SCM 453
True
Many organizations are attempting to develop new products concurrently rather than sequentially, which not only saves time and money but also allows agreement on major issues early in the process.
True
One of the leading causes for failure of systems contracts is that purchasers become locked into price structures that do not adequately reflect changes that have occurred since the agreement was originally signed.
True
Purchasing activities are concerned with the laws regarding contracts and the laws regarding agency, the majority of which concern contract laws.
UETA
Rather than change existing contract law, in 1999 the ____ adapted existing "paper and pencil" concepts to the electronic age, meaning that it makes electronic records equivalent to written documents and electronic signatures similar to handwritten signatures for legal purposes
False
Strategic cost management approaches do not vary according to the stage of the product life cycle.
False
Taking a dispute into the jurisprudence system should be an automatic first step in resolving the dispute as other methods are not as effective.
severability
The ____ clause in a contract describes how an issue will be addressed if a portion of the agreement is void or unenforceable, and which court of law will resolve the difference.
Learning Curve Analysis
indicates whether a seller can lower its cost as a result of the repetitive production of an item.
Process Mapping
is a tool that reduces processes to their component parts or activities and helps identify and then eliminate non-value-adding activities (waste) or delays within a process
Influence
is defined as the power that somebody has to affect other people's thinking or actions by means of argument, example, or force of personality
Win-loose negotiation
means that two or more parties are competing over a fixed value with the winner taking the larger share.
Price Analysis
refers to the process of comparing supplier prices against external price benchmarks, without direct knowledge of the supplier's costs.
Value analysis....value engineering
techniques are primarily applied to existing products and services, while ____ is the application of value principles during product or service design
False
Examples of monopolies in the United States include the steel, automobile, and appliance industries.
False
All purchase requirements will require buyers and sellers to conduct a thorough, detailed, and time-consuming negotiation.
True
Exceeding both actual and apparent authority can have dire consequences; an individual may be held directly liable by the supplier or other third party
sequential process
A ____ is one in which the set of steps or activities that make up the activity occur one after the other.
True
A breach of contract may entitle the offended party to certain remedies or damages.
False
A firm should never encourage suppliers to report instances of unethical behavior by anyone within the buying firm.
False
A major benefit of multiple sourcing is a lower price that results from the higher volumes offered to a supplier.
False
A willingness to offer large concessions is always in the best interests of a buyer.
offer
A/An ____ is a proposal or expression by one person that he or she is willing to do something for certain terms.
BATNA
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.
open-ended order....blanket order
A/An ____ is similar to a/an ____ but allows the addition of items not originally included in the order.
national contract
A/An ____ specifies that the buyer will buy a certain amount of goods and services for the duration of the agreemen
authority
According to Cialdini, ____ is a principle that states we are more likely to accept the positions, arguments, and direction from recognized authority figures
express warranty
According to the UCC, any affirmation of fact or promise made by the seller to the buyer which relates to the goods and becomes part of the basis of the bargain creates a/an ____ that the goods shall conform to the affirmation or promise.
True
Effective formality in negotiation can effectively constrain the parties and restrict the free exchange of ideas and solutions.
2 years
If the carrier has refused to pay a freight claim, then the claimant has ____ from the time the claim was disallowed to file for legal relief in the courts
rent-a-judge
In [the] ____, a court refers a pending lawsuit between the parties to a private, neutral party who is subject to legal precedents and rules of evidence
cut the costs for compliance
In ____, the buyer gets a lower price as the parties work jointly to reduce the seller's costs or the transaction costs of doing business together.
Late finish
In a PERT network, a/an ____ is the latest time an activity can finish without delaying the entire project.
late start....early start
In a PERT network, the difference between the ____ and the ____ is slack.
fixed-price with incentives
In the ____ contract, if a supplier can demonstrate actual cost savings through production efficiencies or substitution of materials, the resulting savings from the initial price targets are shared between the supplier and the buyer at a predetermined rate.
Market Share Model
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.
Price Volume Model
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
True
In the firm fixed price contract, the price stated in the agreement does not change, regardless of fluctuations in general overall economic conditions, industry competition, levels of supply, market prices, or other environmental changes.
commodity products
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.
True
It is always a good idea to double-check all attachments to the contract because many of the technical details are included here.
False
The issues that are most critical to a supplier are likely to be those most critical to a buyer.
True
The market-share model is also known as the penetration pricing mode
intrest
The negotiator's ____ is the unspoken motivation or reason that underlies any given negotiation position.
True
The primary objective of value analysis is to increase the value of an item or service at the lowest cost without sacrificing quality.
True
The purchasing agency relationship is created between the employer and employee when the company hires an individual to perform the purchasing job
learning curve....experience curve
The term ____ applies to the reduced direct labor requirement per unit of output due to the effects of learning, while the term ____ refers to the longer-term factors of production that systematically reduce production costs
True
Under traditional pricing approaches, the selling price ? profit = selling price.
CPM...PERT
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.
Can we use a different color of paint?
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?
cost sharing
With a pure ____ contract, allowable costs are shared between the parties on a predetermined percentage basis.
culture shock
____ 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.
