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Multiple choice: Procurement and supply chain managment

(1). Which of the following bullets is not true about the origins of purchasing and supply management:
(a). Prior to the 1960s few purchasing books existed,
(b). Prior to the 1960s purchasing departments rose to equal status with traditional departments, such as accounting and marketing departments,
(c). Prior to the 1960s few purchasing personnel contributed to organizational success,
(d). During the 1960s and 1970s purchasing was largely clerical.

(2). Which of the following is not a value adding benefit of world-class management of suppliers?
(a). Quality improves,
(b). Time is managed better,
(c). Technology from the suppliers is integrated,
(d). Larger inventories are maintained.

(3). For supply management to have a strategic focus, supply professionals must have an understanding of all but one of the following issues. Which issue does not fit in the list?
(a). Service operations,
(b). Business environment,
(c). Component and commodity strategies,
(d). Supply base strategy.

(4). Which of the following is not one of the "Five Major Developments" in supply development in recent years?
(a). Cross-Functional Teams,
(b). Strategic Alliances,
(c). Win-Win Negotiation,
(d). Strategic Sourcing.

(5). E-procurement frees supply managers to focus on value-added activities. Which is not an example of such a value-added activity?
(a). Early involvement in the development of requirements,
(b). Strategic sourcing,
(c). Inspection of deliveries of requirements,
(d). Supply base management.

(6). Which of the following statements is probably not true about the future of supply management?
(a). Supply management personnel will eventually be replaced by information technology,
(b). Supply management as a function will continue to grow in importance,
(c). Supply management will require an understanding of the entire supply chain,
(d). Suppliers will be developed worldwide.

(7). Which of the following is not a characteristic of successful diversity programs?
(a). Top Management Support,
(b). Diversity Coordinators,
(c). Nationality of Suppliers,
(d). Evaluation.

(8). Which of the following is not one of the benefits of supply alliances?
(a). Lower total costs,
(b). Reduced time to market.
(c). Increased inspection levels.
(d). Improved technology flow from suppliers.

(9). Which of the following departments or functions is usually not on a typical cross-functional team that would work with a new supplier?
(a). Supply management,
(b). Design,
(c). Manufacturing,
(d). Security.

(10). Which of the following is not a typical challenge or problem with the cross-functional the approach?
(a). Organizational resistance is higher,
(b). Role conflict,
(c). Overload for key members,
(d). Continuity.

(11). Which of the following is not an approach in developing balanced specifications from the perspective of a supply professional?
(a). Informal Approach,
(b). Supply Management Coordinator Approach,
(c). Engineering Approach,
(d). Consensus Development Approach.

(12). Which of the following is not an organization that can assist as a source of standards in the United States?
(a). American Society for Quality,
(b). Society of Mechanical Engineers,
(c). American Institute of Electrical Engineers,
(d). International Society for Standardization.

(13). Which of the following is not a savings that can result from simplification?
(a). Reduced inventory investment,
(b). More standard parts control,
(c). More competitive prices,
(d). Greater quantity discounts.

(14). Which is generally not one of the ways that materials catalogs, whether paper based or electronic, can aid a firm?
(a). Reduction of supply base,
(b). Reduction in design time,
(c). Reduction of non-standard parts,
(d). Reduction of standard parts.

(15). Which of the following is not one of the primary sources of used equipment?
(a). Buying from a competitor,
(b). Through a used equipment dealer,
(c). For sale by the owner,
(d). Arrangement through a broker.

(16). Which of the following is not true about operating leases and the firms that use them?
(a). Used by most firms to facilitate business operations,
(b). Many operating leases are non-cancelable,
(c). Firm is usually not interested in ownership,
(d). Most operating leases are short term.

(17). Which of the following is not true about financial leases and the firms that use them?
(a). Primary motivation is to obtain financial benefits
(b). Usually they are long term,
(c). Most often used when firms want freedom/flexibility,
(d). Length is usually shorter than the life of the equipment.

(18). 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.

(19). Which of the following is not an alternative method of purchasing construction services?
(a). Conventional method,
(b). Cost Plus Discretionary Expenses,
(c). Design & Build, Agree Price Method,
(d). Design & Build, Cost-Reimbursable Method.

(20). Which of the following is a consideration that favors making a product?
(a). Unreliable suppliers,
(b). Stable work force is desired in a period of rising sales,
(c). Multiple-source policy,
(d). Indirect managerial control considerations.

(21). Which of the following is a typical consideration in favor of single sourcing?
(a). Meet customer's volume requirements,
(b). Special tooling is required,
(c). When the customer is a small player in the market for a specific item,
(d). Avoid complacency on the part of the supplier.

(22). Which of the following is typically not a reason for a corporation to pursue global purchasing?
(a). To achieve superior quality,
(b). To achieve better timeliness,
(c). To experience foreign cultures,
(d). To lower costs.

(23). Which of the following is not a common approach that buying firm's use to punish a supplier?
(a). Bad mouthing the supplier to other suppliers,
(b). Litigation and punitive damages,
(c). Not awarding future business,
(d). Downgrading a supplier.

(24). Which of the following reasons is most likely to enable centralization in institutions?
(a). The broad scope of technical effort,
(b). The complete lack of department routine,
(c). An integrated ERP system links all departments and divisions,
(d). Buildings, departments and divisions spread over a large physical areas.

(25). Which of the following does not fit within the code of ethics for government service?
(a). Make private promises only when needed,
(b). Engage in business with the Government,
(c). Never use any information gained confidentially in the performance of government duties as a means for making private profit,
(d). Expose corruption wherever discovered.

Solution Summary

The correct answers for the questions have been highlighted in the attached document.

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