A Harvard Business School study concluded that a key driver in the decline of U.S.
competitiveness in the international marketplace has originated from investing
_______________, such as supplier relations.
A. more in tangible benefits
B. less in tangible benefits
C. less in intangible benefits
D. more in intangible benefits
E. none of the above
A report by Cranfield University to the Department for Transport in England recognized
outsourcing as one of the key factors driving increased levels of ____________. The
idea of ______________ should underlie all of the previously discussed cost categories.
A. insurance / insurance management
B. losses / loss prevention
C. shrinkage / shrinkage prevention
D. supply chain losses / preventing losses
E. supply chain risk / risk management
The findings by psychologists can be categorized under six areas, each representing a
major factor assumed to affect bargaining. Listed below are five of the six areas.
However, one is incorrect. Which one?
A. General bargaining predispositions
B. Social relationship with the opponent
C. Situational factors
D. Bargaining system
E. Social relationship with significant others
With the movement toward high customer service, ________ (has/have) become an
integral strategic weapon for firms that compete on a fast-delivery, low-inventory
strategy.
A. air cargo
B. trucking
C. rail carriers
D. water transport
E. UPS
The market approach to pricing is more erratic simply because the supplier, through the
use of market research, collects information on its __________ and from their
___________ to determine where the price should be pegged.
A. markets / suppliers
B. customers / research
C. expenses / sales representatives
D. competitors / customers
E. web site / sales representatives
Submitting rate quotations to __________ involves a complex process. The complexity
is the result of the millions of different commodities that are shipped, but also the
numerous origins and destinations over which these commodities might move, as well
as alternative routes that might be used in moving between any two specific
origin-destination combinations.
A. buyers
B. carriers
C. traffic managers
D. shippers
E. suppliers
Partnerships move beyond special influence transactions by involving efforts of both
firms to coordinate functional activities. The three tiers listed below show how
partnerships can be segmented based on the intensity and duration of the leadership.
Tier I partnerships entail short-term, single-function/division coordination.
Tier II partnerships extend coordination to integration and encompass multiple activities
over a longer time span.
Tier III partnerships dilate into “significant levels of operational integration.â€
A. True
B. False
The way in which the process of developing and implementing an EDI system is
managed can greatly influence the success of implementation. Four key areas are:
A. top manage support, knowledge of the project, evaluation, and institutionalization.
B. top management support, commitment to the project, influence, and
institutionalization.
C. middle management support, commitment to the project, evaluation, and
institutionalization.
D. middle management support, knowledge of the project, influence, and
institutionalization.
E. top management support, knowledge of the project, commitment, and influence.
Indirect purchasing can be divided into two categories:
A. operations repair management and management of resources and operations
B. organizational resources management and management of repairs and operations
C. organizational repairs and maintenance / management of resources and organization
D. organizational resource management / maintenance resources and operations
E. operating resource management and maintenance repair and operations
In general, one can think of __________ coordination costs as those overhead expenses
incurred solely due to the decision to _________ source a product or service.
A. internal / externally
B. external / internally
C. external / externally
D. management / internally
E. internal / internally
___________ of the process by the supply manager/purchasing department makes
certain that there is only one source of strategic ____________ for the entire firm. This
method also ensures that the purchasing department is knowledgeable about all strategic
_________ and aware of how they are rated by each function.
A. Management / seller profiles / partners
B. Ownership / supplier profiles / suppliers
C. Ownership / buying standards / suppliers
D. Management / supplier standards / suppliers
E. Ownership / supplier standards / partners
The _________ suppliers usually get a small volume of business and do not have a
close working relationship with the manufacturer.
A. backup
B. key
C. preferred
D. local
E. national
In most cases, the best place to apply electronic procurement is in circumstances where
___________________ and ___________________, especially when developing new
products or technologies.
A. there is a casual relationship / a significant number of vendors are available
B. a very close business relationship must be established / ongoing cooperation is
needed with suppliers
C. a close business relationship exists / a limited number of suppliers exists
D. a close business relationship exists / ongoing cooperation is needed
E. there is a casual relationship / cooperation is needed among suppliers
____________ promotes the effective use of purchasing professionals because it allows
the materials manager more authority and credibility.
A. Centralized Decentralized purchasing
B. Coop purchasing
C. Mass purchasing
D. Decentralized purchasing
During the transition period, firms incur additional costs related to internal staff
providing _______________. There is usually lower efficiency and effectiveness at the
beginning of the contract.
A. additional resources
B. advice and assistance
C. additional support and duplicate resources
D. duplicate services
E. training and advice
At (the financial plan analysis) stage, a comprehensive comparison of the selected
alternatives is performed. The planned project selections are then measured against the
initial company _____________.
A. wants and needs
B. goals and objectives
C. short term plans
D. long term plans
E. strategic plans
When supply management costs become more ________, their control becomes more
_________.
A. visible / effective
B. expensive / imperative
C. detailed / necessary
D. visible / feasible
E. expensive / feasible
If the lessor assumes the costs of maintenance, insurance, and taxes, it will usually pass
the expense to the lessee in the form of increased lease payments.
A. True
B. False
The final selection is usually based on the accept-reject decision. The __________ may
be based on the cost of capital, the opportunity cost, and other conceptual standards.
A. current rate
B. profitability rate
C. investment rate
D. hurdle rate
E. rejection rate
__________ relationships are commonly found within a buying organization’s
preferred/tier-____ service providers and suppliers list.
A. Collaborative / three
B. Competitive / four
C. Counterproductive / two
D. Cooperative / two
E. Counter-cooperative / two
Given the complexity of the buying decision, the purchasing professional must be
prepared to analyze each significant buying situation on the basis of the
___________________ of various buying decisions.
A. technological impacts
B. conceptual and the economic impacts
C. competitive impacts
D. economic and competitive impacts
E. productivity and economic impacts
Buyers typically buy items for_________.
A. their employers
B. resale
C. their organizations
D. use in production
​E. specific customers
_______ has evolved as a novel manufacturing concept based on a philosophy of trust
and commitment of the entire organization. The benefits of implementing a _____
system impact all entities involved in supply-chain management.
A. JIT / JIT
B. JST / JST
C. GOP / GOP
D. JOB / JOB
E. ITS / ITS
Six sigma suppliers focus on three things. Which of the following is not one of those?
A. defects per million units as a standard metric
B. provision of employee pay for performance
C. the reduction of non-value-added activities
D. All of the above are correct
Only organizations that are diligent about understanding and avoiding the pitfalls of
_______________ outsourcing and that apply total business-outcome-focused
outsourcing will be successful.
A. international
B. external
C. cost focused
D. quality focused
E. price reduction
In today’s business environment, when sound money management is so important,
selling firms will offer ________ discounts if payments for goods and services are
promptly remitted.
A. seasonal
B. cash
C. quantity
D. trade
E. rebates and
Whatever the appeal and promise of integrated supply management, achieving
integration is a challenge. The decisions of a ___________________________ manager
may maximize utilization of production equipment, yet poorly serve the requirements
of the ______________ manager.
A. operations-production control (OPC) / financial
B. production-inventory control (PIC) / marketing
C. operations production control (OPC) / plant
D. inventory control / plant
E. plant / marketing
Deregulation has allowed the railroad carriers to integrate into ________________.
A. more competitive markets
B. other markets
C. other modes of transportation
D. more competitive rates
E. more diverse markets
The __________ method is probably the most commonly used evaluation method.
A. cost averaging
B. categorical
C. performance
D. process
E. linear averaging
Each buying firm must specify in detail the agreed-upon quality targets. As an example,
at a minimum, the following four issues should be addressed in any purchasing
contract:
•PPM target agreement
•Field failure and reliability requirements
•Warranty agreement
•Urgency to solve problems
A. True
B. False
From time to time, buying firms receive discounted price schedules from their
suppliers. This usually means that the price per unit is lower if larger orders are
purchased. It _____________ to the buyer’s advantage to accept the quantity
discount.
A. may be
B. may not be
C. is
D. may or may not be
E. could be
A commonly cited source of financial benefit from outsourcing is the vendor’s
better ______________.
A. quality
B. cost structure
C. expertise and knowledge
D. economies of scale
E. quality and technology
A counteroffer is __________ if it contains the components that institute an offer.
A. good
B. to be considered
C. to be accepted
D. legally binding
E. agreeable
A ________ method can easily be used for determining the minimum cost order
quantity.
A. simple
B. complex
C. three-step
D. four-step
E. five-step
The nature of demand is perhaps the most important attribute. The nature of demand
can be either ___________ or ___________.
A. stable / unstable
B. increasing / decreasing
C. independent / unstable
D. independent / dependent
E. increasing / dependent