The CPM network consists of arcs and nodes. The ______ represent the actual activities
while the ______ (events) represent when the activity starts and finishes.
A. nodes / arcs
B. arcs / nodes
Tax effect. Lease payments are expenses that can be written off against income
immediately. Loans are depreciated over a longer period of time. One major advantage
of leases over loans is the impact leases have on land use. When a firm leases land for
its operations, it can not deduct the lease expense from income. Purchased land, on the
other hand, can be deducted from tax obligations.
A. True
B. False
The unit price in a ________ optimal contract can vary anywhere between the two
limiting prices, the higher of which would give all the joint profit to the manufacturer
and the lower of which would give all the joint profit to the distributor. The tendency in
this situation is to split the joint profit evenly between the buyer and the seller.
A. Parmer
B. Martín
C. Pareto
D. Palmer
E. Nash
The concept of _______________ along with the resource-based view of the
organization provides the basis for the assertion that in considering outsourcing, the
decision making team must have a thorough understanding of _______________
capabilitiesand how they relate to an organization’s competitive advantage.
A. PDF systems / PDF and non-PDF
B. RFD Systems / RFD and non-RFD
C. core competencies / core and non-core
D. advanced technologies / advanced and non-advanced technology
E. core technologies / core and non-core technology
Improvements are possible in the way most tasks are performed. The improvement
process may have an insignificant effect on the buyer’s total purchase price.
A. True
B. False
In a ____________, removing an end item (or a fixed lot of end items) triggers the
order release, by which the flow of materials or components is initiated. In contrast,
____________ allow for the production or material flow in anticipation of future
demand
A. push system / pull systems
B. pull system / push systems
C. CIT system / CAM systems
D. diverse system / traditional systems
E. traditional system / push systems
____________ is a form of agreement that involves the purchaser being given a share
in the manufacture of a foreign designed product.
A. Offsets
B. Indirect offsets
C. Licensed production
D. Sub-contractorproduction
E. Coproduction
Some of the often “hidden costs†of outsourcing include training internal
employees to become relationship managers rather than technical managers. The hidden
costs also include ______________________________________ required to thwart
labor disputes.
A. “golden parachutes,†severance packages, temporary employees, and
supervision
B. retention bonuses, severance packages, employee turnover, and management time
C. retention bonuses, employee training, redundant activities, and management time
D. management time, severance packages, employee training, and “golden
parachutesâ€
E. performance bonuses, temporary employees, employee turnover, and employee
training
Under the U.S. Commercial Code, an agreement is a legal transaction that requires all
of the following components with one exception. Which one is not required?
A. The subject of the matter must be legal and valid.
B. The parties must all reside in the same state
C. There must be mutual consideration.
D. The parties must be capable. .
E. The parties must reach an agreement by offer and acceptance.
Germany’s GNP stands at $825 billion. Their monetary unit is the Real. Typical
trading partners include the United States, the U.K., and other countries in the EU.
Exports include machinery, motor vehicles, chemicals, iron, and steel products. The
United States received $73.3 billion in imports from Germany in 2004.
A. True
B. False
Unfilled orders are processed in one of the following three ways:
A. Backorder, Cancellation, Suspension
B. Reorder, Substitution, or Backorder
C. Backorder, Substitution, or Cancellation
D. Substitution, Cancellation, or Requisition
E. Requisition, Substitution, or Cancellation
The ________ is the source of raw materials and component part inventories.
A. buyer
B. customer
C. manufacturing organization
D. supplier
E. none of the above
___________________, one type of supplier development program (SDP), are an
attempt to meet current and future business needs by improving supplier performance
and capabilities.
A. Supplier training
B. Supplier evaluations
C. Supplier workshops
D. Supplier seminars
E. Supplier discussions
_______ suggests the unexpected, which means the need to patch up or replace
equipment components that we don’t expect to fail. Usually the parts are not carried
as inventory by the equipment manufacturer.
A. PODS
B. OEM
C. Repair
D. Replace
E. Maintenance
Some of the common problems associated with implementing the JIT system are as
follows with one exception. Which one is the exception?
A. Lack of cooperation from suppliers
B. Lack of top management support
C. Lack of employee readiness and support
D. Lack of support from development
E. Low product quality
In 1996 the United Nations Commission on International Trade Law (UNCITRAL)
adopted the Model Law on Electronic Commerce, which offers member states of the
United Nations methods to address barriers to the use of electronic communications in
their ______________.
A. commercial law
B. common law
C. commercial regulations
D. common policies
E. competitive laws
Setting safety stock so as to achieve a pre-specified service level enables fair
comparison of the standard lot-sizing procedures.
A. True
B. False
The most important criteria to consider for ______________ are competitive rates,
customer service, transit time reliability, pick-up and delivery service, availability of
equipment, loss and damage claims, electronic data interchange (EDI), geographic
coverage, problem resolution, insurance coverage, and billing accuracy.
A. carrier selection
B. supplier selection
C. strategic planning
D. business analysis
E. supply chain management
The Toyota manufacturing system has been viewed in following different ways:
A. As a lean production system because it uses less of every resource compared with the
conventional mass production system.
B. As a conventional reorder point system with extremely small lot sizes.
C. As a pull system as opposed to the conventional push system.
D. All of the above.
E. “A†and “C†only.
Many of the e-procurement software vendors fail to take into account
__________________________ and getting suppliers to participate in the
e-procurement system.
A. the total cost of implementing these systems
B. the difficulty of realizing savings during the development and deployment phases of
the transition
C. the cost of training employees
D. All of the above
E. “A†and “C†only
The classical EOQ model is based, in part, on four of the following assumptions. One
of the following in not one of the assumptions. Which one?
A. Intermittent demand
B. Constant lead time
C. Constant unit price
D. Fixed order cost per order
E. Fixed holding cost per unit
Following appropriate justification and formal approval for the acquisition of a new
piece of capital equipment, the actual purchasing process begins. The objective of this
process and subsequent consumer need evaluation is to fulfill a hospital’s need with
the best equipment for its intended function at the lowest possible total cost.
A. True
B. False
One of the tasks involved in a typical complex project is given below:
•Good schedule control is to develop a plan, implement the plan, monitor execution
of the plan, and make changes to the plan when necessary in order to meet target.
A. True
B. False
The total operating costs also will have a significant effect on the capital acquisition.
Which of the following are the principal operating variables that must be investigated?
A. productivity
B. durability
C. dependability
D. All the above
E. “A†and “B†only
. In most firms, functional managers within each area make independent decisions using
similar techniques. The objective is to____________________ while
___________________________.
A. provide high-quality customer service / minimizing the cost of producing the service
B. provide high-quality customer service / maximizing the net profit
C. . provide customer service / maximizing gross profit
D. provide standard customer service / minimizing expenses
E. maximize profits / minimizing costs of producing the product
The FTC Act of 1934 created ___________ to encourage exports from foreign
countries. The act allowed for the storage of goods within the U.S. boundaries without
payment until the goods passed to the buying company.
A. special trade zones
B. tax-free zones
C. transit zones
D. foreign trade zones
E. free tariff zones
The _________ evaluation is an assessment of the supplier’s production or service
process. ______________ evaluations are based on objective measures of performance.
A. process-based / Performance-based
B. performance-based / Process-based
C. procedure-based / Quality-based
D. process-based / Quality-based
E. quality-based / Performance-based
The objective of an inventory system is the minimization of total operating costs. The
unavoidable costs of operating pure inventory systems are ___________.
A. ordering costs, stocking costs, and holding costs
B. ordering costs, stocking costs, and holding costs
C. shipping costs, stockout costs, and pricing costs
D. ordering costs, delivery costs, and holding costs
E. ordering costs, stockout costs, and backorder costs
JIT purchasing results in improved __________ and corresponding levels of higher
______________.
A. customer service / quality
B. relationships / customer service
C. customer service / satisfaction
D. buyer relations / supplier satisfaction
E. quality / customer satisfaction
. The purpose of supply management is to support the transformation of raw materials
and component parts into _________________.
A. shipped or inventory goods
B. consumer goods
C. high quality products
D. inventory and assets
E. completed goods
The acronym “MTS†is defined as:
A. made-to-standard
B. make-to-specs
C. made-to-specifications
D. make-to-stock
E. make-to-specifications
__________ professionals are primarily charged with the responsibility for controlling
the total cost of ownership (TCO).
A. Accounting
B. Purchasing
C. Marketing
D. Buying
E. Operating
If poor quality is produced, goes undetected, and is shipped, the costs to
_________________ are substantial.
A. supplier
B. customer
C. retailers
D. all of the above
E. “A†and “B†only