OMGT Final MC Part 4 Study Guide | Operations Management Multiple Choice Review &
Practice Questions
The purchasing team examined all of their purchasing patterns in order to identify any
irregularities or possible areas of cost savings in a little scheme they liked to call: - ANS ✔✔C)
spend analysis.
The use of supply chain partners to provide products or services is called: - ANS ✔✔A)
outsourcing.
One advantage of outsourcing is that it: - ANS ✔✔B) increases the company's access to state-of-
the-art products and processes.
Which of these is a direct cost associated with outsourcing? - ANS ✔✔D) price from invoice
Which of these is an indirect cost associated with insourcing? - ANS ✔✔A) maintenance
A supplier that has previously demonstrated its performance capabilities through purchase
contracts may well receive: - ANS ✔✔C) preferred supplier status.
Competitive bidding, active sourcing, and using industry standards are all actions that are
appropriate if the sourcing strategy is to: - ANS ✔✔B) maximize commercial advantage.
When compared with single sourcing, multiple sourcing has the advantage of: - ANS ✔✔A)
spreading risk.
Single sourcing is a better choice than multiple sourcing from the perspective of: - ANS ✔✔D)
access to the supplier's design and engineering capabilities.
Practice Questions
The purchasing team examined all of their purchasing patterns in order to identify any
irregularities or possible areas of cost savings in a little scheme they liked to call: - ANS ✔✔C)
spend analysis.
The use of supply chain partners to provide products or services is called: - ANS ✔✔A)
outsourcing.
One advantage of outsourcing is that it: - ANS ✔✔B) increases the company's access to state-of-
the-art products and processes.
Which of these is a direct cost associated with outsourcing? - ANS ✔✔D) price from invoice
Which of these is an indirect cost associated with insourcing? - ANS ✔✔A) maintenance
A supplier that has previously demonstrated its performance capabilities through purchase
contracts may well receive: - ANS ✔✔C) preferred supplier status.
Competitive bidding, active sourcing, and using industry standards are all actions that are
appropriate if the sourcing strategy is to: - ANS ✔✔B) maximize commercial advantage.
When compared with single sourcing, multiple sourcing has the advantage of: - ANS ✔✔A)
spreading risk.
Single sourcing is a better choice than multiple sourcing from the perspective of: - ANS ✔✔D)
access to the supplier's design and engineering capabilities.
