Supplier lead time affects a firm’s flexibility and service to its own customers.
Firms that compete in ________ markets and face rapidly changing ________________
require greater flexibility than firms competing in _______ markets.
A. volatile / consumer demands / stable
B. volatile / product or technology / stable
C. stable / product or technology / volatile
D. competitive / consumer demands / stable
E. competitive / consumer demands / volatile
___________________ is when the recipient obtains a share of the production work for
its own order.
A. Offsets
B. Indirect offsets
C. Coproduction
D. Sub-contractorproduction
E. Licensed production
The competitive bidding process should not be employed when the following
conditions prevail:
1> The dollar value of the bid must be large enough to justify the expense of bidding.
2> The specifications of the product on service must be precise enough for both the
buying and selling firms to accurately cost out.
3> There are enough selling firms in the market.
4> There is adequate time to use this form of bidding. The competitive process usually
takes from four to eight weeks for most industrial firms.
A. True
B. False
Costs are often divided into two categories: ____________.
A. fixed and flexible costs
B. direct and indirect costs
C. necessary and unnecessary
D. expected and unexpected
E. budgeted and unbudgeted
The ______ suppliers usually get the long-run demand forecast and are involved in the
manufacturer’s product development.
A. backup
B. key
C. preferred
D. local
E. national
The cost components of price determination can be divided into direct and indirect
costs. _______ costs relate to the actual units of production. If the unit is not produced,
________ costs are not incurred.
A. Indirect / indirect
B. Direct / direct
Procurement is a very broad term. There is a broad push by
_______________________ for companies to migrate all types of purchasing to
e-procurement.
A. top management
B. the federal government
C. the MIS function
D. e-procurement software vendors
E. vendors
Although the actual details will vary from supplier to supplier, the following list details
the basic elements of a Continuous Improvement (CI) system:
•Supplier Leadership Commitment to Continuous Improvement
•Cross-functional Continuous Improvement Teams
•Data Driven Improvement Based On Key Measures (Using a QOS / MOS format)
•Regularly Scheduled Reviews
•A Quality System in place that allows improvements to be embodied in the normal
operating procedures of the busines
A. True
B. False
Power essentially attempts to force a _______ to comply with the ________ desires,
and, like commitment, the level of compliance and more importantly cooperation are
critical to the relationship tenure as well as profitability.
A. seller / buyer’s
B. buyer / seller’s
C. supplier / buyer’s
D. target / seller’s
E. target / source’s
The majority of commodities shipped via _________ are semi-processed materials,
fuel, oil, coal, chemicals, minerals, and petroleum products.
A. motor carriers
B. air carriers
C. rail carriers
D. express carriers
E. water carriers
The condition under which ____________ takes place is when two or more parties have
divergent interests or goals and communication between the parties is possible.
A. communicating
B. swapping
C. organizing
D. trading
E. bargaining
In general, price is important; however, remember __________ of many variables that
go into purchasing decisions.
A. it is the single most important
B. quality is the most important
C. it is only one
D. delivery is the most important
E. quantity standards are the most important
Communication between the _____________ and the supply management function are
vital, and this is inevitably the area in which the system breaks down.
A. nurses
B. practitioners
C. suppliers
D. hospital administration
E. care givers
The legal payment function may or may not belong to the third party. The obligation is
determined from the parties indicated on the __________. Unless the payment party is a
party to the ______________, it has no responsibility for payment and no legal
obligation.
A. purchase order / purchase order
B. freight bill / freight bill
C. bill of trucking / bill of trucking
D. invoice / invoice
E. bill of lading contract / bill of lading contract
Purchasing agents who violate ethical codes could easily ___________ .
A. be reprimanded
B. be taken to court
C. loose their jobs
D. loose the respect of their peers
E. go to jail
The acronym “MTO†is defined as:
A. make-to-order
B. maintenance-to-order
C. materials-to-order
D. message-to-operations
E. machined-to-order
____________ establishes that neither the consignor nor the consignee owns the
payment process function.
A. Third-party
B. Prepaid/collect beyond
C. FOB
D. COD
E. COB
One of the most crucial elements of the ____________ system is small lot sizes.
A. just-in-time
B. management ordering and buying
C. just-on-target
D. purchasing
E. computer ordering and buying
Phase In-House Training Sessions
Classes should be conducted in groups of no more than ____ individuals.
A. 10
B. 36
C. 12
D. 15
E. 20
If the ______ is adequate, the right contractor is selected, and the ultimate price is
reasonable, then a good management effort will secure the project. A poor management
effort will undo all three pre-execution achievements.
A. SOP
B. DWA
C. CCC
D. SPA
E. SOW
The advantages of multiple sourcing can be viewed as the disadvantages of single
sourcing and vice versa. The best scenario would be one that can obtain the advantages
of both.
•This might be done by applying significant pressure to single-source suppliers or
by providing significant certainty to suppliers in a multiple-sourcing environment.
•This may be accomplished through the use of contract length. Short-term contracts
regardless of single or multiple suppliers can be used as a source of punishment. In
some instances, long-term contracts can be viewed as a reward.
A. True
B. False
If considering international sourcing alternatives, it is important that the decision
makers develop a complete understanding of the costs involved with
_____________________
____________________________________________________________.
A. moving key personnel to the company of choice, setting up communication links,
and building the appropriate facilities
B. ensuring compliance with governmental laws, regulations, and even local business
customs
C. setting up environmental friendly operations, complying with the local customs,
adapting to local regulations, and adjusting to the local culture.
D. learning local customs, adapting to the culture, meeting local regulations, and
adjusting to the language
E. adjusting to local laws, complying with the local customs, and adapting to the culture
It has long been recognized in both the strategy and operations literature that the most
effective external sourcing relationships involve considerable _______________ and
____________.
A. resources / time
B. commitment / communication
C. management time / coordination
D. management effort / two-way communications
E. management effort / relationship building
There are (is) ____ kind(s) of tooling with respect to their specifications.
A. one
B. two
C. three
D. four
E. five
Large setup and tooling costs can easily be amortized by the buying firm.
A. True
B. False
__________ inventory systems are distribution stocking points, such as warehouses or
distributors.
A. Computerized
B. Management
C. Retail
D. Pure
E. Telzon
The procedure for a formal negotiation [a short version] is given below:
1> Select team
2> Determine objectives
3> Prepare
4> Determine bargaining strength
5> Develop a plan
6> Set strategy
7> Determine tactics
8> Follow-up
A. True
B. False
In contrast, in long-haul volume movements of bulk commodities, ___________ are
typically unable to quote ____________ rates.
A. air carriers / motor-competitive
B. water carriers / air-competitive
C. truckers / air-competitive
D. motor carriers / rail-competitive
E. rail carriers / truck-competitive
__________ manufacturers attempt to reduce incoming material inspection as much as
possible. In order to eliminate the associated receiving inspection costs, a very high
emphasis is placed on the quality of incoming materials under the _______ system.
A. Most / JIT
B. Japanese / JIT
C. Many / JOB
D. Smart / JIT
E. Low cost / MOB
Leasing is becoming more attractive for both consumers and businesses. Consumers are
leasing automobiles in record numbers. One reason for the increase in consumer leasing
is the __________ of the leased automobile for small businesses.
A. low rates
B. discounted rates
C. status
D. tax rebates
E. tax effect
Over recent decades, firms within the supply chain have begun to realize the advantages
enjoyed from sharing of technology, information, and planning with other firms. Even
competitors, and many modern business thinkers will claim that not only is a more open
and relational attitude advantageous, but actually essential and inevitable in maintaining
___________________.
A. strategic advantage
B. a lead over the competition
C. a competitive advantage
D. control of the market
E. an improved market share
Firms routinely place orders with suppliers online and in real time. Perhaps the most
significant change in the purchasing process is the advent of ___________.
A. eBay
B. reverse auctions
C. Amazon.com
D. silent auctions
E. traditional auctions
The buying firm must be highly skilled at ____________________________.
A. specifying product attributes
B. forecasting expected requirements
C. ensuring the right quality at a reasonable price
D. all the above
E. “A†and “C†only
The second group of methods used to reduce the number of suppliers a firm uses is
what the textbook refers to as the _________ methods.
A. “matrixâ€
B. “hurdleâ€
C. “saddleâ€
D. “barrierâ€
E. “effectivenessâ€
Because of its impact on the entire project, _____________ analysis is an important
aspect of project planning.
A. financial
B. organizational
C. critical path
D. human resources
E. performance