midterm 2 practice

The primary goals of purchasing include all EXCEPT: a. Secure materials at the lowest cost b. Ensure the highest quality raw materials are purchased c. Improve the quality of finished goods produced d. Maximize customer satisfaction

B

Benefits derived from implementing an e-procurement system include all EXCEPT: a. Time Savings b. Real Time Access c. Trackability d. Decentralized Purchasing

D

Which of the following documents is considered the buyer's offer to purchase products or services from a supplier, is legally binding once the supplier accepts it, and usually has the terms and conditions of purchase preprinted on the back of the document? a. Purchase requisition b. Planned order release c. Material requisition d. Purchase order

D

T/F A strong supplier partnership requires that both buyer and supplier adopt a strong tactical perspective

F

T/F The Profit-Leverage Effect states that a decrease in purchasing expenditures will directly decrease profit

F

T/F The concept of Distributive Negotiations refers to both sides work together to maximize the outcome or create a win-win result.

F

Benefits derived from implementing e-procurement systems include all of the following EXCEPT: a. Allows buyers to submit bids and suppliers to respond to those bids in real time b. Increases the accuracy in communication between buyers and suppliers c. Creates numerous additional job opportunities in the purchasing department d. Tracking bids and transactions is easier and faster

C

T/F "Rationalizing the supplier base" would mean that the purchasing firm is attempting to reduce the number of suppliers in its supplier network.

T

T/F A Supplier Code of Conduct is intended to inform suppliers of ethical sourcing expectations and is typically a condition for becoming an approved supplier.

T

T/F A growing trend among firms that practice supply chain management is supplier development.

T

T/F Outsourcing allows a firm to concentrate on core capabilities and reduce staffing levels

T

T/F Pain and Gain Share contract provisions are associated with supplier rewards and recognition programs.

T

T/F Successful supplier relationships involve equal decision-making control between both the buyer and the supplier.

T

T/F The acquisition of services is also known as contracting.

T

T/F The term Supply Management is used to describe responsibilities above and beyond those of traditional purchasing.

T

The sum of all costs associated with every activity in the supply stream of a product, is referred to as?

TCO

The sourcing strategies including; maintaining safety and/or strategic stocks, developing contingency plans, strengthening relationships, and searching for alternatives, are appropriate for which item category?

bottleneck

Which of the following is NOT a form of countertrade? a. Barter b. Offset c. Incoterming d. Counterpurchase

c

Which of the following is NOT one of the primary goals of Purchasing?

increase the supplier base

Benefits of implementing an effective supplier certification program include all of the following EXCEPT?

increasing the supplier base

Managing a firm's external resources in ways that support the long-term goals of the firm can be referred to as?

strategic sourcing

An organization's process for evaluating the quality systems of key suppliers in an effort to eliminate incoming inspections can be referred to as?

supplier certification

The following term refers to an act that creates the greatest good for the greatest number of people?

utilitarianism

Which of the following would be a good reason to outsource (buy) versus making? a. A firm lacks the technology or expertise to produce an item b. To utilize existing capacity within a company's own firm c. To have more direct control over the design and production of an end item d. No competent supplier presently produces the needed item

A

Which of the following would be a good reason to outsource (buy) versus make an item?

a firm lacks technology or expertise to produce an item