Question 1

Which of the following is not one of the disadvantages of air carrier over other modes of transportation?

Accepted Answer

A)  Very high cost. 
B)  Location of large airports limits shipping points. 
C)  Seasonal availability. 
D)  Cannot be used for large, bulky, or hazardous shipments. 
E)  None of the above.

Question 2

Centralization of professional service procurement can increase the accountability of outside consultants to the buyer by increasing the monitoring and auditing of services provided.

Accepted Answer

A) True 
 B)False

Question 3

Many buyers are beginning to question the sustainability of cost reductions achieved through reverse auctions over time once the initial reductions are made.

Accepted Answer

A) True 
 B)False

Question 4

Additional railcars can be added to a freight train with only a minimal increase in its total variable cost, absent any limitations on train length.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is not a disadvantage of using a 3PL?​

Accepted Answer

A)  Relinquish control, ownership, and expertise. 
B)  Loss of integration between sales and supply. 
C)  Loss of dedicated in-house managed staff 
D)  Concentrate on core business activities. 
E)  Sacrifice key business service differentiation.

Question 6

All of the following are criteria used to measure transportation performance except _____.

Accepted Answer

A)  speed 
B)  reliability 
C)  capability 
D)  accessibility 
E)  operator hours of service

Question 7

Which of the following is not one of the advantages of rail carrier over other modes of transportation?

Accepted Answer

A)  Lower cost. 
B)  Good for expediting/emergency situations. 
C)  Can handle a wide range of items. 
D)  Piggyback service can increase flexibility. 
E)  Direct between major cities.

Question 8

A project's scope does not need to include any nondisclosure statements to protect the buying company's interests.

Accepted Answer

A) True 
 B)False

Question 9

An apparently low-cost carrier may actually end up costing far more than a seemingly higher-cost carrier when the total associated costs are calculated.

Accepted Answer

A) True 
 B)False

Question 10

A performance-based logistics system seeks to drive the logistics service provider's performance by clearly delineating the buyer's preferred outcomes, not by transaction, but in terms of provider value-added and overall systems costs.

Accepted Answer

A) True 
 B)False

Question 11

Performance-based logistics has been widely adopted by the private sector.

Accepted Answer

A) True 
 B)False

Question 12

In purchasing professional services, it is not important for a standard contract template or format to be developed by the organization's legal department because there are so many types of professional services and providers.

Accepted Answer

A) True 
 B)False

Question 13

Every project must have a scope that succinctly defines the project to help avoid misunderstandings between the buyer and the service provider.

Accepted Answer

A) True 
 B)False

Question 14

Inbound logistics may also include the shipment of repairable items back to maintenance facilities for refurbishment and return to usable or salable condition.

Accepted Answer

A) True 
 B)False

Question 15

Traditional cost accounting systems are designed to systematically track and consolidate indirect spend across an organization.

Accepted Answer

A) True 
 B)False

Question 16

Exempt carriers are highly regulated economically by the Surface Transportation Board.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is not one of the common examples of indirect spend?​

Accepted Answer

A)  Professional and consulting services. 
B)  Employee benefits. 
C)  Travel. 
D)  Maintenance, repair, and operating supplies. 
E)  Production components.

Question 18

Project scopes should be very detailed for all service providers, including those who have previously performed work for the organization.

Accepted Answer

A) True 
 B)False

Question 19

A two-day shipment by truck can often take a week or more by railbecause of the extra handling involved.

Accepted Answer

A) True 
 B)False

Question 20

Private carriers are never utilized to make daily "milk runs," picking up smaller amounts of materials from a series of nearby suppliers to be used in a just-in-time or lean manufacturing environment.

Accepted Answer

A) True 
 B)False

Exam 17: Purchasing Services

Which of the following is not one of the disadvantages of air carrier over other modes of transportation?

Centralization of professional service procurement can increase the accountability of outside consultants to the buyer by increasing the monitoring and auditing of services provided.

Many buyers are beginning to question the sustainability of cost reductions achieved through reverse auctions over time once the initial reductions are made.

Additional railcars can be added to a freight train with only a minimal increase in its total variable cost, absent any limitations on train length.

Which of the following is not a disadvantage of using a 3PL?​

All of the following are criteria used to measure transportation performance except _____.

Which of the following is not one of the advantages of rail carrier over other modes of transportation?

A project's scope does not need to include any nondisclosure statements to protect the buying company's interests.

An apparently low-cost carrier may actually end up costing far more than a seemingly higher-cost carrier when the total associated costs are calculated.

A performance-based logistics system seeks to drive the logistics service provider's performance by clearly delineating the buyer's preferred outcomes, not by transaction, but in terms of provider value-added and overall systems costs.

Performance-based logistics has been widely adopted by the private sector.

In purchasing professional services, it is not important for a standard contract template or format to be developed by the organization's legal department because there are so many types of professional services and providers.

Every project must have a scope that succinctly defines the project to help avoid misunderstandings between the buyer and the service provider.

Inbound logistics may also include the shipment of repairable items back to maintenance facilities for refurbishment and return to usable or salable condition.

Traditional cost accounting systems are designed to systematically track and consolidate indirect spend across an organization.

Exempt carriers are highly regulated economically by the Surface Transportation Board.

Which of the following is not one of the common examples of indirect spend?​

Project scopes should be very detailed for all service providers, including those who have previously performed work for the organization.

A two-day shipment by truck can often take a week or more by railbecause of the extra handling involved.

Private carriers are never utilized to make daily "milk runs," picking up smaller amounts of materials from a series of nearby suppliers to be used in a just-in-time or lean manufacturing environment.

Which of the following is not a disadvantage of using a 3PL?

Which of the following is not one of the common examples of indirect spend?