TEST BANK
PURCHASING AND SUPPLY CHAIN MANAGEMENT
Copyright Cengage Learning. Powered by Cognero. Page 1
,TABLE OF CONTENTS
Part I: INTRODUCTION.
1. Introduction to Purchasing and Supply Chain Management.
Part II: PURCHASING OPERATIONS AND STRUCTURE.
2. The Purchasing Process.
3. Purchasing Policies and Procedures.
4. Supply Management Integration for Competitive Advantage.
5. Purchasing and Supply Management Organization.
Part III: STRATEGIC SOURCING.
6. Supply Management and Commodity Strategy Development.
7. Supplier Evaluation and Selection.
8. Supplier Quality Management.
9. Supplier Management and Development: Creating a World-Class Supply Base.
10. Worldwide Sourcing.
Part IV: STRATEGIC SOURCING PROCESS.
11. Strategic Cost Management.
12. Purchasing and Supply Chain Analysis: Tools and Techniques.
13. Negotiation and Conflict Management.
14. Contract Management.
15. Purchasing Law and Ethics.
Part V: CRITICAL SUPPLY CHAIN ELEMENTS.
16. Lean Supply Chain Management.
17. Purchasing Services.
18. Supply Chain Information Systems and Electronic Sourcing.
19. Performance Measurement and Evaluation.
Part VI: FUTURE DIRECTIONS.
20. Purchasing and Supply Strategy Trends.
Copyright Cengage Learning. Powered by Cognero. Page 2
,TEST BANK FOR
Purchasing And Supply Chain Management 8e Robert B. Handfield, Larry C. Giunipero, Robert M. Monczka, James L.
Patterson
Chapter 1-20
Chapter 1 Introduction to Purchasing and Supply Chain Management.
1. If A Firm Can’t Easily Raise The Price Of Its Products , Maintaining Long-Term Profits Requires Actively Managing Costs.
A. True
B. False
2. For Most US Firms, Offshoring Is The Most Reliable Source Of Manufactured Components Which Consistently
Meet High Quality Standards.
A. True
B. False
3. Today’s Emphasis On Supplier Quality Has Focused On Preventing Defects Early In The Materials-Sourcing Process
Rather Than Detecting Defects At The Time Of Receipt.
A. True
B. False
4. Today’s Customers Are Very Resistant To Price Increases And, In Fact, Often Demand Discounts.
A. True
B. False
5. Supply Chain Software Can Be Grouped Into Two General Categories: Planning And Execution.
A. True
B. False
6. A Firm’s Supply Chain Is Only As Strong As Its Least-Competitive Supplier.
A. True
B. False
7. On Average, In The Manufacturing Sector, More Than Half Of Every Sales Revenue Dollar Goes Back To Suppliers.
A. True
B. False
8. Supply Chain Management Rarely Requires Coordination Of Activities That Extend Across Organizational Boundaries.
A. True
B. False
9. Well-Trained, Highly-Skilled Employees Are Essential For Any Company’s Success.
A. True
B. False
10. During The Quiet Years (1947-Mid-1960s) Of Purchasing And Supply Chain Management Evolution, Firms Faced
Stable Competition And Had Access To Abundant Material. These Conditions Diminished The Overall Importance Of
Purchasing.
A. True
Copyright Cengage Learning. Powered by Cognero. Page 3
, B. False
11. Supply Management Involves Activities Not Found In Traditional Purchasing.
A. True
B. False
12. Strategic Purchasing Practices Are Essential For Helping Companies Maintain Their Competitive Positions In
Rapidly Changing Business Environments.
A. True
B. False
13. Few Of The Product Features That Become Part Of A Firm’s Final Products Originate With Suppliers.
A. True
B. False
14. Today’s Consumers Are Used To Enjoying Variety Of Product Offerings, Low Prices, And Customized Services.
A. True
B. False
15. The Traditional Approach To Purchasing And Supply Management Is To Build Relationships With Suppliers
And Work Jointly To Reduce Costs And Improve Quality.
A. True
B. False
16. The Increase In Volatility, Uncertainty, Complexity, And Ambiguity Associated With Long Supply Chains Has
Led To An Interest In Reshoring And Nearshoring.
A. True
B. False
17. One Of Purchasing’s Responsibilities Is Sourcing Indirect Goods And Services Required By Internal Groups.
A. True
B. False
18. According To Michael Porter, A Firm’s Value Chain Is Composed Of Primary And Support Activities That, When
Configured Properly, Can Lead To Competitive Advantage.
A. True
B. False
19. The Routine Ordering And Follow-Up Of Basic Operational Supplies Is A Strategic Responsibility.
A. True
B. False
20. D A Distribution Manager Would Be Responsible For Addressing Product Damage That Occurred In Handling
Materials At The Receiving Dock.
A. True
B. False
21. Purchasing And Supply Management Have A Major Impact On Product And Service Quality.
Copyright Cengage Learning. Powered by Cognero. Page 4
, B. False
22. There Are A Definitive And Prescriptive Set Of Supply Chain Measures That Provide One Best Way To Measure
Supply Chain Performance.
A. True
B. False
23. The Formal Organization Chart Portrays The Entirety Of The Workings Of An Organization.
A. True
B. False
Indicate The Answer Choice That Best Completes The Statement Or Answers The Question.
24. For Which Of The Of The Following Indices Does A Rating Over 50 Indicate Economic Expansion?
A. Consumer Price Index
B. Producer Price Index
C. Inflation Rate
D. Purchasing Manager’s Index
25. All Of The Following Are Key Knowledge Areas For Purchasers EXCEPT.
A. Supplier Relationship
Management
B. Data And Analytics
C. Production Quality Control
D. Total Cost Analysis
26. Which Of The Following Involves Generating The Materials Release, Contacting A Supplier Directly Concerning
Charges, And Monitoring The Status Of Inbound Shipments?
A. Order Processing
B. Material Control
C. Logistics Planning
D. Customer Service
27. Which Of The Following Functional Groups Is Responsible For Managing The Downstream Movement Of
Materials Between Locations In The Supply Chain?
A. Purchasing Managers
B. Inventory Managers
C. Distribution Managers
D. Purchasing Managers
28. Which Of The Following Resources Is LEAST Likely To Be Shared Between A Buyer And Supplier?
A. Dedicated Capacity
B. Information
C. Technology
D. Skilled Labor Force
29. All Of The Following Are Examples Of Technology Impacting Supply Chain Management Over The Past Two
Decades EXCEPT
A. Social Media That Allows Buyers To Gain Knowledge Of A Seller’s Personal Preferences.
Copyright Cengage Learning. Powered by Cognero. Page 5
, B. Cloud Based Data Storage Systems Providing Access To Timely Data.
C. Artificial Intelligence (AI) That Provides Purchasers With Trainable Digital
Assistants.
D. Simulation Software That Increases The Effectiveness Of Job Safety Training.
30. Which Of The Following Activities Involves Physically Getting A Product Ready For Distribution To The Customer?
A. Material Control
B. Quality Control
C. Shipping
D. Scheduling
31. An Item Provided By Suppliers And Used Directly During Production Or Service Delivery Is Known As .
A. A Direct Material
B. An Indirect Material
C. An Indirect Service
D. An Internal Material
E. A Managed
Inventory
32. Which Of The Following Is The Process Of Taking Demand Data And Developing A Supply, Production, And
Logistics Network Capable Of Satisfying Demand Requirements?
A. Quality Control
B. Supply Planning
C. Material Control
D. Customer Service
33. Which Of The Following Is NOT A Functional Activity Performed By Purchasing Practitioners?
A. Identify Suppliers
B. Perform Supply Market
Research
C. Writing Quality Specifications
D. Establish Supplier Contracts
34. Which Of The Following Refers To The Formal 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?
A. Supply Chain Orientation
B. Human Resource
Management
C. Demand Planning
D. Organizational Design
35. Which Of The Following Is An Example Of A Purchased Direct Item For A Manufacturing Firm?
A. Raw Materials
B. Executive Travel
C. Janitorial Supplies
D. Advertising And
Media
Copyright Cengage Learning. Powered by Cognero. Page 6
,36. Which Of The Following Organizations Is, According To The Institute For Supply Management, Responsible For
The Identification, Acquisition, Access, Positioning, And Management Of Resources An Organization Needs To Attain
Its Strategic Objective?
a. Supply Management
B. Procurement
C. Logistics
D. Distribution
37. Which Of The Following Is NOT A Typical Process Involved In Supply Chain Management?
A. Customer-Order Fulfillment
B. Supplier Evaluation And
Selection
C. Demand And Supply Planning
D. Cash Flow Management
38. Which Of The Following Is An Example Of A Purchased Indirect Item For A Manufacturing Firm?
A. Parts And Components
B. Employee Healthcare
Contracts
C. Raw Materials
D. Sub-Assemblies
39. Which Of The Following States That Success Requires Effectively Managing The Linked Group Of Firms From
First-Level Suppliers To Customers.?
A. Supply Chain Orientation
B. Value Chain Orientation
C. Traditional Purchasing Perspective
D. Extended Enterprise Concept
40. All Of The Following Information Technology (IT) Innovations Directly Support End-To-End Supply Chains EXCEPT
A. Cloud-Based Data Storage Systems
B. Mobile Devices Permitting Zooming For Virtual Meetings
C. Machine Learning (ML) Automation Of Routine Buying Functions
D. Statistical Process Control Increasing The Product Quality And
Reliability
41. Supply Management Strives To Avoid Which Types Of Relationships Between Buying Companies And Specialty
Suppliers?
A. Collaborative
B. Adversarial
C. Integrated
D. Responsive
42. During Which Period In The Evolution Of Purchasing And Supply Chain Management Was The Practice Of
Combining Related Functions Such As Purchasing, Inventory Control, Receiving, And Stores Under The Authority
Of One Individual In A Firm?
A. Period 2 (1900-1939)
B. Period 3 (1940-1946)
Copyright Cengage Learning. Powered by Cognero. Page 7
, C. Period 4 (1947-Mid 1960s)
D. Period 5 (Mid 1960s – Late
1970s)
43. Which Of The Following Activities Is Part Of The Purchasing Professional’s Historical Role?
A. Sending Requests For Competitive Bids To Suppliers
B. Awarding Long-Term Contracts To World-Class
Suppliers
C. Meeting Corporate Wide Performance Measures
D. Facilitating Collaboration With Key Suppliers
44. Which Of The Following Is A Factor Driving Increased Emphasis On Supply Chain Management?
A. Increased Domestic Sourcing To Obtain Lower Prices
B. The High Cost And Lack Of Available Information Resources Among Supply Chain Entities.
C. The Elevated Level Of Competition In Both Domestic And International Markets That Favors Fast,
Agile, And Flexible Organizations.
D. Less Demanding Customer Expectations.
45. Which Of The Following Is An Example Of A Demand Planning Activity?
A. Forecasts Of Anticipated Sales
B. Cash Flow JIT Inventory
C. Completed And Delivered Orders
D. Reaction To Changing Customer
Expectations
46. According To Michael Porter, Which Of The Following Is Composed Of A Firm’s Primary And Secondary Activities
That Can Lead To Competitive Advantage When Configured Properly?
A. A Supply Chain
B. A Production Process
C. A Value Chain
D. A Marketing Channel
47. Which Period In The Evolution Of Purchasing And Supply Chain Management Saw The Development Of Basic
Purchasing Procedures And Ideas?
A. Period 1 (1850-1900)
B. Period 2 (1900-1939)
C. Period 3 (1940-1946)
D. Period 4 (1947-Mid 1960s)
48. All Of The Following Are Roadblocks Between Measurement And Improved Performance EXCEPT .
A. Relevant Performance
Metrics
B. Debate Over Correct Metrics
C. Constantly Changing Metrics
D. Retention Of Old Data
49. Which Of The Following Is A Feature Of The New Model Of Progressive Purchasing?
A. Restricting Supplier Communication To Negotiation Of Contract
Deliverables.
Copyright Cengage Learning. Powered by Cognero. Page 8
, B. Opting For Short-Term Contracts Over Long-Term Contracts Whenever
Possible.
C. Focusing Primarily On Price Optimization For Essential Purchased Products
D. Conducting Worldwide Internet Searches For The Best Sources Of Supply.
50. Which Of The Following Is An Event Likely To Contribute Supply Management Volatility, Uncertainty,
Complexity, Or Ambiguity (VUCA)?
A. Historically Stable Prices For Goods And
Services
B. Abundant Raw Materials
C. Stable Political Climate
D. Prevalence Of Counterfeit Goods
51. Which Of The Following Technologies Seeks To Improve Forecast Accuracy, Optimize Production Scheduling,
Reduce Working Capital Costs, Shorten Cycle Times, Cut Transportation Costs, And Improve Customer Service?
A. Statistical Process Control
Software
B. Cost Analysis Software
C. Planning Software
D. Scheduling Software
52. All Of The Following Are The Four Enablers Of Purchasing And Supply Chain Management EXCEPT
A. Sufficient Cash Flow And Cash Reserves
B. Capable Human Resources
C. Proper Organizational Design
D. Real-Time Collaborative Technology
Capabilities
53. Which Of The Following Could Be Described As 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 Sequence
B. Manufacturing System
C. Value Chain
D. Supply Chain
54. During Which Period In The Evolution Of Purchasing And Supply Chain Management Did The Need For Purchaser-
Supplier Collaboration Emerge As A Way Of Maintaining Market Viability?
A. Period 4 (1947-Mid 1960s)
B. Period 5 (Mid 1960s – Late
1970s)
C. Period 6 (Late 1970s-1999)
D. Period 7 (2000-Today)
55. Which Of The Following Activities Helps To 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. Supply Planning
Copyright Cengage Learning. Powered by Cognero. Page 9
, 56. A United States Firm That Replaces An Asian Supplier With One Located In Canada Or Mexico Is Engaging In
Which Of The Following?
A. Insourcing
B. Outsourcing
C. Reshoring
D. Nearshoring
E. Offshoring
Answer Key
1. True
2. False
3. True
4. True
5. True
6. True
7. True
8. False
9. True
10. True
11. True
12. True
13. False
14. True
15. False
16. True
17. True
18. True
19. False
20. False
21. True
22. False
Copyright Cengage Learning. Powered by Cognero. Page 10
PURCHASING AND SUPPLY CHAIN MANAGEMENT
Copyright Cengage Learning. Powered by Cognero. Page 1
,TABLE OF CONTENTS
Part I: INTRODUCTION.
1. Introduction to Purchasing and Supply Chain Management.
Part II: PURCHASING OPERATIONS AND STRUCTURE.
2. The Purchasing Process.
3. Purchasing Policies and Procedures.
4. Supply Management Integration for Competitive Advantage.
5. Purchasing and Supply Management Organization.
Part III: STRATEGIC SOURCING.
6. Supply Management and Commodity Strategy Development.
7. Supplier Evaluation and Selection.
8. Supplier Quality Management.
9. Supplier Management and Development: Creating a World-Class Supply Base.
10. Worldwide Sourcing.
Part IV: STRATEGIC SOURCING PROCESS.
11. Strategic Cost Management.
12. Purchasing and Supply Chain Analysis: Tools and Techniques.
13. Negotiation and Conflict Management.
14. Contract Management.
15. Purchasing Law and Ethics.
Part V: CRITICAL SUPPLY CHAIN ELEMENTS.
16. Lean Supply Chain Management.
17. Purchasing Services.
18. Supply Chain Information Systems and Electronic Sourcing.
19. Performance Measurement and Evaluation.
Part VI: FUTURE DIRECTIONS.
20. Purchasing and Supply Strategy Trends.
Copyright Cengage Learning. Powered by Cognero. Page 2
,TEST BANK FOR
Purchasing And Supply Chain Management 8e Robert B. Handfield, Larry C. Giunipero, Robert M. Monczka, James L.
Patterson
Chapter 1-20
Chapter 1 Introduction to Purchasing and Supply Chain Management.
1. If A Firm Can’t Easily Raise The Price Of Its Products , Maintaining Long-Term Profits Requires Actively Managing Costs.
A. True
B. False
2. For Most US Firms, Offshoring Is The Most Reliable Source Of Manufactured Components Which Consistently
Meet High Quality Standards.
A. True
B. False
3. Today’s Emphasis On Supplier Quality Has Focused On Preventing Defects Early In The Materials-Sourcing Process
Rather Than Detecting Defects At The Time Of Receipt.
A. True
B. False
4. Today’s Customers Are Very Resistant To Price Increases And, In Fact, Often Demand Discounts.
A. True
B. False
5. Supply Chain Software Can Be Grouped Into Two General Categories: Planning And Execution.
A. True
B. False
6. A Firm’s Supply Chain Is Only As Strong As Its Least-Competitive Supplier.
A. True
B. False
7. On Average, In The Manufacturing Sector, More Than Half Of Every Sales Revenue Dollar Goes Back To Suppliers.
A. True
B. False
8. Supply Chain Management Rarely Requires Coordination Of Activities That Extend Across Organizational Boundaries.
A. True
B. False
9. Well-Trained, Highly-Skilled Employees Are Essential For Any Company’s Success.
A. True
B. False
10. During The Quiet Years (1947-Mid-1960s) Of Purchasing And Supply Chain Management Evolution, Firms Faced
Stable Competition And Had Access To Abundant Material. These Conditions Diminished The Overall Importance Of
Purchasing.
A. True
Copyright Cengage Learning. Powered by Cognero. Page 3
, B. False
11. Supply Management Involves Activities Not Found In Traditional Purchasing.
A. True
B. False
12. Strategic Purchasing Practices Are Essential For Helping Companies Maintain Their Competitive Positions In
Rapidly Changing Business Environments.
A. True
B. False
13. Few Of The Product Features That Become Part Of A Firm’s Final Products Originate With Suppliers.
A. True
B. False
14. Today’s Consumers Are Used To Enjoying Variety Of Product Offerings, Low Prices, And Customized Services.
A. True
B. False
15. The Traditional Approach To Purchasing And Supply Management Is To Build Relationships With Suppliers
And Work Jointly To Reduce Costs And Improve Quality.
A. True
B. False
16. The Increase In Volatility, Uncertainty, Complexity, And Ambiguity Associated With Long Supply Chains Has
Led To An Interest In Reshoring And Nearshoring.
A. True
B. False
17. One Of Purchasing’s Responsibilities Is Sourcing Indirect Goods And Services Required By Internal Groups.
A. True
B. False
18. According To Michael Porter, A Firm’s Value Chain Is Composed Of Primary And Support Activities That, When
Configured Properly, Can Lead To Competitive Advantage.
A. True
B. False
19. The Routine Ordering And Follow-Up Of Basic Operational Supplies Is A Strategic Responsibility.
A. True
B. False
20. D A Distribution Manager Would Be Responsible For Addressing Product Damage That Occurred In Handling
Materials At The Receiving Dock.
A. True
B. False
21. Purchasing And Supply Management Have A Major Impact On Product And Service Quality.
Copyright Cengage Learning. Powered by Cognero. Page 4
, B. False
22. There Are A Definitive And Prescriptive Set Of Supply Chain Measures That Provide One Best Way To Measure
Supply Chain Performance.
A. True
B. False
23. The Formal Organization Chart Portrays The Entirety Of The Workings Of An Organization.
A. True
B. False
Indicate The Answer Choice That Best Completes The Statement Or Answers The Question.
24. For Which Of The Of The Following Indices Does A Rating Over 50 Indicate Economic Expansion?
A. Consumer Price Index
B. Producer Price Index
C. Inflation Rate
D. Purchasing Manager’s Index
25. All Of The Following Are Key Knowledge Areas For Purchasers EXCEPT.
A. Supplier Relationship
Management
B. Data And Analytics
C. Production Quality Control
D. Total Cost Analysis
26. Which Of The Following Involves Generating The Materials Release, Contacting A Supplier Directly Concerning
Charges, And Monitoring The Status Of Inbound Shipments?
A. Order Processing
B. Material Control
C. Logistics Planning
D. Customer Service
27. Which Of The Following Functional Groups Is Responsible For Managing The Downstream Movement Of
Materials Between Locations In The Supply Chain?
A. Purchasing Managers
B. Inventory Managers
C. Distribution Managers
D. Purchasing Managers
28. Which Of The Following Resources Is LEAST Likely To Be Shared Between A Buyer And Supplier?
A. Dedicated Capacity
B. Information
C. Technology
D. Skilled Labor Force
29. All Of The Following Are Examples Of Technology Impacting Supply Chain Management Over The Past Two
Decades EXCEPT
A. Social Media That Allows Buyers To Gain Knowledge Of A Seller’s Personal Preferences.
Copyright Cengage Learning. Powered by Cognero. Page 5
, B. Cloud Based Data Storage Systems Providing Access To Timely Data.
C. Artificial Intelligence (AI) That Provides Purchasers With Trainable Digital
Assistants.
D. Simulation Software That Increases The Effectiveness Of Job Safety Training.
30. Which Of The Following Activities Involves Physically Getting A Product Ready For Distribution To The Customer?
A. Material Control
B. Quality Control
C. Shipping
D. Scheduling
31. An Item Provided By Suppliers And Used Directly During Production Or Service Delivery Is Known As .
A. A Direct Material
B. An Indirect Material
C. An Indirect Service
D. An Internal Material
E. A Managed
Inventory
32. Which Of The Following Is The Process Of Taking Demand Data And Developing A Supply, Production, And
Logistics Network Capable Of Satisfying Demand Requirements?
A. Quality Control
B. Supply Planning
C. Material Control
D. Customer Service
33. Which Of The Following Is NOT A Functional Activity Performed By Purchasing Practitioners?
A. Identify Suppliers
B. Perform Supply Market
Research
C. Writing Quality Specifications
D. Establish Supplier Contracts
34. Which Of The Following Refers To The Formal 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?
A. Supply Chain Orientation
B. Human Resource
Management
C. Demand Planning
D. Organizational Design
35. Which Of The Following Is An Example Of A Purchased Direct Item For A Manufacturing Firm?
A. Raw Materials
B. Executive Travel
C. Janitorial Supplies
D. Advertising And
Media
Copyright Cengage Learning. Powered by Cognero. Page 6
,36. Which Of The Following Organizations Is, According To The Institute For Supply Management, Responsible For
The Identification, Acquisition, Access, Positioning, And Management Of Resources An Organization Needs To Attain
Its Strategic Objective?
a. Supply Management
B. Procurement
C. Logistics
D. Distribution
37. Which Of The Following Is NOT A Typical Process Involved In Supply Chain Management?
A. Customer-Order Fulfillment
B. Supplier Evaluation And
Selection
C. Demand And Supply Planning
D. Cash Flow Management
38. Which Of The Following Is An Example Of A Purchased Indirect Item For A Manufacturing Firm?
A. Parts And Components
B. Employee Healthcare
Contracts
C. Raw Materials
D. Sub-Assemblies
39. Which Of The Following States That Success Requires Effectively Managing The Linked Group Of Firms From
First-Level Suppliers To Customers.?
A. Supply Chain Orientation
B. Value Chain Orientation
C. Traditional Purchasing Perspective
D. Extended Enterprise Concept
40. All Of The Following Information Technology (IT) Innovations Directly Support End-To-End Supply Chains EXCEPT
A. Cloud-Based Data Storage Systems
B. Mobile Devices Permitting Zooming For Virtual Meetings
C. Machine Learning (ML) Automation Of Routine Buying Functions
D. Statistical Process Control Increasing The Product Quality And
Reliability
41. Supply Management Strives To Avoid Which Types Of Relationships Between Buying Companies And Specialty
Suppliers?
A. Collaborative
B. Adversarial
C. Integrated
D. Responsive
42. During Which Period In The Evolution Of Purchasing And Supply Chain Management Was The Practice Of
Combining Related Functions Such As Purchasing, Inventory Control, Receiving, And Stores Under The Authority
Of One Individual In A Firm?
A. Period 2 (1900-1939)
B. Period 3 (1940-1946)
Copyright Cengage Learning. Powered by Cognero. Page 7
, C. Period 4 (1947-Mid 1960s)
D. Period 5 (Mid 1960s – Late
1970s)
43. Which Of The Following Activities Is Part Of The Purchasing Professional’s Historical Role?
A. Sending Requests For Competitive Bids To Suppliers
B. Awarding Long-Term Contracts To World-Class
Suppliers
C. Meeting Corporate Wide Performance Measures
D. Facilitating Collaboration With Key Suppliers
44. Which Of The Following Is A Factor Driving Increased Emphasis On Supply Chain Management?
A. Increased Domestic Sourcing To Obtain Lower Prices
B. The High Cost And Lack Of Available Information Resources Among Supply Chain Entities.
C. The Elevated Level Of Competition In Both Domestic And International Markets That Favors Fast,
Agile, And Flexible Organizations.
D. Less Demanding Customer Expectations.
45. Which Of The Following Is An Example Of A Demand Planning Activity?
A. Forecasts Of Anticipated Sales
B. Cash Flow JIT Inventory
C. Completed And Delivered Orders
D. Reaction To Changing Customer
Expectations
46. According To Michael Porter, Which Of The Following Is Composed Of A Firm’s Primary And Secondary Activities
That Can Lead To Competitive Advantage When Configured Properly?
A. A Supply Chain
B. A Production Process
C. A Value Chain
D. A Marketing Channel
47. Which Period In The Evolution Of Purchasing And Supply Chain Management Saw The Development Of Basic
Purchasing Procedures And Ideas?
A. Period 1 (1850-1900)
B. Period 2 (1900-1939)
C. Period 3 (1940-1946)
D. Period 4 (1947-Mid 1960s)
48. All Of The Following Are Roadblocks Between Measurement And Improved Performance EXCEPT .
A. Relevant Performance
Metrics
B. Debate Over Correct Metrics
C. Constantly Changing Metrics
D. Retention Of Old Data
49. Which Of The Following Is A Feature Of The New Model Of Progressive Purchasing?
A. Restricting Supplier Communication To Negotiation Of Contract
Deliverables.
Copyright Cengage Learning. Powered by Cognero. Page 8
, B. Opting For Short-Term Contracts Over Long-Term Contracts Whenever
Possible.
C. Focusing Primarily On Price Optimization For Essential Purchased Products
D. Conducting Worldwide Internet Searches For The Best Sources Of Supply.
50. Which Of The Following Is An Event Likely To Contribute Supply Management Volatility, Uncertainty,
Complexity, Or Ambiguity (VUCA)?
A. Historically Stable Prices For Goods And
Services
B. Abundant Raw Materials
C. Stable Political Climate
D. Prevalence Of Counterfeit Goods
51. Which Of The Following Technologies Seeks To Improve Forecast Accuracy, Optimize Production Scheduling,
Reduce Working Capital Costs, Shorten Cycle Times, Cut Transportation Costs, And Improve Customer Service?
A. Statistical Process Control
Software
B. Cost Analysis Software
C. Planning Software
D. Scheduling Software
52. All Of The Following Are The Four Enablers Of Purchasing And Supply Chain Management EXCEPT
A. Sufficient Cash Flow And Cash Reserves
B. Capable Human Resources
C. Proper Organizational Design
D. Real-Time Collaborative Technology
Capabilities
53. Which Of The Following Could Be Described As 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 Sequence
B. Manufacturing System
C. Value Chain
D. Supply Chain
54. During Which Period In The Evolution Of Purchasing And Supply Chain Management Did The Need For Purchaser-
Supplier Collaboration Emerge As A Way Of Maintaining Market Viability?
A. Period 4 (1947-Mid 1960s)
B. Period 5 (Mid 1960s – Late
1970s)
C. Period 6 (Late 1970s-1999)
D. Period 7 (2000-Today)
55. Which Of The Following Activities Helps To 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. Supply Planning
Copyright Cengage Learning. Powered by Cognero. Page 9
, 56. A United States Firm That Replaces An Asian Supplier With One Located In Canada Or Mexico Is Engaging In
Which Of The Following?
A. Insourcing
B. Outsourcing
C. Reshoring
D. Nearshoring
E. Offshoring
Answer Key
1. True
2. False
3. True
4. True
5. True
6. True
7. True
8. False
9. True
10. True
11. True
12. True
13. False
14. True
15. False
16. True
17. True
18. True
19. False
20. False
21. True
22. False
Copyright Cengage Learning. Powered by Cognero. Page 10
