Question 1

The Uniform Commercial Code governs the purchase and sale of goods in the US except in the state of:

Accepted Answer

A) Hawaii 
B) Louisiana 
C) Mississippi 
D) South Dakota 
A) Hawaii 
B) Louisiana 
C) Mississippi 
D) South Dakota

Question 2

Reasons for buying items instead of making them can include cost advantage,insufficient capacity,lack of expertise,and quality.

Accepted Answer

A) True 
 B)False

Question 3

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

Question 4

Which of the following is a reason for favoring single sourcing?

Accepted Answer

A) Encourages competition among suppliers 
B) Spreads the risk of supply interruption 
C) Reduces variabilities in quality levels 
D) Reduces information about new processing technologies 
A) Encourages competition among suppliers 
B) Spreads the risk of supply interruption 
C) Reduces variabilities in quality levels 
D) Reduces information about new processing technologies

Question 5

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 6

Blank check purchase orders,Corporate purchasing cards,Petty cash,and Open-end purchase orders are all possible alternatives to dealing with small value purchases such as those for office supplies.

Accepted Answer

A) True 
 B)False

Question 7

The possibility of events like strikes,assembly line breakdowns,and natural disasters are all reasons a company should favor using a single supplier.

Accepted Answer

A) True 
 B)False

Question 8

If the break-even point in a typical make-buy scenario is 24,000 units and 8,000 units are required by the firm,then the firm should choose to make the units.

Accepted Answer

A) True 
 B)False

Question 9

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 10

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 11

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

Accepted Answer

A) True 
 B)False

Question 12

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 13

Which of the following illustrates Forward Vertical Integration?

Accepted Answer

A) Microsoft starting a new division that designs and manufactures clothing 
B) Ford automotive buying additional machines for production 
C) Subway sandwich company buying a bakery to make the bread for their sandwiches. 
D) Sony buying trucks to deliver their finished goods inventories to their customers' warehouses 
A) Microsoft starting a new division that designs and manufactures clothing 
B) Ford automotive buying additional machines for production 
C) Subway sandwich company buying a bakery to make the bread for their sandwiches. 
D) Sony buying trucks to deliver their finished goods inventories to their customers' warehouses

Question 14

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 15

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 16

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 17

On occasion,firms assist suppliers,new or old,to improve their processing capabilities,product or service quality,delivery effectiveness,and cost performance by providing the required technical and financial assistance.This is referred to as:

Accepted Answer

A) Supplier development 
B) Outsourcing 
C) Centralized purchasing 
D) Supplier hybridization 
A) Supplier development 
B) Outsourcing 
C) Centralized purchasing 
D) Supplier hybridization

Question 18

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 19

The primary goals of purchasing include all EXCEPT:

Accepted Answer

A) Secure materials at the lowest cost 
B) Ensure the highest quality raw materials are purchased 
C) Improve the quality of finished goods produced 
D) Maximize customer satisfaction 
A) Secure materials at the lowest cost 
B) Ensure the highest quality raw materials are purchased 
C) Improve the quality of finished goods produced 
D) Maximize customer satisfaction

Question 20

Decentralized purchasing is the practice where individual,local purchasing departments throughout a single corporation make their own,individual purchasing decisions to fulfill their individual local needs.

Accepted Answer

A) True 
 B)False

The Uniform Commercial Code governs the purchase and sale of goods in the US except in the state of:

Reasons for buying items instead of making them can include cost advantage,insufficient capacity,lack of expertise,and quality.

Inventory Turnover can be calculated by:

Which of the following is a reason for favoring single sourcing?

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

Blank check purchase orders,Corporate purchasing cards,Petty cash,and Open-end purchase orders are all possible alternatives to dealing with small value purchases such as those for office supplies.

The possibility of events like strikes,assembly line breakdowns,and natural disasters are all reasons a company should favor using a single supplier.

If the break-even point in a typical make-buy scenario is 24,000 units and 8,000 units are required by the firm,then the firm should choose to make the units.

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

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

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

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

Which of the following illustrates Forward Vertical Integration?

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?

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:

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

On occasion,firms assist suppliers,new or old,to improve their processing capabilities,product or service quality,delivery effectiveness,and cost performance by providing the required technical and financial assistance.This is referred to as:

Which of the following statements is FALSE?

The primary goals of purchasing include all EXCEPT:

Decentralized purchasing is the practice where individual,local purchasing departments throughout a single corporation make their own,individual purchasing decisions to fulfill their individual local needs.

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 Uniform Commercial Code governs the purchase and sale of goods in the US except in the state of:

Reasons for buying items instead of making them can include cost advantage,insufficient capacity,lack of expertise,and quality.

Inventory Turnover can be calculated by:

Which of the following is a reason for favoring single sourcing?

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

Blank check purchase orders,Corporate purchasing cards,Petty cash,and Open-end purchase orders are all possible alternatives to dealing with small value purchases such as those for office supplies.

The possibility of events like strikes,assembly line breakdowns,and natural disasters are all reasons a company should favor using a single supplier.

If the break-even point in a typical make-buy scenario is 24,000 units and 8,000 units are required by the firm,then the firm should choose to make the units.

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

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

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

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

Which of the following illustrates Forward Vertical Integration?

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?

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:

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

On occasion,firms assist suppliers,new or old,to improve their processing capabilities,product or service quality,delivery effectiveness,and cost performance by providing the required technical and financial assistance.This is referred to as:

Which of the following statements is FALSE?

The primary goals of purchasing include all EXCEPT:

Decentralized purchasing is the practice where individual,local purchasing departments throughout a single corporation make their own,individual purchasing decisions to fulfill their individual local needs.

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