a. True
cn
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cn cn cn cn cn Page 1
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,TEST BANK FOR cn cn
Purchasing and Supply Chain Management 8e Robert B. Handfield, Larry C. Giunipero, Robert M. Monczka, James L. Patters
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on
Chapter 1-20 cn
Chapter 1 cn
1. If a firm can’t easily raise the price of its products , maintaining long-term profits requires actively managing costs.
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a. True
b. False
2. For most US firms, offshoring is the most reliable source of manufactured components which consistently meet high
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quality standards.
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a. True
b. False
3. Today’s emphasis on supplier quality has focused on preventing defects early in the materials-
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sourcing process rather than detecting defects at the time of receipt.
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a. True
b. False
4. Today’s customers are very resistant to price increases and, in fact, often demand discounts.
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a. True
b. False
5. Supply chain software can be grouped into two general categories: planning and execution.
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a. True
b. False
6. A firm’s supply chain is only as strong as its least-competitive supplier.
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a. True
b. False
7. On average, in the manufacturing sector, more than half of every sales revenue dollar goes back to suppliers.
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a. True
b. False
8. Supply chain management rarely requires coordination of activities that extend across organizational boundaries.
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a. True
b. False
9. Well-trained, highly-skilled employees are essential for any company’s success.
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a. True
b. False
10. During the Quiet Years (1947-Mid-
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1960s) of purchasing and supply chain management evolution, firms faced stable competition and had access to abundan
cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn
a. True cn
Copyright Cengage Learning. Powered by Cognero
cn cn cn cn cn Page 2 cn
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,t material. These conditions diminished the overall importance of purchasing.
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a. True
cn
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cn cn cn cn cn Page 3
cn
.
, b. False
cn
11. Supply management involves activities not found in traditional purchasing.
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a. True
b. False
12. Strategic purchasing practices are essential for helping companies maintain their competitive positions in rapidly
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changing business environments.
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a. True
b. False
13. Few of the product features that become part of a firm’s final products originate with suppliers.
cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn
a. True
b. False
14. Today’s consumers are used to enjoying variety of product offerings, low prices, and customized services.
c n cn cn cn cn cn cn cn cn cn cn cn cn cn
a. True
b. False
15. The traditional approach to purchasing and supply management is to build relationships with suppliers and work
cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn
jointly to reduce costs and improve quality.
cn cn cn cn cn cn
a. True
b. False
16. The increase in volatility, uncertainty, complexity, and ambiguity associated with long supply chains has led to an
cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn
interest in reshoring and nearshoring.
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a. True
b. False
17. One of purchasing’s responsibilities is sourcing indirect goods and services required by internal groups.
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a. True
b. False
18. According to Michael Porter, a firm’s value chain is composed of primary and support activities that, when configured
cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn
properly, can lead to competitive advantage.
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a. True
b. False
19. The routine ordering and follow-up of basic operational supplies is a strategic responsibility.
cn cn cn cn cn cn cn cn cn cn cn cn
a. True
b. False
20. D A distribution manager would be responsible for addressing product damage that occurred in handling materials at
cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn c
the receiving dock.
n cn cn
a. True
b. False
21. Purchasing and supply management have a major impact on product and service quality.
cn cn cn cn cn cn cn cn cn cn cn cn
a. True cn
Copyright Cengage Learning. Powered by Cognero
cn cn cn cn cn Page 4 cn
.
cn
Copyright Cengage Learning. Powered by Cognero
cn cn cn cn cn Page 1
cn
.
,TEST BANK FOR cn cn
Purchasing and Supply Chain Management 8e Robert B. Handfield, Larry C. Giunipero, Robert M. Monczka, James L. Patters
cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn
on
Chapter 1-20 cn
Chapter 1 cn
1. If a firm can’t easily raise the price of its products , maintaining long-term profits requires actively managing costs.
cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn
a. True
b. False
2. For most US firms, offshoring is the most reliable source of manufactured components which consistently meet high
cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn
quality standards.
cn
a. True
b. False
3. Today’s emphasis on supplier quality has focused on preventing defects early in the materials-
cn cn cn cn cn cn cn cn cn cn cn cn cn
sourcing process rather than detecting defects at the time of receipt.
cn cn cn cn cn cn cn cn cn cn
a. True
b. False
4. Today’s customers are very resistant to price increases and, in fact, often demand discounts.
cn cn cn cn c n cn cn cn cn cn cn cn cn
a. True
b. False
5. Supply chain software can be grouped into two general categories: planning and execution.
cn cn cn cn cn cn cn cn cn cn cn cn
a. True
b. False
6. A firm’s supply chain is only as strong as its least-competitive supplier.
cn cn cn cn cn cn c n cn cn cn cn
a. True
b. False
7. On average, in the manufacturing sector, more than half of every sales revenue dollar goes back to suppliers.
cn cn cn cn cn cn cn cn cn cn cn cn cn c n cn cn cn
a. True
b. False
8. Supply chain management rarely requires coordination of activities that extend across organizational boundaries.
cn cn cn cn cn cn cn cn cn cn cn cn
a. True
b. False
9. Well-trained, highly-skilled employees are essential for any company’s success.
cn cn cn cn cn cn cn cn
a. True
b. False
10. During the Quiet Years (1947-Mid-
cn cn cn cn
1960s) of purchasing and supply chain management evolution, firms faced stable competition and had access to abundan
cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn
a. True cn
Copyright Cengage Learning. Powered by Cognero
cn cn cn cn cn Page 2 cn
.
,t material. These conditions diminished the overall importance of purchasing.
cn cn c n cn cn cn cn cn cn
a. True
cn
Copyright Cengage Learning. Powered by Cognero
cn cn cn cn cn Page 3
cn
.
, b. False
cn
11. Supply management involves activities not found in traditional purchasing.
cn cn cn cn cn cn cn cn
a. True
b. False
12. Strategic purchasing practices are essential for helping companies maintain their competitive positions in rapidly
cn cn cn cn cn cn cn cn cn cn cn cn cn c
changing business environments.
n cn cn
a. True
b. False
13. Few of the product features that become part of a firm’s final products originate with suppliers.
cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn
a. True
b. False
14. Today’s consumers are used to enjoying variety of product offerings, low prices, and customized services.
c n cn cn cn cn cn cn cn cn cn cn cn cn cn
a. True
b. False
15. The traditional approach to purchasing and supply management is to build relationships with suppliers and work
cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn
jointly to reduce costs and improve quality.
cn cn cn cn cn cn
a. True
b. False
16. The increase in volatility, uncertainty, complexity, and ambiguity associated with long supply chains has led to an
cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn
interest in reshoring and nearshoring.
cn cn cn cn
a. True
b. False
17. One of purchasing’s responsibilities is sourcing indirect goods and services required by internal groups.
cn cn cn cn cn cn cn cn cn cn cn cn cn
a. True
b. False
18. According to Michael Porter, a firm’s value chain is composed of primary and support activities that, when configured
cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn
properly, can lead to competitive advantage.
cn cn cn cn cn
a. True
b. False
19. The routine ordering and follow-up of basic operational supplies is a strategic responsibility.
cn cn cn cn cn cn cn cn cn cn cn cn
a. True
b. False
20. D A distribution manager would be responsible for addressing product damage that occurred in handling materials at
cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn c
the receiving dock.
n cn cn
a. True
b. False
21. Purchasing and supply management have a major impact on product and service quality.
cn cn cn cn cn cn cn cn cn cn cn cn
a. True cn
Copyright Cengage Learning. Powered by Cognero
cn cn cn cn cn Page 4 cn
.
