Question 1

The goal of a good purchasing system is to ensure efficient information transitions between the materials users,the purchasing personnel,and the suppliers.

Accepted Answer

A) True 
 B)False  True

Question 2

The Total Cost of Ownership Concept does NOT include quantitative factors.

Accepted Answer

A) True 
 B)False  False

Question 3

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 A

Question 4

The term Supply Management is used to describe responsibilities above and beyond those of traditional purchasing.

Accepted Answer

A) True 
 B)False

Question 5

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 6

Which of the following is NOT a form of countertrade?

Accepted Answer

A) Barter 
B) Offset 
C) Incoterming 
D) Counterpurchase 
A) Barter 
B) Offset 
C) Incoterming 
D) Counterpurchase

Question 7

As firms seek to improve the products they offer to the market,companies are seeking help from their suppliers in new product design and development through:

Accepted Answer

A) Supplier certification programs 
B) Manufacturer certification programs 
C) Early supplier involvement 
D) Total Cost of Ownership initiatives 
A) Supplier certification programs 
B) Manufacturer certification programs 
C) Early supplier involvement 
D) Total Cost of Ownership initiatives

Question 8

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 9

Which of the following is an advantage of a centralized purchasing department?:

Accepted Answer

A) Quantity discounts 
B) More frequent shipments 
C) Closer contact between buyer and user 
D) Better knowledge of unit requirements 
A) Quantity discounts 
B) More frequent shipments 
C) Closer contact between buyer and user 
D) Better knowledge of unit requirements

Question 10

Purchasing can be broadly classified into two categories: merchants and industrial buyers.

Accepted Answer

A) True 
 B)False

Question 11

When a material is not available in the warehouse and there is no current supplier for the item,the buyer must identify a pool of suppliers and issue a:

Accepted Answer

A) Request for Quotation 
B) Purchase Order 
C) Contract for Sale 
D) Sales Order 
A) Request for Quotation 
B) Purchase Order 
C) Contract for Sale 
D) Sales Order

Question 12

The purchase order is NOTa legally binding contract until it is accepted by the supplier.

Accepted Answer

A) True 
 B)False

Question 13

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 14

When calculating Return on Investment,current assets include:

Accepted Answer

A) Cash,Accounts Receivable,and Inventory 
B) Cash,Accounts Receivable,and Equipment 
C) Accounts Receivable,Equipment,and Real Estate 
D) Equipment,Buildings,and Real Estate 
A) Cash,Accounts Receivable,and Inventory 
B) Cash,Accounts Receivable,and Equipment 
C) Accounts Receivable,Equipment,and Real Estate 
D) Equipment,Buildings,and Real Estate

Question 15

Which type of requisition is used for materials and standard parts that are requested on a recurring basis?

Accepted Answer

A) Open requisition 
B) Blanket requisition 
C) Traveling requisition 
D) Recyclable requisition (Cyc-Rec) 
A) Open requisition 
B) Blanket requisition 
C) Traveling requisition 
D) Recyclable requisition (Cyc-Rec)

Question 16

While most public procurement is focused on goals similar to those of purchasing departments in the private sector,U.S.federal government purchases must comply with the:

Accepted Answer

A) Federal Acquisition Regulation 
B) Fair Standards and Equitable Purchases Act 
C) Federal Code of Conduct for Procurement 
D) Services and Materials Acquisition Act 
A) Federal Acquisition Regulation 
B) Fair Standards and Equitable Purchases Act 
C) Federal Code of Conduct for Procurement 
D) Services and Materials Acquisition Act

Question 17

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 18

Which of the following is NOT a potential challenge for global sourcing?:

Accepted Answer

A) Long delivery lead times 
B) Costs involved in selecting foreign suppliers 
C) Relaxed trade barriers 
D) Labor and legal problems 
A) Long delivery lead times 
B) Costs involved in selecting foreign suppliers 
C) Relaxed trade barriers 
D) Labor and legal problems

Question 19

The acquisition of services is also known as contracting.

Accepted Answer

A) True 
 B)False

Question 20

A form of purchasing that is placed directly to the supplier and suitable when firms use the same components to make standard goods over a relatively long period of time is referred to as:

Accepted Answer

A) Material Requisition 
B) Purchase Requisition 
C) Planned Order Release 
D) Traveling Requisition 
A) Material Requisition 
B) Purchase Requisition 
C) Planned Order Release 
D) Traveling Requisition

The goal of a good purchasing system is to ensure efficient information transitions between the materials users,the purchasing personnel,and the suppliers.

The Total Cost of Ownership Concept does NOT include quantitative factors.

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

The term Supply Management is used to describe responsibilities above and beyond those of traditional purchasing.

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 is NOT a form of countertrade?

As firms seek to improve the products they offer to the market,companies are seeking help from their suppliers in new product design and development through:

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

Which of the following is an advantage of a centralized purchasing department?:

Purchasing can be broadly classified into two categories: merchants and industrial buyers.

When a material is not available in the warehouse and there is no current supplier for the item,the buyer must identify a pool of suppliers and issue a:

The purchase order is NOTa legally binding contract until it is accepted by the supplier.

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

When calculating Return on Investment,current assets include:

Which type of requisition is used for materials and standard parts that are requested on a recurring basis?

While most public procurement is focused on goals similar to those of purchasing departments in the private sector,U.S.federal government purchases must comply with the:

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 is NOT a potential challenge for global sourcing?:

The acquisition of services is also known as contracting.

A form of purchasing that is placed directly to the supplier and suitable when firms use the same components to make standard goods over a relatively long period of time is referred to as:

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

The goal of a good purchasing system is to ensure efficient information transitions between the materials users,the purchasing personnel,and the suppliers.

The Total Cost of Ownership Concept does NOT include quantitative factors.

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

The term Supply Management is used to describe responsibilities above and beyond those of traditional purchasing.

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 is NOT a form of countertrade?

As firms seek to improve the products they offer to the market,companies are seeking help from their suppliers in new product design and development through:

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

Which of the following is an advantage of a centralized purchasing department?:

Purchasing can be broadly classified into two categories: merchants and industrial buyers.

When a material is not available in the warehouse and there is no current supplier for the item,the buyer must identify a pool of suppliers and issue a:

The purchase order is NOTa legally binding contract until it is accepted by the supplier.

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

When calculating Return on Investment,current assets include:

Which type of requisition is used for materials and standard parts that are requested on a recurring basis?

While most public procurement is focused on goals similar to those of purchasing departments in the private sector,U.S.federal government purchases must comply with the:

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 is NOT a potential challenge for global sourcing?:

The acquisition of services is also known as contracting.

A form of purchasing that is placed directly to the supplier and suitable when firms use the same components to make standard goods over a relatively long period of time is referred to as:

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