The purchasing professional must understand the dynamic nature of ________ cost.
A. indirect
B. direct
C. variable
D. labor
E. advertising
The objective of the purchasing department is to buy the _______ materials from the
______ supplier at the ______ time and at the ______ price.
A. best quality / best / appropriate / lowest
B. best / best / appropriate / best
C. right / right / right / right
D. most / best / best / best
E. right / best / appropriate / lowest
Presumably, _______________ induces higher levels of many overhead administrative
functions such as payroll, benefits management, utility expenses, IT expenses, and so
forth.
A. sourcing internally
B. outsourcing
C. sourcing externally
D. sourcing
E. alternative sourcing
Usually a tougher bargaining—one using a more extreme opening position, fewer
concessions, and/or smaller concessions—can obtain a more favorable fail agreement.
There appear to be exceptions to such a conclusion, however. Never making a
concession may be responded to by the other side in a similar fashion, leading to little
or no convergence in the bargaining interaction. When time allotted to bargaining (or
that which is left) is very short and when not reaching an agreement is clearly
disadvantageous, toughness may be a poor strategy because it could result in no
agreement.
A. True
B. False
A competitive firm’s _____________ must include the following:
•The right material (quality).
•The right quantity.
•The right source.
•The right timing.
•The right price.
A. strategic buying plan
B. competitive strategy
C. pricing plan
D. advertising and marketing strategy
E. purchasing objectives
The role of the purchasing function in a manufacturing organization has become
increasingly important. The _____________ production control system focuses on
reducing both raw materials and work-in-process inventories.
A. JUST-ON-TARGET
B. MBO
C. just-in-time
D. strategic
E. just-in-line
The _______________ from which to solicit bids will be a subjective list of those
already known to the user department.
A. initial base of suppliers
B. regional list of suppliers
C. yellow book list of suppliers
D. National Association of Manufacturers roster
E. Medical Suppliers Association membership
It is true that there is only one system that is the best overall. Certainly the size,
purchasing power, and level of control that the supply management department has
within the hospital are all factors that must be evaluated. The degree to which the
hospital is automated and to which computer systems are integrated is also a factor in
the decision in terms of the complexity of the systems models and in the level of
calculations required. Clearly, cost/benefit analyses must be performed and systems
developed that perform and provide the desired service level.
A. True
B. False
A concept very similar to the resource-based view of the firm is that of
______________. _______________ are the collective learning in an organization
A. strengths and weaknesses / Strengths and weaknesses
B. core competencies / Core competencies
C. lean production / Lean production systems
D. PDF / PDF systems
E. CCC / CCC systems
According to the Lewin-Schein theory of change the change process consists of the
following three steps:
A. Unfreezing / Moving / Refreezing
B. Unfreezing / Formulating / Refreezing
C. Analyzing / Formulating / Freezing
D. Unfreezing / Moving / Training
E. Unfreezing / Training / Moving
The buyer ________________ or __________ criteria are other factors that influence
the purchase criteria.
A. programs / selection
B. performance plan / reward
C. performance measures / selection
D. performance measures / reward
E. performance programs / salary
There are major quality awards that ensure that suppliers are TQM effective. The most
universally known quality awards are the ____________ and the ________________
National Quality Award.
A. American Productivity Center Award / Master Malcolm
B. Deming Award / Malcolm Baldridge
C. National Productivity Center Award / Department of Commerce
D. Department of Commerce Award / Master Baldridge
E. Deming Productivity Center Award / Deming-Baldridge
Rule Two (2) of the dual card kanban is: There as many kanbans per container as
needed.
A. True
B. False
Those state officials reviewing _____ applications try to determine the need for such a
project by looking at the current utilization of like services and their specific locations.
A. CNC
B. AAL
C. CPC
D. CPL
E. CON
The crafting of the business case is followed by implementing the
____________________ and, ultimately, managing the relationship with the provider.
A. plan
B. external sourcing model
C. contract
D. outsourcing model
E. internal sourcing model
Long-term investment decisions are usually driven by the ________________
equipment now rather than later.
A. need for replacing
B. competitive environment and the need for acquiring
C. tax effect of acquiring
D. cost of purchasing
E. discount received on
_______ systems are helpful for companies with assembled products that have
component requirements dependent on the final product.
A. MRP
B. IRA
C. PDQ
D. MRA
E. ARA
The cost reduction must be significantly lower than the current direct operating costs in
order for an outsourcing proposal to be attractive. The generic strategic benefits of
outsourcing are listed below with one exception. Which one is not one of the strategic
benefits?
A. Refocusing the organizationto its core competenciesis accomplished by focusing
what the organization does best and/or transforming the business to focus on new
products and services.
B. Increased market share and revenueis accomplished by assessing the providers’
network and accelerating expansion into new markets.
C. Cost minimizationis accomplished by reducing direct operating costs, eliminating
overhead costs, and transforming fixed costs into variable costs.
D. Improvement in the organization’s core competencies by increasing productivity,
reducing indirect operating expenses, lowering overhead, and expanding services.
E. Improvement in operating performanceis accomplished by increasing quality,
increasing productivity, and obtaining new capabilities technologies from external
sources.
The ____________ system is one useful method of specification. It is not the only one,
nor should it be used for all capital equipment purchases.
A. Martin point
B. preference point
C. Parmer evaluation
D. Skinner Evaluation and Point
E. Palmer Preference Evaluation Point
The ____________ needs to determine how he/she, as a decision maker, ought to
behave in light of his/her analysis of how his/her opponent might behave.
A. organizer
B. bargainer
C. representative
D. executive
E. agent
In the formulation of purchasing strategy, the organization’s ___________, the
organization’s ___________________, and the competitive environment must be
considered.
A. market share / competitive strategy
B. competitive strategy / weaknesses
C. market share / strengths and weaknesses
D. competitive priorities / strengths and weaknesses
E. strengths / weaknesses
_________ is a set of standards that document the implementation of a quality program.
In order to be certified, suppliers need to provide documentation to an external
examiner that they meet the ________ requirements. Once a firm is certified, it will be
listed in a directory so that all of its potential customers can know which firms have
been certified and to what level.
A. USO 9500 / USO 9500
B. PSO 9000 / PSO 9000
C. ASO 9600 / ASO 9600
D. ESO 9000 / ESO 9000
E. ISO 9001 / ISO 9001
Purchasing managers, buyers, and agents must become ________ (with/on) the
services, materials, and products they purchase.
A. familiar
B. efficient
C. experts
D. effective
_______________ (QFD) is a methodology for collecting customer information to
drive product development.
A. Quality Function Deployment
B. Quantity Functional Development
C. Quick Functional Development
D. Quality Fabrication and Development
E. Quick Fabrication and Development
The following are considered key success factors in the make-versus-buy decision:
1. Perform a realistic assessment of the capabilities and expertise of each member of
the in-house team. If the core competencies exist, what happens if a key member
leaves the team? Can the member be easily replaced?
2. Evaluate alternative strategic partnership arrangements and select the appropriate
partner.
3. Share information with only the necessary functional areas and request their input.
A. True
B. False
In order to obtain ________ lot sizes for production, the order quantity size needs to be
_________ and corresponding delivery schedules need to be made more _________.
A. small / reduced / frequent
B. larger / increased / infrequent
C. smaller / increased / frequent
D. larger / reduced / frequent
E. small / increased / infrequent
Exploration of the effects of _______ on factors of the supplier–buyer alliance
provides the key to understanding the concept of the power-partnership link…
A. politics
B. power
C. negotiations
D. processes
E. persuasion
Ideally, the end result for both firms should be _____________, yielding greater control
of costs, cycle times, inventory, quality, and, ultimately, customer satisfaction.
A. decreased uncertainty
B. improved customer satisfaction
C. decreased customer complaints
D. increased certainty
E. higher quality and reduced defects
The buyer’s bargaining strengths are:
•The number of bidders
•The urgency of the buyer needs.
•The length of time before agreement
•The status of the buyer
A. True
B. False
Many parts can be purchased off the shelf. They are like commodities in the sense that
they are standardized. In effect, they are _____________ according to specifications
established by an industry, professional association, or independent testing organization.
A. made to standard
B. made to specifications
C. made to stock
D. made to order
E. made to design
___________ is described as follows: Once the activities and their sequencing have
been defined, the CPM diagram can be drawn.
A. Draw a network diagram
B. Specify each individual activity
C. Sequence the activities
D. Identify the critical path (longest path through the network)
E. Estimate the completion time for each activity
E-purchasing has lead to significant cost saving and coordinated efficiency.
A. True
​B. False