SCMT 370 Ch.6

A specification is a loose description of a requirement that leaves room for supplier enhancements and contributions. True False

False

Sustainability criteria include environmental and legal considerations. True False

False

The inability to inventory services makes quality assurance less difficult. True False

False

It is common practice to specify the procedure and results necessary to meet quality standards as part of the specification. True False

True

Most organizations have maintenance, repair and operations requirements. True False

True

Supply chain risk can be classified as:

operational, financial and reputational.

Traditional criteria for supply management are:

quality, quantity, delivery, price and service.

A corporate travel department determines that employees have been staying in 15 different hotel chains. The director of corporate travel mandates that travelers may only stay in four designated hotel chains. This action is an example of:

simplification.

The disadvantages of buying with specifications include:

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

When a specification is widely known, commonly recognized and readily available to every buyer, it is called a:

standard specification.