The most significant trend in the area of supply management in hospital settings is
simply the magnitude of the importance and resulting attention to efficiency and
cost-effectiveness.
A. True
B. False
A more devastating downside of ______________ is the buyer/seller relationship
damage that may result from this method of buying. The buyer runs the risk of
alienating both current and potential sources for the goods/services.
A. traditional auctions
B. silent auctions
C. eBay
D. Overstock.com
E. reverse auctions
When bargaining is moving smoothly, toughness is counterproductive. Excessive
toughness in bargaining could be a particularly bad strategy in buyer–seller
interactions where future interactions were expected. If one party always chose a very
tough stance, the other party will develop a similar approach to the bargaining
interaction. This could result in lower transaction costs, good future agreements, and,
where possible, continuance of the bargaining opponent.
A. True
B. False
The difference between the ARR and NPV methods is the timing of the various
____________ cash flows. In other words, if the __________ increases, the project
becomes increasingly more attractive.
A. EATCF / EATCF
B. AAACR / AAACR
C. EEPOD / EEPOD
D. ABTCF / ABTCF
E. ACBSP / ACBSP
Also termed a __________, a supply chain partnership is a relationship formed between
two independent entities in supply channels to achieve specific objectives and benefits,
and it is these partnerships that form the essential building blocks of _______________
management.
A. supply alliance / operations
B. strategic source / supply and operations
C. strategic alliance / supply chain
D. preferred supplier / strategic alliance
E. preferred partner / strategic
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 some items which might have come from the section
entitled, After Completion of Project. Which one(s) is/are correct?
A. Permits a review and analysis of the project as actually carried out.
B. Provides an accurate trail of expenses as budgeted.
C. Provides historical data for improving future planning and estimating.
D. All the above.
E. “A†and “C†only
___________ inventory issues will always occur when a third party (the shipper) is
involved. The problems become pronounced when offshore sourcing is used.
A. Pipeline
B. Back up
C. Reserve
D. Safety stock
E. Supply
The purchasing manager must have a clear understanding of the role of inventory in the
________ management system.
A. materials
B. supply
C. purchasing
D. distribution
E. production
Since most offshore deals require the use of a ___________ the buying firm loses the
use of funds when the ________ is established.
A. “secured credit account†/ account
B. “letter of credit†/ letter
C. “wire transfer†/ transfer
D. “letter of recommendation†/ letter
E. “credit card†/ card
Global sourcing is extremely complicated from a ___________________ viewpoint.
The total cost of sourcing is perhaps the most important variable.
A. quantitative
B. qualitative
C. financial
D. “B†and “Câ€
E. “A†and “Bâ€
The distance between the buying and selling firm is significant in terms of time zones
and physical location. Internet capabilities usually provide a partial solution.
A. True
B. False
______________ is a methodology used to determine whether to accept or reject a
batch of non-strategic components or items.
A. TQM
B. MBO
C. Quality assurance
D. Acceptance sampling
E. Zero-defects
_______ can help improve the traditional non-time-phased order-point system because
it allows the _____________ to plan requirements (raw material, component parts) to
meet the final assembly schedule.
A. PDQ / buyer
B. MAPS / production manager
C. AAR / sales manager
D. MRA / purchasing manager
E. MRP / operating manager
A strategy of _________ reciprocating both the frequency and magnitude of the other
bargainer’s concessions was found to be more effective in obtaining concessions
from the other bargainer than strategies involving _______ reciprocation.
A. occasionally / frequent
B. always / less
C. frequently / less
D. sometimes / full
E. occasionally / full
If you buy items for one-half the market price without obtaining appropriate quality,
delivery, or quantity standards, your firm would _________________.
A. have a competitive advantage
B. suffer the consequences
C. be at a strategic disadvantage
D. be rendered noncompetitive
E. be ahead of the competition
The quality level of material purchased must meet the desired objective as defined by
the firm’s competitive priorities. The _______ the acceptable defect rate, the
__________ the quality level of the material purchased.
A. lower / lower
B. higher / lower
C. higher / higher
D. lower / higher
E. more reasonable / better
There is a list of reasons why the Toyota manufacturing system may not work for all
firms. The reasons include all of the following with one exception. The exception is:
A. different management styles, and so forth
B. supplier power
C. a diverse workforce
D. cultural differences
E. geographical dispersion of suppliers
Kanban is the Japanese word for _____________.
A. card
B. container
C. computer
D. program
E. system
Selecting the incorrect _____________ mode can easily jeopardize a firm’s
operational efficiency because it may lead to higher costs and lower service levels.
A. production
B. transportation
C. financing
D. organizing
E. planning
Exclusively foreign costs are those that would not be incurred if a domestic source were
found. Examples of these costs are _________________.
A. duty charges
B. customs fees
C. import fees
D. currency exchange costs
E. all of the above
___________ price lists are usually prices generated based on the seller’s total cost
structure.
A. Discount
B. Trade
C. Standard
D. Catalogue
E. Preferred customer
Purchasing agents receive numerous offers on a daily basis and must be able to identify
complete legitimate offers. The three necessary components of an offer are:
A. Intent to make an offer / Communication of the offer intent / Identification of the
specific subject matter
B. Desire to make an offer / Submission of a proposal / Identification of the product
C. Intent to make an offer / Submission of an idea / Identification of the specific
product
D. Intent to make an offer / Communication of a price for the product / Identification of
the product
E. Desire to make an offer / Communication of the price and quantity / Identification of
the matter
Supplier performance can be measured more accurately under the __________
purchasing approach compared to the traditional one.
A. MBO
B. JIT
C. JOT
D. JOB
E. ITS
________________ involves answering three questions: (1) What adverse events could
happen? (2) What is the probability of these events happening? and (3) What is the
financial impact if these events occur?
A. Contingency planning
B. Risk mitigation
C. Loss prevention
D. Risk monitoring
E. Risk assessment
The disposal of capital equipment is becoming more complicated. The
_________________________ has developed specific guidelines for disposing of
specific types of obsolete equipment.
A. Department of Commerce
B. State Department
C. Department of Transportation
D. Environmental Assurance Agency
E. Environmental Protection Agency
As in any business concern, the functions of all departments must be consistent with the
overall mission and purpose of the business. In hospitals, the primary objective is to
provide patient care; the supply management function is in place to _____________.
A. support this objective
B. obtain the best prices on supplies
C. maintain a large inventory of supplies
D. provide supplies at low costs
E. negotiate supply contracts
When it comes to negotiations Americans can assume that the English and American
businesses operate in the same manner.
A. True
B. False
Of the items listed below which is the factor that includes the specific actions of the
bargainer during bargaining. For example: How extreme is his/her opening? Does
he/she concede frequently or infrequently?
A. Negotiating
B. Planning
C. Organizing
D. Operating
E. Bargaining strategy
Traditional inventory control methods used in manufacturing are common in the
hospital settings.
A. True
B. False
_______________ is the cost to place one order. It is incurred each time an order is
placed or part of an order is _____________________.
A. Order cost / back ordered
B. Order cost / scheduled for delivery
C. Finished cost / back ordered
D. Order cost / delivered
E. Total cost / scheduled for delivery
A bargaining situation can then be defined as an interaction where parties with certain
disagreements confer and exchange ideas about a possible solution until a compromise
is reached or the bargaining is terminated. This is referred to as ______________.
A. standard bargaining
B. implicit bargaining
C. routine bargaining
D. explicit bargaining
E. fail safe bargaining