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Test Bank For Purchasing And Supply Chain Management, 6th Edition

Test Bank For Purchasing And Supply Chain Management, 6th Edition simplifies complex topics with clear explanations, study strategies, and exam-focused practice.

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    Chapter 1 -- Introduction to Purchasing and Supply Chain Management Cengage Learning Testing, Powered by Cognero Page 1 True / False 1. The development of strategic purchasing practices can only help a company maintain its competitive position in a rapidly changing business environment. a. True b. False ANSWER: False DIFFICULTY: Easy KEYWORDS: Bloom’s: Understanding OTHER: Analytic NOTES: 1 2. Global sourcing is a requirement and no longer a luxury for most firms. a. True b. False ANSWER: True DIFFICULTY: Easy KEYWORDS: Bloom’s: Understanding OTHER: Analytic NOTES: 1 3. Sophisticated customers, both industrial and consumer, no longer talk about price increases – they demand price reductions! a. True b. False ANSWER: True DIFFICULTY: Easy KEYWORDS: Bloom’s: Understanding OTHER: Analytic NOTES: 1 4. An abundance of competitors and choices have conditioned customers to want higher quality, faster delivery, and products and services tailored to their individual needs at a higher total cost. a. True b. False ANSWER: False DIFFICULTY: Easy KEYWORDS: Bloom’s: Understanding OTHER: Analytic NOTES: 1 5. The availability of low - cost domestic supplier alternatives has led to the shift away from outsourcing and offshoring. a. True b. False ANSWER: False

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    Chapter 1 -- Introduction to Purchasing and Supply Chain Management Cengage Learning Testing, Powered by Cognero Page 2 DIFFICULTY: Easy KEYWORDS: Bloom’s: Understanding OTHER: Analytic NOTES: 1 6. Competition today is no longer between firms; it is between the supply chains of those firms. a. True b. False ANSWER: True DIFFICULTY: Moderate KEYWORDS: Bloom’s: Understanding OTHER: Analytic NOTES: 1 7. In the manufacturing sector, the percentage of purchases to sales averages 55 percent. a. True b. False ANSWER: True DIFFICULTY: Easy KEYWORDS: Bloom’s: Remembering OTHER: Analytic NOTES: 1 8. The traditional approach to purchasing and supply management is to build relations with suppliers to jointly pull costs out of the product or service and expect suppliers to contribute innovate ideas that continually add value to a firm’s products and services. a. True b. False ANSWER: False DIFFICULTY: Moderate KEYWORDS: Bloom’s: Understanding OTHER: Analytic NOTES: 1 9. Most of the features that make their way into final products originate with suppliers. a. True b. False ANSWER: False DIFFICULTY: Easy KEYWORDS: Bloom’s: Understanding OTHER: Analytic NOTES: 1 10. Purchasing and supply management has a major impact on product and service quality. a. True

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    Chapter 1 -- Introduction to Purchasing and Supply Chain Management Cengage Learning Testing, Powered by Cognero Page 3 b. False ANSWER: True DIFFICULTY: Easy KEYWORDS: Bloom’s: Understanding OTHER: Analytic NOTES: 1 11. Supply management is a broader concept than purchasing. a. True b. False ANSWER: True DIFFICULTY: Easy KEYWORDS: Bloom’s: Understanding OTHER: Analytic NOTES: 1 12. The routine ordering and follow - up of basic operational supplies is a strategic responsibility. a. True b. False ANSWER: False DIFFICULTY: Easy KEYWORDS: Bloom’s: Remembering OTHER: Analytic NOTES: 1 13. Supply chain management does not require the coordination of activities and flows that do not extend across boundaries. a. True b. False ANSWER: False DIFFICULTY: Moderate KEYWORDS: Bloom’s: Understanding OTHER: Analytic NOTES: 1 14. According to Porter, a firm’s value chain is composed of primary and support activities that can lead to competitive advantage when configured properly. a. True b. False ANSWER: True DIFFICULTY: Moderate KEYWORDS: Bloom’s: Understanding OTHER: Analytic NOTES: 2

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    Chapter 1 -- Introduction to Purchasing and Supply Chain Management Cengage Learning Testing, Powered by Cognero Page 4 15. Purchasing is becoming less responsible for sourcing indirect goods and services required by internal groups. a. True b. False ANSWER: False DIFFICULTY: Moderate KEYWORDS: Bloom’s: Understanding OTHER: Analytic NOTES: 2 16. Distribution management involves the management of packaging, storing, and handling of materials at receiving docks, warehouses, and retail outlets. a. True b. False ANSWER: True DIFFICULTY: Easy KEYWORDS: Bloom’s: Remembering OTHER: Analytic NOTES: 3 17. Today’s emphasis on supplier quality has shifted from detecting defects at the time of receipt or use to prevention early in the materials - sourcing process. a. True b. False ANSWER: True DIFFICULTY: Moderate KEYWORDS: Bloom’s: Understanding OTHER: Analytic NOTES: 3 18. The key to the success of any company is the quality of its employees. a. True b. False ANSWER: True DIFFICULTY: Easy KEYWORDS: Bloom’s: Remembering OTHER: Analytic NOTES: 4 19. Cost management is no longer an integral part of purchasing and supply chain management. a. True b. False ANSWER: False DIFFICULTY: Easy KEYWORDS: Bloom’s: Understanding OTHER: Analytic

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    Chapter 1 -- Introduction to Purchasing and Supply Chain Management Cengage Learning Testing, Powered by Cognero Page 5 NOTES: 4 20. Formal organizational charts portray the entirety of the workings of an organization. a. True b. False ANSWER: False DIFFICULTY: Moderate KEYWORDS: Bloom’s: Understanding OTHER: Analytic NOTES: 4 21. There is a definitive and prescriptive set of supply chain measures that result in one best way to measure supply chain performance. a. True b. False ANSWER: False DIFFICULTY: Moderate KEYWORDS: Bloom’s: Understanding OTHER: Analytic NOTES: 4 22. In Period 4 of the evolution of purchasing and supply chain management, firms faced stable competition and had access to abundant material – conditions that historically have diminished the overall importance of purchasing. a. True b. False ANSWER: True DIFFICULTY: Moderate KEYWORDS: Bloom’s: Remembering OTHER: Analytic NOTES: 5 Multiple Choice 23. Which of the following is not one of the features of the new model of progressive purchasing? a. Developing closer relationships with important suppliers. b. Performing due diligence on suppliers before awarding longer - term contracts. c. Focusing primarily on price analysis and short term contracts. d. Conducting worldwide Internet searches for the best sources of supply. e. Inviting key suppliers to participate in product and process development. ANSWER: c DIFFICULTY: Moderate KEYWORDS: Bloom’s: Understanding OTHER: Analytic NOTES: 1

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    Chapter 1 -- Introduction to Purchasing and Supply Chain Management Cengage Learning Testing, Powered by Cognero Page 6 24. Which of the following is not one of the factors driving an emphasis on supply chain management? a. An increasing emphasis on domestic sourcing due to the longer lead times and higher levels of pipeline inventories associated with global sourcing. b. The cost and availability of information resources among entities in the supply chain that allow easy linkages that eliminate time delays in the network. c. The level of competition in both domestic and international markets requires organizations to be fast, agile, and flexible. d. Customer expectations and requirements that are becoming much more demanding. e. The ability of an organization’s supply chain to identify and mitigate risk minimizes disruptions in both supply and downstream product or services to mitigate the impact on lost sales. ANSWER: a DIFFICULTY: Moderate KEYWORDS: Bloom’s: Understanding OTHER: Analytic NOTES: 1 25. _____ is a functional group (i.e., a formal entity on the organizational chart as well as a functional activity (i.e., buying goods and services). a. Engineering b. Purchasing c. Quality assurance d. Logistics e. Treasury operations ANSWER: b DIFFICULTY: Easy KEYWORDS: Bloom’s: Remembering OTHER: Analytic NOTES: 1 26. The _____ is a change index, and generally a rating over 50 indicates that the economy is expanding. a. Consumer Price Index b. Producer Price Index c. ISM Report on Business d. rate of inflation e. None of the above. ANSWER: c DIFFICULTY: Easy KEYWORDS: Bloom’s: Remembering OTHER: Analytic NOTES: 1 27. According to the Institute for Supply Management , _____ is the identification, acquisition, access, positioning, and management of resources and related capabilities an organization needs or potentially needs in the attainment of its strategic objectives. a. supply chain management b. procurement

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    Chapter 1 -- Introduction to Purchasing and Supply Chain Management Cengage Learning Testing, Powered by Cognero Page 7 c. logistics d. supply management e. distribution ANSWER: d DIFFICULTY: Easy KEYWORDS: Bloom’s: Remembering OTHER: Analytic NOTES: 1 28. Instead of adversarial relationships which characterize _____, _____ features a long - term, win - win relationship between a buying company and specially selected suppliers. a. traditional purchasing….supply management b. traditional purchasing….logistics management c. supply management….traditional purchasing d. strategic sourcing….supply management e. supply chain management….strategic sourcing ANSWER: a DIFFICULTY: Moderate KEYWORDS: Bloom’s: Understanding OTHER: Analytic NOTES: 1 29. A _____ is a set of three or more organizations linked directly by one or more of the upstream or downstream flows of products, services, finances, and information from a source to a customer. a. process b. manufacturing system c. value chain d. social media chain e. supply chain ANSWER: e DIFFICULTY: Easy KEYWORDS: Bloom’s: Remembering OTHER: Analytic NOTES: 2 30. All of the following are typical processes involved in supply chain management except _____. a. new - product development b. customer - order fulfillment c. supplier evaluation and selection d. demand and supply planning e. cash flow management ANSWER: e DIFFICULTY: Easy KEYWORDS: Bloom’s: Remembering

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    Chapter 1 -- Introduction to Purchasing and Supply Chain Management Cengage Learning Testing, Powered by Cognero Page 8 OTHER: Analytic NOTES: 2 31. According to Michael Porter, a firm’s _____ is composed of primary and secondary support activities that can lead to competitive advantage when configured properly. a. supply chain b. process c. value chain d. marketing channel e. core competency ANSWER: c DIFFICULTY: Easy KEYWORDS: Bloom’s: Remembering OTHER: Analytic NOTES: 2 32. The _____ states that success is a function of effectively managing a linked group of firms past first - level suppliers or customers. a. supply chain orientation b. value chain concept c. traditional purchasing perspective d. extended enterprise concept e. process orientation ANSWER: d DIFFICULTY: Moderate KEYWORDS: Bloom’s: Remembering OTHER: Analytic NOTES: 2 33. _____ are those items provided by suppliers and used directly during production or service delivery. a. Direct materials b. Indirect materials c. Indirect services d. Internal materials e. Vendor managed inventories ANSWER: a DIFFICULTY: Easy KEYWORDS: Bloom’s: Remembering OTHER: Analytic NOTES: 2 34. Which of the following is an example of a purchased direct item for a manufacturing firm? a. Parts and components. b. Travel. c. Office and janitorial supplies.

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    Chapter 1 -- Introduction to Purchasing and Supply Chain Management Cengage Learning Testing, Powered by Cognero Page 9 d. Advertising and media. e. Personal computers. ANSWER: a DIFFICULTY: Easy KEYWORDS: Bloom’s: Understanding OTHER: Analytic NOTES: 3 35. Within the downstream portion of a supply chain, _____ are responsible for the actual movement of materials between locations. a. buyers b. trucking firms c. logistics managers d. accountants e. purchasing managers ANSWER: c DIFFICULTY: Easy KEYWORDS: Bloom’s: Remembering OTHER: Analytic NOTES: 3 36. Which of the following is not an example of a typical resource shared between a buyer and supplier? a. Dedicated capacity. b. Specific information. c. Technological capabilities. d. Direct financial support. e. Advertising and media. ANSWER: e DIFFICULTY: Moderate KEYWORDS: Bloom’s: Understanding OTHER: Analytic NOTES: 3 37. All of the following are examples of demand planning activities except _____. a. forecasts of anticipated demand b. accounts payable c. inventory adjustments d. orders taken but not filled e. spare parts and aftermarket requirements ANSWER: b DIFFICULTY: Moderate KEYWORDS: Bloom’s: Understanding OTHER: Analytic NOTES: 3

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    Chapter 1 -- Introduction to Purchasing and Supply Chain Management Cengage Learning Testing, Powered by Cognero Page 10 38. _____ schedules the firm’s output; while _____ is the process of taking demand data and developing a supply, production, and logistics network capable of satisfying demand requirements. a. Inventory control….quality control b. Quality control….supply planning c. Order processing….material control d. Demand planning….customer service e. Demand planning….supply planning ANSWER: e DIFFICULTY: Easy KEYWORDS: Bloom’s: Remembering OTHER: Analytic NOTES: 3 39. _____ involves generating the materials release, contacting a supplier directly concerning changes, and monitoring the status of inbound shipments. a. Order processing b. Material control c. Warehousing d. Customer service e. Quality control ANSWER: b DIFFICULTY: Easy KEYWORDS: Bloom’s: Remembering OTHER: Analytic NOTES: 3 40. _____ helps ensure that customers receive material when and where they require it and represents the key link between the producer and the external customer. a. Order processing b. Inbound transportation c. Customer service d. Scheduling e. Inventory control ANSWER: a DIFFICULTY: Easy KEYWORDS: Bloom’s: Remembering OTHER: Analytic NOTES: 3 41. The _____ activity involves physically getting a product ready for distribution to the customer. a. customer service b. material control c. materials handling d. quality control e. shipping

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    Chapter 1 -- Introduction to Purchasing and Supply Chain Management Cengage Learning Testing, Powered by Cognero Page 11 ANSWER: e DIFFICULTY: Easy KEYWORDS: Bloom’s: Remembering OTHER: Analytic NOTES: 3 42. Which of the following is not one of the four enablers of purchasing and supply chain management? a. Sufficient cash flow and large on - hand cash deposits. b. Capable human resources. c. Proper organizational design. d. Real - time collaborative technology capabilities. e. Right measures and measurement systems. ANSWER: a DIFFICULTY: Easy KEYWORDS: Bloom’s: Remembering OTHER: Analytic NOTES: 4 43. Recent research indicates that all of the following are top knowledge areas for purchasers except _____. a. supplier relationship management b. total cost analysis c. supplier analysis d. consumer behavior e. competitive market analysis ANSWER: d DIFFICULTY: Moderate KEYWORDS: Bloom’s: Remembering OTHER: Analytic NOTES: 4 44. _____ refers to the process of assessing and selecting the structure and formal system of communication, division of labor, coordination, control, authority, and responsibility required to achieve organizational goals and objectives, including supply chain objectives. a. Supply chain orientation b. Human resource management c. Demand planning d. Organizational design e. Extended value chain ANSWER: d DIFFICULTY: Easy KEYWORDS: Bloom’s: Remembering OTHER: Analytic NOTES: 4 45. _____ seeks to improve forecast accuracy, optimize production scheduling, reduce working capital costs, shorten

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    Chapter 1 -- Introduction to Purchasing and Supply Chain Management Cengage Learning Testing, Powered by Cognero Page 12 cycle times, cut transportation costs, and improve customer service; while _____ helps obtain materials and manage physical flows from suppliers through downstream distribution to ensure that customers receive the right products at the right location, time, and cost. a. RFID….GPS b. Execution software….planning software c. Customer service….inbound transportation d. The process approach….cost management e. Planning software….execution software ANSWER: e DIFFICULTY: Easy KEYWORDS: Bloom’s: Remembering OTHER: Analytic NOTES: 4 46. All of the following are roadblocks between measurement and improved performance except _____. a. up - to - date information technology b. too many metrics c. debate over the correct metrics d. constantly changing metrics e. old data ANSWER: a DIFFICULTY: Easy KEYWORDS: Bloom’s: Remembering OTHER: Analytic NOTES: 4

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    Chapter 2 -- The Purchasing Process Cengage Learning Testing, Powered by Cognero Page 1 True / False 1. Enterprises are relying increasingly on external suppliers to provide only materials and products, not information technology, services, and design activities. a. True b. False ANSWER: False DIFFICULTY: Easy KEYWORDS: Bloom’s: Understanding OTHER: Analytic NOTES: 1 2. The objectives of a world - class purchasing organization do not need to evolve beyond the traditional mantra of ensuring we “get a good price!” a. True b. False ANSWER: False DIFFICULTY: Easy KEYWORDS: Bloom’s: Remembering OTHER: Analytic NOTES: 1 3. Organizations are constantly looking for people who have developed the skills necessary to deal with the narrow variety of tasks faced by purchasing. a. True b. False ANSWER: False DIFFICULTY: Easy KEYWORDS: Bloom’s: Understanding OTHER: Analytic NOTES: 1 4. If a supplier’s components are defective and causing problems for manufacturing, then purchasing must find ways to improve supplier quality. a. True b. False ANSWER: True DIFFICULTY: Easy KEYWORDS: Bloom’s: Understanding OTHER: Analytic NOTES: 1 5. Purchasing can directly affect (positively or negatively) the long - term growth, revenue, and operating outcomes and plans of stakeholders and business units. a. True b. False

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    Chapter 2 -- The Purchasing Process Cengage Learning Testing, Powered by Cognero Page 2 ANSWER: True DIFFICULTY: Easy KEYWORDS: Bloom’s: Understanding OTHER: Analytic NOTES: 1 6. The authority to review and challenge specifications (for products or for services) is within purchasing’s span of control in managing demand, although internal stakeholders sometimes dispute this right. a. True b. False ANSWER: True DIFFICULTY: Moderate KEYWORDS: Bloom’s: Understanding OTHER: Analytic NOTES: 2 7. Purchasing’s right to evaluate and select suppliers means that sales representatives are not allowed to talk with non - purchasing personnel. a. True b. False ANSWER: False DIFFICULTY: Moderate KEYWORDS: Bloom’s: Understanding OTHER: Analytic NOTES: 2 8. Contract management should be used to trigger proactive sourcing events only after a contract expires. a. True b. False ANSWER: False DIFFICULTY: Easy KEYWORDS: Bloom’s: Understanding OTHER: Analytic NOTES: 2 9. When creating a forecast for a needed product or service, internal customers may not always be able to express exactly what it is they will need at a future point in time. a. True b. False ANSWER: True DIFFICULTY: Easy KEYWORDS: Bloom’s: Understanding OTHER: Analytic NOTES: 2

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    Chapter 2 -- The Purchasing Process Cengage Learning Testing, Powered by Cognero Page 3 10. For routine, off - the - shelf items, the purchase requisition may contain all the information that purchasing requires. a. True b. False ANSWER: True DIFFICULTY: Easy KEYWORDS: Bloom’s: Understanding OTHER: Analytic NOTES: 2 11. When purchasing works directly with internal stakeholders to anticipate future requirements, such as during new - product development, or with physician councils in a health care provider, purchasing is acting reactively. a. True b. False ANSWER: False DIFFICULTY: Moderate KEYWORDS: Bloom’s: Understanding OTHER: Analytic NOTES: 2 12. The process that buyers use to select suppliers does not vary widely depending on the required item and the relationship that a buyer has with its suppliers. a. True b. False ANSWER: False DIFFICULTY: Easy KEYWORDS: Bloom’s: Understanding OTHER: Analytic NOTES: 3 13. Buyers use competitive bidding when price is a minor criteria and the required item (or service) has complex material specifications. a. True b. False ANSWER: False DIFFICULTY: Moderate KEYWORDS: Bloom’s: Understanding OTHER: Analytic NOTES: 3 14. For standard items, the negotiation process is an efficient method to purchase relatively straightforward requirements. a. True b. False ANSWER: False DIFFICULTY: Moderate KEYWORDS: Bloom’s: Remembering

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