Purchasing 332 Exam 1

Traditional criteria for supply management are -quality, quantity, delivery, and cost -quality, quantity, price, and service -quality, quantity, delivery, price, and specification -quality, quantity, delivery, price, and service

-quality, quantity, delivery, price, and service

The ratio of total purchases to sales (the percentage of dollars paid out to suppliers as a percentage of sales) varies little from industry to industry T or F

False

The terms and conditions included in a purchase order from a company do not vary from purchase to purchase, regardless of what good or services are being acquired T or F

False

Supply management may indirectly contribute to the organization's competitive advantage by: -reducing annual spend -improving customer satisfaction -reducing prices paid to suppliers - improving supplier lead times -process standardization

improving customer satisfaction

A carrier transports property or people by any means of conveyance T or F

True

Holding extra inventory to protect against a supply disruption from a supplier strike is an example of buffer inventory. T or F

True

Pareto analysis usually reveals that 70-80 percent of transactions account for 10-15 percent of spend. T or F

True

Public Institutions are service providers with economic and social aims that differ from private sector firms, which can affect the policies and processes of the supply function. True False

True

Quality function deployment (QFD) is a comprehensive quality system that seeks to translate customer requirements into specifications. T or F

True

Small dollar value purchase orders can be efficiently and effectively managed by implementing an e-procurement system T or F

True

Supply chain inventory management involves establishing operational design of the physical flow of goods and services, and managing information flows. T or F

True

Supply management has evolved from a transaction-based, tactical function to a process-oriented, strategic function T or F

True

The mode selection decision is independent of the carrier selection decision. T or F

True

When planning a negotiation strategy, if the estimated range of acceptable results for both buyer and seller indicates there is no zone of overlap, the negotiator must determine if the gap can be closed T or F

True

Hedging is a way to: -ensure lowest price -try to minimize price and currency exchange risks -minimize collusive bidding -set trade discounts -evaluate quantity discounts

Try to minimize price and currency exchange risks

When a commercial janitorial service company predicts demand for its services using commercial building permits issued, office leasing and vacancy rates, this an example of: -a repetitive pattern modeling tool -a time series forecasting technique -a deterministic model -a causal model -a qualitative forecasting technique

a causal model

The lowest price that ensures a continuous supply of the proper quality where and when needed and allows the supplier to make a reasonable profit, is commonly known as: -a fair price -a market price -a cost-based price -a buyer's market price -a seller's market price

a fair price

The profit-leveraging effect of supply savings means that -effective price negotiations with a supplier will lower the supplier's profits -a reduction in purchase spend increases profit more than an equivalent increase in sales. -the buyer gains leverage over suppliers when purchases are increased. -efficient supply management processes will increase profits -a reduction in money tied up in inventory improves profits

a reduction in purchase spend increases profit more than an equivalent increase in sales

An escalator clause provides an increase, but not a decrease, in price if costs change T or F

False

Decentralization refers to a supply organization that is physically located at corporate headquarters from which all or most organizational spending decisions are made. T or F

False

Economic, safety, and environmental regulations have been eliminated for most nodes of transportation through deregulation during the last 30 years. T or F

False

It is relatively easy to develop a global database to consolidate volumes and sourcing strategy because common technical standards and government regulations exist across countries. T or F

False

Kanban systems are most useful for low-volume parts used on an infrequent basis T or F

False

Qualifying sources is an example of a post-transaction cost phase in the total cost of ownership model. T or F

False

The executive to whom the chief purchasing officer reports does not influence the status of purchasing and the degree to which it is emphasized within the organization T or F

False

The inability to inventory services makes quality assurance less difficult T or F

False

Truckload (TL) shipments are typically for short haul distances compared to less-than-truckload (LTL) shipments. T or F

False

An extranet is a private internet that is extended to authorized users outside the company, such as suppliers. T or F

True

An online reverse auction may require significant upfront preparation and cost T or F

True

Capital items are not bought in the regular course of business T or F

True

A sampling technique in which every element in the population has an equal chance of being selected is called: -additive sampling -sequential sampling -100 percent testing -random sampling -cumulative sampling

random sampling

Organizations operating under a just-in-time system, prefer to ship by: -rail -same day air -truck -next-day air -intermodal carriers

truck

A cash discount of 1/15, N/30 (1 percent cash discount if payment is made in 15 days, with the gross amount due in 30 days) is the equivalent of what approximate interest rate? -24 percent -30 percent -36 percent -45 percent -54 percent

24 percent

Fixed costs generally remain the same regardless of the number of units produced T or F

True

ISO 14001:2015 focuses on compliance with federal, state, and provincial environmental laws and regulations. T or F

False

If there were 400 requests for a particular item in a year and 372 were immediately satisfied, the service level would be 7 percent. T or F

False

Since labor and other costs greatly exceed outlays for purchased materials and services in most service organizations, supply is of little consequence in most service organizations. T or F

False

Supply's objective to provide an uninterrupted flow of materials, supplies, and services to operate the organization is perfectly aligned with the objective to keep inventory investment and loss at a minimum. T or F

False

The upper and lower control limits on a process control chart are set using customer specifications. T or F

False

For the supply function, time-based strategies that impact competitive advantage relate to cycle time reductions, and greater coordination of materials and information flows T or F

True

Hybrid supply structures can capture the benefits of both centralized and decentralized organizational structures. T or F

True

Prices may not be directly related to costs in the market approach T or F

True

The disadvantages of buying with specifications include: -the seller will be responsible for performance -specifications can add costs -the potential for disqualifying or discouraging potential suppliers -the seller will be responsible for performance and specifications can add costs -specifications can add costs and the potential for disqualifying or discouraging potential suppliers

specifications can add costs and the potential for disqualifying or discouraging potential suppliers

the objectives of supply are to obtain: - the right quality and quantity, at the right price and delivered to the right place at the right time from the right source. -the right material or service at the right quality, quantity, place, and time from the right source at the right service. -The right quality materials, in the right quantity, at the right time and place, from the right source, at the right service level, and at the right price.

The right quality materials, in the right quantity, at the right time and place, from the right source, at the right service level, and at the right price.

A payment bond protects the buyer against liens that might be granted to suppliers of material and labor to the bidder, in the event the bidder does not make proper payment to its suppliers T or F

True

A process is a set of activities that has a beginning and an end, occurs in a specific sequence, and has inputs and outputs T or F

True

A process is deemed to be capable when there are no special assignable causes of variation, only common causes. T or F

True

All negotiations have an economic as well as a psychological dimension T or F

True

Although associated with a number of factors, the learning curve normally is most closely identified with the analysis of direct labor costs. T or F

True

An exception to firm bidding allows the buyers and bidders the flexibility to clarify and define specifications and prices after the intial bids are received, and then bidders submit best-and-final-offers (BAFOs) T or F

True

An externally focused process of analyzing costs in terms of the overall supply chain is called strategic cost management. T or F

True

Best practice in managing supply cost savings includes a formal process to validate the savings with finance/accounting and evaluate potential changes to the budget T or F

True

Currently, organizations tend toward buying rather than making. T or F

True

In a decentralized purchasing structure, tasks are more effectively handled at the corporate level include establishing policies, procedures, controls, and systems.

True

In portfolio analysis, strategic goods and service are both more valuable to the buying organization and riskier to acquire T or F

True

Insourcing and outsourcing occur when a company reverses previous make or buy decisions. T or F

True

Inventories can be classified by form and function T or F

True

It is common practice to specify the procedure and results necessary to meet quality standards as part of the specification T or F

True

It is reasonable to expect a supplier to simultaneously improve quality and lower costs. T or F

True

JIT requires frequent deliveries of relatively small quantities in compliance with quality standards. T or F

True

Logistics costs can be divided into three categories: inventory carrying costs, administrative costs, and transportation (with transportation costs accounting for the bulk of the costs). T or F

True

Logistics is the management of inventory in motion and at rest T or F

True

Reliability is the mathematical probability that a product will function for a stipulated period of time T or F

True

Supply should obtain needed goods and services at the lowest total cost of ownership because, in the long term, this often has a cost impact that is greater than the original purchase price. T or F

True

Target costing may result in company-wide cost reductions in design to cost, manufacture to cost, and purchase to cost T or F

True

The costs of radio frequency identification (RFID) rags and the ability to capture reliable data are both barriers to the adoption of RFID systems. T or F

True

The first step in optimizing the supply process is to build internal consensus around the opportunities to add value to the organization T or F

True

The increase in outsourcing has resulted in an increase in the percentage of revenue paid out to suppliers. T or F

True

The purchasing manager indexes (PMIs) are leading economic indicators derived from monthly surveys of purchasing managers about forecasted company conditions T or F

True

The decision to make or buy a good or service is: -a one-time decision never to be reconsidered -a decision of strategic importance that deserves careful evaluation -primarily an operational decision -the same as deciding to insource or outsource -typically made by the chief supply officer and his or her executive team

a decision of strategic importance that deserves careful evaluation

Supply should constantly strive to standardize: -capital equipment purchases, raw materials purchases, maintenance, repair, and operations (MRO) supplies purchases, and services purchases. -capital equipment purchases, raw material purchases, maintenance, repair, and operations (MRO) supplies purchases and supply management processes. -supply management processes -raw materials purchases -raw materials purchases and supply management processes

capital equipment purchases, raw material purchases, maintenance, repair, and operations (MRO) supplies purchases and supply management processes.

When cost analysis is applied to a supplier's price, the buyer -identifies a cost reduction target with no insight into specific cost elements -relies on supplier information about areas where it can cut costs -recognizes that little cost date is available for most cost elements -identifies and analyzes each cost element for cost reduction opportunities -cannot expect any assistance from the supplier

identifies and analyzes each cost element for cost reduction opportunities

Subcontracts can only occur: -in government procurement -when a lead contractor is behind schedule -if there is a prime contractor bidding out part of a job -if substitution is required after the specification has been set -when purchasing a good, not service

if there is a prime contractor bidding out part of a job

As supply chains have become more global, the risk of supply disruptions has: -increased because emerging economies lack the business ethics of developed nations -decreased because risk is spread among suppliers all over the world -decreased because there are global standards for labor and safety -increased because of financial and exchange rate fluctuations

increased because of financial and exchange rate fluctuations

In an outsourcing decision, developing and negotiating the outsourcing contract: -is not an area where supply managers believe they can add value -is the biggest area where supply managers can affect organizational strategy -is less important than ensuring prompt payment to suppliers -is of less strategic importance than identifying opportunities for outsourcing -is best left to the function most directly affected by the outsourcing decision

is of less strategic importance than identifying opportunities for outsourcing

Concerns about outsourcing include: -supply's ability to provide the required inputs at the right quality and price -layoffs, exposure to supplier's risk, and loss of control -transitioning from supplier's operations to internal operations -losing long-term buyer-supplier relationships and cost advantages -loss of a lean enterprise as the supply base grows

layoffs, exposure to supplier's risk, and loss of control

Life cycle costing (LCC) -includes all relevant costs expected in the first three years of ownership -focuses on purchase price that is typically the highest percentage of LCC -shows the phases of product evolution from growth to maturity -may include costs that are 10-15 years in the future and highly uncertain -can be applied to all types of purchases except capital acquisitions

may include costs that are 10-15 years in the future and highly uncertain

When using competitive bidding to determine prices, the purchaser should ensure that the bidders are: -qualified to make the item or service in accordance with the buyer's specifications and able to deliver it by the desired date. -sufficiently reliable -numerous enough to ensure a truly competitive price -qualified to make the item or service in accordance with the buyer's specifications, able deliver it by the desired date and sufficiently reliable and numerous enough to ensure a truly competitive price.

qualified to make the item or service in accordance with the buyer's specifications, able deliver it by the desired date and sufficiently reliable and numerous enough to ensure a truly competitive price.

In portfolio analysis, the goal when purchasing bottleneck items is to: -assure quality at expected levels -reduce or eliminate customization -assure lowest total cost of ownership -minimize acquisition time and cost -minimize price per unit

reduce or eliminate customization

The supply function in public sector organizations can differ from those in private sector organizations in the following area: -size of total spend -percentage of total spend -regulatory requirements regarding the acquisition process and policies -supplier lead times -there are no differences

regulatory requirements regarding the acquisition process and policies

Portfolio analysis is -a method of multiple sourcing -a method of identifying substitute materials -the categorization of spend map based on the risks to acquire in the marketplace and value -a method of multiple sourcing and the categorization of spend map based on the risks to acquire in the marketplace and value -a method of multiple sourcing, a method of identifying substitute materials and the categorization of spend map based on the risks to acquire in the marketplace and value.

the categorization of spend map based on the risks to acquire in the marketplace and value

One purpose of requisition is: -to request or requisition supplies from external suppliers -to give users a way to authorize buyers to acquire goods and services -to clarify the description of need before communicating with potential suppliers -to solicit price quotes for goods and services from suppliers -to give finance a way to have the final say in any decision to spend money

to clarify the description of need before communicating with potential suppliers

An organization may decide to continue to produce a good or service in-house rather than outsource: -to control the quality of customer service -to reduce risk -because of a lack of technical expertise in-house -to control the quality of customer service and to reduce risk -to control the quality of customer service, to reduce risk, and because of a lack of technical expertise in-house

to control the quality of customer service and to reduce risk

When a team has decided that a task or function currently performed by company employees is a core competency, the team will probably recommend: -outsourcing -insourcing -offshoring -continuing to make -continuing to buy

Continuing to make

Indirect costs can be specifically and accurately assigned to a given unit of production or a specific identifiable task performed by a service provider T or F

False

Information regarding price trends cannot be easily obtained because most organizations are reluctant to share cost and price information T or F

False

Internal failure costs include the costs of inspection, testing, and measuring product or service quality. T or F

False

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

False

Performance is a method of description by brand T or F

False

Supply's role in logistics is principally the acquisition of logistics services. T or F

False

The price of a semiprocessed material- such as steel sheets instead of ingots, frozen pork bellies instead of hogs, cocoa butter instead of beans- tends to move in the opposite direction as the price of the basic raw material T or F

False

If the delivery date is some months or years away and if there is substantial chance of price escalation, a supplier may feel that there is far too much risk of loss to agree to sell under a -firm-fixed-price-plus incentive fee(FFPIF) -Firm-fixed-price(FFP) -Cost-no-fee(CNF) -Cost-plus-fixed-fee(CPFF) -Cost-plus-incentive-fee(CPIF)

Firm-fixed-price(FFP)

The role of supply management is best captured by the following question: - How can supply help suppliers decrease costs? - How can supply and suppliers help decrease costs and increase revenues? -How can supply help decrease costs and increase revenues?

How can supply and suppliers help decrease costs and increase revenues?

a company manufactures 1,200 cylinders per day, each requiring a pressure gauge. The purchase price of the pressure gauge is $3.20. The company controller estimated annual holding costs at 25 percent per year, while the cost of placing an order was estimated at $55. Assuming that the plant operates 45 weeks per year, the EOQ for the pressure gauge is: -3000 units -2929 units -2872 units -2725 units -1200 units

2725 units

Some estimates place the total costs of quality to be: -insignificant to the cost of the final product -10-20 percent of the final product cost -20-30 percent of the final product cost -30-40 percent of the final product cost -40-50 percent of the final product cost

30-40 percent of the final product cost

For an organization with annual sales of $500 million, purchases of $300 million and profit of $50 million, a 10 percent reduction in the cost of purchases would result in a profit-leverage effect of: -75 percent -60 percent -15 percent

60 percent (sales increase of 60 percent would be required to achieve the same percentage increase in profit)

MRP II is a business practice in which multiple trading partners agree to exchange knowledge and share risks to generate the most accurate forecast possible, and develop effective replenishment plans. T or F

False

One of the most important steps in achieving the potential of the supply function is hiring someone from outside of the company's industry True False

False

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?" T or F

False

Rail is the most flexible mode of transportation and accounts for approximately 80 percent of transportation expenditures by U.S. firms. T or F

False

Research has found that supply management does not play an important role in mergers, acquisitions, and divestures. T or F

False

Items for which prices are comparetively low and the cost of price reduction efforts may exceed any price savings realized are: -Parts, components, and packaging -raw materials -maintenance, repair, and operating supplies -services -capital assets

Maintenance, repair, and operating supplies

Decoupling inventories are used to: - avoid an anticipated change in supply, demand, or price -protect against disruptions due to unplanned events -reduce the number of setups -accommodate different rates or patterns of demand -avoid an anticipated change in supply, demand, or price, and to reduce the number of setups

accommodate different rates or patterns of demand

Specialization within the supply function: -is necessary because most tasks are transactional -has no impact on materials or services total cost of ownership -allows staff to develop expertise in particular areas -increases operating costs beyond the benefits of specialization -is seldom required now that so many tasks are automated

allows staff to develop expertise in particular areas

The payment process: -should always be owned and managed by accounts payable -and the supply process should be aligned in policy and practice -should always be owned and managed by supply -must include paper invoices to avoid legal liability -has little impact on supply management

and the supply process should be aligned in policy and practice

Capital assets: -Have an expected use of less than one year -have little or no effect on the organization's operations -are generally expensed -are acquired for fairly small sums of money -are not bought and sold in the regular course of business

are not bought and sold in the regular course of business

In portfolio analysis, cost analysis can be used in the acquisition of strategic goods or services to identify opportunities to -divide the spend for the item or service among multiple suppliers -avoid, eliminate, or reduce costs in supplier switching costs -avoid, eliminate, or reduce costs in buyer and supplier cost structures -avoid, eliminate, or reduce costs in the supplier's cost structure -avoid, eliminate, or reduce costs in the buyer's cost structure

avoid, eliminate, or reduce costs in buyer and supplier cost structures

On an annual requirement of 100 items spread evenly throughout the year, a purchaser has an opportunity of buying all 100 units at a price of $100 each, or buying 10 units at a time at a price of $130. If the inventory carrying cost is 20 percent per year and assuming no ordering costs -buying 100 will save $2260 per year -buying 100 will save $2130 per year -buying 100 will save $3000 per year -buying 10 will save $1000 per year -buying 10 will save $870 per year

buying 100 will save $2130 per year

Decreasing total business logistics costs as a percentage of the U.S. GDP may be attributed to: -deregulation of the transportation sector -an increase in global supply chains -improved logistics technology systems and e-commerce -deregulation of the transportation sector and an increase in global supply chains -deregulation of the transportation sector, and improved logistics technology systems and e-commerce

deregulation of the transportation sector, and improved logistics technology systems and e-commerce

A criterion in establishing whether a purchase is strategic can be: -determined by the chief executive officer (CEO) -determined by the customer -determined by the supplier -determined by performing Pareto analysis to determine if the purchase is an "A" item -defined by specification

determined by performing Pareto analysis to determine if the purchase is an "A" item

A Six Sigma (6σ) approach to quality: -means there are no more than 25 defects per million opportunities -was developed by Japanese companies in the 1950s -has no connection to the concept of zero defects -focuses on preventing defects by using data to reduce variation and waste -has soft goals such as happier customers and employees

focuses on preventing defects by using data to reduce variation and waste

Supply's growing involvement in the acquisition of services may be explained by: -declining technical knowledge of internal users of services -the growing respect for supply managers as equals in the organization -the need for more of a personal relationship with the service supplier -high dollar value on services and the opportunities to reduce costs -the fact that price and service-delivery requirements are complex

high dollar value on services and the opportunities to reduce costs

The organizational structure (centralized, decentralized, or hybrid) of the supply function: -influences procedures and systems, but not supply processes or internal cross-functional relationships -influences internal cross-functional relationships and procedures and systems, but not supply processes -influences supply processes, internal cross-functional relationships, and procedures and systems -influences supply processes, but not internal cross-functional relationships or procedures and systems

influences supply processes, internal cross-functional relationships, and procedures and systems

Cost management for services: -is confined to internal demand analysis and consumption management. -is confined to supplier cost structure analysis. -includes demand management and supplier cost structure analysis. -focuses primarily on better design of the service. -is only possible when the service is highly tangible.

is confined to internal demand analysis and consumption management

A straight bill of lading: -is used when the goods have been paid for in advance of shipment and requires delivery -is a negotiable instrument that can be used when goods are purchased on credit -is used to indicate that cargo was loaded onto a named vessel in good condition -is used when the goods have been paid for in advance of shipment and requires delivery, and is a negotiable instrument that can be used when goods are purchased on credit -is a negotiable instrument that can be used when goods are purchased on credit and is used to indicate that cargo was loaded onto a named vessel in good condition.

is used when the goods have been paid for in advance of shipment and requires delivery

Effectively and efficiently applying technology to the supply management process will -lead to increased clerical effort from additional data entry -lead to damaged buyer-supplier relationships from impersonal communication -inhibit negotiation planning because of time spent accessing and analyzing data. -lower the total cost of doing business -decrease operating performance because of the volume of available information

lower the total cost of doing business

Strategies for managing "A" items in ABC analysis are: -minimizing inventories -using procurement cards -review inventory levels frequently -minimizing inventories and review inventory levels frequently -using procurement cards and review inventory levels frequently

minimizing inventories and review inventory levels frequently

Deciding what represents a core competency in an organization is; -always the same for companies in the same industry -a fairly easy decision once organizational goals and objectives are known -often a fairly complex decision and a function of many factors -a decision best left to the organization's Board of Directors -a decision best left to the chief executive officer (CEO)

often a fairly complex decision and a function of many factors

A procurement outsourcing contract that covers approval workflow, material acquisition, purchase order, expediting, material and invoice receipt, invoice payment, financial performance, compliance management, policies and procedures, and performance and results reporting is called: -procure-to-pay(P2P) -source-to-contract(P2P) -procure-to-pay(P2P) -source-to-pay(S2P) -third party logistics(3PL)

procure-to-pay(P2P)

Supply managers believe they can add the most value to the outsourcing decision by: -providing a comprehensive, competitive process -reviewing the analysis conducted by the outsourcing team -advising the outsourcing team on relevant contractual terms and conditions -being available if the internal users want their assistance -managing the contract once the decision has been implemented

providing a comprehensive, competitive process

ISO 9001:2015 provides a tested framework for a systematic approach to consistently delivering product that satisfies customers' expectations by: -dictating how quality requirements a quality system must meet -dictating scope and flexibility for quality system implementation -assuming all national cultures will meet quality requirements the same way -assuming all business sectors will meet quality requirements the same way -providing a set of standardized requirements a quality system must meet

providing a set of standardized requirements a quality system must meet

Supply management can plan an important role in mergers, acquisitions, and divestures by: -providing competitive intelligence about competitors and suppliers -providing competitive intelligence about competitors and suppliers, and identifying opportunities of operational synergies -providing assistance with the price negotiations for the company to be acquired and identifying opportunities of operational synergies

providing competitive intelligence about competitors and suppliers, and identifying opportunities of operational synergies

Quality function deployment: -seeks to understand what value represents to the customer -is a system for deploying quality at supplier facilities -provides direction on the appropriate level of product performance and which features should be included -seeks to understand what value represents to the customer, and provides direction on the appropriate level of product performance and which features should be included. -seeks to understand what value represents to the customer and is a system for deploying quality at supplier facilities

seeks to understand what value represents to the customer, and provides direction on the appropriate level of product performance and which features should be included.

Common method(s) of analyzing total costs of ownership (TCO) include: -standard cost models. -unique cost models. -segregating costs on the basis of pretransaction, transaction and post-transaction costs. -standard cost models and segregating costs on the basis of pretransaction, transaction and post-transaction costs. -standard cost models, unique cost models and segregating costs on the basis of pretransaction, transaction and post-transaction costs.

standard cost models, unique cost models and segregating costs on the basis of pretransaction, transaction, and post-transaction costs.

early supply involvement means: -accounting staff are located in the purchasing/supply department -supply considerations are included during need identification and specification -supply managers lead new product development teams -internal customers are encouraged to regularly interact with suppliers -internal customers are empowered to evaluate and select suppliers

supply considerations are included during need identification and specification

An advantage of buying by performance or function over other specification method is that it provides: -the opportunity for the potential supplier to establish how to make the most suitable product/service -an opportunity to purchase identical requirements from a number of different sources of supply -evidence that the buyer has carefully defined the need and how it may be satisfied -a standard for measuring and checking materials as supplied -the potential for equitable competition by ensuring that the suppliers are quoting for exactly the same material or service

the opportunity for the potential supplier to establish how to make the most suitable product/service

To add the greatest value to the design of new products and services, the following functions should work together during the design stage: -the primary user, design, engineering, supply, and accounting -the primary user, design, engineering, supply, and all other relevant functional areas such as accounting/finance, marketing, and operations -the primary user, design, engineering, and supply

the primary user, design, engineering, supply, and all other relevant functional areas such as accounting/finance, marketing, and operations

The selection of the FOB point is important to the purchaser, because it determines: -who pays the carrier -when legal title to goods being shipped passes to the buyer -who is responsible for preparing and pursuing loss or damage claims -who routes the freight -who pays the carrier, when legal title to goods being shipped passes to the buyer, who is responsible for preparing and pursuing loss or damage claims and who routes the freight

who pays the carrier, when legal title to goods being shipped passes to the buyer, who is responsible for preparing and pursuing loss or damage claims and who routes the freight