Question 1

On-time delivery or responsiveness measures indicate the degree to which suppliers are able to meet customer schedule requirements.

Accepted Answer

A) True 
 B)False

Question 2

_____ is a process that the purchasing function follows when it performs benchmarking comparisons.

Accepted Answer

A) Strategic benchmarking 
B) Support-activity benchmarking 
C) Process capability 
D) Operational benchmarking 
E) Outsourcing 
A) Strategic benchmarking 
B) Support-activity benchmarking 
C) Process capability 
D) Operational benchmarking 
E) Outsourcing

Question 3

Although this sounds difficult, it is often easy to develop measures that direct behavior or activity exactly as intended.

Accepted Answer

A) True 
 B)False

Question 4

The PPM measure indicates the incidence of failures of components, assemblies, and systems or services when actually incorporated into the final product or service and supplied to external customers.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is not one of the benefits of benchmarking?

Accepted Answer

A) Helps identify the best business or functional practices to include in a firm's business plans. 
B) Determines internal customer needs and wants. 
C) Breaks down a reluctance to change. 
D) Serves as a source of market intelligence. 
E) Uncovers a previously unrecognized technological breakthrough. 
A) Helps identify the best business or functional practices to include in a firm's business plans. 
B) Determines internal customer needs and wants. 
C) Breaks down a reluctance to change. 
D) Serves as a source of market intelligence. 
E) Uncovers a previously unrecognized technological breakthrough.

Question 6

Few measures drive behavior that is not what is intended or needed.

Accepted Answer

A) True 
 B)False

Question 7

Purchasing and supply require measures that reflect its ability to support overall corporate and functional goals, which means a reduced emphasis on pure efficiency measures and greater emphasis on effectiveness measures.

Accepted Answer

A) True 
 B)False

Question 8

Purchase price versus market index measures are least appropriate for market-based products where pricing is primarily a function of supply and demand.

Accepted Answer

A) True 
 B)False

Question 9

Having too little data is the most common problem an organization has with its measurement system.

Accepted Answer

A) True 
 B)False

Question 10

It is difficult to develop performance improvement plans without understanding the areas in which performance falls short.

Accepted Answer

A) True 
 B)False

Question 11

Transportation costs can be measured only in total dollars and never as a percentage of cost of goods sold or sales revenue.

Accepted Answer

A) True 
 B)False

Question 12

A single, overall productivity measure representing purchasing and supply chain performance is feasible.

Accepted Answer

A) True 
 B)False

Question 13

Cost avoidance figures almost always require manual calculation and are sometimes subject to exaggeration.

Accepted Answer

A) True 
 B)False

Question 14

Actual prices for similar items should not be compared between plants, divisions, or business units due to differing market conditions.

Accepted Answer

A) True 
 B)False

Question 15

All of the following are examples of e-transaction measures except _____.

Accepted Answer

A) days/weeks/months of supply of inventory 
B) absolute number of suppliers 
C) percentage of suppliers 
D) percentage of advanced shipping notices 
E) electronic funds transfer 
A) days/weeks/months of supply of inventory 
B) absolute number of suppliers 
C) percentage of suppliers 
D) percentage of advanced shipping notices 
E) electronic funds transfer

Question 16

Although firms are increasingly focusing on cost versus price, price performance measures are no longer very important.

Accepted Answer

A) True 
 B)False

Question 17

The most common method of establishing a budget uses the current administrative budget as a starting point.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is one of the reasons for measuring performance?

Accepted Answer

A) Support better decision making. 
B) Support better communication. 
C) Provide performance feedback. 
D) Motivate and direct behavior. 
E) All of these answers. 
A) Support better decision making. 
B) Support better communication. 
C) Provide performance feedback. 
D) Motivate and direct behavior. 
E) All of these answers.

Question 19

Each location of an organization must use the same performance objectives or performance criteria.

Accepted Answer

A) True 
 B)False

Question 20

A sound measurement and evaluation system provides sporadic reporting of performance results.

Accepted Answer

A) True 
 B)False

On-time delivery or responsiveness measures indicate the degree to which suppliers are able to meet customer schedule requirements.

_____ is a process that the purchasing function follows when it performs benchmarking comparisons.

Although this sounds difficult, it is often easy to develop measures that direct behavior or activity exactly as intended.

The PPM measure indicates the incidence of failures of components, assemblies, and systems or services when actually incorporated into the final product or service and supplied to external customers.

Which of the following is not one of the benefits of benchmarking?

Few measures drive behavior that is not what is intended or needed.

Purchasing and supply require measures that reflect its ability to support overall corporate and functional goals, which means a reduced emphasis on pure efficiency measures and greater emphasis on effectiveness measures.

Purchase price versus market index measures are least appropriate for market-based products where pricing is primarily a function of supply and demand.

Having too little data is the most common problem an organization has with its measurement system.

It is difficult to develop performance improvement plans without understanding the areas in which performance falls short.

Transportation costs can be measured only in total dollars and never as a percentage of cost of goods sold or sales revenue.

A single, overall productivity measure representing purchasing and supply chain performance is feasible.

Cost avoidance figures almost always require manual calculation and are sometimes subject to exaggeration.

Actual prices for similar items should not be compared between plants, divisions, or business units due to differing market conditions.

All of the following are examples of e-transaction measures except _____.

Although firms are increasingly focusing on cost versus price, price performance measures are no longer very important.

The most common method of establishing a budget uses the current administrative budget as a starting point.

Which of the following is one of the reasons for measuring performance?

Each location of an organization must use the same performance objectives or performance criteria.

A sound measurement and evaluation system provides sporadic reporting of performance results.

Introduction to Purchasing and Supply Chain Management

The Purchasing Process

Purchasing Policies and Procedures

Supply Management Integration for Competitive Advantage

Purchasing and Supply Management Organization

Supply Management and Commodity Strategy Development

Supplier Evaluation and Selection

Supplier Quality Management

Supplier Management and Development: Creating a World-Class Supply Base

Worldwide Sourcing

Strategic Cost Management

Purchasing and Supply Chain Analysis: Tools and Techniques

Negotiation and Conflict Management

Contract Management

Purchasing Law and Ethics

Lean Supply Chain Management

Purchasing Services

Supply Chain Information Systems and Electronic Sourcing

Purchasing and Supply Strategy Trends

Filters

Exam 19: Performance Measurement and Evaluation

On-time delivery or responsiveness measures indicate the degree to which suppliers are able to meet customer schedule requirements.

_____ is a process that the purchasing function follows when it performs benchmarking comparisons.

Although this sounds difficult, it is often easy to develop measures that direct behavior or activity exactly as intended.

The PPM measure indicates the incidence of failures of components, assemblies, and systems or services when actually incorporated into the final product or service and supplied to external customers.

Which of the following is not one of the benefits of benchmarking?

Few measures drive behavior that is not what is intended or needed.

Purchasing and supply require measures that reflect its ability to support overall corporate and functional goals, which means a reduced emphasis on pure efficiency measures and greater emphasis on effectiveness measures.

Purchase price versus market index measures are least appropriate for market-based products where pricing is primarily a function of supply and demand.

Having too little data is the most common problem an organization has with its measurement system.

It is difficult to develop performance improvement plans without understanding the areas in which performance falls short.

Transportation costs can be measured only in total dollars and never as a percentage of cost of goods sold or sales revenue.

A single, overall productivity measure representing purchasing and supply chain performance is feasible.

Cost avoidance figures almost always require manual calculation and are sometimes subject to exaggeration.

Actual prices for similar items should not be compared between plants, divisions, or business units due to differing market conditions.

All of the following are examples of e-transaction measures except _____.

Although firms are increasingly focusing on cost versus price, price performance measures are no longer very important.

The most common method of establishing a budget uses the current administrative budget as a starting point.

Which of the following is one of the reasons for measuring performance?

Each location of an organization must use the same performance objectives or performance criteria.

A sound measurement and evaluation system provides sporadic reporting of performance results.

Introduction to Purchasing and Supply Chain Management

The Purchasing Process

Purchasing Policies and Procedures

Supply Management Integration for Competitive Advantage

Purchasing and Supply Management Organization

Supply Management and Commodity Strategy Development

Supplier Evaluation and Selection

Supplier Quality Management

Supplier Management and Development: Creating a World-Class Supply Base

Worldwide Sourcing

Strategic Cost Management

Purchasing and Supply Chain Analysis: Tools and Techniques

Negotiation and Conflict Management

Contract Management

Purchasing Law and Ethics

Lean Supply Chain Management

Purchasing Services

Supply Chain Information Systems and Electronic Sourcing

Purchasing and Supply Strategy Trends

Filters