BUAD 331 Exam 2 Knowledge
Checkpoints |Questions and Answers
T/F: Sourcing is the inputs (or things we buy), including materials, sub-
assembled components, equipment, and services, that are required to create
value. - -False
- Which of the following is NOT an area in which successful supply managers
need expertise? - -Customers
- T/F: 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. - -True
- Which of the following is the most important right of purchasing? - -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? - -Natural disasters
Supplier quality issues
Logistics interruptions
Financial issues
- T/F: A dollar saved in material costs goes directly to an increase in revenue
for the organization. - -False
- T/F: Purchasing has become a strategic contributor to organizational value
by contributing to both the top and bottom line of the business. - -True
- T/F: The choice of suppliers is important to ensure an uninterrupted flow of
supply and avoid some of the problems inherent in complex supply chains. -
-True
- T/F: Supplier portfolio analysis was introduced by Michael Porter. - -False
- An item with high market complexity and low importance to the
organization should be classified as:
Non-critical
Leverage
Strategic
Bottleneck
None of the above - -None of the above
Checkpoints |Questions and Answers
T/F: Sourcing is the inputs (or things we buy), including materials, sub-
assembled components, equipment, and services, that are required to create
value. - -False
- Which of the following is NOT an area in which successful supply managers
need expertise? - -Customers
- T/F: 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. - -True
- Which of the following is the most important right of purchasing? - -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? - -Natural disasters
Supplier quality issues
Logistics interruptions
Financial issues
- T/F: A dollar saved in material costs goes directly to an increase in revenue
for the organization. - -False
- T/F: Purchasing has become a strategic contributor to organizational value
by contributing to both the top and bottom line of the business. - -True
- T/F: The choice of suppliers is important to ensure an uninterrupted flow of
supply and avoid some of the problems inherent in complex supply chains. -
-True
- T/F: Supplier portfolio analysis was introduced by Michael Porter. - -False
- An item with high market complexity and low importance to the
organization should be classified as:
Non-critical
Leverage
Strategic
Bottleneck
None of the above - -None of the above
