Question 1

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 2

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

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

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.

Question 5

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 6

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 7

Supply chain risk can be classified as:

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.

Question 8

The inability to inventory services makes quality assurance less difficult.

Accepted Answer

A) True 
 B)False

Question 9

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 10

A specification is a loose description of a requirement that leaves room for supplier enhancements and contributions.

Accepted Answer

A) True 
 B)False

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

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

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

The disadvantages of buying with specifications include:

Early supply involvement means:

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

Supply chain risk can be classified as:

The inability to inventory services makes quality assurance less difficult.

Traditional criteria for supply management are:

A specification is a loose description of a requirement that leaves room for supplier enhancements and contributions.

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

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

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

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

The disadvantages of buying with specifications include:

Early supply involvement means:

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

Supply chain risk can be classified as:

The inability to inventory services makes quality assurance less difficult.

Traditional criteria for supply management are:

A specification is a loose description of a requirement that leaves room for supplier enhancements and contributions.

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