Question 1

s a __________, each department makes a direct contribution to the overall success of the total organization.

Accepted Answer

A)  cost center 
B)  profit center 
C)  profit group 
D)  cost group 
E)  cost division

Question 2

______ is the direct computer transmission of orders and other transaction information.

Accepted Answer

A)  FDIC 
B)  EDS 
C)  EDI 
D)  ESC 
E)  DEI

Question 3

The problem with _____________________ is the lack of standardization, tedious paper work, delays, and errors.

Accepted Answer

A)  direct buying 
B)  direct purchasing 
C)  centralized buying 
D)  indirect purchasing 
E)  decentralized purchasing

Question 4

irms routinely place orders with suppliers online and in real time. Perhaps the most significant change in the purchasing process is the advent of ___________.

Accepted Answer

A)  eBay 
B)  reverse auctions 
C)  Amazon.com 
D)  silent auctions 
E)  traditional auctions

Question 5

It is important to first understand the two broad purchasing categories of purchasing materials, goods, and services in order to fully appreciate the role of e-purchasing.The two major purchasing categories are __________ and _________ materials.

Accepted Answer

A)  direct / indirect 
B)  custom / common 
C)  regular / irregular 
D)  hard / soft 
E)  finished / raw

Question 6

Many of the e-procurement software vendors fail to take into account __________________________ and getting suppliers to participate in the e-procurement system.

Accepted Answer

A)  the total cost of implementing these systems 
B)  the difficulty of realizing savings during the development and deployment phases of the transition 
C)  the cost of training employees 
D)  All of the above 
E)  "A" and "C" only

Question 7

RFID tags can be read through snow, fog, ice, paint, and crusted grime, unlike the barcode system. The tag also can be programmed to hold information such as the item's serial number, color, size, manufacture date, and current price, as well as a list of all distribution points the item reaches as it moves before arriving at a store.

Accepted Answer

A) True 
 B)False

Question 8

ritical items and systems are not the first place to apply a new e-procurement system.

Accepted Answer

A) True 
 B)False

Question 9

To extend the commitment to increasing productivity in all departments within a given facility, many companies have adopted the concept of __________.

Accepted Answer

A)  cost centers 
B)  profit centers 
C)  profit groups 
D)  cost groups 
E)  cost divisions

Question 10

ccording to the Lewin-Schein theory of change the change process consists of the following three steps:

Accepted Answer

A)  Unfreezing / Moving / Refreezing 
B)  Unfreezing / Formulating / Refreezing 
C)  Analyzing / Formulating / Freezing 
D)  Unfreezing / Moving / Training 
E)  Unfreezing / Training / Moving

Question 11

There are also some risks when using EDI that should be considered. Which of the following should be considered when using EDI?

Accepted Answer

A)  The machine and training cost will add up to a large amount and cutting corners may cost a company more than it saves. 
B)  Security is also an issue Procedural safeguards have not kept up with technology in this area. 
C)  The problem is exposure to outside users, which opens up a doorway to false messages These messages may come in the form of a person who is not a supplier sending data or the data being interrupted and/or altered. 
D)  A decision must be made whether to trade singularly through EDI or use both EDI and traditional methods 
E)  all of the above

Question 12

more devastating downside of ______________ is the buyer/seller relationship damage that may result from this method of buying. The buyer runs the risk of alienating both current and potential sources for the goods/services.

Accepted Answer

A)  traditional auctions 
B)  silent auctions 
C)  eBay 
D)  Overstock.com 
E)  reverse auctions

Question 13

nything that will immediately impact profits or bottleneck your operations is not a good place to experiment with a new electronic procurement system.

Accepted Answer

A) True 
 B)False

Question 14

This automation (RFID) provides reductions in the need for the manual scanning of products and the time required for labor-intensive duties, which, in turn, can increase the overall labor costs for companies.

Accepted Answer

A) True 
 B)False

Question 15

The driving force behind any purchasing corporate policy considers the following objectives with the exception of:

Accepted Answer

A)  Purchase the standard materials in the right quantities, at the right time and lowest cost, from any local source. 
B)  Practice the highest level of ethical standards to ensure confidence among all parties. 
C)  Operate in a professional manner. 
D)  Spend corporate funds wisely.

Question 16

traveling requisition also may include information regarding the ___________ and ____________________ for inventory control purposes.

Accepted Answer

A)  sales / manufacturer 
B)  reorder quantity / vendor 
C)  vendor / economic order quantity 
D)  order point / economic order quantity 
E)  order point / vendor

Question 17

s EDI really takes hold and international EDI becomes more commonplace a major stumbling block will be overcoming the language barriers that now exist. The most widespread EDI language in the United States is _________________

Accepted Answer

A)  EDIFACT standard 
B)  EDIFACT X10 standard 
C)  ANSA X12 standard 
D)  ANSI X12 standard 
E)  ODETTE

Question 18

__________ may not be the solution for all commodity buying. As an example, if there are too few sellers, ___________ will not yield the best price.

Accepted Answer

A)  Traditional auctions / traditional auctions 
B)  Traditional auctions / reverse auctions 
C)  Reverse auctions / traditional auctions 
D)  Reverse auctions / reverse auctions

Question 19

It is a good idea to implement e-procurement on systems that have a high supply risk and low profit impact, especially if there are a very limited number of suppliers to choose from.

Accepted Answer

A) True 
 B)False

Question 20

Implementing the reverse auction process requires some of the following steps with one exception:

Accepted Answer

A)  Define market specifications 
B)  Identify suppliers 
C)  Perform post-award review 
D)  Approve suppliers listing 
E)  Identify specific terms and conditions

Exam 7: Purchasing Procedures, E-Purchasing, and Systems Contracting

s a __________, each department makes a direct contribution to the overall success of the total organization.

______ is the direct computer transmission of orders and other transaction information.

The problem with _____________________ is the lack of standardization, tedious paper work, delays, and errors.

irms routinely place orders with suppliers online and in real time. Perhaps the most significant change in the purchasing process is the advent of ___________.

It is important to first understand the two broad purchasing categories of purchasing materials, goods, and services in order to fully appreciate the role of e-purchasing.The two major purchasing categories are __ and _ materials.

Many of the e-procurement software vendors fail to take into account __________________________ and getting suppliers to participate in the e-procurement system.

ritical items and systems are not the first place to apply a new e-procurement system.

To extend the commitment to increasing productivity in all departments within a given facility, many companies have adopted the concept of __________.

ccording to the Lewin-Schein theory of change the change process consists of the following three steps:

There are also some risks when using EDI that should be considered. Which of the following should be considered when using EDI?

more devastating downside of ______________ is the buyer/seller relationship damage that may result from this method of buying. The buyer runs the risk of alienating both current and potential sources for the goods/services.

nything that will immediately impact profits or bottleneck your operations is not a good place to experiment with a new electronic procurement system.

This automation (RFID) provides reductions in the need for the manual scanning of products and the time required for labor-intensive duties, which, in turn, can increase the overall labor costs for companies.

The driving force behind any purchasing corporate policy considers the following objectives with the exception of:

traveling requisition also may include information regarding the _ and __________ for inventory control purposes.

s EDI really takes hold and international EDI becomes more commonplace a major stumbling block will be overcoming the language barriers that now exist. The most widespread EDI language in the United States is _________________

may not be the solution for all commodity buying. As an example, if there are too few sellers, _ will not yield the best price.

It is a good idea to implement e-procurement on systems that have a high supply risk and low profit impact, especially if there are a very limited number of suppliers to choose from.

Implementing the reverse auction process requires some of the following steps with one exception: