide to __________________ component parts
and services.
A. make
B. lease
C. buy
D. all of the above
E. “A†and “C†only
The CPM establishes:
A. The quantity of work for each activity.
B. The startup and sequence or order in which the work or the activity is to be done.
C. The rate at which the work will be performed to reach completion.
D. All of the above
E. “B†and “C†only
Effects on future financing. Leasing versus purchasing can also obligate cash needed for
other purposes or alternative projects.
A. True
B. False
Implementing TQM requires the following:
•Defining the _______.
•Identifying systems ________.
•Identifying __________.
A. vision / inputs / suppliers
B. objectives / processes / clients
C. mission / output / customers
D. vision / weaknesses / stakeholders
E. goals / strengths / shareholders
The production-inventory taxonomy is based on _____________ producing
standardized products through an assembly line, while ____________ are used to
produce non standardized products through a job shop.
A. continuous systems / intermittent systems
B. intermittent systems / continuous
C. continuous systems / sustainable systems
D. robotic systems / intermittent systems
E. continuous systems / computer assisted systems
Recognizing partnerships between buyer and supplier, as a fundamental driver for the
success of the Pacific Rim supply chain processes, American firms have begun to
_______________.
A. become more competitive
B. operate like Pacific Rim companies
C. use the same processes
D. emulate these supplier alliances
E. improve relationships with suppliers
The ____ lacks the ______ component. When the _______ component is missing, the
document is merely an invitation to bid.
A. PDQ / intent / intent
B. RFQ / extent / extent
C. RFQ / intent / intent
D. RQC / offer / offer
E. RQC / extent / extent
The buying firm must consider its total cost of accepting a quantity discount.
Specifically, the ___________ associated with carrying larger quantities must be
compared to the expected benefit of the discounts.
A. direct costs
B. indirect costs
C. holding costs
D. transportation costs
E. cash outlay
Reverse auctions should be used to gain market information (new suppliers, prices, new
methods, etc.) and should be used as a routine sourcing method.
A. True
B. False
There is also strong rate competition between owner-operators engaged in exempt
commodity movements and railroads. Most of the owner-operators compete on a
______ basis.
A. deregulated
B. regulated
C. differentiated
D. reliability
E. cost
Many of the items necessary in the operation of hospitals are___________ purchased
items. However, there are items that are produced in the hospital setting for which the
supplies follow a ______________ pattern and the inventories supporting these
functions are essentially raw materials used in production.
A. independently / on-demand
B. critical-demand / non-critical-demand
C. independent-demand / dependent-demand
D. essential-demand / non-essential-demand
E. locally / JIT
Many organizations in the ____________, especially those offering transportation,
financial, and communication services, have encountered changes in their regulatory
environment and in their technological structure. These changes have opened up new
global markets but, at the same time, forced ____________ to determine ways in which
to remain competitive or they would cease to exist.
A. industrial sector / industrial industries
B. regulatory sector / regulatory sector
C. TFC sector / TFC industries
D. performance sector / performance industries
E. service sector / service industries
For long-term relationships to work, it initially requires _________________ from both
parties. Although these longer term relationships can bear significant benefits for the
customer and service provider, the road will not always be a smooth one.
A. a strong commitment
B. a strong communications system
C. a good understanding of each other
D. a meeting of the minds
E. a pledge to work together
For the buying firm manager, specific communication strategies should be designed
into their ______ efforts. The program should be formalized with routine
communication; incorporate supplier training, education and site visits to add in the
learning process; and provide opportunities for feedback to clarify program objectives
and improvement suggestions.
A. SOP
B. MOD
C. POS
D. SDP
E. PODS
_________ means setting the specifications for a material or product. Specifications
result in the _______________ characteristics of the product.
A. Development / functional
B. Engineering / standard
C. Design / standard and functional
D. Design / functional and aesthetic
E. Development / standard and aesthetic
These average prices are misleading when selecting one mode over another. However, it
is safe to suggest that, in general, _______ rates are lower than _____ rates on small
shipments and on high-valued commodities.
A. air / truck
B. water / rail
C. truck / rail
D. truck / water
E. air / rail
_____________________ seek to obtain the highest-quality merchandise at the lowest
possible purchase cost for their employers.
A. materials managers
B. Buyers
C. Purchasing agents
D. all the above
E. â€B†and “C†only
Outsourcing initiatives must ___________. The type of management and relationship
skills and capabilities must be developed through training and/or recruitment within the
outsourcing organizations.
A. create value
B. create profits
C. reduce costs
D. improve quality
E. create turnover
The United Kingdom’s GNP is $490 billion. Their monetary unit is the Crown
Royal. Typical trading partners include the United States, Germany, and other countries
in the European Union (EU). Exports include machinery, transportation equipment,
petroleum, and other manufactured goods.
A. True
B. False
Operating cost in hospitals has become extremely important as the reimbursement
system is no longer based solely on cost. In the mid-1980s, a system of reimbursement
based on specific _______________ was instituted. Under the ______ system, the
hospital is reimbursed a flat rate based on a patient’s _________ regardless of the
associated costs.
A. flat fee schedules (FFS) / FFS / ability to pay
B. flat fee schedules (FFS) / FFS / insurance company
C. diagnosis related groups (DRG) / DRG / diagnosis
D. diagnosis related fees (DRF) / DRF / insurance group
E. insurance related fees (IRF) / IRF / insurance provider
Conformance to specification is the ________ to which material conforms to
specifications.
A. standard
B. level
C. degree
D. process
E. measure
_____ purchasing is concerned with critical maintenance and replacement parts, highly
engineered machine parts, and manufacturing equipment..
A. MRO
B. ORM
C. CCM
D. MBO
E. DOP
In addition, large buying organizations increasingly are demanding that their suppliers
become certified through third-party organizations, such as ____________ certification
or _______________ National Quality Awards.
A. ISO 0900 / Malcolm Jones
B. UFO 1000 / Mayfield
C. POS 2001 / Malcolm Baldrige
D. ISO 9000 / Malcolm Baldrige
E. ISO 9000 / Mae Baldrige
Rule One (1) of the dual card kanban is: No parts are made unless there is a production
kanban to authorize production. If no production kanban are in the “in box†at a
work center, the process remains idle, and workers perform other assigned activities.
This rule enforces the “pull†nature of the process control.
A. True
B. False
The internal rate of return rule is to accept the investment project if the opportunity cost
of capital is less than the internal rate of return. If the cost of capital is equal to the IRR,
the project has zero NPV. On the other hand if the cost of capital is greater than the
IRR, the project has a negative NPV. The IRR will give the same answer as the NPV.
The IRR is defined as the discount rate that will make the NPV of the project equal
zero.
A. True
B. False
The buying firm should have various review categories that are used in order to fully
assess their strategic suppliers. Quantity is a very important review category. Customer
service should be expected to be good and timely.
A. True
B. False
The net incremental cash flows should be measured. The ________ life of the project
versus the _________ life of the project also must also be considered.
A. useful / economic
B. economic / physical
C. mechanical / financial
D. financial / useful
E. useful / financial
Conflict can be defined as “tension between two or more social entities… which
arises from _______________________.â€
A. mutual distrust between all the parties
B. incompatibility of actual or desired responses
C. a difference of opinions or desires
D. a difference in core values
E. one party taking advantage of the other party
The ____________ approach to manufacturing process control is to select production
samples and compare the attributes of the sample to the specifications.
A. progressive
B. current
C. MBO
D. traditional
E. most effective
Purchased parts include semi finished items that will be further processed and finished
materials that will become components of finished end items. The usual way of
specifying purchased parts in a manufacturing environment is with a graphic description
that is, engineering drawings.
A. True
B. False
The decision of the purchasing manager affects not only the purchasing function but
other materials functions. It is the objective of ISM to manage the related
considerations. Purchasing should consider _______________________ of its
decisions.
A. the non-purchasing consequences
B. all the global consequences
C. only the purchasing consequences
D. only the direct consequences
E. none of the consequences