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