Question 1

Capital assets:

Accepted Answer

A) are not bought and sold in the regular course of business. 
B) may be tangible or intangible. 
C) have an expected use of less than one year. 
D) have little or no effect on the organization's operations. 
E) are typically acquired for fairly small sums of money. 
A) are not bought and sold in the regular course of business. 
B) may be tangible or intangible. 
C) have an expected use of less than one year. 
D) have little or no effect on the organization's operations. 
E) are typically acquired for fairly small sums of money. B

Question 2

Supply chain risks may be:

Accepted Answer

A) operational. 
B) financial. 
C) reputational. 
D) operational and financial. 
E) operational,financial and reputational. 
A) operational. 
B) financial. 
C) reputational. 
D) operational and financial. 
E) operational,financial and reputational. E

Question 3

A non-repetitive purchase,such as a $5 million piece of equipment,should be purchased by:

Accepted Answer

A) a project team representing supply,finance,and operations. 
B) a permanent team representing supply,finance,and operations. 
C) the user with a purchasing card. 
D) a blanket order. 
E) a procurement process or system. 
A) a project team representing supply,finance,and operations. 
B) a permanent team representing supply,finance,and operations. 
C) the user with a purchasing card. 
D) a blanket order. 
E) a procurement process or system. A

Question 4

About 70 percent of the opportunity for value improvement lies in:

Accepted Answer

A) supplier selection and contract negotiations. 
B) evaluation of potential suppliers and supplier selection. 
C) identification and evaluation of potential suppliers. 
D) specification and identification of potential suppliers. 
E) need identification and specification. 
A) supplier selection and contract negotiations. 
B) evaluation of potential suppliers and supplier selection. 
C) identification and evaluation of potential suppliers. 
D) specification and identification of potential suppliers. 
E) need identification and specification.

Question 5

Early supply and supplier involvement:

Accepted Answer

A) is seldom necessary because internal users are best suited to identify needs. 
B) helps assure that what is specified is procurable and represents best value. 
C) is focused on early establishment of key contractual terms and conditions. 
D) relies on cross-functional teams to manage the buyer-supplier relationship. 
E) is a way to encourage internal customers to regularly interact with suppliers. 
A) is seldom necessary because internal users are best suited to identify needs. 
B) helps assure that what is specified is procurable and represents best value. 
C) is focused on early establishment of key contractual terms and conditions. 
D) relies on cross-functional teams to manage the buyer-supplier relationship. 
E) is a way to encourage internal customers to regularly interact with suppliers.

Question 6

When a specification is formulated by the buying organization,often on the basis of standards set by governmental or technical societies,it is called a(n):

Accepted Answer

A) standard specification. 
B) performance standard. 
C) individual standard. 
D) market standard. 
E) customized standard. 
A) standard specification. 
B) performance standard. 
C) individual standard. 
D) market standard. 
E) customized standard.

Question 7

The inability to store services:

Accepted Answer

A) means timing is non-critical to successful service acquisition. 
B) makes it easier to acquire services than goods. 
C) creates quality assurance difficulties. 
D) facilitates supplier performance evaluation and measurement. 
E) is of little importance at the time of supplier selection. 
A) means timing is non-critical to successful service acquisition. 
B) makes it easier to acquire services than goods. 
C) creates quality assurance difficulties. 
D) facilitates supplier performance evaluation and measurement. 
E) is of little importance at the time of supplier selection.

Question 8

When using performance or function specification as a method of description:

Accepted Answer

A) it is fairly easy to ensure that suppliers are quoting for exactly the same material or service. 
B) the opportunity exists to purchase identical requirements from several sources. 
C) it is easy to compare quotations and the supplier cannot include a risk allowance in the price. 
D) most of the risk is borne by the buyer. 
E) most of the risk is borne by the supplier. 
A) it is fairly easy to ensure that suppliers are quoting for exactly the same material or service. 
B) the opportunity exists to purchase identical requirements from several sources. 
C) it is easy to compare quotations and the supplier cannot include a risk allowance in the price. 
D) most of the risk is borne by the buyer. 
E) most of the risk is borne by the supplier.

Question 9

A requirement typically is considered strategic if it:

Accepted Answer

A) enhances revenue. 
B) reduces risk. 
C) provides access to new technology. 
D) enhances revenue and reduces risk. 
E) enhances revenue,reduces risk and provides access to new technology. 
A) enhances revenue. 
B) reduces risk. 
C) provides access to new technology. 
D) enhances revenue and reduces risk. 
E) enhances revenue,reduces risk and provides access to new technology.

Question 10

Simplification is:

Accepted Answer

A) essentially a technical and engineering concept. 
B) an agreement on definite sizes,design,and quality. 
C) a reduction in the number of suppliers providing a certain item. 
D) an attempt to concentrate production on the most important product sizes. 
E) an attempt to reduce conflicting information in specifications. 
A) essentially a technical and engineering concept. 
B) an agreement on definite sizes,design,and quality. 
C) a reduction in the number of suppliers providing a certain item. 
D) an attempt to concentrate production on the most important product sizes. 
E) an attempt to reduce conflicting information in specifications.

Capital assets:

Supply chain risks may be:

A non-repetitive purchase,such as a $5 million piece of equipment,should be purchased by:

About 70 percent of the opportunity for value improvement lies in:

Early supply and supplier involvement:

When a specification is formulated by the buying organization,often on the basis of standards set by governmental or technical societies,it is called a(n):

The inability to store services:

When using performance or function specification as a method of description:

A requirement typically is considered strategic if it:

Simplification is:

Purchasing and Supply Management

Supply Strategy

Supply Organization

Supply Processes and Technology

Make or Buy, Insourcing, and Outsourcing

Quality

Quantity and Inventory

Delivery

Price

Cost Management

Supplier Selection

Supplier Evaluation and Supplier Relationships

Global Supply Management

Legal and Ethics

Other Supply Responsibilities

Supply Function Evaluation and Trends

Filters

Exam 6: Need Identification and Specification

Capital assets:

Supply chain risks may be:

A non-repetitive purchase,such as a $5 million piece of equipment,should be purchased by:

About 70 percent of the opportunity for value improvement lies in:

Early supply and supplier involvement:

When a specification is formulated by the buying organization,often on the basis of standards set by governmental or technical societies,it is called a(n):

The inability to store services:

When using performance or function specification as a method of description:

A requirement typically is considered strategic if it:

Simplification is:

Purchasing and Supply Management

Supply Strategy

Supply Organization

Supply Processes and Technology

Make or Buy, Insourcing, and Outsourcing

Quality

Quantity and Inventory

Delivery

Price

Cost Management

Supplier Selection

Supplier Evaluation and Supplier Relationships

Global Supply Management

Legal and Ethics

Other Supply Responsibilities

Supply Function Evaluation and Trends

Filters