A supplier secures a bonding company to guarantee that the supplier will enter into a
contract if they are awarded the contract. A ____ bond enlists a ______ party into the
transaction.
A. government / second
B. municipal / third
C. savings / governmental
D. bid / another
E. bid / third
There are some instances where the supplier will employ short-term strategic pricing in
order to _______________.
A. gain a competitive advantage
B. increase market share or increase sales
C. gain a competitive advantage or close out obsolete items
D. close out discontinued items
E. gain market share or dump unwanted items
Today, _____________ is critical to an institution’s financial health. Better supply
management practices must be implemented in order to ensure appropriate service
levels in the new _______________ environment.
A. cost containment / cost containment
B. gross margin / gross margin
C. competitive pricing / competitive
D. profit / insurance
E. national health care / governmental
If a firm can generate nearly equal financial improvement through internal efforts as
would be realized with outsourcing, then the business case may need to be called into
question. According to a Deloitte study, many organizations could realize incremental
savings on the order of _________percent of direct labor from implementing innovative
programs such as lean production.
A. 10 to 20
B. 30 to 50
C. 20 to 30
D. 35
E. 25
The health care industry is expected to grow and consume even a greater share of GNP
in the next few years. At the same time, many health care organizations will be driven
from the market because of ______________. This radical shift is the result of
_____________________.
A. poor management and increased competition / increasing health insurance costs and
government regulation
B. uncontrollable salary costs and increased insurance costs / declining profits and
governmental deregulation
C. uncontrollable non salary costs and declining profits / increased price competition
and the regulatory environment
D. uncontrollable expenses / governmental deregulation
E. increased competition / increased price competition
Because of ____________ and frequent delivery schedules, suppliers are in a position
to receive quick feedback regarding any potential manufacturing or design problems.
Also, manufacturing is in a position to implement engineering changes quicker because
of the _________ inventory levels.
A. large orders / increased
B. computerization / flat
C. smaller orders / increased
D. computerized ordering systems / reduced
E. smaller lot sizes / reduced
A few countries, notably ______________, are often targeted as the ones that are
displacing American workers by offering cheap labor.
A. Japan and China
B. South Korea and China
C. South Korea and Taiwan
D. India and Japan
E. India and China
Thus, a kanban system is referred to as a __________ because the kanban is used to
______ parts to the next production stage only when they are needed.
A. push system / push
B. pull system / pull
C. traditional system / ship
D. traditional system / transfer
E. pull system / push
Some supply managers argue that implementation of many new manufacturing
techniques necessitates _______________________.
A. a reduction in the number of suppliers
B. choosing suppliers more carefully
C. switching to multiple supply sources
D. negotiating delivery terms more favorable to the company
E. insisting on JIT deliveries
As EDI really takes hold and international EDI becomes more commonplace a major
stumbling block will be overcoming the language barriers that now exist. The most
widespread EDI language in the United States is _________________
A. EDIFACT standard
B. EDIFACT X10 standard
C. ANSA X12 standard
D. ANSI X12 standard
E. ODETTE
______________ are net economic benefits generated by an investment project.
A. Gross cash flows
B. Returns on investments
C. Profits
D. Net cash flows
E. Sales
Firms can run into problems when global sourcing is introduced into their
organizations. The resistance of the firm’s buyers to learn to evaluate global sources
is the reason for most of the problems. An attitude of “if it can’t be bought here
in the U.S.A., it can’t be bought anywhere†can be seen with some purchasing
departments.
A. True
B. False
The _______ solution to the bargaining problem suggests a method of fair division. It
suggests a way of dividing joint profits that is “fair†in the sense that a referee or
judge “should†follow if called upon to settle a division between two corporations.
A. Martin
B. Noah
C. Palmer
D. Parmer
E. Nash
The ________ method (TM) addresses design and engineering (offline) as well as
manufacturing (online) quality. This fundamentally differentiates TM from SPC, which
is purely an online quality control method.
A. Tasmania
B. Truk
C. Taguchi
D. Tanner
E. Transactional
Lead times and delivery times can create problems also. Longer times can
_______________________. The extended lead time also might push back the date at
which a firm is able to introduce new products to the market.
A. increase inventory and drive down carrying costs
B. increase inventory needs and drive up carrying costs
C. reduce inventory needs and drive up ordering costs
D. increase inventory needs and drive up ordering costs
E. expand inventory and drive up production costs
Top management support has long been recognized as one of the _______ important
ingredients necessary for the ___________ of any organizational change, and the same
holds true for the ____________ of an EDI system.
A. most / scheduling / implementation
B. least / planning / designing
C. most / planning / designing
D. least / implementing / designing
E. most / introduction / introduction
There is no doubt that high technology is a main component of health care today.
However, the advanced technology associated with hospitals is in the areas of diagnosis
and treatment of illness. Using automation technology and sophisticated information
systems in the operation of a hospital is becoming more common but is significantly
behind the advances in industry. Its time has come, as evidenced in several studies of
the implementation of bar coding in pharmacy inventory management. Results of this
application have been reported to be those things listed below, with one exception.
Which one is the exception?
A. increased manpower utilization
B. increased efficiency
C. decreased total inventory costs
D. improved storage space utilization
E. reductions in inventory values
Customers want assurances that their orders are on schedule, especially as the shipping
date nears. This element of customer service is the timeliness and detail of the
information a supplier provides a customer.
A. True
B. False
_________ products must both:
•Conform closely to specifications.
•Satisfy consumer expectations.
A. Medical
B. Automotive
C. Consumer
D. High-quality
E. Standard quality
The following practices are considered essential for a comprehensive JIT
implementation:
1> Regular maintenance
2> Diverse workforce
3> Supplier development
4> Kanban production control
A. True
B. False
A price _________ clause is an adjustment that the seller utilizes in order to
compensate for variances at delivery.
A. elevator
B. calculating
C. stabilization
D. escalation
E. determination
The purpose of materials management is to ______________.
A. obtain raw materials and component parts for the operations division
B. negotiate the best prices for raw materials and component parts
C. find and approve major suppliers of raw materials and parts
D. support the transformation of raw materials and component parts into shipped or
finished goods
E. supervise the purchasing function
Even with high-speed computers and statistical techniques for simplifying analysis,
testing the interactions for _____________ can be time-consuming and costly in
systems with hundreds of interactions.
A. off-target parameters
B. accuracy
C. mistakes
D. errors
E. completeness
ES – earliest start time can be defined as:
A. equal to the earliest start time for the activity plus the time required to complete the
activity.
B. equal to the earliest start time for the activity plus the time required to complete the
activity.
C. the earliest time at which the activity can start given that its precedent activities must
be completed first.
D. equal to the latest finish time minus the time required to complete the activity.
Although it is a strong relationship, a cooperative alliance lacks the ___________ that
is needed between the various buying and supplying firms in order to optimize the
benefits for all of the members of the supply chain.
A. teamwork
B. resources
C. communication
D. cooperation
E. commitment
There are several challenges that buyers face in order to transfer logistics activities to
___________. The decision must include all of the parties that will be affected by the
_____________.
A. another location / new location
B. another company / transfer
C. a second party / new party arrangement
D. another party / new agreement
E. a third party / third-party relationship
The French GNP is $542 billion. Their monetary unit is the Frank. Typical trading
partners are the other EU members, the United States, and Africa. Exports include
machinery, transportation equipment, and food. The United States received $28.5
billion in imports in 2004 from France. French exports to the United States increased
56.9 percent from the previous year. This trend is not expected to change because of the
cheaper U.S. dollar and the strong French demand.
A. True
B. False
Purchasing managers, buyers, and purchasing agents evaluate suppliers on the basis of
_________________________________.
A. price and supplier status
B. service support and availability
C. reliability and selection
D. all of the above
E. â€A†and “B†only
With the availability of computers in all areas of health care today, forecasting demand
using past data and statistical techniques is a far more realistic possibility than it was in
the past. Forecasts are never perfect, but they can assist the supply manager to
_____________ inventory to the best ___________ advantage of the hospital.
A. purchase / competitive
B. provide / strategic
C. better control / economic
D. manage / financial
E. control / competitive
The ____________ techniques have been used extensively in cost estimating, pricing,
negotiating contracts, and estimating the major implications of changes in design.
A. TQM
B. MBO
C. Herzberg
D. Deming
E. learning curve
The need for ____________ in all types of organizations to recognize and be able to
provide high-quality, efficient service to customers has become essential. The
importance of a responsive workforce, able to execute procurement activities in keeping
with organizational objectives, cannot be understated.
A. managers
B. sales agents
C. employees
D. supervisors
E. purchasing agents and buyers
Few buying firms, however, work closely with _________ to develop long-term
relationships that provide for highly structured _______________ that lower costs for
the buying firm.
A. suppliers / transportation routes
B. suppliers / deliveries
C. carriers / routes
D. carriers / delivery schedules
E. suppliers / delivery schedules
The health care industry is increasingly looking to proven business techniques to
improve performance in many functional areas. This desire to adapt more businesslike
approaches is a direct result of the ______ system of reimbursement and
____________.
A. MRI / pressure from insurance providers
B. AARP / pressure to lower expenses
C. DRE / increased pressure from insurance companies
D. DRG / increased competition
E. AGA / increased governmental regulations
Speeding up the project is referred to as _________.
A. compressing
B. shortening
C. crashing
D. accelerating
E. going green