The average rate of return is the average cash flow after tax ________ the initial
investment: The ARR is the most popular evaluation criterion used today.
A. subtracted from
B. divided by
C. multiplied by
D. added to
____________ occurs between all forms of human groupings including individuals,
groups, organizations, and countries.
A. Communicating
B. Trading
C. Bargaining
D. Swapping
E. Organizing
_____________ gives a firm more control over the part in question. However, the
greater the percentage of internal parts an assembly firm produces, the greater their
need to have ___________ in each of the areas involved.
A. Horizontal integration / competence
B. Vertical integration / competence
C. Vertical integration / good people
D. Horizontal integration / diversity
E. Vertical integration / diversity
Implementation of the JIT philosophy requires a _________ change in the organization.
A. major
B. minor
C. management
D. design
E. cultural
The _______________ system is the process where a hospital’s prime suppliers
manage product purchasing, storage, delivery, and inventory control of medical/surgical
supplies used in the hospital. ______________ systems have the potential to reduce
redundant activities in the system, the investment by the hospital in inventory, the
storage space required, and the handling functions.
A. positive inventory / Positive inventory
B. managed inventory / Managed inventory
C. just-in-time ordering / JIT
D. stockless inventory / Stockless inventory
E. managed ordering / Managed ordering
An organization driven by a JIT philosophy can improve _________________ by
reducing inventory levels, reducing variability, improving product quality, reducing
production and delivery lead times, and reducing setup costs.
A. profits
B. return on investment
C. dividends
D. “A†and “Bâ€
E. “B†and “Câ€
In the end, the buying firm must determine whether the purchase price fits its
competitive cost structure. This is called ____________. If the _________ is too low to
generate interest from suppliers, it may be necessary for the buyer to consider applying
a value analysis approach to the product in question.
A. discount pricing / discount price
B. market pricing / market price
C. competitive pricing / competitive price
D. target pricing / target price
E. cost analysis / discount price
___________ are all other expenditures, sometimes referred to as hidden costs.
A. Flexible
B. Unnecessary
C. Indirect costs
D. Unexpected
E. Unbudgeted
Each business unit and department should have a clear understanding of the ________
of the whole firm and have a departmental _________ that complements and aids the
overall __________ execution of the firm.
A. goals / plan / strategy
B. strategy / plan / goal
C. strategy / strategy / strategy
D. strategy / plan / strategy
E. plan / plan / strategy
The buyer must be careful not to compromise the economies of his or her firm’s
___________.
A. reputation
B. cost structure
C. strategic plans
D. production line
E. buying power
The _______ cycle has some important characteristics. First, an _______ cycle has
“length.†The distance between supplier and customer determines, in part, how long
it takes to transmit data and transport materials.
A. order / order
B. entry / entry
C. production / production
D. requisition / requisition
E. communications / communications
The classical EOQ model assumes that the per-unit material price is fixed. The quantity
discount condition _______________ the total cost curve.
A. supports
B. validates
C. enhances
D. lowers
E. invalidates
There are standard procedures for processing RFPs. After receipt of the initial
proposals, the proposals should be screened for responsiveness in terms of ________.
A. technical quality and managerial capability
B. financial stability
C. experience on similar projects and other relevant criteria
D. all of the above
E. “B†and “C†only
Tariff rates in ______________ countries are typically less than 10 percent but can be
much higher for _________________ nations and for certain products such as
agriculture. These environmental parameters may be highly dynamic, requiring analysts
to be “on the ground†and well connected to develop a deep understanding of the
_______________.
A. developed / lesser-developed / evolving environment
B. lesser developed / developed / evolving environment
C. developed / lesser developed / evolving business climate
D. lesser developed / evolving / local customs
E. developed / lesser developed / target country
It is important to first understand the two broad purchasing categories of purchasing
materials, goods, and services in order to fully appreciate the role of e-purchasing.
The two major purchasing categories are __________ and _________ materials.
A. direct / indirect
B. custom / common
C. regular / irregular
D. hard / soft
E. finished / raw
Quotations as a result of this RFQ are enforceable. It must be made clear to the
________ that any _______ that submits an offer without this guarantee will not be
considered.
A. buyer / vendor
B. vendor / buyer
C. supplier / supplier
D. supplier / buyer
E. principal / principal
Some of the tasks involved in a typical complex project are given below, with one
exception. Which one is not an appropriate task?
A. Apprise contractors and managers of the information early so that actions can be
taken to achieve economies.
B. Determine total cost of a laborer.
C. The productivity must be maximized.
D. The field manager must properly balance the indirect costs to achieve the maximum
level of efficiency.
E. Determine the amount of union dues.
_______________ and ______________ are necessary in order to keep costs down and
create trust with strategic suppliers.
A. Quality circles / just-in-time delivery
B. Regular meetings / continuous two way communications
C. Cost reduction / continuous process improvement
D. Management by objectives / two way communication
E. Staff awareness / regular quality meetings
The ____________ is actually the average distance a normal point is from the mean.
Thus, the ____________ represents a more tractable measure of the variance.
A. common deviation / common deviation
B. standard deviation / standard deviation
C. quality variance / quality variance
D. matrix deviation / matrix deviation
E. standard allowance / standard allowance
In any purchasing organization, two major problems must first be considered:
1> The first issue has to do with where the purchasing function should be located in the
organization.
2> The second issue is, what level of authority should the purchasing function have?
Given the evolution of outsourcing, the purchasing function is expected to lose
authority in the corporate hierarchy
A. True
B. False
LF – latest finish time can be defined as:
A. equal to the earliest start time for the activity plus the time required to complete the
activity.
B. the earliest time at which the activity can start given that its precedent activities must
be completed first.
C. equal to the earliest start time for the activity plus the time required to complete the
activity.
D. equal to the latest finish time minus the time required to complete the activity.
A commercial signature must be linked to the data message being signed, in such a
manner that if the message is changed the signature is invalidated. Such a linkage may
be regarded as a crucial requirement for a commercial signature, since otherwise the
signature could be simply excised from one data message and pasted onto another.
A. True
B. False
Scheduling flexibility prevents confusion in the manufacturing plant and offers unique
_____________ to manufacturing firms since they are capable of adapting to changes
in the environment more quickly.
A. opportunities
B. strengths
C. opportunities and advantages
D. competitive opportunities
E. competitive advantages
The general uncertainty associated with the ______________ makes offshore sourcing
a risky proposition.
A. government regulations
B. business cycle
C. exchange rate
D. tariffs
E. taxes
Negotiation should be used any time the buyer does not have confidence in the
__________ price lists and competitive bidding seems unreasonable.
A. catalogue
B. standard
C. trade
D. direct
E. discount
_________ is the amount of time that an activity can be delayed past its earliest start or
earliest finish without delaying the project.
A. Slack
B. Sack time
C. Compressed time
D. Best time
E. Crash time
The transportation between the buying and selling firm is usually considered as part of
the price. The __________ terms formalize the responsibilities of the buying and selling
firm for delivery of the goods.
A. contract
B. formal
C. delivery
D. shipping
E. receiving
In most cases, large multidivisional firms like IBM, Ford, and General Motors usually
establish a set of ___________ based on the overall corporate missions.
A. rules
B. procedures
C. guidelines
D. short range plans
E. systematic policies
The most important attributes (of customer service) should be:
1. high quality and
2. on-time delivery.
A. True
B. False
Once a partner is selected, the establishment of the actual relationship provides the
critical step in which the partners must create a complete sense of awareness about the
______________ of all involved parties.
A. strengths and weaknesses
B. goals and aspirations
C. needs and participation
D. goals and strategies
E. goals and objectives
There are two primary functions of __________ in the hospital setting:
“(1) Maximize supply service consistent with maximum efficiency and optimum
inventory investment; and (2) cushion between the forecasted and actual demand.â€
A. Buying
B. Purchasing
C. supplies
D. inventory
E. technology
One of the most influential factors in _______________ decisions is the coordination
requirements. Perhaps nowhere is this more evident than when considering new product
or service development.
A. horizontal integration
B. strategic alliance
C. merger
D. vertical integration
E. acquisition
The following are the first five steps in the Procurement Order Cycle Standard
Procedure with the exception of:
A. Requisition material
B. Solicit bids
C. Issue a purchase order
D. Follow and expedite delivery
E. Document receipt of material
And like supply chain management, _____________ extends beyond a simple interfirm
relationship to involve integration of confidential and vital processes such as strategy
formation, planning, information flow, and operations.
A. purchasing management
B. buyer-seller management
C. buyer-supplier partnering
D. buyer-seller partnering
E. purchaser-seller relations
Some hospitals now have ___________ for patients, where a plan is made for each new
admission to a unit. These plans are outcome-driven, where certain outcomes are
expected at certain points of time during the patient’s stay. If these ____________
could be linked by computer programs to supply management, forecasting for material
needs would be more accurate.
A. PERT plans / PERT plans
B. essential treatment plans (ETP) / ETP
C. critical path plans (CPPs) / critical path plans
D. critical treatment plans (CTP) / critical treatment plans (CTP)
E. essential path plans (EPPs) / essential path plans (EPPs)