Exam 5: Purchasing and Supply Management Organization

Use of a _____ is most advantageous where geographic concentration exists within a company.

The preparation and transfer of material releases to suppliers is part of the operational support process.

Not all observers agree that the use of teams is a guarantee of greater effectiveness.

Which of the following is not an advantage of centralized or center-led purchasing structures?

If each division or unit is responsible for developing its own e-purchasing system or data gathering and part-numbering system, the result will be a mixture of compatible purchasing systems.

All of the following should be included in detailed short- and long-term purchasing plans except _____.

A reason for decentralization is a reduction in duplication of effort.

Which of the following is not one of the factors to be considered when implementing an organization's supply structure?​

Used under the right conditions, teams provide all of the following benefits to organizations except _____.

Separation of supply management duties into strategic and tactical job assignments means that strategic responsibilities are more important.

_____ is the organized study of an item's function as it relates to value and cost.

The supply chain organization of the future will rely much more on hierarchical and functional boundaries.

Progressive organizations recognize that a need for expeditors indicates that suppliers are performing as required, or that suppliers are receiving realistic or stable material release schedules.

_____ refers to the process of assessing and selecting the structure and formal system of communication, division of labor, coordination, control, authority, and responsibility required to achieve organizational goals and objectives, including supply management objectives.

A consortium is a voluntary group where buyers are in the same industry and conduct business with many of the same suppliers.

Which of the following is an example of an operational activity?

In organizations where new-product development occurs at the divisional or business unit level, a centralized purchasing structure can support new-product development at earlier stages.

The challenge today for location of authority is to know which activities, processes, and tasks to control or coordinate centrally and which to assign to operating units.

A _____ is a voluntary group where buyers are in the same industry and conduct business with many of the same suppliers.

Transportation is a highly specialized activity with its own set of requirements.