Question 1

A follow-up is considered a reactive approach to speed up an overdue shipment.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is a reason that single sourcing is considered risky/bad?

Accepted Answer

A) The buyer's required ordering quantities are very low 
B) Larger orders make quantity discounts more likely 
C) The limited (finite) capacity of one supplier 
D) Decreases the item to item quality variability of items purchased 
A) The buyer's required ordering quantities are very low 
B) Larger orders make quantity discounts more likely 
C) The limited (finite) capacity of one supplier 
D) Decreases the item to item quality variability of items purchased

Question 3

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?

Accepted Answer

A) Purchase requisition 
B) Planned order release 
C) Material requisition 
D) Purchase order 
A) Purchase requisition 
B) Planned order release 
C) Material requisition 
D) Purchase order

Question 4

Generally,firms outsource noncore activities while focusing on core competencies.

Accepted Answer

A) True 
 B)False

Question 5

Given the following make-buy information,what would be the break-even point? $\begin{array}{lll} 
& \text { Make Option } & \text { Buy Option } \
\hline \text { Fixed Costs } & \$ 7500 & \$ 1500 \
\text { Variable Costs } & \$ 4 & \$ 9
\end{array}$

Accepted Answer

A) 1200 units 
B) 1708 units 
C) 690 units 
D) 460 units 
A) 1200 units 
B) 1708 units 
C) 690 units 
D) 460 units

Question 6

The acquisition of services is also known as contracting.

Accepted Answer

A) True 
 B)False

Question 7

The goal of a proper purchasing system is to ensure the efficient transmission of information from the users to the purchasing personnel,and ultimately,to the suppliers.

Accepted Answer

A) True 
 B)False

Question 8

Under which conditions would you most likely utilize a centralized purchasing system? List two advantages that would be gained by utilizing a centralized purchasing system.​Under which conditions would you most likely utilize a decentralized purchasing system? List two advantages that would be gained by utilizing a decentralized purchasing system.

Accepted Answer

Under which conditions would you most li

Question 9

Which of the following statements is FALSE?

Accepted Answer

A) More than 50% of each sales dollar typically goes towards covering supply chain costs 
B) Decentralized purchasing means not having any purchasing departments and allowing all employees to act as purchasing agents 
C) Electronic procurement systems can aid a company in saving both time and money 
D) If a firm lacks the technology to make a required component they will need to consider buying/outsourcing. 
A) More than 50% of each sales dollar typically goes towards covering supply chain costs 
B) Decentralized purchasing means not having any purchasing departments and allowing all employees to act as purchasing agents 
C) Electronic procurement systems can aid a company in saving both time and money 
D) If a firm lacks the technology to make a required component they will need to consider buying/outsourcing.

Question 10

Which of the following is a reason small value purchases are handled differently?

Accepted Answer

A) To give the buyer additional supplier choices 
B) To obtain a higher quality product 
C) To have better tracking of material usage 
D) To control unnecessary administrative costs 
A) To give the buyer additional supplier choices 
B) To obtain a higher quality product 
C) To have better tracking of material usage 
D) To control unnecessary administrative costs

Question 11

Key activities of supply management include negotiations,logistics,contract development and administration,inventory control and management,and supplier management.

Accepted Answer

A) True 
 B)False

Question 12

The measurement of the impact of change in purchase spend on a firm profit before taxes,assuming gross sales and other expenses remain unchanged,is referred to as:

Accepted Answer

A) Break-Even Analysis 
B) Direct Offset 
C) Profit-Leverage Effect 
D) Leveraging Purchase Volume 
A) Break-Even Analysis 
B) Direct Offset 
C) Profit-Leverage Effect 
D) Leveraging Purchase Volume

Question 13

Industrial supply chain member buyers purchase their merchandise in volume to take advantage of quantity discounts,transportation economy,and storage efficiency,and then they create value through services like consolidating merchandise or break bulking.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

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) 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

Question 15

Foreign suppliers located farther away may be able to deliver goods faster than domestic suppliers due to more efficient transportation and logistical systems.

Accepted Answer

A) True 
 B)False

Question 16

Given the following make-buy information,what would be the break-even point? $\begin{array}{lll} 
& \text { Make Option } & \text { Buy Option } \
\hline \text { Fixed Costs } & \$ 15000 & \$ 1250 \
\text { Variable Costs } & \$ 5 & \$ 10
\end{array}$

Accepted Answer

A) 917 units 
B) 2875 units 
C) 1083 units 
D) 2750 units 
A) 917 units 
B) 2875 units 
C) 1083 units 
D) 2750 units

Question 17

Total Cost of Ownership does NOT consider which of the following factors?

Accepted Answer

A) Purchase order costs 
B) Freight costs 
C) Payment terms 
D) Tooling costs 
A) Purchase order costs 
B) Freight costs 
C) Payment terms 
D) Tooling costs

Question 18

NAFTA and the WTO are trade organizations seeking to reduce tariff and non-tariff barriers among its member countries.

Accepted Answer

A) True 
 B)False

Question 19

According to the Annual Survey of Manufacturers,the cost of materials exceeds the value added to the materials during manufacturing.

Accepted Answer

A) True 
 B)False

Question 20

Inventory Turnover can be calculated by:

Accepted Answer

A) Ratio of average inventory cost over cost of goods sold 
B) Ratio of cost of goods sold over average inventory cost 
C) Ratio of inventory days in stock over average inventory cost 
D) Ratio of average inventory cost over inventory days in stock 
A) Ratio of average inventory cost over cost of goods sold 
B) Ratio of cost of goods sold over average inventory cost 
C) Ratio of inventory days in stock over average inventory cost 
D) Ratio of average inventory cost over inventory days in stock

A follow-up is considered a reactive approach to speed up an overdue shipment.

Which of the following is a reason that single sourcing is considered risky/bad?

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?

Generally,firms outsource noncore activities while focusing on core competencies.

Given the following make-buy information,what would be the break-even point? Make Option Buy Option Fixed Costs \ 7500 \ 1500 Variable Costs \ 4 \ 9

The acquisition of services is also known as contracting.

The goal of a proper purchasing system is to ensure the efficient transmission of information from the users to the purchasing personnel,and ultimately,to the suppliers.

Which of the following statements is FALSE?

Which of the following is a reason small value purchases are handled differently?

Key activities of supply management include negotiations,logistics,contract development and administration,inventory control and management,and supplier management.

The measurement of the impact of change in purchase spend on a firm profit before taxes,assuming gross sales and other expenses remain unchanged,is referred to as:

Industrial supply chain member buyers purchase their merchandise in volume to take advantage of quantity discounts,transportation economy,and storage efficiency,and then they create value through services like consolidating merchandise or break bulking.

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

Foreign suppliers located farther away may be able to deliver goods faster than domestic suppliers due to more efficient transportation and logistical systems.

Given the following make-buy information,what would be the break-even point? Make Option Buy Option Fixed Costs \ 15000 \ 1250 Variable Costs \ 5 \ 10

Total Cost of Ownership does NOT consider which of the following factors?

NAFTA and the WTO are trade organizations seeking to reduce tariff and non-tariff barriers among its member countries.

According to the Annual Survey of Manufacturers,the cost of materials exceeds the value added to the materials during manufacturing.

Inventory Turnover can be calculated by:

Introduction to Supply Chain Management

Creating and Managing Supplier Relationship

Ethical and Sustainable Sourcing

Demand Forecasting

Resource Planning Systems

Inventory Management

Process Management - Lean and Six Sigma in the Supply Chain

Domestic Usand Global Logistics

Customer Relationship Management

Global Location Decisions

Service Response Logistics

Supply Chain Process Integration

Performance Measurement Along the Supply Chain

Filters

Exam 2: Purchasing Management

A follow-up is considered a reactive approach to speed up an overdue shipment.

Which of the following is a reason that single sourcing is considered risky/bad?

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?

Generally,firms outsource noncore activities while focusing on core competencies.

Given the following make-buy information,what would be the break-even point? Make Option Buy Option Fixed Costs \ 7500 \ 1500 Variable Costs \ 4 \ 9

The acquisition of services is also known as contracting.

The goal of a proper purchasing system is to ensure the efficient transmission of information from the users to the purchasing personnel,and ultimately,to the suppliers.

Which of the following statements is FALSE?

Which of the following is a reason small value purchases are handled differently?

Key activities of supply management include negotiations,logistics,contract development and administration,inventory control and management,and supplier management.

The measurement of the impact of change in purchase spend on a firm profit before taxes,assuming gross sales and other expenses remain unchanged,is referred to as:

Industrial supply chain member buyers purchase their merchandise in volume to take advantage of quantity discounts,transportation economy,and storage efficiency,and then they create value through services like consolidating merchandise or break bulking.

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

Foreign suppliers located farther away may be able to deliver goods faster than domestic suppliers due to more efficient transportation and logistical systems.

Given the following make-buy information,what would be the break-even point? Make Option Buy Option Fixed Costs \ 15000 \ 1250 Variable Costs \ 5 \ 10

Total Cost of Ownership does NOT consider which of the following factors?

NAFTA and the WTO are trade organizations seeking to reduce tariff and non-tariff barriers among its member countries.

According to the Annual Survey of Manufacturers,the cost of materials exceeds the value added to the materials during manufacturing.

Inventory Turnover can be calculated by:

Introduction to Supply Chain Management

Creating and Managing Supplier Relationship

Ethical and Sustainable Sourcing

Demand Forecasting

Resource Planning Systems

Inventory Management

Process Management - Lean and Six Sigma in the Supply Chain

Domestic Usand Global Logistics

Customer Relationship Management

Global Location Decisions

Service Response Logistics

Supply Chain Process Integration

Performance Measurement Along the Supply Chain

Filters