Question 1

Performance is a method of description by brand.

Accepted Answer

A) True 
 B)False  False

Question 2

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. B

Question 3

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. B

Question 4

Most organizations have maintenance, repair and operations requirements.

Accepted Answer

A) True 
 B)False

Question 5

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 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

Simplification cannot be applied to purchases already standardized.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Sustainability criteria include environmental and legal considerations.

Accepted Answer

A) True 
 B)False

Question 10

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 11

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 12

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 13

Purchasing by specification typically occurs when:

Accepted Answer

A)  there are multiple sources for an identical requirement. 
B)  a high degree of supplier expertise is required and difficult to define. 
C)  the internal user's preferences are impossible to overcome. 
D)  the buyer wants the supplier to decide how to make the most suitable product. 
E)  a supplier holds a needed patent. 
A)  there are multiple sources for an identical requirement. 
B)  a high degree of supplier expertise is required and difficult to define. 
C)  the internal user's preferences are impossible to overcome. 
D)  the buyer wants the supplier to decide how to make the most suitable product. 
E)  a supplier holds a needed patent.

Question 14

To assist in determining what represents acceptable value, a buyer is likely to:

Accepted Answer

A)  provide the mathematics for a suitable inspection program. 
B)  purchase a branded item. 
C)  disallow supplier substitutions for the specified item. 
D)  avoid involving engineering in need identification and specification. 
E)  identify the function of a good or service. 
A)  provide the mathematics for a suitable inspection program. 
B)  purchase a branded item. 
C)  disallow supplier substitutions for the specified item. 
D)  avoid involving engineering in need identification and specification. 
E)  identify the function of a good or service.

Question 15

Packaging is an easy category to buy because it has few disposal, environmental, and transportation implications.

Accepted Answer

A) True 
 B)False

Question 16

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 17

Quality as a term covers functionality: "Does it do the job we want done?" but not conformance to specification: "Does it fit the specification agreed to?"

Accepted Answer

A) True 
 B)False

Question 18

A corporate travel department determines that employees have been staying in 15 different hotel chains. The director of corporate travel mandates that travelers may only stay in four designated hotel chains. This action is an example of:

Accepted Answer

A)  standardization. 
B)  buying by brand. 
C)  buying by brand or equal. 
D)  simplification. 
E)  specification by physical characteristics. 
A)  standardization. 
B)  buying by brand. 
C)  buying by brand or equal. 
D)  simplification. 
E)  specification by physical characteristics.

Question 19

Standardization is a technical concept that means agreement on the definite sizes, design and quality of a product or service.

Accepted Answer

A) True 
 B)False

Question 20

Description by brand:

Accepted Answer

A)  is the least risky and lowest cost approach to attaining "best value." 
B)  may be a necessity because the manufacturing process is secret. 
C)  should always be discouraged by the buyer. 
D)  indicates a supplier has unduly influenced someone in the buyer's organization. 
E)  may be a preference of an internal user, but it is never a necessity. 
A)  is the least risky and lowest cost approach to attaining "best value." 
B)  may be a necessity because the manufacturing process is secret. 
C)  should always be discouraged by the buyer. 
D)  indicates a supplier has unduly influenced someone in the buyer's organization. 
E)  may be a preference of an internal user, but it is never a necessity.

Performance is a method of description by brand.

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

New technology:

Most organizations have maintenance, repair and operations requirements.

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

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

Simplification cannot be applied to purchases already standardized.

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

Sustainability criteria include environmental and legal considerations.

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.

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

Capital assets:

Purchasing by specification typically occurs when:

To assist in determining what represents acceptable value, a buyer is likely to:

Packaging is an easy category to buy because it has few disposal, environmental, and transportation implications.

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

Quality as a term covers functionality: "Does it do the job we want done?" but not conformance to specification: "Does it fit the specification agreed to?"

A corporate travel department determines that employees have been staying in 15 different hotel chains. The director of corporate travel mandates that travelers may only stay in four designated hotel chains. This action is an example of:

Standardization is a technical concept that means agreement on the definite sizes, design and quality of a product or service.

Description by brand:

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

Performance is a method of description by brand.

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

New technology:

Most organizations have maintenance, repair and operations requirements.

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

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

Simplification cannot be applied to purchases already standardized.

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

Sustainability criteria include environmental and legal considerations.

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.

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

Capital assets:

Purchasing by specification typically occurs when:

To assist in determining what represents acceptable value, a buyer is likely to:

Packaging is an easy category to buy because it has few disposal, environmental, and transportation implications.

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

Quality as a term covers functionality: "Does it do the job we want done?" but not conformance to specification: "Does it fit the specification agreed to?"

A corporate travel department determines that employees have been staying in 15 different hotel chains. The director of corporate travel mandates that travelers may only stay in four designated hotel chains. This action is an example of:

Standardization is a technical concept that means agreement on the definite sizes, design and quality of a product or service.

Description by brand:

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