Question 1

Which of the following statements is true about direct material purchases?

Accepted Answer

A) Their frequency of purchasing transactions is relatively low. 
B) Their purchasing predictability is relatively low. 
C) Their numbers of stakeholders are large. 
D) Their buyer has less power and control. 
A) Their frequency of purchasing transactions is relatively low. 
B) Their purchasing predictability is relatively low. 
C) Their numbers of stakeholders are large. 
D) Their buyer has less power and control. A

Question 2

In which auction does the buyer review the submitted bids at the end of the auction period and award the contract to the supplier with lowest price?

Accepted Answer

A) English auction 
B) Dutch auction 
C) sealed-bid first-price auction 
D) second-price auction 
A) English auction 
B) Dutch auction 
C) sealed-bid first-price auction 
D) second-price auction C

Question 3

The document that authorizes the supplier to produce,ship the item,and send the invoice to the buyer is called the ______.

Accepted Answer

A) supplier Invoice 
B) purchase order 
C) production order 
D) delivery order 
A) supplier Invoice 
B) purchase order 
C) production order 
D) delivery order B

Question 4

Which of the following is NOT one of the main goals of supplier management?

Accepted Answer

A) to ensure the supplier meets quality standards 
B) to promote ethical behavior 
C) to maximize the total costs 
D) to develop innovative products/processes 
A) to ensure the supplier meets quality standards 
B) to promote ethical behavior 
C) to maximize the total costs 
D) to develop innovative products/processes

Question 5

COPQ is ______.

Accepted Answer

A) cost of proper quality 
B) cost of poor quality 
C) cost of process quality 
D) cost of premium quality 
A) cost of proper quality 
B) cost of poor quality 
C) cost of process quality 
D) cost of premium quality

Question 6

Which of the following statements is FALSE about global supplier management?

Accepted Answer

A) Supply risks associated with global sourcing do not have the potential to disrupt the operations of firm's global supply chain partners. 
B) Companies buying abroad need to account for the hidden cost of offshoring. 
C) Custom clearance times and other government red tape should be considered in decisions to work with global suppliers. 
D) It is expensive and time-consuming to gather critical information from geographically dispersed suppliers. 
A) Supply risks associated with global sourcing do not have the potential to disrupt the operations of firm's global supply chain partners. 
B) Companies buying abroad need to account for the hidden cost of offshoring. 
C) Custom clearance times and other government red tape should be considered in decisions to work with global suppliers. 
D) It is expensive and time-consuming to gather critical information from geographically dispersed suppliers.

Question 7

Performance risk stems from the ______.

Accepted Answer

A) fluctuations in demand and inventory levels 
B) choice of company's sourcing strategy 
C) ongoing quality and financial issues with the supplier 
D) supplier's inability to meet delivery lead times 
A) fluctuations in demand and inventory levels 
B) choice of company's sourcing strategy 
C) ongoing quality and financial issues with the supplier 
D) supplier's inability to meet delivery lead times

Question 8

The supplier management process consists of ______ tasks.

Accepted Answer

A) five 
B) eight 
C) seven 
D) nine 
A) five 
B) eight 
C) seven 
D) nine

Question 9

The services and information a company acquires from its vendors is ______.

Accepted Answer

A) tangible 
B) intangible 
C) finished goods 
D) raw Materials 
A) tangible 
B) intangible 
C) finished goods 
D) raw Materials

Question 10

The ______ are part of the finished products,and the amount of usage can be tracked on a per-unit basis.

Accepted Answer

A) indirect materials 
B) direct materials 
C) centralized material purchases 
D) decentralized material purchases 
A) indirect materials 
B) direct materials 
C) centralized material purchases 
D) decentralized material purchases

Question 11

Consolidating purchases to achieve volume discounts is a sourcing strategy of ______.

Accepted Answer

A) bottleneck purchases 
B) noncritical purchases 
C) leveraged purchases 
D) strategic purchases 
A) bottleneck purchases 
B) noncritical purchases 
C) leveraged purchases 
D) strategic purchases

Question 12

Cost savings is the main criterion for ______ that can be purchased from multiple service providers.

Accepted Answer

A) strategic services 
B) standard services 
C) public services 
D) nonstrategic services 
A) strategic services 
B) standard services 
C) public services 
D) nonstrategic services

Question 13

COGS is ______.

Accepted Answer

A) condition of goods sold 
B) cost of goods supplied 
C) condition of good supplies 
D) cost of goods sold 
A) condition of goods sold 
B) cost of goods supplied 
C) condition of good supplies 
D) cost of goods sold

Question 14

Which of the following is true for collaborative relationships?

Accepted Answer

A) They involve very little effort. 
B) They require early supplier involvement. 
C) They are suitable for noncritical or one-time purchases. 
D) They are not intended for product innovation. 
A) They involve very little effort. 
B) They require early supplier involvement. 
C) They are suitable for noncritical or one-time purchases. 
D) They are not intended for product innovation.

Question 15

Purchasing predictability is relatively high for ______.

Accepted Answer

A) direct material purchases 
B) indirect material purchases 
C) centralized material purchases 
D) decentralized material purchases 
A) direct material purchases 
B) indirect material purchases 
C) centralized material purchases 
D) decentralized material purchases

Question 16

Which of the following is NOT a mitigation strategy for supply risks associated with global supplier management?

Accepted Answer

A) Establish collaborative relationship with global suppliers. 
B) Have a backup pool of suppliers. 
C) Limit the use of technology for supplier visibility. 
D) Select suppliers whose language and culture can be understood. 
A) Establish collaborative relationship with global suppliers. 
B) Have a backup pool of suppliers. 
C) Limit the use of technology for supplier visibility. 
D) Select suppliers whose language and culture can be understood.

Question 17

Which of the following is used for long-term purchases on multiple dates over a period of time?

Accepted Answer

A) blanket purchase order 
B) standard purchase order 
C) planned purchase order 
D) electronic purchase order 
A) blanket purchase order 
B) standard purchase order 
C) planned purchase order 
D) electronic purchase order

Question 18

Which of the following statements is true for online reverse auctions?

Accepted Answer

A) Buyers compete with each other and bid on products. 
B) Businesses use the e-procurement solution for selecting buyers. 
C) Buyers submit online competitive bids based on their business requirements. 
D) Buyers allow suppliers to submit online bids for products/services as specified by the buyer. 
A) Buyers compete with each other and bid on products. 
B) Businesses use the e-procurement solution for selecting buyers. 
C) Buyers submit online competitive bids based on their business requirements. 
D) Buyers allow suppliers to submit online bids for products/services as specified by the buyer.

Question 19

Which of the following is a plan to contract with multiple suppliers to ensure that backup supplies are available?

Accepted Answer

A) joint venture 
B) strategic alliance 
C) multiple-sourcing strategy 
D) Keiretsu network 
A) joint venture 
B) strategic alliance 
C) multiple-sourcing strategy 
D) Keiretsu network

Question 20

Which of the following is NOT a characteristic of strategic purchases?

Accepted Answer

A) They exploit full purchasing power. 
B) They are high-value/scarce items. 
C) They emphasize long-term partnerships. 
D) They are critical to company performance. 
A) They exploit full purchasing power. 
B) They are high-value/scarce items. 
C) They emphasize long-term partnerships. 
D) They are critical to company performance.

Exam 13: Supplier Management

Which of the following statements is true about direct material purchases?

In which auction does the buyer review the submitted bids at the end of the auction period and award the contract to the supplier with lowest price?

The document that authorizes the supplier to produce,ship the item,and send the invoice to the buyer is called the ______.

Which of the following is NOT one of the main goals of supplier management?

COPQ is ______.

Which of the following statements is FALSE about global supplier management?

Performance risk stems from the ______.

The supplier management process consists of ______ tasks.

The services and information a company acquires from its vendors is ______.

The ______ are part of the finished products,and the amount of usage can be tracked on a per-unit basis.

Consolidating purchases to achieve volume discounts is a sourcing strategy of ______.

Cost savings is the main criterion for ______ that can be purchased from multiple service providers.

COGS is ______.

Which of the following is true for collaborative relationships?

Purchasing predictability is relatively high for ______.

Which of the following is NOT a mitigation strategy for supply risks associated with global supplier management?

Which of the following is used for long-term purchases on multiple dates over a period of time?

Which of the following statements is true for online reverse auctions?

Which of the following is a plan to contract with multiple suppliers to ensure that backup supplies are available?

Which of the following is NOT a characteristic of strategic purchases?

Introduction to Managing Global Operations and Supply Chains

Operations and Supply Chain Strategies

Project Management

Supplement: Project Management

Product and Service Innovations

Supplement: Reliability

Managing for Quality

Quality Improvement and Control Tools

Capacity Planning

Supply Chain Design and Location Planning

Process Design and Layout Planning

Supplement: Tools for Analyzing, Designing, and Selecting Processes and Layouts

Logistics Management

Demand Management and Customer Service

Demand Forecasting Methods

Lean Operations and Supply Chains

Inventory Management

Inventory Control Models

Sales and Operations Planning

Master Scheduling and Material Requirements Planning

Supplement: Capacity Requirements Planning, MRP II, ERP, and DRP

Detailed Scheduling

Linear Programming

The Transportation Models

Waiting Line Models

Simulation

Learning Curves

Decision-Making Tools

Filters