CH 8 SCM, SCM CH 9, SCM CH 10, SCM CH 11, SCM CH 12, SCM CH 13
A _____ is an analytical tool that identifies the primary external forces that are causing prices to either increase or decrease. a. market analysis b. total cost analysis c. cost analysis d. make-buy analysis e. target price analysis
A
A/An _____ is also known as the negotiator's bottom line or reservation point, that is, that point in the negotiation where it is most advantageous for the negotiator to walk away from the table and implement his or her next-best option. a. BATNA b. position c. interest d. need e. want
A
According to Cialdini, _____ is a principle which states that we look to the behavior of others to determine what is desirable, appropriate, and correct. a. social proof b. liking c. consistency d. scarcity e. authority
A
In a PERT network, the difference between the _____ and the _____ is slack. a. late finish....early finish b. late start....late finish c. early finish....late start d. early start....early finish e. None of the above.
A
In TCO for a service, _____ include all costs associated with the performance of the service that are not included in the purchase price. a. invoice costs b. usage costs c. acquisition costs d. end of life costsend of life costs e. interest costs
B
In a PERT network, a/an _____ is the latest time an activity can finish without delaying the entire project. a. late start b. late finish c. on time finish d. early start e. late start
B
In TCO, _____ includes all costs associated with bringing the product, service, or capital equipment to the customer's location. a. purchase price b. opportunity costs c. acquisition costs d. usage costs e. end of life costs
C
A negotiator's _____ can be defined as his or her opening offer, which represents the optimistic (or ideal) value of the issue being negotiated. a. interest b. need c. BATNA d. position e. want
D
A/An _____ consists of activities or steps that can be performed at the same time during the main flow of work. a. intermittent process b. continuous process c. standardized process d. concurrent process e. None of the above.
D
_____ is a negotiation tactic that signals that it is now the other party's turn to reciprocate and make a concession on an important issue. a. Venue b. Low ball c. Honesty and openness d. Best and final offer e. Planned concessions
E
_____ is a technique used to examine the incremental changes in cost between quantities within a supplier's price quotation. a. TCO b. Price analysis c. Market-share pricing d. Competition pricing e. Quantity discount analysis
E
_____ is a way to achieve continuous performance improvement in an item, product, or service, but it is not a technique for cheapening a product or service by lowering quality or other performance attributes below what customers expect. a. Make-buy analysis b. Total cost analysis c. Price analysis d. Cost analysis e. Value analysis
E
_____ is the sum of the understandings that govern human interaction in a society. a. Values b. Beliefs c. Language d. Behavior e. Culture
E
In the framework for strategic cost management, _____ are high-value products or services and can be sourced through traditional bidding approaches that require price analysis using market forces to do the work and identify what is a competitive price. a. critical products b. unique products c. custom-made products d. generics e. commodities
E
The _____ requires the systematic evaluation of the performance of individual suppliers and ultimate placement into one of three categories. a. twenty/eighty rule b. competency staircase approach c. "improve or else" approach d. triage approach e. zero defects approach
D
_____ involves contracting with independent suppliers located outside geographic boundaries of the United States for goods and services. a. Re-shoring b. Domestic sourcing c. Nearshoring d. Outsourcing e. Offshoring
E
_____ refers to the process of comparing supplier prices against external price benchmarks, without direct knowledge of the supplier's costs. a. Cost analysis b. Make-buy analysis c. Target costing d. Price analysis e. Total cost analysis
D
_____ requires a selling firm to purchase a specified amount of goods from the country that purchased its products. a. Nearshoring b. Barter c. Compensation trading d. Counterpurchase e. Buy-back
D
In TCO, _____ is the amount paid to the supplier for the product, service, or capital equipment. a. acquisition cost b. usage cost c. end-of-life cost d. purchase price e. opportunity cost
D
_____ is/are the ability to influence another person or organization to do something. a. Positions b. Planning c. Strategy d. Power e. None of the above.
D
All of the following are advantages of a categorical supplier evaluation system except _____. a. easy to implement b. requires minimal data c. different personnel can contribute d. low-cost system e. greatest potential for long-range improvement
E
In a PERT network, a/an _____ is the latest point in time an activity can begin without delaying the entire project. a. late start b. late finish c. early start d. early finish e. on time finish
A
Which of the following is not an example of a prevention cost? a. Incoming material inspections. b. Quality planning. c. Equipment calibration. d. Development of a quality manual. e. Maintenance of a quality management system.
A
If the purpose of buying currency contracts is to realize a net gain, then the purchaser is _____ and not _____. a. hedging....speculating b. speculating....hedging c. speculating....financing d. hedging....financing e. Purchasers do not get involved in managing currency fluctuation as this is solely a finance department activity
B
_____ is defined as the present value of all costs associated with a product, service, or capital equipment that are incurred over its expected life. a. Cash flow analysis b. Total cost of ownership c. Make-buy analysis d. Revenue pricing e. Competition pricing
B
The concept of _____ consists of rework and disposal efforts that increase cost and decrease productivity. a. the hidden factory b. Six Sigma c. continuous improvement d. zero defects e. kaizen
A
The supplier performance index (SPI) equals (_____ plus _____) divided by _____. a. Total Purchases....Nonperformance Costs....Total Purchases b. Nonperformance Costs....Total Purchases....Nonperformance Costs c. Total Purchases....Appraisal Costs....External Failure Costs d. External Failure Costs....Internal Failure Costs....Total Purchases e. TransportationCosts....Appraisal Costs....Prevention Costs
A
Which of the following is a disadvantage of a weighted-point supplier evaluation system? a. Tends to focus on unit price. b. Most complex, so implementation costs are high. c. Most subjective. d. Least reliable. e. Cost accounting system required.
A
Which of the following is not a supplier-specific barrier to supplier development? a. No immediate benefit to supplier development is evident in the buying organization. b. Lack of commitment on the part of supplier's management. c. Supplier's management agrees to improvements but fails to implement the proposals. d. Supplier lacks engineering resources to implement solutions. e. Supplier lacks employee skill base to implement solutions.
A
Which of the following is not one of the advantages of a rationalized and optimized supply base? a. Longer lead-times. b. Use of full-service suppliers. c. Lower total product cost. d. Ability to pursue complex supply management strategies. e. Buying from world-class suppliers.
A
Which of the following is not one of the common assumptions typically used in break-even analysis? a. Fixed costs are never considered. b. Fixed costs remain constant over the period and volumes considered. c. Variable costs fluctuate in a linear fashion. d. Revenues vary directly with volume. e. Break-even analysis considers total costs rather than average costs.
A
Which of the following is not one of the important factors to consider when building a TCO model? a. Focus on the small and easily measurable costs first. b. Building a TCO can be a costly and time-intensive activity. c. Work in a team. d. Make sure to obtain senior management buy-in before embarking on a full-fledged TCO. e. When considering global sourcing, consider all of the relevant labor, quality, logistics, and import costs associated with the total supply chain.
A
Which of the following is not one of the network rules for PERT/CPM? a. Networks start and finish at multiple events. b. Identify each unique activity within a project by a capital letter that corresponds only to that activity. c. Branch direction indicates the general progression in time from left to right. d. When a number of activities end at one event, no activity starting at that event may begin before all activities ending at that event are complete. e. Two or more activities cannot share graphically the same beginning and ending events.
A
Which of the following is not one of the six phases of a project? a. Precompletion. b. Project definition. c. Preliminary studies. d. Performance. e. Post-completion.
A
Which of the following is one of the dimensions used in developing a clear understanding of the buyer's expectations and requirements? a. The ability of the buyer to succinctly identify, define, quantify, or specify its technical and sourcing requirements. b. The seller's ability to effectively communicate its requirements. c. How compatible the buyer's and supplier's respective corporate cultures are. d. The ability of the selling company to succinctly identify, clearly define, quantify, or specify its technical and sourcing requirements. e. None of the above.
A
A/An _____ is considered to be a negotiated outcome that the negotiator must have in order to reach a successful outcome to the negotiation. a. want b. need c. BATNA d. position e. interest
B
According to Cialdini, _____ is a principle which states that we work well and are more agreeable with people we like or who are like us. a. leverage b. liking c. authority d. reciprocation e. consistency
B
According to Dick Locke, all of the following are advice about language and communication except _____. a. if a supplier is using English as a second language, the buyer should be responsible for preventing communication problems b. always pay in U.S. dollars when dealing with worldwide suppliers c. to aid in communication, speak slowly, use more communication graphics, and eliminate jargon, slang, and sports and military metaphors from your language d. bring an interpreter to all but the most informal meetings e. document, in writing, the conclusions and decisions made in a meeting before adjourning
B
According to Ohno and Toyota, _____ is a category of waste that produces items for which there are no orders. a. excess inventory b. overproduction c. unnecessary movement d. waiting time e. defect
B
All of the following are points that should be considered before initiating a project except _____. a. make sure the objectives and outcomes are championed by senior executive management b. measure subjectively c. place the program under the leadership of people with skill, credentials, and credibility d. establish an effective governance process with a cross-functional team e. break down the project into phased deliverables
B
If a/an _____ currency is utilized, the _____ bears the currency risk and is likely to build in additional contingency costs to cover its unknown risk. a. supplier's...supplier b. buyer's...supplier c. buyer's...buyer d. supplier's...buyer e. Regardless of the currency chosen, both parties share the currency risk equally.
B
In ISO 9000:2008, (the) _____ consists of a quality manual, related procedures, and work instructions. a. third-party registration b. quality management system c. environmental management system d. supplier certification e. All of the above.
B
In _____, a buyer selects or develops suppliers with multiple or redundant capabilities. a. single sourcing b. cross-sourcing c. global sourcing d. strategic sourcing e. sole sourcing
B
In overcoming the barriers to supplier development, which of the following is not one of the approaches typically used? a. Direct-involvement activities. b. Single sourcing. c. Incentives and rewards. d. Warnings and penalties. e. All of the above are typical approaches.
B
In should-cost modeling, _____ are any components not under the direct control of the buying or supplying company but those that have a significant influence on the outcome being modeled. a. direct costs b. assumption variables c. overhead costs d. transportation modes e. decision variables
B
[A] _____ establishes the rate of improvement because of learning as producers realize direct-labor cost improvements as production volumes increase. a. leverage b. learning curve c. knowledge curve d. product life cycle e. short-term contract
B
_____ actions and resources are those actions in a process that must be done to make the product but create no value for the customer. a. Non-value-adding b. Necessary non-value-adding c. Value-adding d. Inventory surplus e. None of the above.
B
_____ includes the ability to punish the other party - financially, physically, emotionally, or mentally. a. Reward power b. Coercive power c. Legitimate power d. Expert power e. Referent power
B
_____ is a negotiation tactic that involves taking an abnormally high initial position on an issue. a. Low ball b. High ball c. Best and final offer d. Curve ball e. Knuckleball
B
_____ is the process of identifying how many and which suppliers a buyer will maintain. a. Supply base optimization b. Supply base rationalization c. Six Sigma d. Zero defects e. Strategic sourcing
B
_____ means that two or more parties are competing over a fixed sum value with the winner taking all or the larger share. a. Lose-lose negotiation b. Win-lose negotiation c. Winner-take-all negotiation d. Integrative bargaining e. None of the above.
B
_____ represents the ability to meet or exceed current and future customer (i.e., buyer and eventually end customer) expectations or requirements within critical performance areas on a consistent basis. a. Kaizen b. Supplier quality c. Strategic sourcing d. Process capability e. Supply base rationalization
B
A/An _____ is issued by the purchaser's bank in conjunction with an affiliate bank in the seller's country which assures the seller that the funds are in the bank. a. bill of lading b. letter of credit c. Incoterm d. hedging contract e. tariff
B
In value stream mapping, the flow diagram that depicts process improvements to optimize the value and minimize the non-value-added streams is called a/an _____. a. current state map b. future/ideal state map c. variation map d. anticipated state map e. None of the above.
B
Which of the following is not one of Deming's 14 points? a. Create a vision and demonstrate commitment. b. Utilize fear to motive workers. c. Improve constantly and forever. d. Optimize the efforts of teams. e. Remove barriers to pride in workmanship.
B
_____ involves inventing new options that satisfy each party's needs. a. Expand the pie b. Find a bridge solution c. Logroll d. Cut the costs for compliance e. Use non-specific compensation
B
_____ is a broad term that refers to all international and domestic trade where buyer and seller have at least a partial exchange of goods for goods. a. Six Sigma b. Countertrade c. Re-shoring d. IPO e. CISG
B
_____ is a competition and implies that a winning organization excels not only in quality management but also in quality achievement. a. ISO 9001:2008 b. MBNQA c. ISO 14001:2004 d. Six Sigma e. Zero defects
B
_____ is a negotiation tactic that involves not immediately responding when the other party makes an offer in the hope that an awkward silence will encourage further offers or concessions from the other party. a. Trial balloon b. Silence c. High ball d. Questions e. Planned concessions
B
Negotiation _____ refers to the overall approach used to reach a mutually beneficial agreement with a supplier that holds different points of view from the buyer. a. tactics b. positioning c. strategy d. conflict e. None of the above.
C
Step 1 of Triangle Talk is _____. a. know exactly what they want b. propose action in a way they can accept c. know exactly what you want d. apply tactics to win the negotiation e. None of the above.
C
The _____ is a normalization factor for the supplier performance index (SPI) that eliminates high-dollar lot bias. a. Cp b. MRO c. Q adjustment factor d. Cpk e. Rfx
C
_____ is the avoidance of nonconformance in products and services by not allowing errors or defects to occur in the first place. a. Detection b. Inspection c. Prevention d. The hidden factory e. Optimization
C
A FTZ _____ is typically housed in a port or an industrial park and is available to multiple companies. a. warehouse b. twilight zone c. subzone d. general-purpose zone e. None of the above.
D
A/An _____ is a method or scheme devised for making or doing something to achieve a desired end. a. want b. objective c. BATNA d. plan e. position
D
A/An _____ is a series of tasks that requires the completion of specific objectives within a certain time frame; has defined start and stop dates; consumes resources, particularly time, personnel, and budget; and operates with limited resources. a. process b. work order c. purchase order d. project e. team charter
D
According to Armand Fiegenbaum, _____ is defined as the total composite of product and service characteristics of marketing, engineering, manufacturing, and maintenance through which the product or service in use will meet or exceed the expectations of the customer. a. productivity b. process capability c. zero defects d. quality e. supply base optimization
D
According to Cialdini, _____ is a principle which states that people feel an obligation to give something back of equal or greater value to someone else after we have received something of perceived value from them. a. social proof b. authority c. consistency d. reciprocation e. scarcity
D
According to ISM, _____ is a framework of measurable corporate policies and procedures and resulting behavior designed to benefit the workplace and, by extension, the individual, the organization, and the community. a. supply chain risk management b. sustainability c. ISO 9000:2008 d. social responsibility e. supplier development
D
According to Ohno and Toyota, _____ is a category of waste that moves material unnecessarily or long distances. a. unnecessary movement b. over-processing c. defect d. unnecessary transport e. overproduction
D
According to the CISG, a/an _____ is one of the countries that have ratified the treaty. a. rogue state b. independent commonwealth c. trading block d. contracting state e. The CISG is no longer in force.
D
All of the following are advantages of a weighted-point supplier evaluation system except _____. a. flexible system b. supplier ranking allowed c. moderate implementation costs d. total cost approach e. quantitative and qualitative factors combined into a single system
D
All of the following are common methods for overcoming barriers to worldwide sourcing except _____. a. education and training b. publicizing success stories c. measurement and reward systems d. payment only in foreign currency e. use of third party or external agents
D
All of the following are effective e-negotiating practices except _____. a. use a blended negotiation, starting with an initial face-to-face meeting or a telephone call to build essential rapport with the other party b. establish common ground and interests to build mutual trust c. use "emoticons" to counter the lack of nonverbal awareness d. forward e-mail negotiations to the other party's immediate superior for verification e. proofread the entire message, including addressees, before sending the e-mail out
D
All of the following are elements of total cost for worldwide sourcing except _____. a. payment terms b. customs brokers fees c. additional fees or commissions d. domestic income taxes e. inventory carrying costs
D
All of the following are examples of external failure costs except _____. a. warranty costs b. replacement of defective products to customers c. liability lawsuits d. quality planning e. loss of customer goodwill
D
All of the following are opportunities for supplier cost reductions except _____. a. process capability b. plant utilization c. learning-curve effect d. ability to vote out the supplier's labor union e. management capability
D
All of the following are possible risks of maintaining fewer suppliers except _____. a. supplier dependency b. supply disruption c. overaggressive supply reduction d. maintaining an all-foreign supply base e. absence of competition
D
All of the following are typical reasons why a country imposes countertrade demands except _____. a. some countries simply lack the hard currency to purchase imported goods b. countertrade provides a means of selling products in markets to which a company may have otherwise lacked access c. developing nations often require Western multinationals to accept goods as at least partial payment for sales within their country d. the country may need assistance to produce its own goods and services e. All of the above.
D
In _____, the parties work closely together to identify new and creative ways to expand available resources or generate new value obtained through a negotiated agreement. a. logroll b. use non-specific compensation c. cut the costs for compliance d. expand the pie e. find a bridge solution
D
In _____, there is an intense focus on identifying and eliminating common causes of waste that add cost, time, and effort to the product or service while not adding value to the customer. a. supplier evaluation and selection process b. the MBNQA c. SIO 14000:2004 d. the Honda BP process e. None of the above.
D
In a PERT network, the difference between the _____ and the _____ is slack. a. early start....late finish b. late start....early finish c. early start....early finish d. late start....early start e. None of the above.
D
The _____ strategy is based on determining the highest price that can be offered to the supply manager that will still be lower than the price offered by competitors. a. penetration pricing model b. market-share model c. cash discount d. revenue pricing model e. competition pricing model
E
According to Cialdini, _____ is a principle which states that we are more likely to accept the positions, arguments, and direction from recognized authority figures. a. liking b. consistency c. scarcity d. social proof e. authority
E
According to Ohno and Toyota, _____ is a category of waste that includes any wasted motion by man or machine. a. overproduction b. unnecessary transport c. unnecessary movement d. defect e. None of the above.
E
According to Ohno and Toyota, _____ is a category of waste that uses more steps to produce a product than necessary. a. excess inventory b. defect c. unnecessary movement d. unnecessary transport e. over-processing
E
All of the following are advantages of a cost-based supplier evaluation system except _____. a. total cost approach b. specific areas of supplier nonperformance identified c. objective supplier ranking d. greatest potential for long-range improvement e. good for firms with limited resources
E
All of the following are characteristics of the post-completion phase of a project except _____. a. confirm that the final project meets the expectations of management or customers b. reassign project personnel to other positions or other projects c. restore any used equipment and facilities to their original status d. conduct a post-implementation meeting to discuss the strengths and weaknesses of the project e. identify broad budget, personnel, and resource requirements for future projects
E
All of the following are elements of total cost for worldwide sourcing except _____. a. payment and currency fees b. port terminal and handling fees c. communication costs d. base price e. new product advertising
E
All of the following are examples of the reliable and timely information required for successful global sourcing except _____. a. a listing of existing contracts and suppliers b. reports on supplier capabilities and performance c. worldwide volumes by purchase type and location d. information about potential new suppliers e. truck traffic patterns around the supplier's facility
E
All of the following are examples of why organizations source worldwide except _____. a. cost/price benefits b. access to product and process technology c. quality d. introduce competition to domestic suppliers e. ability to influence domestic consumers
E
All of the following are general categories of supply base risk except _____. a. political risk b. market risk c. sourcing risk d. financial risk e. employee hiring risk
E
An effective supplier quality manual will contain all of the following except _____. a. documentation control b. testing and acceptance procedures c. metrics and measurement protocols d. basic responsibilities of both the buyer and the supplier e. approved accounting expenses
E
In TCO for a product, _____ include(s) all costs associated with converting the purchased part/material into the finished product and supporting it through its usable life. a. purchase price b. acquisition costs c. end of life costs d. opportunity costs e. usage costs
E
In _____, the parties identify more than one issue where disagreement exists and then agree to trade off these issues so that each party has one of its top-priority issues satisfied. a. use non-specific compensation b. cut the costs for compliance c. expand the pie d. find a bridge solution e. logroll
E
In a PERT network, a/an _____ is the earliest time a project can finish given the expected activity time. a. late finish b. on time start c. on time finish d. early start e. early finish
E
In should-cost modeling, _____ refers to the integrity and transparency of the cost model created. a. direct cost b. value stream maps c. make-or-buy analysis d. fixed cost e. auditability
E
In supplier measurement, the basic logic of the _____ is built around the calculation of a/an _____. a. categorical system...supplier performance index b. cost-based system...process capability index c. weighted-point system...Q adjustment factor d. weighted-point system...cost accounting system e. cost-based system...supplier performance index (SPI)
E
In the _____, the seller is willing to take a lower price because of the potential mass market appeal of the product, resulting in substantially higher sales volumes. a. revenue pricing model b. promotional pricing model c. revenue pricing model d. cash discount model e. market-share model
E
The _____ identifies those 20 percent of suppliers receiving the bulk of purchase spend or that minority of suppliers that cause the most quality problems. a. "improve or else" approach b. triage approach c. strategic sourcing approach d. competency staircase approach e. twenty/eighty rule
E
The _____ is an approach to estimating the different components that make up the supplier's per unit price per unit of product or service, i.e., what the product or service should cost in a theoretical world. a. market skimming model b. make-buy analysis c. competition pricing model d. rate-of-return model e. Should-cost model
E
The _____ process capability index does not adequately account for situations where the process is not closely centered on the nominal specification target value. a. Cxy b. optimization c. Six Sigma d. Cpk e. Cp
E
The _____ series of standards, originally established in 1993, is designed to promote environmental awareness and protection as well as pollution prevention. a. MBNQA b. ISO 9001:2008 c. Zero defects d. Six Sigma e. ISO 14001:2004
E
The area of overlapping positions among issues, when there is one, between the negotiators is termed the _____. a. concurrent zone b. agreement possibility c. positive position d. objective e. bargaining zone
E
According to ISM, _____ is defined as the ability to meet current needs without hindering the ability to meet the needs of future generations in terms of economic, environmental, and social challenges. a. Sustainability b. Scenario analysis c. Social responsibility d. Supply chain risk management e. Standardization
A
According to Ohno and Toyota, _____ is a category of waste that occurs when employees are standing about and inventory is at a standstill. a. waiting time b. defect c. overproduction d. unnecessary movement e. over-processing
A
According to Ohno and Toyota, _____ is a category of waste that retains unnecessary inventory between process steps. a. excess inventory b. overproduction c. over-processing d. waiting time e. None of the above.
A
According to Philip Crosby, the only true performance standard that defines total quality is _____, which he defined as conformance to requirements. a. zero defects b. Six Sigma c. process capability d. optimization e. rationalization
A
All of the following are common contingency management tools that can be effectively used at the tactical level to assist the supply manager in identifying, analyzing, reducing, and monitoring supply base risk except _____. a. single sourcing b. inventory c. automated visibility and early warning systems d. use of third party intermediaries e. scenario analysis
A
All of the following are common measures used to manage currency fluctuation in international purchasing except _____. a. letters of credit b. purchase in U.S. dollars c. sharing currency fluctuation risk d. currency adjustment contract clauses e. currency hedging
A
All of the following are considered barriers to worldwide sourcing except _____. a. use of simplified Incoterms compared to complex domestic terms of sale b. lack of knowledge and skills concerning global sourcing c. different business customs, language, and culture d. currency fluctuations e. resistance to change
A
All of the following are elements of total cost for worldwide sourcing except _____. a. domestic corporate sales, general, and administrative expenses b. packaging c. base price d. inventory carrying cost e. insurance premiums
A
All of the following are examples of how a finance department can support international currency requirements except _____. a. pay in U.S. dollars b. identify the currency a firm should use for payment based on projections of currency fluctuations c. provide advice about hedging and currency forecasts d. act as a clearinghouse for offshore currencies to make payment for offshore purchases e. provide advice as to whether to seek a new contract or renegotiate an existing one because of currency changes
A
All of the following are factors that influence how much attention supply management should commit to managing supplier quality except _____. a. the physical distance between the supplier and buyer facilities b. the ability of a supplier to affect a buyer's total quality c. the internal resources available to support supplier quality management and improvement d. the ability of a buying firm to practice world-class quality e. a buyer's ability to collect and analyze quality-related data
A
All of the following are positive results from early supplier design involvement except _____. a. longer lead-times in order to find and fix product defects before they get to the customer b. better quality and product design c. establishing reasonable tolerances d. suppliers can anticipate and begin preproduction work e. improved product quality and manufacturability
A
Historically, the term _____ applies to the reduced direct-labor requirement per unit of output because of the effects of learning, while the term _____ refers to the longer-term factors of production that systematically reduce production costs. a. learning curve....experience curve b. learning curve....infinity curve c. experience curve....Boeing curve d. experience curve....learning curve e. None of the above.
A
In _____, a purchaser may have to use internal engineering estimates about what it costs to produce an item, rely on historical experience and judgment to estimate costs, or review public financial documents to identify key cost data about the seller. a. reverse price analysis b. TCO analysis c. penetration pricing d. using the PPI e. competition pricing
A
In _____, one party achieves his or her objective on an issue, whereas the other receives something else of value as a reward for going along. a. use nonspecific compensation b. logroll c. expand the pie d. find a bridge solution e. cut the costs for compliance
A
In the _____, prices are set to achieve a high profit on each unit by selling to supply managers who are willing to pay a higher price because of a lack of supply management sophistication or who are willing to pay for products or services of perceived higher value. a. market skimming model b. revenue pricing model c. promotional pricing model d. price volume model e. competition pricing model
A
In the _____, suppliers are typically concerned about capacity utilization, covering fixed cost, and retaining skilled labor during market slowdowns, when they are willing to reduce their prices until market conditions change. a. revenue pricing model b. market skimming model c. penetration pricing model d. market-share model e. competition pricing model
A
The _____ (in time) through a PERT network is the _____. a. longest path....critical path b. shortest path....critical path c. longest path....slack d. shortest path....slack e. None of the above.
A
The _____ provides all suppliers, regardless of their performance history, a chance to remain in the supply base. a. "improve or else" approach b. triage approach c. competency staircase approach d. twenty/eighty rule e. Six Sigma approach
A
The _____ was passed by Congress in 1977 to prevent companies from making questionable or illegal payments to foreign government officials, politicians, and political parties. a. Foreign Corrupt Practices Act (FCPA) b. Sherman Antitrust Act c. CISG d. Incoterms Act e. Clayton Act
A
_____ are internationally recognized commercial terms that describe the responsibilities of the buyer and seller in the arrangement of transportation and clarify when the ownership of the merchandise takes place. a. Incoterms b. Duties c. Letters of credit d. Values e. Tariffs
A
_____ involves a detailed analysis of the supply base to ensure that only the most capable and highest performing suppliers are kept in the supply base after it is rationalized. a. Supply base optimization b. Outsourcing c. Strategic sourcing d. Supply base reduction e. Supply base management
A
_____ is a negotiation tactic that involves one party, often the seller, offering an unusually low price to receive a buyer's business. a. Low ball b. High ball c. Boulwarism d. Caucus e. Trial balloon
A
_____ is a tool that reduces processes to their component parts or activities and helps identify and then eliminate non-value-added activities (waste) or delays within a process. a. Process mapping b. TCO c. PERT/CPM d. QDA e. Productivity analysis
A
_____ seeks to expand the value or resources of outcomes available to all parties through cooperative negotiation. a. Win-win negotiation b. Distributive bargaining c. Competitive bargaining d. Lose-lose negotiation e. Open-table bargaining
A
In TCO for capital equipment, _____ are all costs associated with operating the equipment during its life. a. usage costs b. end of life costs c. opportunity costs d. acquisition costs e. training costs
A
In negotiation, a/an _____ is a reality or truth that the parties can state and successfully verify. a. fact b. issue c. position d. interest e. BATNA
A
In the _____, the supplier analyzes the market to find the combination of price per unit and quantity of sales that maximizes its profit on the assumption that (1) lowering the price per unit will result in more units being sold, and (2) greater volume will spread the indirect cost over more units. a. price volume model b. sole sourcing model c. market-share model d. market skimming model e. promotional pricing model
A
_____ agreements require the seller to purchase some agreed-uponpercentage of goods from a country over a specified period but allow a company to fulfill its countertrade requirement with any company or industry in the country. a. Offset b. Compensation trading c. Switch trading d. Buy-back e. Barter
A
_____ is ready access to relevant and useful information and relies on trying to influence the other party through the cogent presentation of facts, data, information, and persuasive arguments. a. Information power b. Reward power c. Coercive power d. Legitimate power e. Referent power
A
_____ is the most basic and important tenet of the MBNQA criteria. a. Continuous improvement b. Six Sigma c. Statistical process control d. Process capability e. None of the above.
A
_____ occur before the product or service is provided to the customer. a. Internal failure costs b. Appraisal costs c. External failure costs d. Prevention costs e. Total costs
A
_____ relates to a commercial purchase transaction between a buyer and a supplier located in different countries. a. International purchasing b. Re-shoring c. Global sourcing d. Nearshoring e. None of the above.
A
_____ results in waste because a valuable equipment or labor resource is not producing output. a. Idle time b. Inventory c. Wasted operator motion d. Delivery e. Overproduction
A
. _____ is relocating sourcing to countries geographically closers to the United States. a. Global sourcing b. Nearshoring c. Re-shoring d. Single sourcing e. Domestic sourcing
B
A _____ is a movement away from a negotiating position that offers something of value to the other party in order to ultimately gain something else of value. a. reward b. concession c. coercive maneuver d. tactic e. strategy
B
A _____ is designed to provide information about the performance of the process under stable operating conditions, i.e., when no special causes of variation are present. a. make-buy analysis b. process capability study c. price analysis d. cost analysis e. Six Sigma project
B
A _____ is one in which the set of steps or activities that make up the activity occur one after the other. a. continuous process b. sequential process c. concurrent process d. standardized process e. None of the above.
B
A _____ program is the formal process of verifying, usually through an intensive cross-functional on-site audit, that a supplier's processes and methods actually produce consistent and conforming quality. a. supplier selection and evaluation program b. supplier certification c. Six Sigma d. process capability e. zero defects
B
A _____ visually displays the tasks and times associated with a project and consists of a horizontal bar chart with activities listed vertically and times or dates displayed horizontally. a. PERT tool b. Gantt chart c. CPM tool d. TCO chart e. networking tool
B
A/An _____ is an aspiration or vision to work toward in the future. a. need b. objective c. plan d. BATNA
B
A/An _____ is an item or topic to be resolved during the negotiation. a. BATNA b. issue c. interest d. position e. fact
B
In should-cost modeling, the _____ provides a high level view of the supply chain, and then the supplier's primary cost elements are broken down into material, labor, overhead, transportation freight, inventory cost, maintenance costs, and others. a. PPI b. value stream map c. target price d. product specification e. None of the above.
B
In the _____, pricing is based on the assumption that long-run profitability depends on the market share obtained by the supplier. a. price volume model b. market-share model c. open market model d. target pricing model e. market skimming model
B
In the _____, the supplier establishes a price that will provide a profit margin that is a predetermined percentage of the quoted price, i.e., not a percentage of cost. a. rate-of-return pricing model b. margin pricing model c. market-share model d. competition pricing model e. target costing model
B
In the _____, the supplier simply takes its estimate of costs and adds a markup percentage to obtain the desired profit. a. margin pricing model b. cost markup pricing model c. total cost analysis model d. penetration pricing model e. revenue pricing model
B
Step 2 of Triangle Talk is _____. a. apply strategy to win the negotiation b. know exactly what they want c. know exactly what you want d. propose action in a way they can accept e. use power to get exactly what you want
B
The _____ requires suppliers to successfully navigate a successive series of performance milestones or hurdles in order to remain in the supply base. a. triage approach b. competency staircase approach c. M*A*S*H approach d. "improve or else" approach e. twenty/eighty rule
B
Which of the following is a disadvantage of a categorical supplier evaluation system? a. Least reliable. b. Cost accounting system required. c. Less frequent generation of evaluations. d. Most subjective. e. Usually manual.
B
Which of the following is a disadvantage of a cost-based supplier evaluation system? a. Least reliable. b. Most complex so implementation costs are high. c. Less frequent generation of evaluations. d. Most subjective. e. Tends to focus on unit price.
B
Which of the following is false concerning Deming's philosophy on fear in the workplace? a. Employees may be fearful of making a mistake and being reprimanded for it. b. Fear-free organizations are very common as only takes a short time to develop and maintain an organizational culture that promotes risk taking and change. c. Most people have a fear of failure, so they don't want to try anything new or different. d. People are creatures of habit and do not like to make changes in their routines. e. Middle managers may be fearful of letting go of their traditional power based on command and control.
B
Which of the following is not a question that value analysis teams should ask to determine if opportunities exist for item, product, or service improvement? a. Are there additional uses for this product? b. Can we use a different color of paint? c. Is there a better production method to produce the item or product? d. If we are making an item now, can we buy it for less (or vice versa)? e. Are packaging cost reductions possible?
B
Which of the following is not a reason for negotiating with suppliers? a. The total contract value or volume is large. b. The purchase is for widely available, commodity-like goods. c. The purchase involves utilization of capital-intensive plant and equipment. d. The purchase involves a special or collaborative relationship. e. The supplier will perform important or significant value-added activities.
B
Which of the following is not an example of an internal failure cost? a. Process troubleshooting. b. Equipment calibration. c. Re-inspection following detection of a defect. d. Production downtime caused by defects. e. Scrap and process waste.
B
Which of the following is not an example of cost differentials that arise between countries? a. Lower labor rates. b. Fewer documentation requirements. c. Possible willingness to accept a lower profit margin. d. Exchange rate differences. e. Government subsidies.
B
Which of the following is not an example of resources that affect global sourcing success? a. Budget support for travel. b. A large corporate headquarters building. c. Access to qualified personnel. d. Time for personnel to develop global strategies. e. Availability of required information and data.
B
Which of the following is not one of the benefits to the buyer of a supplier achieving ISO 9001:2008 registration? a. Few buying firms have sufficient size or resources to independently develop and implement their own comprehensive supplier certification audits. b. The supplier may develop interest from other buyers wanting to do business with it. (LO #5) c. Third party registration may provide insight into a supplier's quality system conformance that a buyer may otherwise lack. d. The buying firm receives the benefit of a supplier quality certification without actually having to conduct its own quality certification audits. e. The supplier assumes responsibility for meeting the ISO standards and paying its own registration fees.
B
Which of the following is not one of the categories of products in the strategic cost management matrix? a. Commodities. b. One-time buys. c. Critical products. d. Unique products. e. Generics.
B
Which of the following is not one of the eight key principles of total quality management? a. Define quality in terms of customers and their requirements. b. Inspect for quality at the end of the production line. c. Stress objective rather than subjective analysis. d. Strive for zero defects. e. Make quality everyone's responsibility.
B
With _____, a product's allowable cost is strictly a function of what a market segment is willing to pay less the profit goals for the product. a. penetration pricing b. target pricing c. market-share pricing d. should-cost modeling e. revenue pricing
B
In a PERT network, which of the following is not one of the times shown on the chart? a. Early start. b. Late start. c. On time start. d. Early finish. e. Late finish.
C
_____ is the process of analyzing each individual cost element (i.e., material, labor hours and rates, overhead, general and administrative costs, and profit) that together add up to the final price. a. Price analysis b. Cost analysis c. Cost analysis d. Total cost analysis e. Make-buy analysis
B
_____ occurs when a firm physically builds a plant in another country or provides a service, equipment, or technology to support the plant; the firm then agrees to take a portion of the plant's output as payment. a. Switch trading b. Buy-back c. Offset d. Counterpurchase e. Barter
B
A FTZ _____ is approved for a specific use or a specific company. a. general-purpose zone b. offset zone c. subzone d. CISG e. None of the above.
C
A/An _____ can be changed or canceled at any time by the buyer without the seller's consent. a. irrevocable letter of credit b. Incoterm c. revocable letter of credit d. CISG e. switch trade
C
According to Ohno and Toyota, _____ is a category of waste that makes the wrong product. a. overproduction b. waiting time c. defect d. unnecessary movement e. over-processing
C
All of the following are elements of market risk in a supply base except _____. a. the number of buyers competing for the same goods or source of supply b. increasingly shorter product life cycles c. regional political risk d. threat of emerging, often disruptive, technologies e. protecting and maintaining trade secrets and intellectual properties from misuse or misappropriation by suppliers, particularly those located overseas
C
All of the following are examples of appraisal costs except _____. a. laboratory testing of prototypes and samples b. production inspection activities c. development and maintenance of a quality management system d. development and maintenance of a quality management system e. incoming materials inspections
C
All of the following are examples of broad total cost of ownership categories except _____. a. purchase price b. acquisition costs c. sales, general, and administrative overhead costs d. usage costs e. end-of-life costs
C
All of the following are examples of why organizations source worldwide except _____. a. access to the only source available b. react to buying patterns of competitors c. higher ethics d. cost/price benefits e. establish a presence in another country market
C
In _____, one party (usually the buyer) gets a lower price as the parties work jointly to reduce the seller's costs or the joint transaction costs of doing business together. a. logroll b. expand the pie c. cut the costs for compliance d. find a bridge solution e. use non-specific compensation
C
The _____ supplier evaluation system seeks to identify and quantify the total cost of doing business with a given supplier, as the lowest purchase price may not always result in the lowest total cost for an item or service. a. Six Sigma b. zero defects c. cost-based d. categorical e. weighted-point
C
The average North American manufacturing firm spends _____ percent of its cost of goods sold on purchased goods and services. a. < 10 b. 25 c. 55 d. 75 e. > 90
C
The basis of _____ is the official job position or title that an individual holds, rather than the characteristics of the individual him/herself. a. informational power b. referent power c. legitimate power d. coercive power e. expert power
C
The emphasis of the _____ is on obtaining sufficient current revenue to pay for operating cost rather than on profit. a. price volume model b. promotional pricing model c. revenue pricing model d. market skimming model e. competition pricing model
C
The negotiator's _____ is the unspoken motivation or reason that underlies any given negotiation position. a. want b. need c. interest d. BATNA e. bargaining zone
C
Which of the following is not a typical qualitative service factor in a supplier performance measurement system? a. Problem resolution ability. b. Technical ability. c. Process capability. d. Ongoing progress reporting. e. Wavelength.
C
Which of the following is not a typical supplier development activity? a. Providing incentives to suppliers for improved performance. b. Promoting competition among suppliers. c. Raising prices paid for purchased goods and services. d. Directly involving buyer personnel with suppliers. e. Conducting training and process improvement initiatives.
C
Which of the following is not one of Deming's 14 points? a. Institute training. b. Drive out fear. c. Optimize the efforts of individuals working alone. (LO #4) d. Stop making decisions purely on the basis of price. e. Improve constantly and forever.
C
Which of the following is not one of the eight key principles of total quality management? a. Strive for zero defects. b. Define quality in terms of customers and their requirements. c. Focus on output rather than process. d. Make quality everyone's responsibility. e. Stress objective rather than subjective analysis.
C
Which of the following is not one of the factors that drive global sourcing performance? a. Centrally coordinated and centrally led decision making. b. Site-based control of operational activities. c. Ability to speak multiple foreign languages. d. Sourcing and contracting systems. e. International purchasing office support.
C
Which of the following is not one of the five elements in the Six Sigma performance improvement model? a. D(efine). b. M(easure). c. A(ccess). d. I(mprove). e. C(ontrol).
C
Which of the following is not one of the formal approaches to supply base rationalization? a. Twenty/eighty rule. b. "Improve or else" approach. c. Global sourcing. d. Triage approach. e. Competency staircase approach.
C
Which of the following is not one of the questions that should be asked when analyzing a seller's pricing strategy? a. Does the seller have a long-term pricing strategy, or is it short-term in nature? b. Is the seller a price leader or a price follower? c. How many employees does the seller's plant employ? d. Is the seller attempting to establish entry barriers to other competitors by establishing a low price initially, then preparing to raise prices later in the future? e. Is the seller using a cost-based pricing approach or a market-based pricing approach?
C
Which of the following is not one of the usual roles of an international purchasing office? a. Expedite and trace shipments. b. Negotiate supply contracts. c. Make payments and bribes to foreign officials to secure or retain business. d. Represent the buying firm to suppliers. e. Manage technical and commercial concerns.
C
____ involves contracting with independent suppliers outside the organization (domestic or foreign) to provide products or services that were performed inside the organization. a. Re-shoring b. Nearshoring c. Outsourcing d. offshoring e. International purchasing
C
_____ is a negotiation tactic in which the negotiator insists on negotiating in a location that is more favorable to him/her. a. Consistency b. Caucus c. Venue d. Low ball e. High ball
C
_____ is a negotiation tactic that involves taking a time out. a. Silence b. Venue c. Caucus d. Take-it-or-leave-it e. Low ball
C
_____ is a process of visually presenting the flow of materials and information to identify wasted time and actions in a manufacturing or service process. a. Make-buy analysis b. QDA c. Value stream mapping d. TCO e. None of the above.
C
_____ techniques are primarily applied to existing products and services, while _____ is the application of value principles during product or service design. a. Value analysis....total cost of ownership b. Value engineering....price analysis c. Value analysis....value engineering d. Price analysis....cost analysis e. Value engineering....value analysis
C
_____ include the direct, out-of-pocket costs of measuring quality, specifically checking for possible defects. a. Six Sigma costs b. Internal failure costs c. Appraisal costs d. External failure costs e. Prevention costs
C
_____ includes both cost and revenue data for an item to identify the point where revenue equals cost, and the expected profit or loss at different production volumes. a. Make-buy analysis b. TCO c. Break-even analysis d. Market-share pricing e. None of the above.
C
_____ is a process that involves the straight exchange of goods for goods with no exchange of currency. a. Counterpurchase b. Offset c. Barter d. Buy-back e. Switch trading
C
_____ is/are shared beliefs or group norms that are internalized and affect(s) the way people think, while _____ is/are based on values and attitudes and affect(s) the people act. a. Behavior...values b. Culture...infrastructure c. Values...behavior d. Infrastructure...behavior e. Jurisprudence...culture
C
_____ = (Quality + Technology + Service + Cycle Time) ÷ Price. a. Cost b. Efficiency c. Value d. Total cost e. Target cost
C
In a/an _____ market structure, there exist identical products with minimal barriers for new suppliers to enter the market, and price is solely a function of the forces of supply and demand. a. monopolistic b. oligopolistic c. communistic d. perfect competition e. Price is never solely a function of supply and demand, regardless of market structure.
D
In should-cost modeling, _____ include those components the company has direct control or influence over. a. direct costs b. assumption variables c. variable costs d. decision variables e. commodity prices
D
In the _____, the desired profit is added to the estimated costs. a. penetration pricing model b. revenue pricing model c. margin pricing model d. rate-of-return pricing model e. TCO model
D
In value stream mapping, the flow diagram that depicts the process and shows the times and resources used at each step and the time delay between each step is called a/an _____. a. anticipated state map b. future state map c. ideal state map d. current state map e. None of the above.
D
Step 3 of Triangle Talk is _____. a. apply tactics to win the negotiation b. know exactly what you want c. use power to get what you want d. propose action in a way they can accept e. know exactly what they want
D
The _____ presents pricing for individual products and services that is set to enhance the sales of the overall product line rather than to ensure the profitability of each product. a. price volume model b. competition pricing model c. market skimming model d. promotional pricing model e. revenue pricing model
D
The _____ process capability index quantifies the relationship between the process's natural tolerance limits and the product's specifications using a two-sided approach, regardless of process centering. a. Cpk b. x-bar c. MRP d. Cp e. Six Sigma
D
The _____ the proportion of the final product that suppliers provide, the _____ the impact they will have on overall product cost and quality. a. smaller....greater b. larger....lesser c. smaller....more significant d. larger....greater e. There is no definitive relationship between proportion of final product provided by suppliers and impact on overall product cost and quality.
D
The source of _____ comes from interpersonal appeal based on socially acceptable individual qualities and attributes, such as one's personality or attractiveness. a. informational power b. expert power c. coercive power d. referent power e. physical power
D
To remain current registration, ISO 9001:2008 registration must be accomplished every _____. a. 10 years b. 5 years c. 2 years d. 3 years e. There is no expiration date for ISO 9001:2008 registration.
D
Users apply _____ to projects where there is a single known time for each activity with no variance, while _____ applies to projects where time estimates are variable or uncertain. a. Make-buy analysis....CPM b. PERT....CPM c. Post-completion analysis....PERT d. CPM...PERT e. PERT....TCO
D
When referring to learning improvement, the _____ represents a reduction in the cumulative average number of labor hours as production doubles from a previous level. a. critical path b. slack path c. expected activity time d. learning rate e. early finish
D
Which of the following is false concerning Deming's philosophy on numerical quotas and measurement by objective? a. Workers may game the system to make their individual production and output goals. b. Many numerical based goals and objectives are often developed arbitrarily. c. Goals are often short term in their focus. d. Output standards fully support TQM improvements and other quality initiatives. e. Many numerically-based goals and objectives are beyond the control of the worker.
D
Which of the following is false regarding when to use the learning curve? a. Learning-curve analysis is appropriate when a supplier uses a new production process. b. Learning-curve analysis is appropriate when a supplier produces any item for the first time. c. The learning curve is appropriate when a supplier produces a technically complex item for the first time. d. All processes and items can benefit from or exhibit improvement from learning. e. The human factors present at the beginning of production must remain fairly constant over time to apply the learning curve.
D
Which of the following is not an element of culture? a. Language. b. Religion. c. Values and attitudes. d. Infrastructure. e. Social institutions.
D
Which of the following is not one of the management uses for the data derived from a comprehensive cost-base supplier evaluation system? a. Such a system provides the necessary information that allows a buyer to justify buying from a preferred supplier despite a higher unit price. b. The system allows a buyer to communicate the cost of specific nonperformance events to the originating supplier, which then helps identify improvement opportunities. c. Quantifying nonconformance costs can result in a chargeback to the offending supplier for unplanned costs. d. The system allows customized assignment of cost accounting codes depending on how much money is left in the annual budget. e. A buyer can use this data to identify longer-term sources of supply based on a supplier's total cost performance history.
D
Which of the following is not one of the typical uses of supplier measurement data? a. Supporting supply base rationalization and optimization. b. Identifying those highly capable suppliers that may qualify for consideration of longer-term partnerships or designation as preferred suppliers. c. Identifying those suppliers that are not performing at expected levels so that appropriate remedial or development actions can be taken. d. Deciding where to locate supplier facilities. e. Determining a supplier's future purchase volume based on its past performance.
D
Which of the following is not one of the unique features of Deming's philosophy? a. Variation is the primary source of quality nonconformance. b. Although quality is everyone's responsibility, senior management has the ultimate responsibility for quality improvement. c. Intrinsic motivation is more powerful than extrinsic motivation. d. Interacting parts of a system must be treated individually, not as a whole. e. Predictions must be grounded in theory that helps to understand cause-and-effect relationships.
D
Which of the following statements regarding cost-savings sharing is false? a. Cost-sharing approaches require joint identification of the full cost to produce an item. b. Profit is a function of the productive investment committed to the purchased item and a supplier's asset return requirements. c. The cost-based approach provides a supplier with incentives to pursue continuous performance improvement to realize shared cost savings and invest in productive assets. d. Profit is a direct function of cost. e. In the traditional market-based pricing approach, one party (usually the purchaser) seeks to capture all cost savings resulting from a supplier's improvement effort.
D
With a _____, both parties agree that payment occurs as long as exchange rates do not fluctuate outside an agreed-upon range or band. a. hedging agreement b. payment in a foreign currency c. speculation agreement d. currency adjustment clause e. payment in U.S. dollars
D
_____ actions and resources are those that create value for the customer. a. Extras b. Non-value-adding c. Necessary non-value-adding d. Value-adding e. None of the above.
D
_____ allows a buying organization to react more quickly when supply chain risk events occur by already having previously prepared plans and proposed responses in place in advance of the actual risk event. a. Hedging b. Use of third party intermediaries c. Multiple sourcing d. Scenario analysis e. None of the above.
D
_____ can be defined as how supply chain members communicate and collaborate regarding sources of risk, utilizing risk management tools to mitigate and minimize risk and uncertainty across the supply chain. a. PERT/CPM b. Scenario analysis c. Hedging d. SCRM e. None of the above.
D
_____ in a supply base consists of such factors as: country stability, regional stability, political and governmental stability, levels of official corruption, dissimilarities regarding contract law and intellectual property rights, elections, military actions, civil disturbances, terrorism, trade balance issues, and customs duties and tariffs. a. Financial risk b. Market risk c. Supplier company risk d. Political risk e. Sourcing risk
D
_____ is a negotiation tactic that is a test of acceptability. a. Take-it-or-leave-it b. Best and final offer c. Price increase d. Trial balloon e. Honesty and openness
D
_____ is any activity undertaken by a buyer to improve a supplier's performance or capabilities to meet the buyer's short- and long-term supply needs. a. Supply base rationalization b. The twenty/eighty rule c. Supply base optimization d. Supplier development e. Six Sigma
D
In a PERT network, a/an _____ is the earliest point in time an activity can begin a. late start b. on time start c. early finish d. early start e. late finish
D
_____ are those costs incurred when production processes are designed or modified to prevent defects from occurring in the first place. a. Appraisal costs b. Internal failure costs c. External failure costs d. Prevention costs e. Six Sigma costs
D
_____ include(s) all costs incurred when a product, service, or capital equipment reaches the end of its useful life, net of amounts received from the sale of remaining product or the equipment (salvage value). a. Net present value costs b. Usage costs c. Purchase price d. End-of-life costs e. Opportunity costs
D
_____ mean(s) that no duties or quota charges will be placed on goods that are reexported from the FTZ. a. Inverted tariff b. Duty deferral c. EXW d. Duty exemption e. Streamlined customs procedures
D
_____ means continuous improvement and must be built into every single process in the organization. a. Banzai b. Optimization c. Gung ho d. Kaizen e. Bonsai
D
. _____ is the ability of a process to generate outputs that meet engineering specifications and/or customer requirements and refers to the normal behavior of a process when operating in a state of statistical control. a. Process optimization b. Six Sigma c. Supplier certification d. Quality at the source e. Process capability
E
A negotiator with _____ is recognized as having accumulated and mastered a high level of knowledge about a particular subject, often coupled with verifiable credentials and stature to document that mastery. a. referent power b. legitimate power c. coercive power d. reward power e. expert power
E
A/An _____ can only be changed or canceled upon agreement of all parties. a. compensation trade b. revocable letter of credit c. buy-back d. optional commission e. irrevocable letter of credit
E
A/An _____ is a secure location approved by the appropriate U.S. Customs and Border Protection (CBP) office. a. offshore supplier b. international purchasing office c. agent d. offset e. foreign trade zone
E
A/An _____ is defined as the cost of the next best alternative. a. operating cost b. purchase price c. net present value d. usage cost e. opportunity cost
E
A/An _____ refers to those negotiated outcomes that a negotiator would like to have as opposed to those outcomes that must be achieved. a. need b. BATNA c. position d. interest e. want
E
According to Cialdini, _____ is a principle that says we prefer to be consistent in our beliefs and actions. a. scarcity b. liking c. social proof d. reciprocation e. consistency
E
Which of the following is not a buyer-specific barrier to supplier development? a. The buying company's purchase volume from the supplier does not justify development investment b. No immediate benefit to supplier development is evident to the buying organization. c. Lack of executive support within the buying organization for supplier development. d. Importance of purchased item does not justify development efforts. e. Supplier's management agrees to improvement but fails to implement the proposals.
E
Which of the following is not an item or product that is an appropriate candidate for a cost-based pricing approach? a. An item in which the seller contributes high added value through direct or indirect labor and specialized expertise. b. A complex item customized to specific requirements. c. A product requiring a conversion from raw material through value-added designs. d. A product requiring supplier-provided design and engineering support. e. Commodity-like items.
E
Which of the following is not one of Deming's 14 points? a. Encourage education and self-improvement. b. Take action. c. Institute leadership. d. Optimize the efforts of teams. e. Utilize numerical quotas and measurement by objective to motivate management.
E
Which of the following is not one of the advantages of a rationalized and optimized supply base? a. Buying from world-class suppliers. b. Use of full-service suppliers. c. Lower supply base administrative costs. d. Reduction of supply base risk. e. Absence of competition.
E
Which of the following is not one of the critical steps to process mapping? a. Search for better ways and methods to perform the tasks comprising a process. b. Replace sequential activities with concurrent activities whenever possible. c. Identify those activities that contribute to waste or add minimal value to the process and target those for elimination. d. Identify the time associated with each part of a process and identify how much of that time is waste. e. Utilize all sequential activities whenever possible as concurrent activities are wasteful.
E
Which of the following is not one of the eight key principles of total quality management? a. Pursue quality at the source. b. Emphasize prevention rather than detection of defects. c. Focus on process rather than output. d. Establish continuous improvement as a way of life. e. Stress subjective rather than objective analysis. (LO #2)
E
Which of the following is not one of the elements of financial risk in a supply base? a. Inventory carrying costs. b. Currency exchange rates. c. INCOTERMS d. Hard vs. soft currencies. e. Legal systems.
E
Which of the following is not one of the expectations that suppliers have in a typical supply chain relationship? a. Minimizing product design changes once production begins. b. Providing visibility to future purchase volume requirements. c. Sharing early access and visibility to new-product requirements. d. Valuing accurate and timely payment of invoices. e. Having the buyer co-locate its buying, engineering, and quality staffs into a supplier's facility.
E
Which of the following is not one of the reasons that negotiators frequently fall short of their goals or reach an impasse? a. They neglect the other party's problems. b. They focus too much on price. c. They focus too much on common ground. d. They neglect their BATNAs. e. They focus on interests rather than on positions.
E
Which of the following is not one of the seven wastes identified by the Honda BP process? a. Overproduction. b. Delivery. c. Waste in the work itself. d. Inventory. e. Product advertising and promotion.
E
Which of the following is not one of the usual roles of an international purchasing office (IPO)? a. Identify potential suppliers. b. Solicit quotes or proposals.. c. Obtain product samples. d. Manage countertrade requirements. e. Conduct overseas sales and marketing-related activities.
E
Which of the following statements regarding countertrade is false? a. Items involving large dollar amounts, such as military contracts, are prime candidates for countertrade. b. Companies can expect countertrade demands from a country when that country's goods may have a low or nondifferentiated perception in the world marketplace. c. Highly valued items or those sought after by the buying country are less susceptible to countertrade demands. d. Countertrade may include items that are available from many sources, commodity-type items, or items not perceived as technologically superior or having higher quality compared with other available products. e. Countertrade is a simple process as it avoids currency exchange fluctuations
E
_____ actions and resources are everything done in the process, which contribute no value to the customer, but which they are forced to pay for when they buy the product or service. a. Value-adding b. Excess inventory c. Necessary non-value-adding d. Waiting time e. Non-value-adding
E
_____ applies the price/cost equation across multiple processes that span two or more organizations across a supply chain. a. Make-buy analysis b. Price analysis c. Cost analysis d. Target costing e. Total cost analysis
E
_____ are the action plans designed to help achieve a desired result. a. Arguments b. Questions c. Strategies d. Objectives e. Tactics
E
_____ is a negotiation tactic that often signals the end of a negotiation on a given issue. a. Venue b. Silence c. Planned concessions d. Trial balloon e. Best and final offer
E
_____ are incurred following production or after the customer takes possession. a. Inspection costs b. Appraisal costs c. Internal failure costs d. Prevention costs e. External failure costs
E
_____ indicates whether a seller can lower its cost as a result of the repetitive production of an item. a. Process capability analysis b. Market analysis c. Price analysis d. Break-even analysis e. Learning-curve analysis
E
_____ involves proactively integrating and coordination common items and materials, processes, designs, technologies, and suppliers across worldwide purchasing, engineering, and operating locations. a. International purchasing b. Sole sourcing c. Nearshoring d. Re-shoring e. Global sourcing
E
_____ is the organized and systematic study of every element of cost in a part, material, process, or service to ensure that it fulfills its design and operational functions at the lowest possible total cost. a. Six Sigma b. Process capability c. New product development d. CAD/CAM e. VA/VE
E
_____ means that one party is able to offer something of perceived value to the other party. a. Referent power b. Informational power c. Expert power d. Coercive power e. Reward power
E
_____ occurs as a result of negotiators being immersed in a place in which their established norms have been confronted and may no longer be applicable. a. Win-win negotiation b. Competitive bargaining c. Reciprocation d. Consistency e. Culture shock
E
_____ occurs when a selling company agrees to accept goods from the buying country as partial payment a. Compensation trading b. Buy-back c. Barter d. Counterpurchase e. Switch trading
E
_____ occurs whenever value is added to a product or service as it moves through transformation processes in the supply chain. a. Six Sigma b. Process capability c. Kaizen d. Supply base rationalization e. Quality at the source
E
