Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Sustainability criteria include environmental and legal considerations.

Accepted Answer

A) True 
 B)False

Question 3

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.

Question 4

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.

Question 5

Supply chain risk can be classified as:

Accepted Answer

A) operational. 
B) financial. 
C) reputational. 
D) operational and financial. 
E) operational,financial and reputational.

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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.

Question 8

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.

Question 9

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 10

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

Exam 6: Need Identification and Specification

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

Sustainability criteria include environmental and legal considerations.

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:

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

Supply chain risk can be classified as:

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

Description by brand:

Purchasing by specification typically occurs when:

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

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?"