a. True
gn
Copyright Cengage Learning. Powered by Cognero
gn gn gn gn gn Page 1
gn
.
,TEST BANK FOR gn gn
Purchasing and Supply Chain Management 8e Robert B. Handfield, Larry C. Giunipero, Robert M. Monczka, James L. Patters
gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn
on
Chapter 1-20 gn
Chapter 1 gn
1. If a firm can’t easily raise the price of its products , maintaining long-term profits requires actively managing costs.
gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn
a. True
b. False
2. For most US firms, offshoring is the most reliable source of manufactured components which consistently meet high
gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn
quality standards.
gn gn
a. True
b. False
3. Today’s emphasis on supplier quality has focused on preventing defects early in the materials-
gn gn gn gn gn gn gn gn gn gn gn gn gn
sourcing process rather than detecting defects at the time of receipt.
gn gn gn gn gn gn gn gn gn gn
a. True
b. False
4. Today’s customers are very resistant to price increases and, in fact, often demand discounts.
gn gn gn gn g n gn gn gn gn gn gn gn gn
a. True
b. False
5. Supply chain software can be grouped into two general categories: planning and execution.
gn gn gn gn gn gn gn gn gn gn gn gn
a. True
b. False
6. A firm’s supply chain is only as strong as its least-competitive supplier.
gn gn gn gn gn gn g n gn gn gn gn
a. True
b. False
7. On average, in the manufacturing sector, more than half of every sales revenue dollar goes back to suppliers.
gn gn gn gn gn gn gn gn gn gn gn gn gn g n gn gn gn
a. True
b. False
8. Supply chain management rarely requires coordination of activities that extend across organizational boundaries.
gn gn gn gn gn gn gn gn gn gn gn gn
a. True
b. False
9. Well-trained, highly-skilled employees are essential for any company’s success.
gn gn gn gn gn gn gn gn
a. True
b. False
10. During the Quiet Years (1947-Mid- gn gn gn gn
1960s) of purchasing and supply chain management evolution, firms faced stable competition and had access to abunda
gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn
nt material. These conditions diminished the overall importance of purchasing.
gn gn g n gn gn gn gn gn gn
a. True gn
Copyright Cengage Learning. Powered by Cognero
gn gn gn gn gn Page 2 gn
.
, b. False
gn
11. Supply management involves activities not found in traditional purchasing.
gn gn gn gn gn gn gn gn
a. True
b. False
12. Strategic purchasing practices are essential for helping companies maintain their competitive positions in rapidly
gn gn gn gn gn gn gn gn gn gn gn gn gn
changing business environments.
gn gn gn
a. True
b. False
13. Few of the product features that become part of a firm’s final products originate with suppliers.
gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn
a. True
b. False
14. Today’s consumers are used to enjoying variety of product offerings, low prices, and customized services.
g n gn gn gn gn gn gn gn gn gn gn gn gn gn
a. True
b. False
15. The traditional approach to purchasing and supply management is to build relationships with suppliers and work
gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn
jointly to reduce costs and improve quality.
gn gn gn gn gn gn gn
a. True
b. False
16. The increase in volatility, uncertainty, complexity, and ambiguity associated with long supply chains has led to an
gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn
interest in reshoring and nearshoring.
gn gn gn gn gn
a. True
b. False
17. One of purchasing’s responsibilities is sourcing indirect goods and services required by internal groups.
gn gn gn gn gn gn gn gn gn gn gn gn gn
a. True
b. False
18. According to Michael Porter, a firm’s value chain is composed of primary and support activities that, when configured
gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn
properly, can lead to competitive advantage.
gn gn gn gn gn gn
a. True
b. False
19. The routine ordering and follow-up of basic operational supplies is a strategic responsibility.
gn gn gn gn gn gn gn gn gn gn gn gn
a. True
b. False
20. D A distribution manager would be responsible for addressing product damage that occurred in handling materials at
gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn
the receiving dock.
gn gn gn
a. True
b. False
21. Purchasing and supply management have a major impact on product and service quality.
gn gn gn gn gn gn gn gn gn gn gn gn
a. True gn
Copyright Cengage Learning. Powered by Cognero
gn gn gn gn gn Page 3gn
.
, b. False
gn
22. There are a definitive and prescriptive set of supply chain measures that provide one best way to measure supply chai
gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn
n performance.
gn
a. True
b. False
23. The formal organization chart portrays the entirety of the workings of an organization.
gn gn gn gn gn gn gn gn gn gn gn gn
a. True
b. False
Indicate the answer choice that best completes the statement or answers the question.
gn gn gn gn gn gn gn gn gn gn gn gn
24. For which of the of the following indices does a rating over 50 indicate economic expansion?
gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn
a. Consumer Price Index gn gn
b. Producer Price Index gn gn
c. Inflation Rate gn
d. Purchasing Manager’s Index gn gn
25. All of the following are key knowledge areas for purchasers EXCEPT.
gn gn gn gn gn gn gn gn gn gn
a. Supplier relationship management gn gn
b. Data and analytics gn gn
c. Production quality control gn gn
d. Total cost analysis gn gn
26. Which of the following involves generating the materials release, contacting a supplier directly concerning charges,
gn gn gn gn gn gn gn gn gn gn gn gn gn gn
and monitoring the status of inbound shipments?
gn gn gn gn gn gn gn
a. Order processing gn
b. Material control gn
c. Logistics planning gn
d. Customer service gn
27. Which of the following functional groups is responsible for managing the downstream movement of materials
gn gn gn gn gn gn gn gn gn gn gn gn gn gn
between locations in the supply chain?
gn gn gn gn gn gn
a. Purchasing Managers gn
b. Inventory managers gn
c. Distribution managers gn
d. Purchasing managers gn
28. Which of the following resources is LEAST likely to be shared between a buyer and supplier?
gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn
a. Dedicated capacity gn
b. Information
c. Technology
d. Skilled labor force gn gn
29. All of the following are examples of technology impacting supply chain management over the past two decades
gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn
EXCEPT
gn
a. social media that allows buyers to gain knowledge of a seller’s personal preferences.
gn gn gn gn gn gn gn gn gn gn gn g n gn
Copyright Cengage Learning. Powered by Cognero
gn gn gn gn gn Page 4gn
.
gn
Copyright Cengage Learning. Powered by Cognero
gn gn gn gn gn Page 1
gn
.
,TEST BANK FOR gn gn
Purchasing and Supply Chain Management 8e Robert B. Handfield, Larry C. Giunipero, Robert M. Monczka, James L. Patters
gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn
on
Chapter 1-20 gn
Chapter 1 gn
1. If a firm can’t easily raise the price of its products , maintaining long-term profits requires actively managing costs.
gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn
a. True
b. False
2. For most US firms, offshoring is the most reliable source of manufactured components which consistently meet high
gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn
quality standards.
gn gn
a. True
b. False
3. Today’s emphasis on supplier quality has focused on preventing defects early in the materials-
gn gn gn gn gn gn gn gn gn gn gn gn gn
sourcing process rather than detecting defects at the time of receipt.
gn gn gn gn gn gn gn gn gn gn
a. True
b. False
4. Today’s customers are very resistant to price increases and, in fact, often demand discounts.
gn gn gn gn g n gn gn gn gn gn gn gn gn
a. True
b. False
5. Supply chain software can be grouped into two general categories: planning and execution.
gn gn gn gn gn gn gn gn gn gn gn gn
a. True
b. False
6. A firm’s supply chain is only as strong as its least-competitive supplier.
gn gn gn gn gn gn g n gn gn gn gn
a. True
b. False
7. On average, in the manufacturing sector, more than half of every sales revenue dollar goes back to suppliers.
gn gn gn gn gn gn gn gn gn gn gn gn gn g n gn gn gn
a. True
b. False
8. Supply chain management rarely requires coordination of activities that extend across organizational boundaries.
gn gn gn gn gn gn gn gn gn gn gn gn
a. True
b. False
9. Well-trained, highly-skilled employees are essential for any company’s success.
gn gn gn gn gn gn gn gn
a. True
b. False
10. During the Quiet Years (1947-Mid- gn gn gn gn
1960s) of purchasing and supply chain management evolution, firms faced stable competition and had access to abunda
gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn
nt material. These conditions diminished the overall importance of purchasing.
gn gn g n gn gn gn gn gn gn
a. True gn
Copyright Cengage Learning. Powered by Cognero
gn gn gn gn gn Page 2 gn
.
, b. False
gn
11. Supply management involves activities not found in traditional purchasing.
gn gn gn gn gn gn gn gn
a. True
b. False
12. Strategic purchasing practices are essential for helping companies maintain their competitive positions in rapidly
gn gn gn gn gn gn gn gn gn gn gn gn gn
changing business environments.
gn gn gn
a. True
b. False
13. Few of the product features that become part of a firm’s final products originate with suppliers.
gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn
a. True
b. False
14. Today’s consumers are used to enjoying variety of product offerings, low prices, and customized services.
g n gn gn gn gn gn gn gn gn gn gn gn gn gn
a. True
b. False
15. The traditional approach to purchasing and supply management is to build relationships with suppliers and work
gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn
jointly to reduce costs and improve quality.
gn gn gn gn gn gn gn
a. True
b. False
16. The increase in volatility, uncertainty, complexity, and ambiguity associated with long supply chains has led to an
gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn
interest in reshoring and nearshoring.
gn gn gn gn gn
a. True
b. False
17. One of purchasing’s responsibilities is sourcing indirect goods and services required by internal groups.
gn gn gn gn gn gn gn gn gn gn gn gn gn
a. True
b. False
18. According to Michael Porter, a firm’s value chain is composed of primary and support activities that, when configured
gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn
properly, can lead to competitive advantage.
gn gn gn gn gn gn
a. True
b. False
19. The routine ordering and follow-up of basic operational supplies is a strategic responsibility.
gn gn gn gn gn gn gn gn gn gn gn gn
a. True
b. False
20. D A distribution manager would be responsible for addressing product damage that occurred in handling materials at
gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn
the receiving dock.
gn gn gn
a. True
b. False
21. Purchasing and supply management have a major impact on product and service quality.
gn gn gn gn gn gn gn gn gn gn gn gn
a. True gn
Copyright Cengage Learning. Powered by Cognero
gn gn gn gn gn Page 3gn
.
, b. False
gn
22. There are a definitive and prescriptive set of supply chain measures that provide one best way to measure supply chai
gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn
n performance.
gn
a. True
b. False
23. The formal organization chart portrays the entirety of the workings of an organization.
gn gn gn gn gn gn gn gn gn gn gn gn
a. True
b. False
Indicate the answer choice that best completes the statement or answers the question.
gn gn gn gn gn gn gn gn gn gn gn gn
24. For which of the of the following indices does a rating over 50 indicate economic expansion?
gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn
a. Consumer Price Index gn gn
b. Producer Price Index gn gn
c. Inflation Rate gn
d. Purchasing Manager’s Index gn gn
25. All of the following are key knowledge areas for purchasers EXCEPT.
gn gn gn gn gn gn gn gn gn gn
a. Supplier relationship management gn gn
b. Data and analytics gn gn
c. Production quality control gn gn
d. Total cost analysis gn gn
26. Which of the following involves generating the materials release, contacting a supplier directly concerning charges,
gn gn gn gn gn gn gn gn gn gn gn gn gn gn
and monitoring the status of inbound shipments?
gn gn gn gn gn gn gn
a. Order processing gn
b. Material control gn
c. Logistics planning gn
d. Customer service gn
27. Which of the following functional groups is responsible for managing the downstream movement of materials
gn gn gn gn gn gn gn gn gn gn gn gn gn gn
between locations in the supply chain?
gn gn gn gn gn gn
a. Purchasing Managers gn
b. Inventory managers gn
c. Distribution managers gn
d. Purchasing managers gn
28. Which of the following resources is LEAST likely to be shared between a buyer and supplier?
gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn
a. Dedicated capacity gn
b. Information
c. Technology
d. Skilled labor force gn gn
29. All of the following are examples of technology impacting supply chain management over the past two decades
gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn gn
EXCEPT
gn
a. social media that allows buyers to gain knowledge of a seller’s personal preferences.
gn gn gn gn gn gn gn gn gn gn gn g n gn
Copyright Cengage Learning. Powered by Cognero
gn gn gn gn gn Page 4gn
.
