Graded Homework

QUESTION 1

1. According to the text, three benefits of a career in purchasing and supply management are:

   A.	Salary, Responsibility, and Authority
   B.	Flexibility, Responsibility, and Command
   C.	Supplier Relationships, Personal Growth, and Spend

2 points

QUESTION 2

1. The five “right objectives” of purchasing are:

   A.	Quality, Quantity, Price, Time, Place
   B.	Cost, Service, Specs, Time, Quantity
   C.	Place, Time, Price, Ethics, Contract
   D.	Agent, Supplier, Contract, Price, Quantity
   E.	Item or Service, Time, Quality, Price, Quantity

2 points

QUESTION 3

1. The major reason supply management can greatly improve a firm’s return on investment (ROI) is:

   A.	The reduction of post ownership costs
   B.	The reduction of downtime costs
   C.	The reduction of quality costs
   D.	The reduction of acquisition cost
   E.	Purchasing dollars saved increase profit.

2 points

QUESTION 4

1. Which of the following is not a strategic supply management activity?

   A.	Corporate Strategic Plans
   B.	Simulation Modeling
   C.	Strategic Sourcing
   D.	Strategic Supply Alliances
   E.	Supply Chain

2 points

QUESTION 5

1. The importance of supply management in any specific firm is determined by the following factors:

   A.	Availability of materials and services
   B.	Absolute dollar volume of purchases
   C.	Percentage of product cost represented by materials and services
   D.	Types of materials and services purchased
   E.	All of the above

2 points

QUESTION 6

1. Aside from reducing potential duplication of efforts, the major advantage of centralized purchasing is:

   A.	Improved inventory control
   B.	Leverage in being able to purchase large volumes of organizational goods and services.
   C.	Consolidation
   D.	Transportation Costs
   E.	Lower administrative costs

2 points

QUESTION 7

1. Cross functional teams have proven to help:

   A.	Break down functional silos
   B.	Reduce new product development time
   C.	Facilitate integrated planning and coordination
   D.	Stimulate engineering change management control
   E.	All of the above

2 points

QUESTION 8

1. Which of the following is not one of the three types of buyer supplier relationships presented in the textbook?

   A.	Transactional
   B.	Transcendental
   C.	Collaborative
   D.	Alliance

2 points

QUESTION 9

1. Which of the following is not one of the outcomes that collaborative relationships tend to foster?

   A.	Long-term Contracts
   B.	Reduction of risk for suppliers
   C.	Reduction of TCO
   D.	Lower quality requirements
   E.	Improvement of processes

2 points

QUESTION 10

1. Developing and managing collaborative relationships require supply professionals, who possess all of the following skills and attitudes except one. Which skill in the following list is not required?

   A.	Ability to recognize the benefits of collaboration
   B.	Ability to identify, obtain and use data
   C.	Ability to work in with uncertainty in regards to product availability and uncertainty.
   D.	Ability to ensure products and services are delivered according to terms
   E.	Ability to develop information systems

2 points

QUESTION 11

1. Collaborative and alliance relationships tend to result in lower total costs and improve performance of the supply chain.

   True

   False

2 points

QUESTION 12

1. A disadvantage of transactional supplier relationships is that they may require more buyer interaction to ensure on-time delivery and adequate quality levels.

   True

   False

2 points

QUESTION 13

1. Ethical practices must be followed in business, as well as politics.

   True

   False

2 points

QUESTION 14

1. Supply professionals must understand how to evaluate quality within their own facilities. However, Supply Management calls for aiding in the development and improvements in supplier quality as well.

   True

   False

2 points

QUESTION 15

1. A collaborative relationship frequently is an appropriate first step on the road to a strategic alliance.

   True

   False

2 points

QUESTION 16

1. Deming introduced the concept of total quality management.

   True

   False

2 points

QUESTION 17

1. The major objective of the Just-in-Time concept is the elimination of waste.

   True

   False

2 points

QUESTION 18

1. Which of the following individuals was not presented in the text as a quality guru?

   A.	Philip Crosby
   B.	Sheila Petcavage
   C.	Malcolm Baldrige
   D.	Edward Deming
   E.	Joseph Juran

2 points

QUESTION 19

1. Which of the following is not a quality management approach presented in the textbook?

   A.	Total Quality Management (TQM)
   B.	Continuous Improvement
   C.	Six Sigma
   D.	Quality Ensured in the Supply Triangle (QEST)
   E.	Quality Management System (QMS)

2 points

QUESTION 20

1. Which of the following is not true of Six Sigma?

   A.	Six Sigma is a broad and comprehensive system for building and sustaining business performance, success, and leadership
   B.	The key focus is on processes
   C.	Measurement of both processes and products is critical to Six Sigma success
   D.	Six Sigma calls for zero defects
   E.	Statistical six sigma goal is near-perfection, 3.4 defects per million opportunities (DPMO)

2 points

QUESTION 21

1. Which of the following is not true of the costs of quality?

   A.	Prevention costs are costs to prevent poor quality in products or services
   B.	Maintenance is a prevention cost
   C.	Downtime is an appraisal cost
   D.	Inspection is an appraisal cost
   E.	Appraisal costs are costs associated with assuring conformance

2 points

QUESTION 22

1. The four formats for statements of work given in the textbook are: performance, functional, design and level-of-effort.

   True

   False

2 points

QUESTION 23

1. In planning the statement of work, you should consider the scope of work with details of what, how, when, where, and who; key deliverables in how the work is to be performed, and delivery schedules on when each phase of the work is to be completed.

   True

   False

2 points

QUESTION 24

1. In writing an effective S.O.W. as given in the textbook, the S.O.W. should contain lots of abbreviations and extraneous statements.

   True

   False

2 points

QUESTION 25

1. Which is usually not included in planning the statement of work?

   A.	Work approvals
   B.	Process flows in the supplier’s facility
   C.	Use of subcontractors
   D.	Authorized personnel
   E.	Exhibits, schedules, and attachments

2 points

QUESTION 26

1. Outsourcing is not a way to help an organization to place more focus on its core competencies.

   True

   False

2 points

QUESTION 27

1. Outsourcing of non-critical activities helps an organization to focus on core competencies.

   True

   False

2 points

QUESTION 28

1. To identify non-critical activities, the firm’s core competencies must be defined.

   True

   False

2 points

QUESTION 29

1. An understanding of possible cultural issues must be considered in global sourcing.

   True

   False

2 points

QUESTION 30

1. Countertrade refers to any transaction in which payment is made partially or fully with goods instead of money.

   True

   False

2 points

QUESTION 31

1. A world-class supply manager pursues global sourcing opportunities with suppliers based on trust, reduced costs, and high quality.

   True

   False

2 points

QUESTION 32

1. Which of the following is typically not a reason for a corporation to pursue global purchasing opportunities?

   A.	To Achieve Superior Quality
   B.	To Achieve Better Timeliness
   C.	To Experience Foreign Cultures
   D.	To Lower Costs
   E.	To Acquire More Advanced Technology

2 points

QUESTION 33

1. Total cost of ownership (TCO) is a philosophy for understanding all supply chain related costs of doing business with a particular supplier for a particular good or service.

   True

   False

2 points

QUESTION 34

1. Supply managers must shift their focus in procuring materials, services and equipment from total cost to individual prices.

   True

   False

2 points

QUESTION 35

1. Which of the following is not one of the major components of lowering the total cost of ownership presented in the textbook?

   A.	Cost Analysis
   B.	Acquisition Costs
   C.	Quality Cost
   D.	Supply Chain Costs

2 points

QUESTION 36

1. Which of the following is not a post-ownership cost?

   A.	Customer Service
   B.	Warranty Costs
   C.	Administrative Costs
   D.	Disposal of Scrap
   E.	Cost of Lost Sales

2 points

QUESTION 37

1. Which of the following is not an ownership cost?

   A.	Downtime Costs
   B.	Planning Costs
   C.	Risk Costs
   D.	Cycle Time Costs
   E.	Conversion Costs

2 points

QUESTION 38

1. When a long period is required to produce the items purchased, the purchasing professional should engage in negotiation instead of bidding.

   True

   False

2 points

QUESTION 39

1. Supply managers need to possess and utilize knowledge of legal issues and considerations. Such knowledge must be coupled with the wisdom to communicate and interact with legal professionals and suppliers proactively in efforts to develop and maintain relationships between supply chain members, who minimize conflict and maximize opportunities for collaborative success.

   True

   False

2 points

QUESTION 40

1. Most disputes are best resolved through negotiation and compromise.

   True

   False

2 points

QUESTION 41

1. Suppliers and organizations must abide by ethical laws to be in compliance

   True

   False

2 points

QUESTION 42

1. Which of the following is not true of rejection requirements?

   A.	The buying firm can not reject a replacement shipment
   B.	Notification of rejection must be sent to the supplier
   C.	The nature of the defect or default must be specified
   D.	The buying firm is not legally bound to return the material
   E.	The buying firm is obligated to protect and care for the material in a reasonable manner

2 points

QUESTION 43

1. A contract must have an offer and acceptance.

   True

   False

2 points

QUESTION 44

1. F.A.R. is the abbreviation stands for Federal Acquisition Regulations.

   True

   False

2 points

QUESTION 45

1. A purchase contract must have certain considerations to be legal. Which of the following is not one of these considerations?

   A.	Agreement
   B.	Signers must be over 21
   C.	Consideration, or mutual obligation
   D.	Competent parties
   E.	Lawful purpose

2 points

QUESTION 46

1. According to the 2016 Index of Economic Freedom, the United States is considered a free country.

   True

   False

2 points

QUESTION 47

1. In reference to one of the later discussions in the course, the initials CSR stand for which of the following:

   A.	Consumer Science Research
   B.	Customer Social Responsibility
   C.	Corporate and Social Responsibility
   D.	Customer and Social Relationships

2 points

QUESTION 48

1. Microsoft developed the Six Sigma quality concept.

   True

   False

2 points

QUESTION 49

1. Supply managers must avoid unethical matters that may influence supply management decisions.

   True

   False

2 points

QUESTION 50

1. The assignment on negotiations named two primary types of negotiation. They are distributive and ____________________.