The most important task that the purchasing officer is involved in is representing the
________ in the development and negotiation of contracts with __________.
A. manufacturer / second parties
B. principal / second parties
C. principal / third parties
D. first party / second parties
E. first party / third parties
A firm cannot afford to operate without _____________. _______ is essentially an
economic costof doing business.
A. a good gross margin / Gross margin
B. sales / Sales promotion
C. good employees / Labor
D. good money management practices / Money management
E. a realized profit / Profit
The first step in the supplier partnership implementation process includes the strategic
verification of the need for a supplier partnership. Here, the firm must evaluate the
potential ____________ of a partnership in comparison to traditional processes.
A. strengths and weaknesses
B. strengths and benefits
C. strengths and risks
D. duration and strengths
E. risks and benefits
A delay in the critical path delays the project. Similarly, to accelerate the project it is
necessary to _________ the total time required for the activities in the critical path.
A. improve
B. expand
C. compress
D. increase
E. reduce
The model [the buyer-seller interactions exchange model] is built on the relationships
inherent in a bargaining situation and illustrates at least _______ major types of
relations that can be affected by any bargaining interaction.
A. four
B. five
C. six
D. seven
E. eight
________________ is still one of the hottest topics in the business world today.
A. Management By Objectives (MBO)
B. Theory “X†and Theory “Yâ€
C. Total quality management (TQM)
D. Theory “Zâ€
E. Organizational Development (OD)
Justifying a quantity discount is the responsibility of the buying firm. The buyer must
be able to document the actual cost savings.
A. True
B. False
MBO is an innovative way of thinking that affects the culture, the strategy, and the
technology of a company.
A. True
B. False
The general __________ problem is to batch requirements to minimize the sum of
ordering and carrying cost each time an order is to be placed.
A. buying
B. ordering
C. lot-sizing
D. transportation
E. cost analysis
The relationship between _______________ is dependent upon the origins of the
commitment.
A. power and commitment
B. involvement and commitment
C. power and politics
D. power and involvement
E. politics and involvement
____________________ is usually motivated by a need to increase quality, reduce
operating expense, and provide more efficiency.
A. The building of a new plant
B. The replacement of old equipment
C. The need to maintain a competitive advantage
D. Acquiring new technology
E. Increasing the operations budget
The acquisition of capital equipment involves the allocation and commitment of funds.
These investments usually require significant expenditures and are made with the
expectation that the _________ will be extended over several years.
A. returns
B. effectiveness
C. life of the equipment
D. warranty
E. payments
One of the tasks involved in a typical complex project is given below:
•The master schedule is generally a logical network-type schedule that reflects
perfect execution plans, the strategy, equipment delivery estimates, and engineering
plans. Project milestones must be reviewed and assessed.
A. True
B. False
Government regulation has given carriers more pricing freedom; negotiating skills have
become very important for both carriers and shippers.
A. True
B. False
The major problems when doing business in China are the language barrier, business
practices, and a fluid and diverse legal system. A well-specified _______________ is a
basic requirement when buying from China.
A. procurement strategy
B. game plan
C. policy and specification statement
D. competitive strategy
E. operational plan
To qualitatively evaluate consumer products and services, Consumers Union first
identifies the relevant characteristics of a product. It then tests comparable products of
various manufacturers and classifies products as:
A. Best buy
B. Acceptable
C. Not acceptable
D. All of the above
E. “B†and “C†only
Equitable distribution of pain and gain will ultimately lead to __________ partnership
performance. Along with having a contract that defines performance incentives by
means of penalty and reward structures, the relationship also must be able to work
through unforeseen conditions in a productive manner.
A. reduced
B. enhanced
C. lower
D. less
E. equal