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
a. True
Copyright Cengage Learning. Powered by Cognero. Page 1
,Purchasing.
a. True
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, 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
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, 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.
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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
a. True
Copyright Cengage Learning. Powered by Cognero. Page 1
,Purchasing.
a. True
Copyright Cengage Learning. Powered by Cognero. Page 2
, 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 Cengage Learning. Powered by Cognero. Page 3
, 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 4
