PSM 2 TEST BANK PRACTICE QUESTIONS
SOLUTIONS DETAILED EXPLANATIONS
VERIFIED
●● The RFI constitutes a binding agreement by both the supplier and the
purchaser
Answer: False
●● After the buyer-supplier relationship has been established, buyers no
longer need to track supplier performance over time.
Answer: False
●● Supply base optimization usually refers to increasing the number of
suppliers used.
Answer: False
●● Global sourcing can be used to access new markets or to gain access
to the same suppliers that are helping global companies become more
competitive
Answer: True
●● Longer-term relationships are sought with suppliers that have
exceptional performance or unique technological expertise
,Answer: True
●● When purchasers find that suppliers' capabilities are not high enough
to meet current or future expectations, those suppliers should always be
eliminated from the supply base.
Answer: False
●● Total cost of ownership typically includes costs associated with late
delivery, poor quality, or other forms of supplier nonperformance.
Answer: True
●● The popularity of JIT and quick replenishment systems favor using
fewer local suppliers.
Answer: False
●● Many purchasers prefer to focus on suppliers who have the
"capability to do the job" regardless of size.
Answer: True
●● An in-depth evaluation of all potential supply sources should be
conducted for every purchase
Answer: False
, ●● Although many sources exist to discover information about a
potential supplier, visiting the actual facility provides the most complete
way to ensure an accurate assessment of the supplier.
Answer: True
●● Within its supply chains, supply management does not merely buy
parts or services from suppliers - it buys (and sometimes must help
manage and improve) current and anticipated supplier capabilities that
will result in quality products and services.
Answer: True
●● It is difficult to maintain a trusting and collaborative relationship and
receive quality goods and services when suppliers do not enjoy working
with the buying organization.
Answer: True
●● A buyer cannot realistically expect the highest levels of supplier
performance when the supplier must respond to frequent or short lead
time changes.
Answer: True
●● Many suppliers are hesitant to challenge excessive specifications for
fear of losing the bid
Answer: True
SOLUTIONS DETAILED EXPLANATIONS
VERIFIED
●● The RFI constitutes a binding agreement by both the supplier and the
purchaser
Answer: False
●● After the buyer-supplier relationship has been established, buyers no
longer need to track supplier performance over time.
Answer: False
●● Supply base optimization usually refers to increasing the number of
suppliers used.
Answer: False
●● Global sourcing can be used to access new markets or to gain access
to the same suppliers that are helping global companies become more
competitive
Answer: True
●● Longer-term relationships are sought with suppliers that have
exceptional performance or unique technological expertise
,Answer: True
●● When purchasers find that suppliers' capabilities are not high enough
to meet current or future expectations, those suppliers should always be
eliminated from the supply base.
Answer: False
●● Total cost of ownership typically includes costs associated with late
delivery, poor quality, or other forms of supplier nonperformance.
Answer: True
●● The popularity of JIT and quick replenishment systems favor using
fewer local suppliers.
Answer: False
●● Many purchasers prefer to focus on suppliers who have the
"capability to do the job" regardless of size.
Answer: True
●● An in-depth evaluation of all potential supply sources should be
conducted for every purchase
Answer: False
, ●● Although many sources exist to discover information about a
potential supplier, visiting the actual facility provides the most complete
way to ensure an accurate assessment of the supplier.
Answer: True
●● Within its supply chains, supply management does not merely buy
parts or services from suppliers - it buys (and sometimes must help
manage and improve) current and anticipated supplier capabilities that
will result in quality products and services.
Answer: True
●● It is difficult to maintain a trusting and collaborative relationship and
receive quality goods and services when suppliers do not enjoy working
with the buying organization.
Answer: True
●● A buyer cannot realistically expect the highest levels of supplier
performance when the supplier must respond to frequent or short lead
time changes.
Answer: True
●● Many suppliers are hesitant to challenge excessive specifications for
fear of losing the bid
Answer: True
