BUAD 331 Exam 2 Questions and
Answers
Sourcing is the inputs (or things we buy), including materials, sub-assembled
components, equipment, and services, that are required to create value.
A. True
B. False - -B. False
- Which of the following is NOT an area in which successful supply managers
need expertise?
A. Technologies
B. Customers
C. Suppliers
D. Processes
E. Resources - -B. Customers
- When purchasing and supply management works well within an
organization, the company acquires the best resources from around the
world, which allows its to compete on cost, quality, and innovation.
A. True
B. False - -A. True
- The following items for an automobile manufacturer would fit in the Supply
Commodity category titled "Indirect Materials Office Supply Product
category".
(images of a pen, whiteout, stapler, water bottle, and pencil)
A. True
B. False - -A. True
- Which of the following is the most important right of purchasing?
A. Delivery to the RIGHT place
B. The RIGHT price
C. The RIGHT supplier
D. The RIGHT time
E. The RIGHT material - -C. The RIGHT supplier
- One of the most challenging aspects of purchasing is to ensure an
uninterrupted flow of supply. Which of the following might "interrupt" that
flow?
A. Natural disasters
B. Supplier quality issues
C. Logistics interruptions
D. Financial issues
E. All of the above - -E. All of the above
, - A dollar saved in material costs goes directly to an increase in revenue for
the organization.
A. True
B. False - -B. False
- You are working as a Procurement Manager for a Fortune 500 company
and are in charge of buying a new make and model of work computers for
the entire company headquarters. You know it will be an expensive
purchase, but have many options to choose from so you can make the
computer manufacturers bid against each other to get the best price. Which
type of commodity are these computers?
A. Noncritical Commodity
B. Strategic Commodity
C. Leverage Commodity
D. Bottleneck Commodity - -C. Leverage Commodity
- Purchasing has become a strategic contributor to organizational value by
contributing to both the top and bottom line of the business.
A. True
B. False - -A. True
- The choice of suppliers is important to ensure an uninterrupted flow of
supply and avoid some of the problems inherent in complex supply chains.
A. True
B. False - -A. True
- Supplier portfolio analysis was introduced by Michael Porter.
A. True
B. False - -B. False
- An item with high market complexity and low importance to the
organization should be classified as:
A. Non-critical
B. Leverage
C. Strategic
D. Bottleneck
E. None of the above - -D. Bottleneck
- What supplier management tool is the standard to continuously track a
supplier's performance and financial health and ensure that key goals are
being met?
A. Partnerships
B. Six Sigma Projects
C. Negotiations
D. Scorecards
Answers
Sourcing is the inputs (or things we buy), including materials, sub-assembled
components, equipment, and services, that are required to create value.
A. True
B. False - -B. False
- Which of the following is NOT an area in which successful supply managers
need expertise?
A. Technologies
B. Customers
C. Suppliers
D. Processes
E. Resources - -B. Customers
- When purchasing and supply management works well within an
organization, the company acquires the best resources from around the
world, which allows its to compete on cost, quality, and innovation.
A. True
B. False - -A. True
- The following items for an automobile manufacturer would fit in the Supply
Commodity category titled "Indirect Materials Office Supply Product
category".
(images of a pen, whiteout, stapler, water bottle, and pencil)
A. True
B. False - -A. True
- Which of the following is the most important right of purchasing?
A. Delivery to the RIGHT place
B. The RIGHT price
C. The RIGHT supplier
D. The RIGHT time
E. The RIGHT material - -C. The RIGHT supplier
- One of the most challenging aspects of purchasing is to ensure an
uninterrupted flow of supply. Which of the following might "interrupt" that
flow?
A. Natural disasters
B. Supplier quality issues
C. Logistics interruptions
D. Financial issues
E. All of the above - -E. All of the above
, - A dollar saved in material costs goes directly to an increase in revenue for
the organization.
A. True
B. False - -B. False
- You are working as a Procurement Manager for a Fortune 500 company
and are in charge of buying a new make and model of work computers for
the entire company headquarters. You know it will be an expensive
purchase, but have many options to choose from so you can make the
computer manufacturers bid against each other to get the best price. Which
type of commodity are these computers?
A. Noncritical Commodity
B. Strategic Commodity
C. Leverage Commodity
D. Bottleneck Commodity - -C. Leverage Commodity
- Purchasing has become a strategic contributor to organizational value by
contributing to both the top and bottom line of the business.
A. True
B. False - -A. True
- The choice of suppliers is important to ensure an uninterrupted flow of
supply and avoid some of the problems inherent in complex supply chains.
A. True
B. False - -A. True
- Supplier portfolio analysis was introduced by Michael Porter.
A. True
B. False - -B. False
- An item with high market complexity and low importance to the
organization should be classified as:
A. Non-critical
B. Leverage
C. Strategic
D. Bottleneck
E. None of the above - -D. Bottleneck
- What supplier management tool is the standard to continuously track a
supplier's performance and financial health and ensure that key goals are
being met?
A. Partnerships
B. Six Sigma Projects
C. Negotiations
D. Scorecards
