Question 1

Simplification cannot be applied to purchases already standardized.

Accepted Answer

A) True 
 B)False  False

Question 2

Performance is a method of description by brand.

Accepted Answer

A) True 
 B)False  False

Question 3

The disadvantages of buying with specifications include:

Accepted Answer

A) the seller will be responsible for performance. 
B) specifications can add costs. 
C) the potential for disqualifying or discouraging potential suppliers. 
D) the seller will be responsible for performance and specifications can add costs. 
E) specifications can add costs and the potential for disqualifying or discouraging potential suppliers. 
A) the seller will be responsible for performance. 
B) specifications can add costs. 
C) the potential for disqualifying or discouraging potential suppliers. 
D) the seller will be responsible for performance and specifications can add costs. 
E) specifications can add costs and the potential for disqualifying or discouraging potential suppliers. E

Question 4

A request for quotation that asks for a "brand or equal":

Accepted Answer

A) is one way internal users ensure that they will get the brand they prefer. 
B) is the least risky and lowest cost approach to attaining "best value." 
C) shifts responsibility for establishing equality or superiority to the bidder. 
D) requires the buyer to assume the costs of developing detailed specifications. 
E) shifts responsibility for establishing equality or superiority to the specifier. 
A) is one way internal users ensure that they will get the brand they prefer. 
B) is the least risky and lowest cost approach to attaining "best value." 
C) shifts responsibility for establishing equality or superiority to the bidder. 
D) requires the buyer to assume the costs of developing detailed specifications. 
E) shifts responsibility for establishing equality or superiority to the specifier.

Question 5

Buying capital equipment differs from other types of purchases because determination of final cost includes estimates over the life of the equipment.

Accepted Answer

A) True 
 B)False

Question 6

It is common practice to specify the procedure and results necessary to meet quality standards as part of the specification.

Accepted Answer

A) True 
 B)False

Question 7

Capital assets:

Accepted Answer

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

Question 8

Supply's growing involvement in the acquisition of services may be explained by:

Accepted Answer

A) declining technical knowledge of internal users of services. 
B) the growing respect for supply managers as equals in the organization. 
C) the need for more of a personal relationship with the service supplier. 
D) high dollar value on services and the opportunities to reduce costs. 
E) the fact that price and service-delivery requirements are complex. 
A) declining technical knowledge of internal users of services. 
B) the growing respect for supply managers as equals in the organization. 
C) the need for more of a personal relationship with the service supplier. 
D) high dollar value on services and the opportunities to reduce costs. 
E) the fact that price and service-delivery requirements are complex.

Question 9

Capital items are not bought in the regular course of business.

Accepted Answer

A) True 
 B)False

Question 10

Early supply involvement means:

Accepted Answer

A) accounting staff are located in the purchasing/supply department. 
B) supply considerations are included during need identification and specification. 
C) supply managers lead new product development teams. 
D) internal customers are encouraged to regularly interact with suppliers. 
E) internal customers are empowered to evaluate and select suppliers. 
A) accounting staff are located in the purchasing/supply department. 
B) supply considerations are included during need identification and specification. 
C) supply managers lead new product development teams. 
D) internal customers are encouraged to regularly interact with suppliers. 
E) internal customers are empowered to evaluate and select suppliers.

Question 11

Traditional criteria for supply management are:

Accepted Answer

A) quality,quantity,delivery and cost. 
B) quality,quantity,price and service. 
C) quality,quantity,delivery,price and specification. 
D) quality,quantity,delivery,price and service. 
E) quality,quantity,delivery and cost and quality,quantity,price and service. 
A) quality,quantity,delivery and cost. 
B) quality,quantity,price and service. 
C) quality,quantity,delivery,price and specification. 
D) quality,quantity,delivery,price and service. 
E) quality,quantity,delivery and cost and quality,quantity,price and service.

Question 12

The inability to inventory services makes quality assurance less difficult.

Accepted Answer

A) True 
 B)False

Question 13

A criterion in establishing whether a purchase is strategic can be:

Accepted Answer

A) determined by the chief executive officer (CEO). 
B) determined by the customer. 
C) determined by the supplier. 
D) determined by performing Pareto analysis to determine if the purchase is an "A" item. 
E) defined by specification. 
A) determined by the chief executive officer (CEO). 
B) determined by the customer. 
C) determined by the supplier. 
D) determined by performing Pareto analysis to determine if the purchase is an "A" item. 
E) defined by specification.

Question 14

For nonrepetitive requirements,a system or process of acquisition can be designed.

Accepted Answer

A) True 
 B)False

Question 15

The price of a semiprocessed material-such as steel sheets instead of ingots,frozen pork bellies instead of hogs,cocoa butter instead of beans-tends to move in the opposite direction as the price of the basic raw material.

Accepted Answer

A) True 
 B)False

Question 16

An advantage of buying by performance or function over other specification methods is that it provides:

Accepted Answer

A) the opportunity for the potential supplier to establish how to make the most suitable product/service. 
B) an opportunity to purchase identical requirements from a number of different sources of supply. 
C) evidence that the buyer has carefully defined the need and how it may be satisfied. 
D) a standard for measuring and checking materials as supplied. 
E) the potential for equitable competition by ensuring that the suppliers are quoting for exactly the same material or service. 
A) the opportunity for the potential supplier to establish how to make the most suitable product/service. 
B) an opportunity to purchase identical requirements from a number of different sources of supply. 
C) evidence that the buyer has carefully defined the need and how it may be satisfied. 
D) a standard for measuring and checking materials as supplied. 
E) the potential for equitable competition by ensuring that the suppliers are quoting for exactly the same material or service.

Question 17

Most organizations have maintenance,repair and operations requirements.

Accepted Answer

A) True 
 B)False

Question 18

New technology:

Accepted Answer

A) seldom contributes to competitive advantage or operational efficiency. 
B) frequently enables competitive advantage from product/service differentiation at lower cost. 
C) seldom enables competitive advantage from product/service differentiation at lower cost. 
D) frequently enables competitive advantage from product/service differentiation,but typically at higher cost. 
E) frequently enables operational efficiencies,but seldom enables competitive advantage. 
A) seldom contributes to competitive advantage or operational efficiency. 
B) frequently enables competitive advantage from product/service differentiation at lower cost. 
C) seldom enables competitive advantage from product/service differentiation at lower cost. 
D) frequently enables competitive advantage from product/service differentiation,but typically at higher cost. 
E) frequently enables operational efficiencies,but seldom enables competitive advantage.

Question 19

Equipment,real estate,construction,and information technology are examples of capital acquisitions.

Accepted Answer

A) True 
 B)False

Question 20

When a specification is widely known,commonly recognized and readily available to every buyer,it is called a:

Accepted Answer

A) common specification. 
B) standard specification. 
C) individual specification. 
D) universal specification. 
E) market grade specification. 
A) common specification. 
B) standard specification. 
C) individual specification. 
D) universal specification. 
E) market grade specification.

Simplification cannot be applied to purchases already standardized.

Performance is a method of description by brand.

The disadvantages of buying with specifications include:

A request for quotation that asks for a "brand or equal":

Buying capital equipment differs from other types of purchases because determination of final cost includes estimates over the life of the equipment.

It is common practice to specify the procedure and results necessary to meet quality standards as part of the specification.

Capital assets:

Supply's growing involvement in the acquisition of services may be explained by:

Capital items are not bought in the regular course of business.

Early supply involvement means:

Traditional criteria for supply management are:

The inability to inventory services makes quality assurance less difficult.

A criterion in establishing whether a purchase is strategic can be:

For nonrepetitive requirements,a system or process of acquisition can be designed.

The price of a semiprocessed material-such as steel sheets instead of ingots,frozen pork bellies instead of hogs,cocoa butter instead of beans-tends to move in the opposite direction as the price of the basic raw material.

An advantage of buying by performance or function over other specification methods is that it provides:

Most organizations have maintenance,repair and operations requirements.

New technology:

Equipment,real estate,construction,and information technology are examples of capital acquisitions.

When a specification is widely known,commonly recognized and readily available to every buyer,it is called a:

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

Simplification cannot be applied to purchases already standardized.

Performance is a method of description by brand.

The disadvantages of buying with specifications include:

A request for quotation that asks for a "brand or equal":

Buying capital equipment differs from other types of purchases because determination of final cost includes estimates over the life of the equipment.

It is common practice to specify the procedure and results necessary to meet quality standards as part of the specification.

Capital assets:

Supply's growing involvement in the acquisition of services may be explained by:

Capital items are not bought in the regular course of business.

Early supply involvement means:

Traditional criteria for supply management are:

The inability to inventory services makes quality assurance less difficult.

A criterion in establishing whether a purchase is strategic can be:

For nonrepetitive requirements,a system or process of acquisition can be designed.

The price of a semiprocessed material-such as steel sheets instead of ingots,frozen pork bellies instead of hogs,cocoa butter instead of beans-tends to move in the opposite direction as the price of the basic raw material.

An advantage of buying by performance or function over other specification methods is that it provides:

Most organizations have maintenance,repair and operations requirements.

New technology:

Equipment,real estate,construction,and information technology are examples of capital acquisitions.

When a specification is widely known,commonly recognized and readily available to every buyer,it is called a:

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