TEST BANK FORxz xz
Purchasing and Supply Chain Management 8e Robert B. Handfield, Larry C. Giunipero, Robert M. Monczka, Jam
xz xz xz xz xz xz xz xz xz xz xz xz xz xz xz
es L. Patterson
xz xz
a. True
xz
CopyrightxzCengagexzLearning.xzPoweredxzbyxzCogner Pagexz1
o.
,Chapter 1-20 xz
Chapter 1 xz
1. If a firm can’t easily raise the price of its products , maintaining long-term profits requires actively managing costs.
xz xz xz xz xz xz xz xz xz xz xz xz xz xz xz xz xz xz
a. True
b. False
2. For most US firms, offshoring is the most reliable source of manufactured components which consistently meet h
xz xz xz xz xz xz xz xz xz xz xz xz xz xz xz xz
igh quality standards.
xz xz
a. True
b. False
3. Today’s emphasis on supplier quality has focused on preventing defects early in the materials-
xz xz xz xz xz xz xz xz xz xz xz xz xz
sourcing process rather than detecting defects at the time of receipt.
xz xz xz xz xz xz xz xz xz xz
a. True
b. False
4. Today’s customers are very resistant to price increases and, in fact, often demand discounts.
xz xz xz xz x z xz xz xz xz xz xz xz xz
a. True
b. False
5. Supply chain software can be grouped into two general categories: planning and execution.
xz xz xz xz xz xz xz xz xz xz xz xz
a. True
b. False
6. A firm’s supply chain is only as strong as its least-competitive supplier.
xz xz xz xz xz xz x z xz xz xz xz
a. True
b. False
7. On average, in the manufacturing sector, more than half of every sales revenue dollar goes back to suppliers.
xz xz xz xz xz xz xz xz xz xz xz xz xz x z xz xz xz
a. True
b. False
8. Supply chain management rarely requires coordination of activities that extend across organizational boundaries.
xz xz xz xz xz xz xz xz xz xz xz xz
a. True
b. False
9. Well-trained, highly-skilled employees are essential for any company’s success.
xz xz xz xz xz xz xz xz
a. True
b. False
10. During the Quiet Years (1947-Mid-
xz xz xz xz
1960s) of purchasing and supply chain management evolution, firms faced stable competition and had access to abun
xz xz xz xz xz xz xz xz xz xz xz xz xz xz xz xz
dant material. These conditions diminished the overall importance of purchasing.
xz xz x z xz xz xz xz xz xz
a. True
xz
CopyrightxzCengagexzLearning.xzPoweredxzbyxzCogner Pagexz2
o.
, b. False
xz
11. Supply management involves activities not found in traditional purchasing.
xz xz xz xz xz xz xz xz
a. True
b. False
12. Strategic purchasing practices are essential for helping companies maintain their competitive positions in rapi
xz xz xz xz xz xz xz xz xz xz xz xz xz
dly changing business environments.
xz xz xz
a. True
b. False
13. Few of the product features that become part of a firm’s final products originate with suppliers.
xz xz xz xz xz xz xz xz xz xz xz xz xz xz xz
a. True
b. False
14. Today’s consumers are used to enjoying variety of product offerings, low prices, and customized services.
x z xz xz xz xz xz xz xz xz xz xz xz xz xz
a. True
b. False
15. The traditional approach to purchasing and supply management is to build relationships with suppliers and w
xz xz xz xz xz xz xz xz xz xz xz xz xz xz xz
ork jointly to reduce costs and improve quality.
xz xz xz xz xz xz xz
a. True
b. False
16. The increase in volatility, uncertainty, complexity, and ambiguity associated with long supply chains has led to
xz xz xz xz xz xz xz xz xz xz xz xz xz xz xz x
an interest in reshoring and nearshoring.
z xz xz xz xz xz
a. True
b. False
17. One of purchasing’s responsibilities is sourcing indirect goods and services required by internal groups.
xz xz xz xz xz xz xz xz xz xz xz xz xz
a. True
b. False
18. According to Michael Porter, a firm’s value chain is composed of primary and support activities that, when configu
xz xz xz xz xz xz xz xz xz xz xz xz xz xz xz xz xz
red properly, can lead to competitive advantage.
xz xz xz xz xz xz
a. True
b. False
19. The routine ordering and follow-up of basic operational supplies is a strategic responsibility.
xz xz xz xz xz xz xz xz xz xz xz xz
a. True
b. False
20. D A distribution manager would be responsible for addressing product damage that occurred in handling material
xz xz xz xz xz xz xz xz xz xz xz xz xz xz xz
s at the receiving dock.
xz xz xz xz
a. True
b. False
21. Purchasing and supply management have a major impact on product and service quality.
xz xz xz xz xz xz xz xz xz xz xz xz
a. True xz
CopyrightxzCengagexzLearning.xzPoweredxzbyxzCogner Pagexz3
o.
, b. False
xz
22. There are a definitive and prescriptive set of supply chain measures that provide one best way to measure supply c
xz xz xz xz xz xz xz xz xz xz xz xz xz xz xz xz xz xz xz
hain performance.
xz
a. True
b. False
23. The formal organization chart portrays the entirety of the workings of an organization.
xz xz xz xz xz xz xz xz xz xz xz xz
a. True
b. False
Indicate the answer choice that best completes the statement or answers the question.
xz xz xz xz xz xz xz xz xz xz xz xz
24. For which of the of the following indices does a rating over 50 indicate economic expansion?
xz xz xz xz xz xz xz xz xz xz xz xz xz xz xz
a. Consumer Price Index xz xz
b. Producer Price Index xz xz
c. Inflation Rate xz
d. Purchasing Manager’s Index xz xz
25. All of the following are key knowledge areas for purchasers EXCEPT.
xz xz xz xz xz xz xz xz xz xz
a. Supplier relationship management xz xz
b. Data and analytics xz xz
c. Production quality control xz xz
d. Total cost analysis xz xz
26. Which of the following involves generating the materials release, contacting a supplier directly concerning charg
xz xz xz xz xz xz xz xz xz xz xz xz xz xz
es, and monitoring the status of inbound shipments?
xz xz xz xz xz xz xz
a. Order processing xz
b. Material control xz
c. Logistics planning xz
d. Customer service xz
27. Which of the following functional groups is responsible for managing the downstream movement of materi
xz xz xz xz xz xz xz xz xz xz xz xz xz xz
als between locations in the supply chain?
xz xz xz xz xz xz
a. Purchasing Managers xz
b. Inventory managers xz
c. Distribution managers xz
d. Purchasing managers xz
28. Which of the following resources is LEAST likely to be shared between a buyer and supplier?
xz xz xz xz xz xz xz xz xz xz xz xz xz xz xz
a. Dedicated capacity xz
b. Information
c. Technology
d. Skilled labor force xz xz
29. All of the following are examples of technology impacting supply chain management over the past two deca
xz xz xz xz xz xz xz xz xz xz xz xz xz xz xz xz
des EXCEPT
xz
a. social media that allows buyers to gain knowledge of a seller’s personal preferences.
xz xz xz xz xz xz xz xz xz xz xz x z xz
CopyrightxzCengagexzLearning.xzPoweredxzbyxzCogner Pagexz4
o.
Purchasing and Supply Chain Management 8e Robert B. Handfield, Larry C. Giunipero, Robert M. Monczka, Jam
xz xz xz xz xz xz xz xz xz xz xz xz xz xz xz
es L. Patterson
xz xz
a. True
xz
CopyrightxzCengagexzLearning.xzPoweredxzbyxzCogner Pagexz1
o.
,Chapter 1-20 xz
Chapter 1 xz
1. If a firm can’t easily raise the price of its products , maintaining long-term profits requires actively managing costs.
xz xz xz xz xz xz xz xz xz xz xz xz xz xz xz xz xz xz
a. True
b. False
2. For most US firms, offshoring is the most reliable source of manufactured components which consistently meet h
xz xz xz xz xz xz xz xz xz xz xz xz xz xz xz xz
igh quality standards.
xz xz
a. True
b. False
3. Today’s emphasis on supplier quality has focused on preventing defects early in the materials-
xz xz xz xz xz xz xz xz xz xz xz xz xz
sourcing process rather than detecting defects at the time of receipt.
xz xz xz xz xz xz xz xz xz xz
a. True
b. False
4. Today’s customers are very resistant to price increases and, in fact, often demand discounts.
xz xz xz xz x z xz xz xz xz xz xz xz xz
a. True
b. False
5. Supply chain software can be grouped into two general categories: planning and execution.
xz xz xz xz xz xz xz xz xz xz xz xz
a. True
b. False
6. A firm’s supply chain is only as strong as its least-competitive supplier.
xz xz xz xz xz xz x z xz xz xz xz
a. True
b. False
7. On average, in the manufacturing sector, more than half of every sales revenue dollar goes back to suppliers.
xz xz xz xz xz xz xz xz xz xz xz xz xz x z xz xz xz
a. True
b. False
8. Supply chain management rarely requires coordination of activities that extend across organizational boundaries.
xz xz xz xz xz xz xz xz xz xz xz xz
a. True
b. False
9. Well-trained, highly-skilled employees are essential for any company’s success.
xz xz xz xz xz xz xz xz
a. True
b. False
10. During the Quiet Years (1947-Mid-
xz xz xz xz
1960s) of purchasing and supply chain management evolution, firms faced stable competition and had access to abun
xz xz xz xz xz xz xz xz xz xz xz xz xz xz xz xz
dant material. These conditions diminished the overall importance of purchasing.
xz xz x z xz xz xz xz xz xz
a. True
xz
CopyrightxzCengagexzLearning.xzPoweredxzbyxzCogner Pagexz2
o.
, b. False
xz
11. Supply management involves activities not found in traditional purchasing.
xz xz xz xz xz xz xz xz
a. True
b. False
12. Strategic purchasing practices are essential for helping companies maintain their competitive positions in rapi
xz xz xz xz xz xz xz xz xz xz xz xz xz
dly changing business environments.
xz xz xz
a. True
b. False
13. Few of the product features that become part of a firm’s final products originate with suppliers.
xz xz xz xz xz xz xz xz xz xz xz xz xz xz xz
a. True
b. False
14. Today’s consumers are used to enjoying variety of product offerings, low prices, and customized services.
x z xz xz xz xz xz xz xz xz xz xz xz xz xz
a. True
b. False
15. The traditional approach to purchasing and supply management is to build relationships with suppliers and w
xz xz xz xz xz xz xz xz xz xz xz xz xz xz xz
ork jointly to reduce costs and improve quality.
xz xz xz xz xz xz xz
a. True
b. False
16. The increase in volatility, uncertainty, complexity, and ambiguity associated with long supply chains has led to
xz xz xz xz xz xz xz xz xz xz xz xz xz xz xz x
an interest in reshoring and nearshoring.
z xz xz xz xz xz
a. True
b. False
17. One of purchasing’s responsibilities is sourcing indirect goods and services required by internal groups.
xz xz xz xz xz xz xz xz xz xz xz xz xz
a. True
b. False
18. According to Michael Porter, a firm’s value chain is composed of primary and support activities that, when configu
xz xz xz xz xz xz xz xz xz xz xz xz xz xz xz xz xz
red properly, can lead to competitive advantage.
xz xz xz xz xz xz
a. True
b. False
19. The routine ordering and follow-up of basic operational supplies is a strategic responsibility.
xz xz xz xz xz xz xz xz xz xz xz xz
a. True
b. False
20. D A distribution manager would be responsible for addressing product damage that occurred in handling material
xz xz xz xz xz xz xz xz xz xz xz xz xz xz xz
s at the receiving dock.
xz xz xz xz
a. True
b. False
21. Purchasing and supply management have a major impact on product and service quality.
xz xz xz xz xz xz xz xz xz xz xz xz
a. True xz
CopyrightxzCengagexzLearning.xzPoweredxzbyxzCogner Pagexz3
o.
, b. False
xz
22. There are a definitive and prescriptive set of supply chain measures that provide one best way to measure supply c
xz xz xz xz xz xz xz xz xz xz xz xz xz xz xz xz xz xz xz
hain performance.
xz
a. True
b. False
23. The formal organization chart portrays the entirety of the workings of an organization.
xz xz xz xz xz xz xz xz xz xz xz xz
a. True
b. False
Indicate the answer choice that best completes the statement or answers the question.
xz xz xz xz xz xz xz xz xz xz xz xz
24. For which of the of the following indices does a rating over 50 indicate economic expansion?
xz xz xz xz xz xz xz xz xz xz xz xz xz xz xz
a. Consumer Price Index xz xz
b. Producer Price Index xz xz
c. Inflation Rate xz
d. Purchasing Manager’s Index xz xz
25. All of the following are key knowledge areas for purchasers EXCEPT.
xz xz xz xz xz xz xz xz xz xz
a. Supplier relationship management xz xz
b. Data and analytics xz xz
c. Production quality control xz xz
d. Total cost analysis xz xz
26. Which of the following involves generating the materials release, contacting a supplier directly concerning charg
xz xz xz xz xz xz xz xz xz xz xz xz xz xz
es, and monitoring the status of inbound shipments?
xz xz xz xz xz xz xz
a. Order processing xz
b. Material control xz
c. Logistics planning xz
d. Customer service xz
27. Which of the following functional groups is responsible for managing the downstream movement of materi
xz xz xz xz xz xz xz xz xz xz xz xz xz xz
als between locations in the supply chain?
xz xz xz xz xz xz
a. Purchasing Managers xz
b. Inventory managers xz
c. Distribution managers xz
d. Purchasing managers xz
28. Which of the following resources is LEAST likely to be shared between a buyer and supplier?
xz xz xz xz xz xz xz xz xz xz xz xz xz xz xz
a. Dedicated capacity xz
b. Information
c. Technology
d. Skilled labor force xz xz
29. All of the following are examples of technology impacting supply chain management over the past two deca
xz xz xz xz xz xz xz xz xz xz xz xz xz xz xz xz
des EXCEPT
xz
a. social media that allows buyers to gain knowledge of a seller’s personal preferences.
xz xz xz xz xz xz xz xz xz xz xz x z xz
CopyrightxzCengagexzLearning.xzPoweredxzbyxzCogner Pagexz4
o.
