Purchasing and Supply Chain Management, Monczka - Exam Preparation Test Bank (Downloadable Doc)

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

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

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