Question 1

A maverick buyer is a talented member of the supply department whose creativity and innovations have saved the organization large sums of money.

Accepted Answer

A) True 
 B)False  False

Question 2

A process is a set of activities that has a beginning and an end, occurs in a specific sequence, and has inputs and outputs.

Accepted Answer

A) True 
 B)False  True

Question 3

The greatest opportunity to affect value in the purchasing process is when:

Accepted Answer

A)  the suppliers) is selected. 
B)  price and terms are determined. 
C)  potential suppliers are analyzed. 
D)  needs are recognized and described. 
E)  the buyer follows-up and expedites the order. 
A)  the suppliers) is selected. 
B)  price and terms are determined. 
C)  potential suppliers are analyzed. 
D)  needs are recognized and described. 
E)  the buyer follows-up and expedites the order. D

Question 4

Efficient and effective supply processes are needed because of:

Accepted Answer

A)  the need for an audit trail. 
B)  the large volume of items and dollar value. 
C)  severe consequences of poor performance. 
D)  the potential contribution to organizational objectives. 
E)  all of the above. 
A)  the need for an audit trail. 
B)  the large volume of items and dollar value. 
C)  severe consequences of poor performance. 
D)  the potential contribution to organizational objectives. 
E)  all of the above.

Question 5

Online auctions have been most effective when:

Accepted Answer

A)  the good or service is unique or highly customized. 
B)  technological, logistical, and commercial specifications are ambiguous. 
C)  the market conditions favor buyers. 
D)  the organization owns the technology to run the auction. 
E)  there are a limited number of suppliers available. 
A)  the good or service is unique or highly customized. 
B)  technological, logistical, and commercial specifications are ambiguous. 
C)  the market conditions favor buyers. 
D)  the organization owns the technology to run the auction. 
E)  there are a limited number of suppliers available.

Question 6

A bill of material BOM) includes a list of potential suppliers for each item needed to make one month's scheduled production.

Accepted Answer

A) True 
 B)False

Question 7

Before embarking on an e-commerce path, the supply leadership should decide what should be acquired through e-commerce and what tools should be used.

Accepted Answer

A) True 
 B)False

Question 8

If the buyer does not have a clear and unambiguous description or specification and wants to find out which suppliers can deliver the best value when and where needed, he or she will typically issue a:

Accepted Answer

A)  request for quotation RFQ). 
B)  request for proposal RFP). 
C)  request for information RFI). 
D)  request for bid RF
B) . 
E)  request for suggestions RFS). 
A)  request for quotation RFQ). 
B)  request for proposal RFP). 
C)  request for information RFI). 
D)  request for bid RF
B) . 
E)  request for suggestions RFS).

Question 9

Application software for the procurement process is available:

Accepted Answer

A)  only through an enterprise resource planning ERP) system. 
B)  only from a systems developer. 
C)  only from an application software provider ASP). 
D)  from an ERP system or systems developer, but not from an ASP. 
E)  from an ERP system, a systems developer, or an ASP. 
A)  only through an enterprise resource planning ERP) system. 
B)  only from a systems developer. 
C)  only from an application software provider ASP). 
D)  from an ERP system or systems developer, but not from an ASP. 
E)  from an ERP system, a systems developer, or an ASP.

Question 10

It is relatively difficult to develop a global database to consolidate volumes and sourcing strategy because common technical standards and government regulations do not exist across countries.

Accepted Answer

A) True 
 B)False

Question 11

The benefits) of participation in an e-marketplace include:

Accepted Answer

A)  the ability to aggregate spend 
B)  the advantages from economies of scale. 
C)  visibility up- and downstream in the supply chain. 
D)  the ability to automate and facilitate transactions. 
E)  all of the above. 
A)  the ability to aggregate spend 
B)  the advantages from economies of scale. 
C)  visibility up- and downstream in the supply chain. 
D)  the ability to automate and facilitate transactions. 
E)  all of the above.

Question 12

An online catalog is a digitized version of a supplier's catalog that cannot be customized to include the specific items, prices, and other terms and conditions negotiated by the buyer and seller.

Accepted Answer

A) True 
 B)False

Question 13

Poor internal compliance with supply processes may indicate that internal customers do not trust the supply process or the suppliers to live up to promises.

Accepted Answer

A) True 
 B)False

Question 14

The terms and conditions included in a purchase order vary depending on the nature of the purchase and may relate to price, quality, and service.

Accepted Answer

A) True 
 B)False

Question 15

Electronic data interchange EDI) provides:

Accepted Answer

A)  secure transmission of large amounts of data, but with slow turnaround. 
B)  secure transmission, greater accuracy and shorter process cycle time for all data. 
C)  slow processing of large amounts of data, but with greater accuracy. 
D)  longer process cycle time, but with greater accuracy. 
E)  secure and rapid transmission of small amounts of data. 
A)  secure transmission of large amounts of data, but with slow turnaround. 
B)  secure transmission, greater accuracy and shorter process cycle time for all data. 
C)  slow processing of large amounts of data, but with greater accuracy. 
D)  longer process cycle time, but with greater accuracy. 
E)  secure and rapid transmission of small amounts of data.

Question 16

Radio frequency identification RFID) will:

Accepted Answer

A)  eliminate bar coding and manual counting. 
B)  eliminate further investment in information technology. 
C)  supplement bar coding to reduce theft. 
D)  be more cost effective to implement than bar coding. 
E)  improve data capture but slow down inventory picking 
A)  eliminate bar coding and manual counting. 
B)  eliminate further investment in information technology. 
C)  supplement bar coding to reduce theft. 
D)  be more cost effective to implement than bar coding. 
E)  improve data capture but slow down inventory picking

Question 17

Information flows into the supply group from 1) other internal functions and 2) external sources; and information flows out from supply to 1) other internal functions and 2) suppliers.

Accepted Answer

A) True 
 B)False

Question 18

Effectively and efficiently applying technology to the supply management process will result in:

Accepted Answer

A)  increased clerical effort because there is more data entry than in a manual system. 
B)  damaged buyer-supplier relationships because of the impersonal nature of electronic communication. 
C)  an ability to reduce the total cost of doing business by enabling just-in-time systems, bar-coding applications, integrated manufacturing, and electronic funds transfers. 
D)  poorer negotiation planning and preparation because of the time spent accessing and analyzing data. 
E)  a decline in operating performance because of the volume of information to be analyzed and considered before making a decision. 
A)  increased clerical effort because there is more data entry than in a manual system. 
B)  damaged buyer-supplier relationships because of the impersonal nature of electronic communication. 
C)  an ability to reduce the total cost of doing business by enabling just-in-time systems, bar-coding applications, integrated manufacturing, and electronic funds transfers. 
D)  poorer negotiation planning and preparation because of the time spent accessing and analyzing data. 
E)  a decline in operating performance because of the volume of information to be analyzed and considered before making a decision.

Question 19

A reverse auction is an online, real time, increasing price auction between multiple pre-qualified suppliers and a buying organization.

Accepted Answer

A) True 
 B)False

A maverick buyer is a talented member of the supply department whose creativity and innovations have saved the organization large sums of money.

A process is a set of activities that has a beginning and an end, occurs in a specific sequence, and has inputs and outputs.

The greatest opportunity to affect value in the purchasing process is when:

Efficient and effective supply processes are needed because of:

Online auctions have been most effective when:

A bill of material BOM) includes a list of potential suppliers for each item needed to make one month's scheduled production.

Before embarking on an e-commerce path, the supply leadership should decide what should be acquired through e-commerce and what tools should be used.

If the buyer does not have a clear and unambiguous description or specification and wants to find out which suppliers can deliver the best value when and where needed, he or she will typically issue a:

Application software for the procurement process is available:

It is relatively difficult to develop a global database to consolidate volumes and sourcing strategy because common technical standards and government regulations do not exist across countries.

The benefits) of participation in an e-marketplace include:

An online catalog is a digitized version of a supplier's catalog that cannot be customized to include the specific items, prices, and other terms and conditions negotiated by the buyer and seller.

Poor internal compliance with supply processes may indicate that internal customers do not trust the supply process or the suppliers to live up to promises.

The terms and conditions included in a purchase order vary depending on the nature of the purchase and may relate to price, quality, and service.

Electronic data interchange EDI) provides:

Radio frequency identification RFID) will:

Information flows into the supply group from 1) other internal functions and 2) external sources; and information flows out from supply to 1) other internal functions and 2) suppliers.

Effectively and efficiently applying technology to the supply management process will result in:

A reverse auction is an online, real time, increasing price auction between multiple pre-qualified suppliers and a buying organization.

Purchasing and Supply Management

Supply Strategy

Supply Organization

Make or Buy, Insourcing, and Outsourcing

Need Identification and Specification

Quality

Quantity and Inventory

Delivery

Price

Cost Management

Supplier Selection

Supplier Evaluation and Supplier Relations

Global Supply Management

Legal and Ethics

Other Supply Responsibilities

Supply Function Evaluation and Trends

Filters

Exam 4: Supply Processes and Technology

A maverick buyer is a talented member of the supply department whose creativity and innovations have saved the organization large sums of money.

A process is a set of activities that has a beginning and an end, occurs in a specific sequence, and has inputs and outputs.

The greatest opportunity to affect value in the purchasing process is when:

Efficient and effective supply processes are needed because of:

Online auctions have been most effective when:

A bill of material BOM) includes a list of potential suppliers for each item needed to make one month's scheduled production.

Before embarking on an e-commerce path, the supply leadership should decide what should be acquired through e-commerce and what tools should be used.

If the buyer does not have a clear and unambiguous description or specification and wants to find out which suppliers can deliver the best value when and where needed, he or she will typically issue a:

Application software for the procurement process is available:

It is relatively difficult to develop a global database to consolidate volumes and sourcing strategy because common technical standards and government regulations do not exist across countries.

The benefits) of participation in an e-marketplace include:

An online catalog is a digitized version of a supplier's catalog that cannot be customized to include the specific items, prices, and other terms and conditions negotiated by the buyer and seller.

Poor internal compliance with supply processes may indicate that internal customers do not trust the supply process or the suppliers to live up to promises.

The terms and conditions included in a purchase order vary depending on the nature of the purchase and may relate to price, quality, and service.

Electronic data interchange EDI) provides:

Radio frequency identification RFID) will:

Information flows into the supply group from 1) other internal functions and 2) external sources; and information flows out from supply to 1) other internal functions and 2) suppliers.

Effectively and efficiently applying technology to the supply management process will result in:

A reverse auction is an online, real time, increasing price auction between multiple pre-qualified suppliers and a buying organization.

Purchasing and Supply Management

Supply Strategy

Supply Organization

Make or Buy, Insourcing, and Outsourcing

Need Identification and Specification

Quality

Quantity and Inventory

Delivery

Price

Cost Management

Supplier Selection

Supplier Evaluation and Supplier Relations

Global Supply Management

Legal and Ethics

Other Supply Responsibilities

Supply Function Evaluation and Trends

Filters