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
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 1
, 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.
a.
True
Copyright jlCengage jlLearning. jlPowered jlby Page jl2
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, b. jlFalse
22. There jlare jla jldefinitive jland jlprescriptive jlset jlof jlsupply jlchain jlmeasures jlthat jlprovide jlone jlbest jlway jlto jlmeasure jlsupply
jlchain jlperformance.
a. True
b. False
23. The jlformal jlorganization jlchart jlportrays jlthe jlentirety jlof jlthe jlworkings jlof jlan jlorganization.
a. True
b. False
Indicate jlthe jlanswer jlchoice jlthat jlbest jlcompletes jlthe jlstatement jlor jlanswers jlthe jlquestion.
24. For jlwhich jlof jlthe jlof jlthe jlfollowing jlindices jldoes jla jlrating jlover jl50 jlindicate jleconomic jlexpansion?
a. Consumer jlPrice jlIndex
b. Producer jlPrice jlIndex
c. Inflation jlRate
d. Purchasing jlManager’s jlIndex
25. All jlof jlthe jlfollowing jlare jlkey jlknowledge jlareas jlfor jlpurchasers jlEXCEPT.
a. Supplier jlrelationship jlmanagement
b. Data jland jlanalytics
c. Production jlquality jlcontrol
d. Total jlcost jlanalysis
26. Which jlof jlthe jlfollowing jlinvolves jlgenerating jlthe jlmaterials jlrelease, jlcontacting jla jlsupplier jldirectly jlconcerning
jlcharges, jland jlmonitoring jlthe jlstatus jlof jlinbound jlshipments?
a. Order jlprocessing
b. Material jlcontrol
c. Logistics jlplanning
d. Customer jlservice
27. Which jlof jlthe jlfollowing jlfunctional jlgroups jlis jlresponsible jlfor jlmanaging jlthe jldownstream jlmovement jlof
jlmaterials jlbetween jllocations jlin jlthe jlsupply jlchain?
a. Purchasing jlManagers
b. Inventory jlmanagers
c. Distribution jlmanagers
d. Purchasing jlmanagers
28. Which jlof jlthe jlfollowing jlresources jlis jlLEAST jllikely jlto jlbe jlshared jlbetween jla jlbuyer jland jlsupplier?
a. Dedicated jlcapacity
b. Information
c. Technology
d. Skilled jllabor jlforce
29. All jlof jlthe jlfollowing jlare jlexamples jlof jltechnology jlimpacting jlsupply jlchain jlmanagement jlover jlthe jlpast jltwo
jldecades jlEXCEPT
a. jlsocial jlmedia jlthat jlallows jlbuyers jlto jlgain jlknowledge jlof jla jlseller’s j l personal jlpreferences.
Copyright jlCengage jlLearning. jlPowered jlby Page jl3
Cognero.
, b. cloud jlbased jldata jlstorage jlsystems jlproviding jlaccess jlto jltimely jldata.
c. artificial jlintelligence jl(AI) jlthat jlprovides jlpurchasers jlwith jltrainable jldigital
jlassistants.
d. simulation jlsoftware jlthat jlincreases jlthe jleffectiveness jlof j l job jlsafety jltraining.
30. Which jlof jlthe jlfollowing jlactivities jlinvolves jlphysically jlgetting jla jlproduct jlready jlfor jldistribution jlto jlthe jlcustomer?
a. Material jlcontrol
b. Quality jlcontrol
c. Shipping
d. Scheduling
31. An jlitem jlprovided jlby jlsuppliers jland jlused jldirectly jlduring jlproduction jlor jlservice jldelivery jlis jlknown jlas j l .
a. a jldirect jlmaterial
b. an jlindirect jlmaterial
c. an jlindirect jlservice
d. an jlinternal jlmaterial
e. a jlmanaged jlinventory
32. Which jlof jlthe jlfollowing jlis jlthe jlprocess jlof jltaking jldemand jldata jland jldeveloping jla jlsupply, jlproduction, jland
jllogistics jlnetwork jlcapable jlof jlsatisfying jldemand jlrequirements?
a. Quality jlcontrol
b. Supply jlplanning
c. Material jlcontrol
d. Customer jlservice
33. Which jlof jlthe jlfollowing jlis jlNOT jla jlfunctional jlactivity jlperformed jlby jlpurchasing jlpractitioners?
a. Identify jlsuppliers
b. Perform jlsupply jlmarket jlresearch
c. Writing jlquality jlspecifications
d. Establish jlsupplier jlcontracts
34. Which jlof jlthe jlfollowing jlrefers jlto jlthe jlformal jlprocess jlof jlassessing jland jlselecting jlthe jlstructure jland jlformal jlsystem
jlof jlcommunication, jldivision jlof jllabor, jlcoordination, jlcontrol, jlauthority, jland jlresponsibility jlrequired jlto jlachieve
jlorganizational jlgoals jland jlobjectives?
a. Supply jlchain jlorientation
b. Human jlresource jlmanagement
c. Demand jlplanning
d. Organizational jldesign
35. Which jlof jlthe jlfollowing jlis jlan jlexample jlof jla jlpurchased jldirect jlitem jlfor jla jlmanufacturing jlfirm?
a. Raw jlmaterials
b. Executive jltravel
c. Janitorial jlsupplies
d. Advertising jland jlmedia
36. Which jlof jlthe jlfollowing jlorganizations jlis, jlaccording jlto jlthe jlInstitute jlfor jlSupply jlManagement, jlresponsible jlfor jlthe
jlidentification, jlacquisition, jlaccess, jlpositioning, jland jlmanagement jlof jlresources jlan jlorganization jlneeds jlto jlattain jlits
jlstrategic jlobjective?
Copyright jlCengage jlLearning. jlPowered jlby Page jl4
Cognero.
Purchasing and Supply Chain Management 8e Robert B. Handfield, Larry C. Giunipero, Robert M. Monczka, James L.
Patterson
Chapter 1-20
Chapter 1
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 1
, 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.
a.
True
Copyright jlCengage jlLearning. jlPowered jlby Page jl2
Cognero.
, b. jlFalse
22. There jlare jla jldefinitive jland jlprescriptive jlset jlof jlsupply jlchain jlmeasures jlthat jlprovide jlone jlbest jlway jlto jlmeasure jlsupply
jlchain jlperformance.
a. True
b. False
23. The jlformal jlorganization jlchart jlportrays jlthe jlentirety jlof jlthe jlworkings jlof jlan jlorganization.
a. True
b. False
Indicate jlthe jlanswer jlchoice jlthat jlbest jlcompletes jlthe jlstatement jlor jlanswers jlthe jlquestion.
24. For jlwhich jlof jlthe jlof jlthe jlfollowing jlindices jldoes jla jlrating jlover jl50 jlindicate jleconomic jlexpansion?
a. Consumer jlPrice jlIndex
b. Producer jlPrice jlIndex
c. Inflation jlRate
d. Purchasing jlManager’s jlIndex
25. All jlof jlthe jlfollowing jlare jlkey jlknowledge jlareas jlfor jlpurchasers jlEXCEPT.
a. Supplier jlrelationship jlmanagement
b. Data jland jlanalytics
c. Production jlquality jlcontrol
d. Total jlcost jlanalysis
26. Which jlof jlthe jlfollowing jlinvolves jlgenerating jlthe jlmaterials jlrelease, jlcontacting jla jlsupplier jldirectly jlconcerning
jlcharges, jland jlmonitoring jlthe jlstatus jlof jlinbound jlshipments?
a. Order jlprocessing
b. Material jlcontrol
c. Logistics jlplanning
d. Customer jlservice
27. Which jlof jlthe jlfollowing jlfunctional jlgroups jlis jlresponsible jlfor jlmanaging jlthe jldownstream jlmovement jlof
jlmaterials jlbetween jllocations jlin jlthe jlsupply jlchain?
a. Purchasing jlManagers
b. Inventory jlmanagers
c. Distribution jlmanagers
d. Purchasing jlmanagers
28. Which jlof jlthe jlfollowing jlresources jlis jlLEAST jllikely jlto jlbe jlshared jlbetween jla jlbuyer jland jlsupplier?
a. Dedicated jlcapacity
b. Information
c. Technology
d. Skilled jllabor jlforce
29. All jlof jlthe jlfollowing jlare jlexamples jlof jltechnology jlimpacting jlsupply jlchain jlmanagement jlover jlthe jlpast jltwo
jldecades jlEXCEPT
a. jlsocial jlmedia jlthat jlallows jlbuyers jlto jlgain jlknowledge jlof jla jlseller’s j l personal jlpreferences.
Copyright jlCengage jlLearning. jlPowered jlby Page jl3
Cognero.
, b. cloud jlbased jldata jlstorage jlsystems jlproviding jlaccess jlto jltimely jldata.
c. artificial jlintelligence jl(AI) jlthat jlprovides jlpurchasers jlwith jltrainable jldigital
jlassistants.
d. simulation jlsoftware jlthat jlincreases jlthe jleffectiveness jlof j l job jlsafety jltraining.
30. Which jlof jlthe jlfollowing jlactivities jlinvolves jlphysically jlgetting jla jlproduct jlready jlfor jldistribution jlto jlthe jlcustomer?
a. Material jlcontrol
b. Quality jlcontrol
c. Shipping
d. Scheduling
31. An jlitem jlprovided jlby jlsuppliers jland jlused jldirectly jlduring jlproduction jlor jlservice jldelivery jlis jlknown jlas j l .
a. a jldirect jlmaterial
b. an jlindirect jlmaterial
c. an jlindirect jlservice
d. an jlinternal jlmaterial
e. a jlmanaged jlinventory
32. Which jlof jlthe jlfollowing jlis jlthe jlprocess jlof jltaking jldemand jldata jland jldeveloping jla jlsupply, jlproduction, jland
jllogistics jlnetwork jlcapable jlof jlsatisfying jldemand jlrequirements?
a. Quality jlcontrol
b. Supply jlplanning
c. Material jlcontrol
d. Customer jlservice
33. Which jlof jlthe jlfollowing jlis jlNOT jla jlfunctional jlactivity jlperformed jlby jlpurchasing jlpractitioners?
a. Identify jlsuppliers
b. Perform jlsupply jlmarket jlresearch
c. Writing jlquality jlspecifications
d. Establish jlsupplier jlcontracts
34. Which jlof jlthe jlfollowing jlrefers jlto jlthe jlformal jlprocess jlof jlassessing jland jlselecting jlthe jlstructure jland jlformal jlsystem
jlof jlcommunication, jldivision jlof jllabor, jlcoordination, jlcontrol, jlauthority, jland jlresponsibility jlrequired jlto jlachieve
jlorganizational jlgoals jland jlobjectives?
a. Supply jlchain jlorientation
b. Human jlresource jlmanagement
c. Demand jlplanning
d. Organizational jldesign
35. Which jlof jlthe jlfollowing jlis jlan jlexample jlof jla jlpurchased jldirect jlitem jlfor jla jlmanufacturing jlfirm?
a. Raw jlmaterials
b. Executive jltravel
c. Janitorial jlsupplies
d. Advertising jland jlmedia
36. Which jlof jlthe jlfollowing jlorganizations jlis, jlaccording jlto jlthe jlInstitute jlfor jlSupply jlManagement, jlresponsible jlfor jlthe
jlidentification, jlacquisition, jlaccess, jlpositioning, jland jlmanagement jlof jlresources jlan jlorganization jlneeds jlto jlattain jlits
jlstrategic jlobjective?
Copyright jlCengage jlLearning. jlPowered jlby Page jl4
Cognero.
