ISDS 3115 final

e. line balancing

All of the following are "opportunities" for supply chain management except a. postponement b. drop shipment c. blanket orders d. channel assembly e. line balancing

C. accurate inventory records

What is required for an MRP system to work? A. a high number of purchase orders outstanding B. a small bill of material C. accurate inventory records D. long lead times

b. 50%

What is the average capacity utilization in the motor carrier (trucking) industry? a. 25% b. 50% c. 75% d. 95% e. 99%

b. railroads

With the growth of JIT, which of the following distribution systems has been the biggest loser? a. trucking b. railroads c. airfreight d. waterways e. pipelines

d. drop shipping

A carpet manufacturer has delivered carpet directly to the end consumer rather than to the carpet dealer. The carpet manufacturer is practicing a. postponement b. cross-docking c. channel assembly d. drop shipping e. float reduction

d. the high cost of changing partners

A disadvantage of the "few suppliers" strategy is a. the risk of not being ready for technological change b. the lack of cost savings for customers and suppliers c. possible violations of the Sherman Antitrust Act d. the high cost of changing partners e. All of the above are disadvantages of the "few suppliers" strategy.

e. job expansion

A fried chicken fast-food chain that acquired feed mills and poultry farms has performed a. horizontal integration b. forward integration c. backward integration d. current transformation e. job expansion

b. drop shipping

A furniture maker has delivered a dining set directly to the end consumer rather than to the furniture store. The furniture maker is practicing a. postponement b. drop shipping c. channel assembly d. passing the buck e. float reduction

D. a production facility organized around specific activities

A process focused facility is A. a production facility organized around products B. based on the classical assembly line C. a rapid, low-cost production facility that caters to constantly changing unique customer desires. D. a production facility organized around specific activities

b. forward integration

A rice mill in south Louisiana purchases the trucking firm that transports packaged rice to distributors. This is an example of a. horizontal integration b. forward integration c. backward integration d. current transformation e. keiretsu

B. 26

A specific product has demand during lead time of 100 units, with a standard deviation during lead time of 25 units. What safety stock (approximately) provides an 85% service level? A. 126 B. 26 C. 41 D. 165 E. 133

E. 26

A specific product has demand during lead time of 100​ units, with a standard deviation during lead time of 25 units. What safety stock​ (approximately) provides an​ 85% service​ level? A. 133 B. 165 C. 126 D. 41 E. 26

e. annual dollar volume

ABC analysis divides on-hand inventory into three classes, generally based upon a. item quality b. unit price c. the number of units on hand d. annual demand e. annual dollar volume

E. annual dollar volume

ABC analysis divides on-hand inventory into three classes, generally based upon which of the following? A. unit price B. item quality C. annual demand D. the number of units on hand E. annual dollar volume

b. there are usually a few critical items, and many items which are less critical

ABC analysis is based upon the principle that a. all items in inventory must be monitored very closely b. there are usually a few critical items, and many items which are less critical c. an item is critical if its usage is high d. more time should be spent on class "C" items because there are more of them e. an item is critical if its unit price is high

D. ABC analysis suggests that all items require the same high degree of control.

All EXCEPT which of the following statements about ABC analysis are true? A. ABC analysis categorizes​ on-hand inventory into three groups based on annual dollar volume. B. ABC analysis suggests that there are the critical few and the trivial many inventory items. C. In ABC​ analysis, inventory may be categorized by measures other than dollar volume. D. ABC analysis suggests that all items require the same high degree of control. Your answer is correct. E. ABC analysis is an application of the Pareto principle.

d. it states that all items require the same degree of control

All of the following statements about ABC analysis are true except a. inventory may be categorized by measures other than dollar volume b. it categorizes on-hand inventory into three groups based on annual dollar volume c. it is an application of the Pareto principle d. it states that all items require the same degree of control e. it states that there are the critical few and the trivial many inventory items

E. 18.18% of the throughput time

An assembly line has 10 stations with times of 1, 2, 3, 4...., 10, respectively. What is the bottleneck time? A. 100% of the throughput time B. 1.82% of the throughput time C. 50% of the throughput time D. 550% of the throughput time E. 18.18% of the throughput time

a. railroads

By which distribution system is 90 percent of the nation's coal shipped? a. railroads b. trucks c. waterways d. pipelines e. none of the above

A. close relationships with trust

Concerning relationships with suppliers, which of the following combinations is critical to the success of JIT? A. close relationships with trust B. close relationships with skepticism C. distant relationships with trust D. distant relationships with skepticism E. none of the above

e. 4.16

Consider a firm with a 2007 net income of $20 million, revenue of $60 million and cost of goods sold of $25 million. If the balance sheet amounts show $2 million of inventory and $500,000 of property, plant & equipment, how many weeks of supply does the firm hold? a. 12.50 b. 5.20 c. 2.60 d. 0.08 e. 4.16

a. 12.50

Consider a firm with a 2007 net income of $20 million, revenue of $60 million and cost of goods sold of $25 million. If the balance sheet amounts show $2 million of inventory and $500,000 of property, plant & equipment, what is the inventory turnover? a. 12.50 b. 10.00 c. 42.00 d. 4.16 e. 20.00

b. provides a measure of inventory accuracy

Cycle counting a. is a process by which inventory records are verified once a year b. provides a measure of inventory accuracy c. provides a measure of inventory turnover d. assumes that all inventory records must be verified with the same frequency e. assumes that the most frequently used items must be counted more frequently

c. means the supplier will ship directly to the end consumer, rather than to the seller

Drop shipment a. is equivalent to cross-docking b. is the opposite of a blanket order c. means the supplier will ship directly to the end consumer, rather than to the seller d. is the same thing as keiretsu e. is a good reason to find a new firm to ship your products

b. is the same thing as internet purchasing

E-procurement a. works best in long-term contract situations, and is not suited for auctions b. is the same thing as Internet purchasing c. represents only the auction and bidding components of Internet purchasing d. is illegal in all states except Nevada and New Jersey e. All of the above are true of e-procurement.

C. inventory

Excess bags of basic commodities such as flour and sugar that are stored in a restaurant's kitchen represent which of the following wastes? A. transportation B. defective product C. inventory D. queues E. overproduction

d. postponement

Hewlett-Packard withholds customization of its laser printers as long as possible. This is an example of a. vendor managed inventory b. standardization c. backward integration d. postponement e. timely customization

C. Product focus

High-volume, low-variety production is best suited for which of the following process strategies? A. mass customization B. Process focus C. Product focus D. Repetitive focus

e. all of the above are true

In supply chain management, ethical issues a. are particularly important because of the enormous opportunities for abuse b. may be guided by company rules and codes of conduct c. become more complex the more global is the supply chain d. may be guided by the principles and standards of the Institute for Supply Management e. All of the above are true.

A. increase by about 41%

In the basic EOQ model, if the cost of placing an order doubles, and all other values remain constant the EOQ will: A. increase by about 41% B. either increase or decrease C. increase, but more data is needed to say by how much D. increase by 200% E. increase by 100%

d. inadequate capacity

In the make-or-buy decision, one of the reasons for buying is a. to assure adequate supply b. to obtain desired quality c. to remove supplier collusion d. inadequate capacity e. to maintain organizational talents

e. to assure adequate supply in terms of quantity

In the make-or-buy decision, one of the reasons for making is a. to reduce inventory costs b. to obtain technical or management ability c. inadequate capacity d. reciprocity e. to assure adequate supply in terms of quantity

b. lower production cost

In the make-or-buy decision, which of the following is a reason for making an item? a. management can focus on its primary business b. lower production cost c. inadequate capacity d. reduce inventory costs e. None of the above is a reason for making an item.

b. to obtain desired quality

In the make-or-buy decision, which of the following is not a reason for buying? a. inadequate capacity b. to obtain desired quality c. patents or trade secrets d. lower inventory costs e. All of the above are reasons for buying.

D. customization

In the mass service and service factory quadrants of the service process matrix, the operations manager could focus on all of the following except: A. standardization B. removing some services C. automation D. customization E. tight quality control

b. keiretsu

Japanese manufacturers often take a middle ground between purchasing from a few suppliers and vertical integration. This approach is a. kanban b. keiretsu c. samurai d. poka-yoke e. kaizen

B. increased material handling

Kanban is associated with all EXCEPT which of the following? A. reductions in inventory B. increased material handling C. signals, such as cards, lights, or flags D. moving inventory only as needed E. small lot sizes

a. postponement

Keeping a product generic as long as possible before customizing is known as a. postponement b. keiretsu c. channel assembly d. forward integration e. backward integration

a. optimizing one's local area without full knowledge of organizational needs

Local optimization is a supply chain complication best described as a. optimizing one's local area without full knowledge of organizational needs b. obtaining very high production efficiency in a decentralized supply chain c. the prerequisite of global optimization d. the result of supply chains built on suppliers with compatible corporate cultures e. the opposite of the bullwhip effect

b. worth even more than a dollar earned in sales revenue

One dollar saved in purchasing is a. equivalent to a dollar earned in sales revenue b. worth even more than a dollar earned in sales revenue c. worth slightly more than a dollar earned because of taxes d. worth from 35% in the technical instrument industry to 70% in the food products industry e. only worthwhile if you are in the 50% tax bracket and still have a low profit margin

e. all of the above are true of outsourcing

Outsourcing a. transfers traditional internal activities to outside vendors b. utilizes the efficiency which comes with specialization c. lets the outsourcing firm focus on its critical success factors d. None of the above are true of outsourcing. e. All of the above are true of outsourcing.

True

Price changes are useful for matching the level of demand to the capacity of a facility. True/False

e. all of the above

The "bullwhip" effect a. occurs as orders are relayed from retailers to wholesalers b. results in increasing fluctuations at each step of the sequence c. increases the costs associated with inventory in the supply chain d. occurs because of distortions in information in the supply chain e. all of the above

c. publishes the principles and standards for ethical supply management conduct

The Institute for Supply Management a. establishes laws and regulations for supply management b. is an agency of the United Nations charged with promoting ethical conduct globally c. publishes the principles and standards for ethical supply management conduct d. prohibits backward integration into developing economies e. All of the above are true.

c. keiretsu

The Japanese concept of a company coalition of suppliers is a. poka-yoke b. kaizen c. keiretsu d. dim sum e. illegal

b. many suppliers

The purchasing approach that holds the suppliers responsible for maintaining the necessary technology, expertise, and forecasting ability plus cost, quality, and delivery competencies is a. few suppliers b. many suppliers c. Keiretsu d. vertical integration e. virtual companies

d. cost-based price model, market-based price model, and competitive bidding

The three classic types of negotiation strategies are a. vendor evaluation, vendor development, and vendor selection b. Theory X, Theory Y, and Theory Z c. many suppliers, few suppliers, and keiretsu d. cost-based price model, market-based price model, and competitive bidding e. None of the above is correct.

a. catalogs by vendors, catalogs by intermediaries, and exchanges provided by buyers

The three major variations of online catalogs are a. catalogs by vendors, catalogs by intermediaries, and exchanges provided by buyers b. EDI, ERP, and ASN c. cost-based, market-based, and competitive bidding d. drop shipping, channel assembly, and postponement e. all auction-based

a. vendor evaluation, vendor development, and negotiations

The three stages of vendor selection, in order, are a. vendor evaluation, vendor development, and negotiations b. vendor development, vendor evaluation, and vendor acquisition c. introduction, growth, and maturity d. vendor evaluation, negotiations, and vendor development e. EDI, ERP, and ASN

d. outsourcing

The transfer of some of what are traditional internal activities and resources of a firm to outside vendors is a. a standard use of the make or buy decision b. not allowed by the ethics code of the Supply Management Institute c. offshoring d. outsourcing e. keiretsu

c. timing and quantity of orders

The two most basic inventory questions answered by the typical inventory model are a. timing and cost of orders b. quantity and cost of orders c. timing and quantity of orders d. order quantity and service level e. ordering cost and carrying cost

B. postponement

The​ do-it-yourselfer plucked a gallon can of base paint from the shelf of the local hardware store and handed it to​ Keith, the cheerful clerk at the paint counter. Their eyes met briefly and the​ do-it-yourselfer silently handed over sample​ 150C-1, Musical​ Mist, to the clerk. It was impractical to keep several gallons of every possible color on the shelves at the hardware​ store, so the paint manufacturer had created clever workaround. The workaround was a​ computer-based system that added predetermined quantities of pigments to a gallon can of base paint depending on the desired​ shade, in this​ case, Musical Mist. The hardware store now needed to stock only the base​ paint, this​ machine, and a small supply of paint pigments in order to create the thousands of colors in its catalog. This scenario is a prime example of A. drop shipping B. postponement C. vendor-managed inventory D. the bullwhip effect

D. postponement

The​ do-it-yourselfer plucked a gallon can of base paint from the shelf of the local hardware store and handed it to​ Keith, the cheerful clerk at the paint counter. Their eyes met briefly and the​ do-it-yourselfer silently handed over sample​ 150C-1, Musical​ Mist, to the clerk. It was impractical to keep several gallons of every possible color on the shelves at the hardware​ store, so the paint manufacturer had created clever workaround. The workaround was a​ computer-based system that added predetermined quantities of pigments to a gallon can of base paint depending on the desired​ shade, in this​ case, Musical Mist. The hardware store now needed to stock only the base​ paint, this​ machine, and a small supply of paint pigments in order to create the thousands of colors in its catalog. This scenario is a prime example of A. the bullwhip effect B. vendor-managed inventory C. drop shipping D. postponement

False

Utilization is the number of units a facility can hold, receive, store, or produce in a period of time True/False

A. effective capacity is less than design capacity

Utilization will typically be lower than efficiency because: A. effective capacity is less than design capacity B. effective capacity equals design capacity C. effective capacity is greater than design capacity D. expected output is less than rated capacity E. expected output is less than actual output

b. a large market share

Vertical integration appears particularly advantageous when the organization has a. a very specialized product b. a large market share c. a very common, undifferentiated product d. little experience operating an acquired vendor e. purchases that are a relatively small percent of sales

b. mutual trust

Visibility throughout the supply chain is a requirement among supply chain members for a. mutual agreement on goals b. mutual trust c. compatible organizational cultures d. local optimization e. the bullwhip effect

C. vertical integration

What is developing the ability to produce goods or services previously purchased or actually buying supplier or a distributor? A. outsourcing B. virtual companies C. vertical integration D. horizontal integration

D. to minimize the sum of the setup cost and holding cost

What is the primary purpose of the basic economic order quantity model shown​ below? A. to calculate the optimum safety stock B. to minimize the sum of carrying cost and holding cost C. to calculate the reorder point, so that replenishments take place at the proper time D. to minimize the sum of setup cost and holding cost E. to maximize the customer service level

D. virtual company

What is the term for a company that relies on a variety of supplier relationships to provide services on demand? A. keiretsu network B. kanban company C. integrated network D. virtual company

e. third-party logistics

What term is used to describe the outsourcing of logistics? a. E-Logistics b. Shipper Managed Inventory (SMI) c. Hollow Logistics d. Sub-Logistics e. Third-Party Logistics

a. cost-based price model

What type of negotiating strategy requires the supplier to open its books to the purchasers? a. cost-based price model b. market-based price model c. competitive bidding d. price-based model e. none of the above

c. airfreight

Which distribution system is the fastest growing mode of shipping? a. railroads b. trucks c. airfreight d. waterways e. pipelines

c. to produce goods or services previously purchased

Which of the following best describes vertical integration? a. to sell products to a supplier or a distributor b. to develop the ability to produce products which complement the original product c. to produce goods or services previously purchased d. to develop the ability to produce the specified good more efficiently than before e. to build long-term partnerships with a few suppliers

A. the MPS disaggregates the aggregate plan

Which of the following best represents the relationship between the master production schedule (MPS) and the aggregate plan? A. the MPS disaggregates the aggregate plan B. The MPS precedes the aggregate plan in the planning process C. the MPS is the same as the aggregate plan D. There is no relationship between the MPS and the aggregate plan.

C. careful selection, monitoring and effective contracts with penalties

Which of the following could reduce distribution risk? A. secure IT systems B. cross-country diversification C. careful selection, monitoring and effective contracts with penalties D. use multiple suppliers

e. all of the above

Which of the following devices represents an opportunity for technology to improve security of container shipments? a. devices that identify truck and container location b. devices that sense motion c. devices that measure radiation or temperature d. devices that can communicate the breaking of a container lock or seal e. all of the above

C. restaurants

Which of the following industries is most likely to have low equipment utilization? A. steel manufacturing B. television manufacturing C. restaurants D. commercial banking E. auto manufacturing

E. all of the above are goals of JIT partnerships

Which of the following is NOT a goal of JIT partnerships? A. removal of unnecessary activities B. removal of in-transit inventory C. removal of in-plant inventory D. obtain improved quality and reliability E. all of the above are goals of JIT partnerships

e. all of the above are functions of inventory

Which of the following is a function of inventory? a. to decouple or separate parts of the production process b. to decouple the firm from fluctuations in demand and provide a stock of goods that will provide a selection for customers c. to take advantage of quantity discounts d. to hedge against inflation e. All of the above are functions of inventory.

e. reduction in inventory investment

Which of the following is an advantage of the postponement technique? a. reduction in automation b. early customization of the product c. better quality of the product d. reduction in training costs e. reduction in inventory investment

e. channel assembly

Which of the following is an opportunity for effective management in the supply chain? a. random "pull" data b. multistage control of replenishment c. the bullwhip effect d. customer managed inventory e. channel assembly

A. low space requirements

Which of the following is characteristic of lean operations? A. low space requirements B. no supplier partnerships C. specialty workers with no cross-training D. easy, mindless jobs E. inventory buffers between each workstation to minimize system downtime

e. maintenance and scheduling

Which of the following is not a concern of the supply chain? a. warehousing and inventory levels b. credit and cash transfers c. suppliers d. distributors and banks e. maintenance scheduling

d. small market share

Which of the following is not a condition that favors the success of vertical integration? a. availability of capital b. availability of managerial talent c. required demand d. small market share e. All of the above favor the success of vertical integration.

b. total control over every aspect of the organization

Which of the following is not an advantage of a virtual company? a. speed b. total control over every aspect of the organization c. specialized management expertise d. low capital investment e. flexibility

c. vulnerability of trade secrets

Which of the following is not an advantage of the "few suppliers" concept? a. suppliers' willingness to participate in JIT systems b. trust c. vulnerability of trade secrets d. creation of value by allowing suppliers to have economies of scale e. suppliers' willingness to provide technological expertise

d. local optimization

Which of the following is not an opportunity for effective management in the supply chain? a. accurate "pull" data b. vendor managed inventory c. postponement d. local optimization e. channel assembly

d. safety stock inventory

Which of the following is not one of the four main types of inventory? a. raw material inventory b. work-in-process inventory c. maintenance/repair/operating supply inventory d. safety stock inventory e. All of these are main types of inventory.

C. mass customization

Which of the following is not one of the strategies for improving service productivity? A. automation B. separation C. mass customization D. scheduling E. self-service

B. Just-in-time (JIT)

Which of the following is specifically characterized by continuous and forced problem solving via a focus on throughput and reduced inventory? A. kanban B. Just-in-time (JIT) c. Lean operations D. toyota production system (TPS) E. material requirements planning (MRP)

B. lot-for-lot

Which of the following lot-sizing techniques results in the lowest holding costs? A. EOQ B. lot-for-lot C. POQ D. the quantity discount model E. Wagner-Whitin algorithm

E. lot-for-lot

Which of the following lot-sizing techniques results in the lowest holding costs? A. POQ B. the quantity discount model C. EOQ D. Wagner-Whitin algorithm E. lot-for-lot

C. high fixed costs, low variable costs

Which of the following phrases best describes product focus? A. low-volume, high variety B. processes are designed to perform a wide variety of activities C. high fixed costs, low variable costs D. high inventory E. finished goods are usually made to order

d. ABC analysis is based on the presumption that all items must be tightly controlled to produce important cost savings.

Which of the following statements about ABC analysis is false? a. ABC analysis is based on the presumption that controlling the few most important items produces the vast majority of inventory savings. b. In ABC analysis, "A" Items are tightly controlled, have accurate records, and receive regular review by major decision makers. c. In ABC analysis, "C" Items have minimal records, periodic review, and simple controls. d. ABC analysis is based on the presumption that all items must be tightly controlled to produce important cost savings. e. All of the above statements are true.

D. an increased sales effort may help a firm reach its profit goals more easily than would effective cost cutting

Which of the following statements is NOT true? A. A supply chain includes​ suppliers; manufacturers​ and/or service​ providers; and​ distributors, wholesalers,​ and/or retailers who deliver the product​ and/or service to the final customer. B. Supply chain management describes the coordination of all supply chain​ activities, starting with raw​ materials, and ending with a satisfied customer. C. The objective of supply chain management is to coordinate activities within the supply chain to maximize the supply​ chain's competitive advantage and benefits to the ultimate consumer. D. An increased sales effort may help a firm reach its profit goals more easily than would effective cost cutting.

A. An increased sales effort may help a firm reach its profit goals more easily than would effective cost cutting.

Which of the following statements is NOT true? A. An increased sales effort may help a firm reach its profit goals more easily than would effective cost cutting. This is the correct answer. B. A supply chain includes​ suppliers; manufacturers​ and/or service​ providers; and​ distributors, wholesalers,​ and/or retailers who deliver the product​ and/or service to the final customer. C. The objective of supply chain management is to coordinate activities within the supply chain to maximize the supply​ chain's competitive advantage and benefits to the ultimate consumer. D. Supply chain management describes the coordination of all supply chain​ activities, starting with raw​ materials, and ending with a satisfied customer.

B. The quantity of gross requirements for a child item is equal to the quantity of planned order​ release(s) multiplied by the number of child items used in the parent assembly. This is the correct answer.

Which of the following statements is TRUE about the MRP plan when using​ lot-for-lot ordering? A. The quantity of gross requirements for a child item is always equal to the quantity of gross requirements for its parent. B. The quantity of gross requirements for a child item is equal to the quantity of planned order​ release(s) multiplied by the number of child items used in the parent assembly. This is the correct answer. C. The quantity and gross requirements for a child item is always equal to the quantity of net requirements for its parent. D. The quantity of gross requirements for a child item is always equal to the quantity of planned order releases for its parent. E. All of the above are true.

D. cross-sourcing uses one supplier for a component and a second supplier for another component, where each supplier acts as a backup for the other

Which of the following statements is true regarding cross-sourcing? A. cross-sourcing describes suppliers who become part of a company coalition. B. cross-sourcing enhances technological skills C. cross-sourcing develops the ability to produce goods or services previously purchased or actually buying a supplier or distributor D. cross-sourcing uses one supplier for a component and a second supplier for another component, where each supplier acts as a backup for the other

c. supply chain savings exert more leverage as the firm has a lower net profit margin

Which of the following statements is true regarding the leverage of supply chain savings? a. Supply chain leverage is about the same for all industries. b. Supply chain savings exert more leverage as the firm's purchases are a smaller percent of sales. c. Supply chain savings exert more leverage as the firm has a lower net profit margin. d. Supply chain leverage depends only upon the percent of sales spent in the supply chain. e. None of the above is true.

b. the company was founded as, and still is, a "virtual retailer" with no real inventory

Which of the following statements regarding Amazon.com is false? a. The company was opened by Jeff Bezos in 1995. b. The company was founded as, and still is, a "virtual retailer" with no inventory. c. The company is now a world-class leader in warehouse management and automation. d. The company uses both United Parcel Service and the U.S. Postal Service as shippers. e. Amazon obtains its competitive advantage through inventory management.

D. Problems become more obvious.

Which of the following statements regarding a pull system is TRUE? A. large lots are pulled from upstream stations B. work is pulled to the downstream stations before it is actually needed C. manufacturing cycle time is increased D. problems become more obvious

c. effective control of all goods leaving the facility is one applicable technique

Which of the following statements regarding control of service inventories is true? a. Service inventory is a fictional concept, because services are intangible. b. Service inventory needs no safety stock, because there's no such thing as a service stockout. c. Effective control of all goods leaving the facility is one applicable technique. d. Service inventory has carrying costs but not setup costs. e. All of the above are true

c. long-term partnering with a few suppliers

Which of the following supply chain strategies creates value by allowing suppliers to have economies of scale? a. suppliers becoming part of a company coalition b. vertical integration c. long-term partnering with a few suppliers d. negotiating with many suppliers e. developing virtual companies

d. to minimize holding costs

Which of the following would not generally be a motive for a firm to hold inventories? a. to decouple or separate parts of the production process b. to provide a stock of goods that will provide a selection for customers c. to take advantage of quantity discounts d. to minimize holding costs e. All of the above are functions of inventory.

C. removal of incoming inspection

Which one of the following is a characteristic of a JIT partnership? A. maximal product specifications imposed on supplier B. third-party logistics never used C. removal of incoming inspection D. frequent deliveries in large lot quantities

d. short-term relationships with few suppliers

Which one of the following is not a supply chain strategy? a. negotiation with many suppliers b. vertical integration c. keiretsu d. short-term relationships with few suppliers e. virtual companies

c. large lead time

Which one of the following performance measures is not true of a world class firm? a. short time placing an order b. high percentage of accepted material c. large lead time d. high percentage of on-time deliveries e. low number of shortages per year

d. purchasing has an impact on the quality of the goods and services sold

Which one of the following statements about purchasing is true? a. The cost of purchases as a percent of sales is often small. b. Purchasing provides a major opportunity for price increases. c. Purchasing is always more efficient than making an item. d. Purchasing has an impact on the quality of the goods and services sold. e. Competitive bidding is a major factor in long-term cost reductions.