The actual payoff system that bargainers face in an interaction must certainly be a major
determinant of bargaining behavior. Several different factors related to the payoff
system have been studied.
•The amount that has to be exceeded if the bargainer is to realize a profit.
•The cost of time spent in bargaining.
•The cost of failure to reach agreement.
•Added benefits achieved by obtaining a specific threshold value.
•Qualitative or quantitative variations in the general level of payoff values.
•Whether payoffs are based solely on one’s own profit schedule or are based, in
whole or in part, on the degree to which one’s profits exceed those of others.
•Whether conflict is constant-sum or varying-sum.
•Penalties the bargaining opponent (or perhaps a third party) is likely to impose for
failure to yield.
A. True
B. False
Over the past 60 years, since the end of World War II, the _________ has taken on an
increasingly important role in the world economy. For example, in the United States,
jobs in the __________ have increased from just fewer than 50 percent of the total jobs
in the U.S. economy to more than 85 percent of the total jobs.
A. industrial sector / industrial sector
B. retail sector / retail sector
C. service sector / service sector
D. manufacturing sector / manufacturing sector
E. insurance sector / insurance sector
While many firms have sought ___________ through acquisition to harness supplier
expertise, some argue that _____________ can provide similar benefits without the
necessity of ownership and arduous exit barriers.
A. horizontal integration / mergers
B. vertical integration / cooperation
C. horizontal integration / cooperatives
D. stakeholders / stakeholders
E. vertical integration / partnerships
Many large __________ firms are implementing supplier relationship management
programs in their business ________ to ensure that they maintain their competitive
edge.
A. supplying / goals
B. buying / strategies
C. supplying / plans
D. supplying / strategies
E. buying / plans
The characteristics of buyer-seller relationships exist on a continuum beginning with
the traditional approach of ____________, with a single short-term contract that
presents minimal risk to both parties. The opposite extreme is ________ integration,
where the parties are fully integrated as one unit.
A. open-market / horizontal
B. closed-market / vertical
C. open-market / vertical
D. closed-market / horizontal
E. supper-market / horizontal
There are many benefits to using EDI. For a smaller company, EDI may help ________
A. keep a valued trading partner or customer
B. gain new customers or trading partners
C. all of the above
D. none of the above
Quality is a (n) ________ decision.
A. supply management
B. strategic
C. engineering
D. design
E. marketing
The quality-defining characteristics of products are those that are important to the
__________ of the product.
A. developer
B. end user
C. designer
D. seller
E. manufacturer
The acquisition of capital equipment is a major decision in most firms. The capital
acquisition decision has a significant effect on numerous aspects of the firm’s
____________. The tax planning process is also a significant component of this
decision.
A. operations
B. competitive advantage
C. financial health
D. strategic plan
E. long-range plan
As a __________, each department makes a direct contribution to the overall success of
the total organization.
A. cost center
B. profit center
C. profit group
D. cost group
E. cost division
There are two main types of kanban:
1> __________ signals the need to produce more parts. Each kanban is physically
attached to a container.
2> __________ signals the need to withdraw parts from one work center and deliver
them to the next work center.
A. Reorder kanban / Production kanban
B. Withdrawal kanban / Production kanban
C. Quality circle kanban / Withdrawal kanban
D. Production kanban / Withdrawal kanban
E. Production kanban / Zero defects kanban
__________________ have altered most customers’ tolerance for less than full
satisfaction with products and services they receive.
A. Expanding competition
B. Emerging technologies
C. Improved communications
D. All the above
E. “A†and “B†only
The ___________ Act suggests that it is illegal to offer a quantity discount for
commodities of like grade and quality that are not based on differences in the cost of
manufacturer sales, or delivery resulting from the differing methods or quantities in
which such commodities are sold or delivered.
A. Robin-Parmer
B. Robinson-Patrick
C. Robinson-Patman
D. Martin-Parmer
E. Roberts-Pullman
The driving force behind any purchasing corporate policy considers the following
objectives with the exception of:
A. Purchase the standard materials in the right quantities, at the right time and lowest
cost, from any local source.
B. Practice the highest level of ethical standards to ensure confidence among all parties.
C. Operate in a professional manner.
D. Spend corporate funds wisely.
According to the ________________________, export controls and restrictions may be
imposed for a range of specific purposes including national security; protection of life,
health, and the environment; and the preservation of national treasures.
A. 2001 Fair Trade Act of the European Union
B. Trade Protection Act of the European Communities
C. 1992 Import and Export Protection Act
D. 1991 Trade Policy Review of the European Communities
E. 1998 Fair Trade and Tariffs Act of the EU
Companies must ask themselves many questions before implementing an RFID system.
Some such questions follow, with one exception. Which is the exception?
A. Does the company need RFID to keep pace with its competitors?
B. Will RFID offer a competitive advantage for the company?
C. Will the company have the power to manage its business without accurate
information about its processes and inventory that could be gained from RFID?
D. Will RFID increase the costs of the company to serve its customers?
E. Will RFID save the company money eventually (long term)?
The next step in the (requisition) process is to compare the acquisition request with the
overall _______________ of the firm. These _________ will be the basis for evaluating
proposals for new equipment and making selections.
A. direction / guidelines
B. budget / guidelines
C. strategic plan / plans
D. competitive strategies / strategies
E. long-run objectives / objectives
Buyers should be experts ___________ and in specific _____________.
A. in the company / technologies
B. in manufacturing processes / technologies
C. on material and parts / manufacturing procedures
D. on the industry / raw materials or component parts
E. in engineering / design techniques
The delay between receipt of raw materials and the availability of the finished goods
produced from them is _____________. For the whole system, ____ should be as short
as possible.
A. production time (PT) / PT
B. regular time (RT) / RT
C. over time (OT) / OT
D. throughput time (TPT) / TPT
E. tech time (TT) / TT
The __________ method (TM) nicely complements many of the advantages of SPC.
A. Tanner
B. Taguchi
C. Tupelo
D. Tasmania
E. Transactional
From a legal standpoint, the term purchasing agent accurately defines the individual
who deals with a third party for a principal. From a legal point of view, the following
factors are associated with the appointment with one exception. And that exception is:
A. The purchasing manager must be granted the authority to make purchase contracts.
B. The purchasing manager accepts the contracting authority.
C. The employer accepts the commitments that were made to the purchasing manager
D. The purchasing manager accepts the appropriate compensation for the position.
_____________ involves a detailed analysis of what can be done to reduce or eliminate
the probability and severity of these adverse events while also considering the trade-offs
involved.
A. Contingency planning
B. Risk mitigation
C. Loss prevention
D. Risk monitoring
E. Risk assessment
Businesses that use reverse auctions, or e-auctions, have given testimonials of savings
of more than ____ percent.
A. 50
B. 60
C. 70
D. 80
E. 90
In addition to the strategic _________ profiles, the buying firm should clearly establish
expectations for the strategic _________ and discuss future product and _______
development plans; this is typically done with an annual review period.
A. buyer / buyers / buyer’s
B. partner / partners / partner’s
C. buyer / suppliers / partner’s
D. supplier / suppliers / supplier
E. supplier / buyers / partner’s
A “rule of thumb†must be developed that can be used to decide whether or not a
partnership _____________.
A. has sufficient potential
B. is appropriate
C. would work for both parties
D. would be a good opportunity for all involved
E. would not have any potential for success
According to the textbook, three additional conditions also must exist in order for
bargaining to occur. Which of the following is not one of those conditions?
A. The provisional offers must determine the outcome of the situation, i.e., one party
must lose and the other party must win.
B. Mutual compromise must be possible. If one of the parties must choose between
total victory and complete loss, no bargaining occurs. Bargaining situations require
intermediate solutions for the parties involved.
C. The possibility must exist for provisional offers to be made by those involved in the
situation.
D. The provisional offers must not determine the outcome of the situation until the
terms are accepted by all parties.
Some of the more popular forms of counter trade are as follows with one exception.
Which one is the exception?
A. Offsets
B. Indirect offsets
C. Coproduction
D. Production transfer
E. Licensed production
The __________ has become an indispensable part of modern management
effectiveness.
A. accounting division
B. advertising department
C. buying department
D. marketing division
E. purchasing function
The type of business a firm is in will usually determine how much of the firm’s
assets are invested in ___________.
A. fixtures
B. machinery
C. locations
D. inventories
E. buildings
The __________ is a robust logical system for planning and scheduling using bar
charts. _____ is a graphical representation of the interrelationships of the various
project activities. With _____ the contract administrator can assess the status of the
project at any time, and it enables the contract administrator to monitor and revise
scheduling during the project to meet the desired completion date.
A. critical path method / CPM / CPM
B. essential path method / EPM / EPM
C. compressed path method / CPM / CPM
D. quality path method / QPM / QPM
E. managed path method / MPM / MPM
The five basic functions of __________ are fundamental to achieving smooth flow,
reasonable equipment utilization and materials handling costs, and maintenance of good
customer service.
A. purchasing
B. inventory
C. supply
D. capital assets
E. operations
Disagreements between supplier and customer about standards often stem from
misunderstandings about material specifications.
A. True
B. False
The success of the outsourcing initiative depends heavily on the ______________
beginning with the contract execution to the transfer of the agreed-upon activities and
resources.
A. terms of the contract
B. the front line supervisor’s actions
C. management’s actions
D. task force
E. implementation effort
_________________________ relationships are those relationships in which both
buying and supplying firms strive to get the very best arrangement possible in their
negotiations and fail to see the benefits of both organizations obtaining their goals and
objectives.
A. Transactional or cooperative
B. Transnational or competitive
C. Transferal or collaborative
D. Transferal or competitive
E. Transactional or competitive