Question 1

In dynamic business environments, __________________ is a major survival factor.

Accepted Answer

A)  reducing costs 
B)  increasing sales maintaining a competitive advantage 
C)  maintaining a competitive advantage 
D)  improving quality 
E)  controlling expenses 
A)  reducing costs 
B)  increasing sales maintaining a competitive advantage 
C)  maintaining a competitive advantage 
D)  improving quality 
E)  controlling expenses C

Question 2

Purchasing managers need to devise ______________ such that they are consistent with each other and with the firm's competitive strategy.

Accepted Answer

A)  negotiations 
B)  purchasing actions 
C)  pricing policies 
D)  marketing strategies 
E)  business programs 
A)  negotiations 
B)  purchasing actions 
C)  pricing policies 
D)  marketing strategies 
E)  business programs D

Question 3

.Phase 3. Implementation and Evaluation
In this phase, a thorough indoctrination of the company with long range strategy, implementation of current procedures, monitoring of marketing activities, feedback mechanism for evaluation, and refinement of sourcing processes is conducted.

Accepted Answer

A) True 
 B)False  False

Question 4

firm can compete in two broad alternate ways. It can either seek competitive advantages on ________ or _______________ itself from its competitors.

Accepted Answer

A)  cost / distinguish 
B)  cost / choose to differentiate 
C)  quality / choose to differentiate 
D)  price / separate 
E)  quality / distinguish 
A)  cost / distinguish 
B)  cost / choose to differentiate 
C)  quality / choose to differentiate 
D)  price / separate 
E)  quality / distinguish

Question 5

The decision maker faces multiple goals in making the buying decision.The __________________ (is the only / are some of the) issue(s) that a decision maker faces in making the buying decision.

Accepted Answer

A)  cost per unit 
B)  quality 
C)  lead time 
D)  all the above 
E)  "A" and "B" only 
A)  cost per unit 
B)  quality 
C)  lead time 
D)  all the above 
E)  "A" and "B" only

Question 6

Phase 1. Sourcing Audit
The sourcing audit is used as a planning process that identifies opportunities for increased profitability.

Accepted Answer

A) True 
 B)False

Question 7

The cost per unit of material depends on __________________.

Accepted Answer

A)  the volume or amount purchased 
B)  the quality level desired 
C)  the desired lead time 
D)  all of the above 
E)  "A" and "C" only 
A)  the volume or amount purchased 
B)  the quality level desired 
C)  the desired lead time 
D)  all of the above 
E)  "A" and "C" only

Question 8

The supply chain relationship pegging system consists of four phases.Which of the following is not one of the four phases?

Accepted Answer

A)  Phase I is an assessment of the current performance gaps in the process. 
B)  Phase II consists of questionnaire development, interviews, or other data collection methods. 
C)  Phase III is the certification and planning phase. 
D)  The final phase (Phase IV) is the interpretation stage. 
A)  Phase I is an assessment of the current performance gaps in the process. 
B)  Phase II consists of questionnaire development, interviews, or other data collection methods. 
C)  Phase III is the certification and planning phase. 
D)  The final phase (Phase IV) is the interpretation stage.

Question 9

Phase 4. In-House Training Sessionslasses should be conducted in groups of no more than ____ individuals.

Accepted Answer

A)  10 
B)  36 
C)  12 
D)  15 
E)  20 
A)  10 
B)  36 
C)  12 
D)  15 
E)  20

Question 10

Purchasing decisions or actions that constitute purchasing strategy are determined by the firm's ___________________________________.

Accepted Answer

A)  competitive priorities 
B)  its resource capabilities 
C)  marketing initiatives 
D)  all the above 
E)  "A" and "B" only 
A)  competitive priorities 
B)  its resource capabilities 
C)  marketing initiatives 
D)  all the above 
E)  "A" and "B" only

Question 11

.Phase 2. Organizational Development
This phase involves development of sourcing strategies; setting of clearly outlined areas to cut costs and improve profitability; establishment of a sourcing control system based on frequent analysis and systematic approach; formulation of incentive programs; and provisions for training by taking advantage of local ISM seminars and in-house sessions on how to establish purchasing monitoring systems.

Accepted Answer

A) True 
 B)False

Question 12

ompanies participate in a variety of supplier relationships and take on a variety of roles.

Accepted Answer

A) True 
 B)False

Question 13

Purchasing can give the firm advantages over its competitors. In essence, firms must design their __________________ to emphasize the competitive strategy.

Accepted Answer

A)  plans 
B)  purchasing manual 
C)  policies 
D)  purchasing actions 
E)  marketing program 
A)  plans 
B)  purchasing manual 
C)  policies 
D)  purchasing actions 
E)  marketing program

Question 14

s inventory levels are reduced throughout the supply chain, each member becomes more insulated from demand variation.

Accepted Answer

A) True 
 B)False

Question 15

firm competing on ________ must give high priority to purchasing costs. A firm competing on flexibility must give high priority to _________ in buying material.

Accepted Answer

A)  selling price / just-in-time 
B)  cost / lead time 
C)  cost / quality 
D)  selling price / lead time 
E)  quality / lead time 
A)  selling price / just-in-time 
B)  cost / lead time 
C)  cost / quality 
D)  selling price / lead time 
E)  quality / lead time

Question 16

Suppliers with ____________ and who are reliable in meeting their _________ minimize the problem of material shortages for the manufacturer; as a result, the company's production can be more dependable in meeting the customers' ____________.

Accepted Answer

A)  long lead times / goals / expectations 
B)  short lead times / delivery times / expectations 
C)  high expectations / due dates / due dates 
D)  short lead times / expectations / expectations 
E)  short lead times / due dates / due dates 
A)  long lead times / goals / expectations 
B)  short lead times / delivery times / expectations 
C)  high expectations / due dates / due dates 
D)  short lead times / expectations / expectations 
E)  short lead times / due dates / due dates

Question 17

Supplier partnerships can be categorized using five factors. Which of the following is not one of the five factors?

Accepted Answer

A)  degree of risk/reward 
B)  type of relationship 
C)  product type 
D)  infromation 
E)  asset ownership 
A)  degree of risk/reward 
B)  type of relationship 
C)  product type 
D)  infromation 
E)  asset ownership

Question 18

The ________ on which the buyer's performance is evaluated can influence the effectiveness of purchasing actions and effectiveness in making the firm competitive.

Accepted Answer

A)  expectations 
B)  criterion 
C)  contract 
D)  plan 
E)  statistics 
A)  expectations 
B)  criterion 
C)  contract 
D)  plan 
E)  statistics

Question 19

s competitive forces diminish, customers demand better products, faster delivery, increased service, and decreased costs.

Accepted Answer

A) True 
 B)False

Question 20

The buyer must ensure that the ___________ of material is purchased to satisfy the demand; otherwise, ___________ may occur, resulting in _______ customer service.

Accepted Answer

A)  right quality / shortages / poor 
B)  right quality / excesses / poor 
C)  right quantity / shortages / poor 
D)  right quantity / excesses / good 
E)  right quantity / longages / poor 
A)  right quality / shortages / poor 
B)  right quality / excesses / poor 
C)  right quantity / shortages / poor 
D)  right quantity / excesses / good 
E)  right quantity / longages / poor

In dynamic business environments, __________________ is a major survival factor.

Purchasing managers need to devise ______________ such that they are consistent with each other and with the firm's competitive strategy.

.Phase 3. Implementation and Evaluation In this phase, a thorough indoctrination of the company with long range strategy, implementation of current procedures, monitoring of marketing activities, feedback mechanism for evaluation, and refinement of sourcing processes is conducted.

firm can compete in two broad alternate ways. It can either seek competitive advantages on or _______ itself from its competitors.

The decision maker faces multiple goals in making the buying decision.The __________________ (is the only / are some of the) issue(s) that a decision maker faces in making the buying decision.

Phase 1. Sourcing Audit The sourcing audit is used as a planning process that identifies opportunities for increased profitability.

The cost per unit of material depends on __________________.

The supply chain relationship pegging system consists of four phases.Which of the following is not one of the four phases?

Phase 4. In-House Training Sessionslasses should be conducted in groups of no more than ____ individuals.

Purchasing decisions or actions that constitute purchasing strategy are determined by the firm's ___________________________________.

ompanies participate in a variety of supplier relationships and take on a variety of roles.

Purchasing can give the firm advantages over its competitors. In essence, firms must design their __________________ to emphasize the competitive strategy.

s inventory levels are reduced throughout the supply chain, each member becomes more insulated from demand variation.

firm competing on must give high priority to purchasing costs. A firm competing on flexibility must give high priority to _ in buying material.

Suppliers with ________ and who are reliable in meeting their _ minimize the problem of material shortages for the manufacturer; as a result, the company's production can be more dependable in meeting the customers' ________.

Supplier partnerships can be categorized using five factors. Which of the following is not one of the five factors?

The ________ on which the buyer's performance is evaluated can influence the effectiveness of purchasing actions and effectiveness in making the firm competitive.

s competitive forces diminish, customers demand better products, faster delivery, increased service, and decreased costs.

The buyer must ensure that the _____ of material is purchased to satisfy the demand; otherwise, _ may occur, resulting in ___ customer service.

Purchasing and Supply Management

The Legal Aspects of Purchasing

Materials Management

Inventory Management

Just-In-Time Lean Purchasing

Purchasing Procedures, E-Purchasing, and Systems Contracting

Supplier Selection and Evaluation

Strategic Outsourcing

Global Sourcing

Purchasing, Supply Partnerships, and Supply Chain Power

Total Quality Management and Purchasing

Price Determination

Bargaining and Negotiations

Purchasing Transportation Services

Equipment Acquisition and Disposal

Health Care Purchasing and Supply Management

Procuring Professional Services

Filters

Exam 2: Purchasing Decisions and Business Strategy

In dynamic business environments, __________________ is a major survival factor.

Purchasing managers need to devise ______________ such that they are consistent with each other and with the firm's competitive strategy.

.Phase 3. Implementation and Evaluation In this phase, a thorough indoctrination of the company with long range strategy, implementation of current procedures, monitoring of marketing activities, feedback mechanism for evaluation, and refinement of sourcing processes is conducted.

firm can compete in two broad alternate ways. It can either seek competitive advantages on ________ or _______________ itself from its competitors.

The decision maker faces multiple goals in making the buying decision.The __________________ (is the only / are some of the) issue(s) that a decision maker faces in making the buying decision.

Phase 1. Sourcing Audit The sourcing audit is used as a planning process that identifies opportunities for increased profitability.

The cost per unit of material depends on __________________.

The supply chain relationship pegging system consists of four phases.Which of the following is not one of the four phases?

Phase 4. In-House Training Sessionslasses should be conducted in groups of no more than ____ individuals.

Purchasing decisions or actions that constitute purchasing strategy are determined by the firm's ___________________________________.

ompanies participate in a variety of supplier relationships and take on a variety of roles.

Purchasing can give the firm advantages over its competitors. In essence, firms must design their __________________ to emphasize the competitive strategy.

s inventory levels are reduced throughout the supply chain, each member becomes more insulated from demand variation.

firm competing on ________ must give high priority to purchasing costs. A firm competing on flexibility must give high priority to _________ in buying material.

Suppliers with ____________ and who are reliable in meeting their _________ minimize the problem of material shortages for the manufacturer; as a result, the company's production can be more dependable in meeting the customers' ____________.

Supplier partnerships can be categorized using five factors. Which of the following is not one of the five factors?

The ________ on which the buyer's performance is evaluated can influence the effectiveness of purchasing actions and effectiveness in making the firm competitive.

s competitive forces diminish, customers demand better products, faster delivery, increased service, and decreased costs.

The buyer must ensure that the ___________ of material is purchased to satisfy the demand; otherwise, ___________ may occur, resulting in _______ customer service.

Purchasing and Supply Management

The Legal Aspects of Purchasing

Materials Management

Inventory Management

Just-In-Time Lean Purchasing

Purchasing Procedures, E-Purchasing, and Systems Contracting

Supplier Selection and Evaluation

Strategic Outsourcing

Global Sourcing

Purchasing, Supply Partnerships, and Supply Chain Power

Total Quality Management and Purchasing

Price Determination

Bargaining and Negotiations

Purchasing Transportation Services

Equipment Acquisition and Disposal

Health Care Purchasing and Supply Management

Procuring Professional Services

Filters

firm can compete in two broad alternate ways. It can either seek competitive advantages on or _______ itself from its competitors.

firm competing on must give high priority to purchasing costs. A firm competing on flexibility must give high priority to _ in buying material.

Suppliers with ________ and who are reliable in meeting their _ minimize the problem of material shortages for the manufacturer; as a result, the company's production can be more dependable in meeting the customers' ________.

The buyer must ensure that the _____ of material is purchased to satisfy the demand; otherwise, _ may occur, resulting in ___ customer service.