Question 1

Once the merchandise is received,it is not necessary for the buyer to verify its identity and condition.

Accepted Answer

A) True 
 B)False

Question 2

TQM:

Accepted Answer

A) instills the philosophy of 100% inspection of all products. 
B) provides a "finish line" for the race for quality. 
C) avoids placing blame and focuses on fixing mistakes. 
D) makes middle managers responsible for product quality. 
A) instills the philosophy of 100% inspection of all products. 
B) provides a "finish line" for the race for quality. 
C) avoids placing blame and focuses on fixing mistakes. 
D) makes middle managers responsible for product quality.

Question 3

Seller and buyer can agree to the terms under which title and risk of loss shift in a business transaction.

Accepted Answer

A) True 
 B)False

Question 4

Implementing TQM means a radical change in the management of information in that much more information must be shared with workers.

Accepted Answer

A) True 
 B)False

Question 5

________ discounts give customers an incentive to pay for merchandise promptly.

Accepted Answer

A) Trade 
B) Quantity 
C) Cash 
D) Cumulative 
A) Trade 
B) Quantity 
C) Cash 
D) Cumulative

Question 6

Determining factors of setting up or ordering costs for products are:

Accepted Answer

A) the various expenses incurred in actually ordering materials. 
B) the various expenses incurred in actually ordering inventory. 
C) setting up the production line to manufacture. 
D) All of the above 
A) the various expenses incurred in actually ordering materials. 
B) the various expenses incurred in actually ordering inventory. 
C) setting up the production line to manufacture. 
D) All of the above

Question 7

The simple reorder technique assumes that the rate of usage is constant and that lead time is constant.

Accepted Answer

A) True 
 B)False

Question 8

When thinking about inventory holding costs,remember that the greater the quantity ordered,the greater the inventory carrying costs.

Accepted Answer

A) True 
 B)False

Question 9

Depreciation costs of holding inventory represent the reduced value of inventory over time.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following statements is correct?

Accepted Answer

A) Benchmarking is the process of calculating carrying cost,EOQ and other inventory management procedures and being able to compare it to others. 
B) Benchmarking is the process of identifying world-class processes or procedures currently being employed and building higher quality standards around these for your firm. 
C) Benchmarking is the when a firm evaluates all its supply chain management for higher quality and price. 
D) All of the above 
A) Benchmarking is the process of calculating carrying cost,EOQ and other inventory management procedures and being able to compare it to others. 
B) Benchmarking is the process of identifying world-class processes or procedures currently being employed and building higher quality standards around these for your firm. 
C) Benchmarking is the when a firm evaluates all its supply chain management for higher quality and price. 
D) All of the above

Question 11

Quality improvement efforts must ultimately focus on:

Accepted Answer

A) the product. 
B) the customer. 
C) the manufacturing process. 
D) the purchasing process. 
A) the product. 
B) the customer. 
C) the manufacturing process. 
D) the purchasing process.

Question 12

The formula for calculating safety stock is: safety stock = SLF × SDL.

Accepted Answer

A) True 
 B)False

Question 13

The primary objective of the purchasing function is to:

Accepted Answer

A) ensure an adequate turnover of merchandise. 
B) acquire enough stock to ensure uninterrupted sales or production. 
C) determine the "best" possible price for both supplies and finished products. 
D) maximize carrying and set-up costs for the firm. 
A) ensure an adequate turnover of merchandise. 
B) acquire enough stock to ensure uninterrupted sales or production. 
C) determine the "best" possible price for both supplies and finished products. 
D) maximize carrying and set-up costs for the firm.

Question 14

The small company's purchasing plan is closely linked to which of the other functional areas?

Accepted Answer

A) Marketing and sales 
B) Finance and accounting 
C) Production and engineering 
D) All of the above 
A) Marketing and sales 
B) Finance and accounting 
C) Production and engineering 
D) All of the above

Question 15

The Economic Order Quantity assumes:

Accepted Answer

A) a 30-day cycle in filling orders. 
B) orders are filled instantaneously. 
C) usage will impact delivery time. 
D) None of these things 
A) a 30-day cycle in filling orders. 
B) orders are filled instantaneously. 
C) usage will impact delivery time. 
D) None of these things

Question 16

A buyer gets an insurable interest in goods once they are identified as the goods pertaining to the contract.

Accepted Answer

A) True 
 B)False

Question 17

The purchasing plan is developed independently from other functional areas of a business.

Accepted Answer

A) True 
 B)False

Question 18

Pareto's Law (also called the 80/20 Rule),states that:

Accepted Answer

A) 20 percent of a company's quality problems comes from just 80 percent of all causes. 
B) 80 percent of accounts receivable comes from 20 percent of customers. 
C) 80 percent of a company's quality problems arise from just 20 percent of all causes. 
D) 20 percent of a company's revenue comes from just 80 percent of all customers. 
A) 20 percent of a company's quality problems comes from just 80 percent of all causes. 
B) 80 percent of accounts receivable comes from 20 percent of customers. 
C) 80 percent of a company's quality problems arise from just 20 percent of all causes. 
D) 20 percent of a company's revenue comes from just 80 percent of all customers.

Question 19

To add objectivity to the vendor selection process,many firms are establishing vendor certification programs.

Accepted Answer

A) True 
 B)False

Question 20

Statistical process control is central to the success of Total Quality Management efforts.

Accepted Answer

A) True 
 B)False

Exam 19: Supply Chain Management

Once the merchandise is received,it is not necessary for the buyer to verify its identity and condition.

TQM:

Seller and buyer can agree to the terms under which title and risk of loss shift in a business transaction.

Implementing TQM means a radical change in the management of information in that much more information must be shared with workers.

________ discounts give customers an incentive to pay for merchandise promptly.

Determining factors of setting up or ordering costs for products are:

The simple reorder technique assumes that the rate of usage is constant and that lead time is constant.

When thinking about inventory holding costs,remember that the greater the quantity ordered,the greater the inventory carrying costs.

Depreciation costs of holding inventory represent the reduced value of inventory over time.

Which of the following statements is correct?

Quality improvement efforts must ultimately focus on:

The formula for calculating safety stock is: safety stock = SLF × SDL.

The primary objective of the purchasing function is to:

The small company's purchasing plan is closely linked to which of the other functional areas?

The Economic Order Quantity assumes:

A buyer gets an insurable interest in goods once they are identified as the goods pertaining to the contract.

The purchasing plan is developed independently from other functional areas of a business.

Pareto's Law (also called the 80/20 Rule),states that:

To add objectivity to the vendor selection process,many firms are establishing vendor certification programs.

Statistical process control is central to the success of Total Quality Management efforts.

Entrepreneurs: the Driving Force Behind Small Business

Ethics and Social Responsibility: Doing the Right Thing

Creativity and Innovation: Keys to Entrepreneurial Success

Strategic Management and the Entrepreneur

Choosing a Form of Ownership

Franchising and the Entrepreneur

Buying an Existing Business

New Business Planning Process: Feasibility Analysis,business Modeling,

Building a Bootstrap Marketing Plan

Creative Use of Advertising and Promotion

Pricing and Credit Strategies

Global Marketing Strategies

E-Commerce and Entrepreneurship

Creating a Solid Financial Plan

Managing Cash Flow

Sources of Equity Financing

Sources of Debt Financing

Location,layout,and Physical Facilities

Managing Inventory

Staffing and Leading a Growing Company

Management Succession and Risk Management Strategies in the Family Business

The Legal Environment: Business Law and Government Regulation

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