MGSC 487 EXAM 1, 2 FINAL UNIT REVIEW EXAM– QUESTIONS AND ANSWERS | VERIFIED AND WELL DETAILED
ANSWERS | PLUS RATIONALES | DOWNLOAD AND PASS | LATEST EXAM UPDATE 2026/2027
Core Domains
Global Sourcing Strategy and Evolution
Quality Management Systems and Methodologies
Pricing, Cost Management, and Negotiation
Supplier Relationship and Performance Management
Contract Law and Regulatory Compliance
Ethics and Professional Standards in Supply Management
Supply Chain Resilience and Risk Mitigation
Make or Buy Decision Analysis
Introduction
This comprehensive assessment evaluates mastery of global sourcing strategies and applications within the
management science discipline. The examination assesses critical competencies including supplier evaluation, cost
analysis methodologies, quality management frameworks, negotiation tactics, and regulatory compliance. Multiple-
choice and scenario-based questions simulate authentic professional challenges, emphasizing practical decision-
,making and strategic application of sourcing principles. This review prepares candidates for advanced roles in
manufacturing, retail, government, and service procurement environments. Mastery of these domains demonstrates
readiness to optimize supply chains, mitigate risks, and drive competitive advantage through effective sourcing
leadership.
SECTION ONE: QUESTIONS 1–50
Question 1
Which term describes the lowest price that ensures a continuous supply of proper quality where and when it is
needed?
A. Market price
B. Fair price
C. Target price
D. Contract price
🟢 Correct Answer: B. Fair price
🔴 Explanation: Fair price represents the lowest price that assures continuous supply of proper quality at the needed
time and location, while allowing the supplier to earn a reasonable profit over the long run.
,Question 2
Which of the following is NOT one of the four factors upon which accuracy in judging a fair and just price depends?
A. Past experience
B. Knowledge of production processes
C. Supplier's marketing budget
D. Logistics costs
🟢 Correct Answer: C. Supplier's marketing budget
🔴 Explanation: The four factors affecting fair and just price judgment are past experience, knowledge of production
processes, costs of production processes, and logistics costs. Marketing budget is not a determining factor.
Question 3
Joseph Juran is best known for which contribution to quality management?
A. Fourteen Points for Management
B. Quality Control Handbook and the quality trilogy
, C. Zero Defects program
D. Statistical Process Control methodology
🟢 Correct Answer: B. Quality Control Handbook and the quality trilogy
🔴 Explanation: Joseph Juran authored the Quality Control Handbook and developed the quality trilogy of planning,
control, and improvement.
Question 4
Which Deming principle specifically advises against relying solely on inspection to achieve quality?
A. Point 3: Cease dependence on inspection to achieve quality
B. Point 7: Institute leadership
C. Point 10: Eliminate slogans and exhortations
D. Point 14: Put everybody to work to accomplish transformation
🟢 Correct Answer: A. Point 3: Cease dependence on inspection to achieve quality
🔴 Explanation: Deming's Point 3 explicitly states that quality should be built into the product from the beginning
rather than relying on mass inspection to catch defects.
ANSWERS | PLUS RATIONALES | DOWNLOAD AND PASS | LATEST EXAM UPDATE 2026/2027
Core Domains
Global Sourcing Strategy and Evolution
Quality Management Systems and Methodologies
Pricing, Cost Management, and Negotiation
Supplier Relationship and Performance Management
Contract Law and Regulatory Compliance
Ethics and Professional Standards in Supply Management
Supply Chain Resilience and Risk Mitigation
Make or Buy Decision Analysis
Introduction
This comprehensive assessment evaluates mastery of global sourcing strategies and applications within the
management science discipline. The examination assesses critical competencies including supplier evaluation, cost
analysis methodologies, quality management frameworks, negotiation tactics, and regulatory compliance. Multiple-
choice and scenario-based questions simulate authentic professional challenges, emphasizing practical decision-
,making and strategic application of sourcing principles. This review prepares candidates for advanced roles in
manufacturing, retail, government, and service procurement environments. Mastery of these domains demonstrates
readiness to optimize supply chains, mitigate risks, and drive competitive advantage through effective sourcing
leadership.
SECTION ONE: QUESTIONS 1–50
Question 1
Which term describes the lowest price that ensures a continuous supply of proper quality where and when it is
needed?
A. Market price
B. Fair price
C. Target price
D. Contract price
🟢 Correct Answer: B. Fair price
🔴 Explanation: Fair price represents the lowest price that assures continuous supply of proper quality at the needed
time and location, while allowing the supplier to earn a reasonable profit over the long run.
,Question 2
Which of the following is NOT one of the four factors upon which accuracy in judging a fair and just price depends?
A. Past experience
B. Knowledge of production processes
C. Supplier's marketing budget
D. Logistics costs
🟢 Correct Answer: C. Supplier's marketing budget
🔴 Explanation: The four factors affecting fair and just price judgment are past experience, knowledge of production
processes, costs of production processes, and logistics costs. Marketing budget is not a determining factor.
Question 3
Joseph Juran is best known for which contribution to quality management?
A. Fourteen Points for Management
B. Quality Control Handbook and the quality trilogy
, C. Zero Defects program
D. Statistical Process Control methodology
🟢 Correct Answer: B. Quality Control Handbook and the quality trilogy
🔴 Explanation: Joseph Juran authored the Quality Control Handbook and developed the quality trilogy of planning,
control, and improvement.
Question 4
Which Deming principle specifically advises against relying solely on inspection to achieve quality?
A. Point 3: Cease dependence on inspection to achieve quality
B. Point 7: Institute leadership
C. Point 10: Eliminate slogans and exhortations
D. Point 14: Put everybody to work to accomplish transformation
🟢 Correct Answer: A. Point 3: Cease dependence on inspection to achieve quality
🔴 Explanation: Deming's Point 3 explicitly states that quality should be built into the product from the beginning
rather than relying on mass inspection to catch defects.
