To be eligible to participate in some federal programs, a company must be certified as at
least one of the following:
•Women-owned business
•Minority-owned business
A. True
B. False
The suppliers’ ___________ systems must be consistent with the in-house quality
requirements of the __________.
A. information management / seller
B. manufacturing / client
C. IT / customer
D. quality assurance / customer
E. internal / buyer
According to a recent Deloitte Consulting study, 64 percent of respondents indicated
that they had brought outsourced services back in-house. Fifty percent of respondents
identified ______________ as the primary problem encountered with outsourcing,
while 44 percent _________ realize cost savings.
A. “contractual expenses” / did
B. “relationships†/ did not
C. “hidden costs†/ did not
D. “relationships†/ did
E. “hidden costs†/ did
One of the factors refers to the social relationship existing between the bargainers.
Examples are degree of friendship or differences in status or power. Which of the
following factors is this referring to?
A. General bargaining predispositions
B. Social relationship with significant others
C. Social relationship with the opponent
D. Payoff system
E. Situational factors
One of the key techniques in purchasing is ______________. Competitive firms today
are all concerned with quality of their outputs. _______________ is a methodology
used to determine whether to accept or reject a batch of components or items.
A. acceptance sampling / Acceptance sampling
B. quality sampling / quality sampling
C. performance sampling / performance sampling
D. matrix sampling / matrix sampling
E. zero defects / zero defects
If a firm makes products to order, _____________ is measured by the degree to which
products are completed and shipped ___________.
A. quality / as ordered
B. delivery / on time
C. customer service / as promised
D. customer relations / within three days
E. customer service / within a week
Effective _____ requires the integration of production planning, marketing, engineering
distribution, and field service.
A. MBO
B. OD
C. RAM
D. PODS
E. TQM
Outsourcing can be conceptualized as a _________ rather than simply an event. This
__________ begins with the development of a strategic and financial business case for
outsourcing.
A. method / method
B. strategy / strategy
C. process / process
D. practice / practice
E. program / program
The _______ has infiltrated every aspect of the world. ________ has outpaced the
postal system as the primary communication mode in the developed world.
A. cell phone / Texting
B. Internet / E-mail
C. Intranet / E-mail
D. Internet / Voice-mail
E. cell phone / Voice-mail
As competitive forces diminish, customers demand better products, faster delivery,
increased service, and decreased costs.
A. True
B. False
Shippers and carriers also must observe _____________. They must consider the
implications of legal constraints on each movement under the final contractual
agreement.
A. state laws and regulations
B. local laws and regulations
C. contractual provisions
D. corporate policies and procedures
E. antitrust restrictions
The quantitative costs are ____________________.
A. exchange rate uncertainties
B. direct costs of importation
C. indirect importation costs
D. all the above
E. “B†and “C†only
The cost of quality is an essential consideration in sourcing decisions. The costs
associated with ensuring quality are often categorized as:
A. maintenance, innovation
B. preventative, appraisal
C. internal failure, external failure
D. All of the above
E. “B†and “Câ€
The key lean principles focus on __________, ____________, ____________, and
___________. All of these key business principles have a direct effect on the
purchasing function.
A. profit / reduction of waste / involvement / efficiency
B. human resources / waste removal / postponement / inefficiency
C. people / the elimination of waste / postponement / efficiency
D. people / the elimination of waste / involvement / efficiency
E. people / waste removal / postponement / efficiency
__________ is when the seller exchanges products for compensatory amounts of
commodities.
A. Offsets
B. Indirect offsets
C. Coproduction
D. Counter-purchase
E. Licensed production
Initially, outsourcing decisions predominantly involved ___________,
_______________, and activities of ____________ strategic value.
A. non-standard products / common processes / high
B. standardized processes / traditional products / relatively high
C. standardized processes / commoditized products / extremely low
D. standardized processes / commoditized products / extremely high
E. non-standardized processes / technology related products / extremely low
A final factor to be considered with capital expenditures is the need in some states for
governmental permission to purchase. If the ____________ is not granted by the state,
all the key factors outlined in the textbook are meaningless. The goals of a ______ are
to protect the consumers, generate benefits for them, and prevent the acquisition of
unneeded equipment (i.e., ensure access to quality service at a reasonable cost).
A. certificate of need (CON) / CON law
B. community need certificate (CNC) / CNC
C. consumer protection law (CPL) / CPL
D. community protection certificate (CPC) / CPC law
E. acquisition approval law (AAL) / AAL
__________ may not be the solution for all commodity buying. As an example, if there
are too few sellers, ___________ will not yield the best price.
A. Traditional auctions / traditional auctions
B. Traditional auctions / reverse auctions
C. Reverse auctions / traditional auctions
D. Reverse auctions / reverse auctions
When a supplier _________ to conform to the buying firm’s expectations, the
buying firm manager must __________________________.
A. is unable / determine the most appropriate action to resolve the issue
B. refuses / find a replacement supplier
C. is reluctant / meet with the supplier to seek a solution
D. fails / replace the supplier
E. continues / reward the supplier for good performance
Purchasers buy goods and services for use by their __________________.
A. business associates
B. homes and businesses
C. families
D. business organization
​E. employers
The managers of integrated materials systems have two objectives:
A. Customer service and Maximum quality materials
B. Customer relations and Minimum total materials costs
C. Minimum total materials costs and Maximum flexibility in production
D. Customer satisfaction and Minimum total materials costs
E. None of the above
Some of the tasks involved in a typical complex project are given below:
•Establish a reasonable budget.
•Know where expenditures are being made.
•Forecast final expenditures.
•Identify problem areas by comparing expenditures and budgets.
A. True
B. False
The ________ of production is limited by the process technology and/or the disposition
of the workforce.
A. upper level
B. quality
C. mid-level
D. entry level
E. speed
The notion of ______ in an interfirm relationship implies _______ dependence on the
source; otherwise the _______ would not need to subject itself to the unbalanced
relationship.
A. politics / some / seller
B. politics / heavy / source
C. power politics / seller / seller
D. power politics / target / source
E. power / target / target
The first step (in establishing a third-party relationship) is to pre-qualify a set of
_____________ that will be offered an opportunity to be considered as a third-party
provider. Only those third parties that can meet certain minimum service levels will be
offered an opportunity to negotiate.
A. warehouses
B. carriers
C. companies
D. distribution centers
E. investors
When planning to acquire materials, whether raw materials, component parts, or
finished goods, the __________ must be considered for both the buyer and seller.
A. specifications
B. design
C. product
D. capacity
E. price
Unlike the barcode-based tracking system, a radio frequency
identification system offers a __________________________________ .
A. fully supported, efficient reading and tracking system.
B. no-contact, no-line-of-sight reading and tracking system.
C. cost effective, line-of-sight reading and tracking system.
D. contact, no-line-of-sight reading and ordering system.
E. point of sale reading and ordering system.
The textbook discusses the significant difference between buying and purchasing. In
general the purchasing process refers to buying goods and services for
_______________. Buying typically means procuring items for ________.
A. use by the buying organization / external use
B. vendors / wholesale
C. use by client organizations / resellers
D. use by the buying organization / resale
E. resale / use by the buying organization
__________ in the supply chain can be defined as the extent of contentment with the
relationship.
A. Cooperation
B. Good service
C. Good supplier relations
D. Good public relations
E. Satisfaction
The development of a strategic purchasing plan requires all of the following with one
exception. Which one is incorrect?
A. A complete understanding of corporate strategies and marketing plans
B. An extensive evaluation/study of current suppliers, how performance is measured,
and the expectation of suppliers relative to the industry.
C. Study of the degree of local purchasing opportunities.
D. Identification of total costs associated with current purchasing department/function,
budgets, staffing, and so forth.