In collaboration, the two organizations truly realize the benefits of working together to
optimize outcomes for both organizations. The two firms work together to develop a
___________ to deliver a high-quality product or service on time and under budget.
A. process
B. program
C. strategy
D. plan
E. goal
The subset of _______ optimal joint strategies offering each player at least his/her
security level is called the negotiation set (contract curve).
A. Parmer
B. Palmer
C. Nash
D. Martín
E. Pareto
Intensive price competition and information technology have led to the implementation
of a ______________ procurement approach for commodity components.
A. reverse auction
B. progressive
C. standardized
D. staple
E. multiple source
_____________ include materials, labor, and subcontract expenditures associated with
the actual implementation.
A. Expected costs
B. Budgeted costs
C. Necessary costs
D. Direct costs
E. Fixed
The advent of supply chain management has led to a more complicated operating
environment. Not only does the individual firm have to maintain its ____________ , the
entire supply chain must be __________.
A. competitive edge / competitive
B. quality / flexible
C. technological edge / cutting edge
D. market share / competitive
E. quality / cost conscious
A (n) ____________ system is one in which inventory is checked (theoretically) on a
perpetual basis after each inventory transaction. When the inventory is withdrawn to a
point at which there is just sufficient material to cover the demand during the
replenishment lead time, an order is initiated for a ___________.
A. predetermined order (PO) / two-week’s supply
B. managed inventory supply (MIS) / month’s supply
C. essential order supply (EOS) / minimum order quantity
D. fixed order quantity (FOQ) / fixed quantity
E. maximum inventory level (MIL) / maximum quantity
Though ___________ has received abundant recognition over the last few decades from
both researchers and practitioners alike, the concept of a __________ is perhaps as old
as or even older than business itself.
A. buyer relations / partnering
B. partnering / relationships
C. partnering / partnership
D. strategic partners / buyer-seller relations
E. partnering / buyer-seller partnerships
Planning must be done before performing any function. A schedule is a time-phased
plan. The principal uses of schedules in the implementation process are outlined in the
textbook. The list below contains items from the section entitled, Before Starting
Project. One does not belong. Which one is incorrect?
A. Forms the basis for management to issue instructions to subordinates.
B. Establishes the planned rate of progress.
C. Identifies the expenses associated with the use of manpower, materials, and
machines.
D. Establishes the planned sequence for the use of manpower, materials, machines, and
money.
E. Provides an estimate of the time required for each portion of the project as well as
for the total project.
The parties in __________ bargaining are in basic conflict and competition because of a
clash of goals: the more one party gets, the less the other gets.
A. standard
B. routine
C. distributive
D. fail safe
E. common
In many cases, most Fortune 500 firms use a variety of transportation modes depending
on their aggregate transportation needs. The “model split†is usually determined by
cost pressures, the packaging, the final shipment destination, and competitive trucking
firms.
A. True
B. False
In general, __________ is stored capacity.
A. stock
B. inventory
C. assets
D. overtime
E. second and third shifts
A healthy long-term relationship between suppliers and manufacturers is becoming
more and more important and can result in ___________________.
A. improved customer service
B. improved product margins
C. improved profit margins
D. better quality products
E. reduced transaction costs
Since ______________ (is) are critical in achieving a competitive advantage in
today’s global business world, manufacturers gain immensely by implementing the
_____ production control system.
A. low prices / JIT
B. low costs / JOB
C. high-quality products / JIT
D. quality products / MOB
E. satisfaction / MBO
In cases where significant demand or uses already exist for a particular piece of
equipment, the purchase of new equipment is appropriate. The technological advantages
of new equipment also may increase productivity in these situations.
A. True
B. False
The __________ of transportation services is determined in two ways, depending on
whether federal regulation applies.
A. development
B. scheduling
C. structure
D. pricing
E. supervision
________ now requires their top 100 suppliers to use RFID technology in shipping
cases and pallets. Before this announcement, everyone questioned whether RFID
technology really worked and offered competitive advantages, or whether it was all just
hype.
A. The U.S. government
B. Kmart
C. Walgreens
D. Target
E. Wal-Mart
There are also some risks when using EDI that should be considered. Which of the
following should be considered when using EDI?
A. The machine and training cost will add up to a large amount and cutting corners may
cost a company more than it saves.
B. Security is also an issue Procedural safeguards have not kept up with technology in
this area.
C. The problem is exposure to outside users, which opens up a doorway to false
messages These messages may come in the form of a person who is not a supplier
sending data or the data being interrupted and/or altered.
D. A decision must be made whether to trade singularly through EDI or use both EDI
and traditional methods
E. all of the above
The reliability of supply is a critical consideration in the selection of _______ suppliers.
A. key
B. all
C. MOB
D. JIT
E. JOT
__________ is needed to cover the demand during the replenishment lead time in case
actual demand is greater than expected demand.
A. Lead time stocks
B. Random stocks
C. Safety stock
D. Warehouse stocks
E. Safety orders
SPC uses two control charts to ensure quality in manufacturing: the sample mean
(X-bar) chart and the sample range (R) chart. The control chart limits are established for
X-bar and R charts based upon tolerances set during the design stage of the product. In
most cases, problems are ________________ before any ___________ parts are
produced, thus reducing scrap and rework.
A. diagnosed and resolved / substandard
B. identified / faulty
C. solved / defective
D. identified / new
E. fixed / defective
_________________ is a stockless inventory method for ordering and stocking MRO
and related items. The use of ________________ will aid the firm in reducing ordering
and inventory costs.
A. Purchase Order Systems / Purchase Order Systems
B. Systems procurement / systems procurement
C. Materials contracting / materials contracting
D. Systems contracting / systems contracting
E. Contracting systems / contracting systems
In a recent study, executives categorized their outsourcing activities. Table 9.1 in the
textbook illustrates the diverse set of outsourced activities that were reported on. Not
surprisingly, information technology outsourcing (ITO) represented the largest number
of responses at 25.8 percent. Approximately 35 percent of the responses represented the
outsourcing of some type of manufacturing activity, with the remainder being
_________________.
A. business practices administration (BPA)
B. business process outsourcing (BPO)
C. business accounting technology (BAT)
D. business owners administration (BOA)
E. business technology administration (BTA)
Performance may be defined as the ability to ________________.
A. execute intentions and goals
B. meet goals and objectives
C. attain goals and meet expectations
D. meet expectations and execute strategies
E. execute plans and meet profit goals
By definition, the price in ____________ is driven down by __________, so if only
limited competition exists, then the price will not __________ enough to save the buyer
a substantial amount of money.
A. reverse auctions / competition / decrease
B. traditional auctions / competition / decrease
C. reverse auctions / competition / increase
D. traditional auctions / participation / increase
E. reverse auctions / participation / decrease
The _____ step in the make-or-buy decision is to understand the strategic importance
(value) of the activity or system.
A. second
B. fourth
C. first
D. fifth
E. third
Single sourcing advocates may want to address the following issues regarding
long-term impacts of single sourcing. In the long-run, if everyone reduces their supplier
base, there will be fewer suppliers to deal with and overall competition will decrease as
there are fewer suppliers. A supplier consolidation will give suppliers less power in the
long run.
A. True
B. False
___________ suppliers are those that are most important to the buying firm. They
supply the buying firm with essential materials and capabilities that are not easily
replaced.
A. Standard
B. Preferred
C. Strategic
D. Competitive
E. Collaborative
Organizations continuously __________ in order to attract customers and increase
revenues and market share with products and services.
A. innovate
B. advertise
C. expand
D. lower prices
E. improve quality
___________ is defined as: Items for which stockouts are allowed at all levels.
A. Facility-location urgency
B. No urgency
C. Use-location urgency
D. Metro use-location urgency
E. Regional-location urgency
The _______ question should be raised when quotations are requested. This approach
gives the supplier equal opportunity to consider the risks before quoting.
A. firm price
B. delivery terms
C. quality
D. firm offer
E. just-in-time
Price reflects more than cost and profit; pricing decisions also must be based on the
degrees of competition and buyer–seller relationships. According to the textbook the
competitive pressures of price also must consider which of the following?
A. the number of sellers in the market
B. the number of buyers in the market
C. the general economic environment
D. all of the above
E. “A†and “B†only
The _____________ process requires the use of a negotiated agreement between buyers
and sellers.
A. systems contracting
B. systems procurement
C. materials contracting
D. contracting systems
E. Purchase Order Systems
Although many firms engage in partnering activities, the specific interpretation of a
___________ or partnership is at best vague.
A. strategic relationship
B. buyer-seller alliance
C. buyer-seller partner
D. buyer-seller relationship
E. strategic alliance
Progress curves are useful tools when a project is under way. Progress curves:
•Monitor progress. You can immediately see what should have been achieved at a
point in time.
•Allow you to see how proactive action may keep the project on course.
A. True
B. False