11. 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:
|
a. |
Supplier development |
|
b. |
Outsourcing |
|
c. |
Centralized purchasing |
|
d. |
Supplier hybridization |
12. The
Uniform Commercial Code governs the purchase and sale of goods in the US except
in the state of:
|
a. |
Hawaii |
|
b. |
Louisiana |
|
c. |
Mississippi |
|
d. |
South Dakota |
13. 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?
|
a. |
Purchase requisition |
|
b. |
Planned order release |
|
c. |
Material requisition |
|
d. |
Purchase order |
14. Benefits
derived from implementing e-procurement systems include all of the following
EXCEPT:
|
a. |
Allows buyers to submit bids |
|
b. |
Increases the accuracy in |
|
c. |
Creates numerous additional |
|
d. |
Tracking bids and |
15. Benefits
derived from implementing an e-procurement system include all EXCEPT:
|
a. |
Time Savings |
|
b. |
Real Time Access |
|
c. |
Trackability |
|
d. |
Decentralized Purchasing |
16. Which
of the following illustrates Forward Vertical Integration?
|
a. |
Microsoft starting a new |
|
b. |
Ford automotive buying |
|
c. |
Subway sandwich company |
|
d. |
Sony buying trucks to deliver |
17. If
a distribution company that focused on warehousing and distribution of grocery
items decided to purchase a chain of grocery stores, the distribution company
would be exemplifying:
|
a. |
Backward vertical integration |
|
b. |
Forward vertical integration |
|
c. |
Backward horizontal |
|
d. |
Forward horizontal |
18. Which
of the following would be a good reason to outsource (buy) versus making?
|
a. |
A firm lacks the technology |
|
b. |
To utilize existing capacity |
|
c. |
To have more direct control |
|
d. |
No competent supplier |
19. Given
the following make-buy information, what would be the break-even point?
|
Make Option |
Buy Option |
|
|
Fixed Costs |
$7500 |
$1500 |
|
Variable Costs |
$ 4 |
$ 9 |
|
a. |
1200 units |
|
b. |
1708 units |
|
c. |
690 units |
|
d. |
460 units |
20. Given
the following make-buy information, what would be the break-even point?
|
Make Option |
Buy Option |
|
|
Fixed Costs |
$15000 |
$1250 |
|
Variable Costs |
$ 5 |
$ 10 |
|
a. |
917 units |
|
b. |
2875 units |
|
c. |
1083 units |
|
d. |
2750 units |
21. 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:
|
a. |
Supplier certification |
|
b. |
Manufacturer certification |
|
c. |
Early supplier involvement |
|
d. |
Total Cost of Ownership |
22. Which
of the following is a reason that single sourcing is considered risky/bad?
|
a. |
The buyer’s required ordering |
|
b. |
Larger orders make quantity |
|
c. |
The limited (finite) capacity |
|
d. |
Decreases the item to item |
23. Which
of the following statements is FALSE?
|
a. |
More than 50% of each sales |
|
b. |
Decentralized purchasing |
|
c. |
Electronic procurement |
|
d. |
If a firm lacks the |
24. Which
of the following is NOT a form of countertrade?
|
a. |
Barter |
|
b. |
Offset |
|
c. |
Incoterming |
|
d. |
Counterpurchase |
25. 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:
|
a. |
Federal Acquisition |
|
b. |
Fair Standards and Equitable |
|
c. |
Federal Code of Conduct for |
|
d. |
Services and Materials |
