Page 1 of 220
ISDS 3115 Final EXAM NEWEST 500 QUESTIONS
AND VERIFIED SOLUTIONS LATEST UPDATE THIS
YEAR
QUESTION: What type of negotiating strategy requires the supplier to open its books to the
purchasers?
a. cost-based price model
b. market-based price model
c. competitive bidding
d. price-based model
e. none of the above - ANSWER-a
QUESTION: Which of the following statements is true regarding the leverage of supply chain
savings?
a. Supply chain leverage is about the same for all industries.
b. Supply chain savings exert more leverage as the firm's purchases are a smaller percent of
sales.
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c. Supply chain savings exert more leverage as the firm has a lower net profit margin.
d. Supply chain leverage depends only upon the percent of sales spent in the supply chain.
e. None of the above is true. - ANSWER-c
QUESTION: One dollar saved in purchasing is
a. equivalent to a dollar earned in sales revenue
b. worth even more than a dollar earned in sales revenue
c. worth slightly more than a dollar earned because of taxes
d. worth from 35% in the technical instrument industry to 70% in the food products industry
e. only worthwhile if you are in the 50% tax bracket and still have a low profit margin -
ANSWER-b
QUESTION: Which one of the following statements about purchasing is true?
a. The cost of purchases as a percent of sales is often small.
b. Purchasing provides a major opportunity for price increases.
c. Purchasing is always more efficient than making an item.
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d. Purchasing has an impact on the quality of the goods and services sold.
e. Competitive bidding is a major factor in long-term cost reductions. - ANSWER-d
QUESTION: In the make-or-buy decision, one of the reasons for making is
a. to reduce inventory costs
b. to obtain technical or management ability
c. inadequate capacity
d. reciprocity
e. to assure adequate supply in terms of quantity - ANSWER-e
QUESTION: In the make-or-buy decision, which of the following is a reason for making an item?
a. management can focus on its primary business
b. lower production cost
c. inadequate capacity
d. reduce inventory costs
e. None of the above is a reason for making an item. - ANSWER-b
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QUESTION: In the make-or-buy decision, one of the reasons for buying is
a. to assure adequate supply
b. to obtain desired quality
c. to remove supplier collusion
d. inadequate capacity
e. to maintain organizational talents - ANSWER-d
Q; The three major variations of online catalogs are
a. catalogs by vendors, catalogs by intermediaries, and exchanges provided by buyers
b. EDI, ERP, and ASN
c. cost-based, market-based, and competitive bidding
d. drop shipping, channel assembly, and postponement
e. all auction-based - ANSWER-a
ISDS 3115 Final EXAM NEWEST 500 QUESTIONS
AND VERIFIED SOLUTIONS LATEST UPDATE THIS
YEAR
QUESTION: What type of negotiating strategy requires the supplier to open its books to the
purchasers?
a. cost-based price model
b. market-based price model
c. competitive bidding
d. price-based model
e. none of the above - ANSWER-a
QUESTION: Which of the following statements is true regarding the leverage of supply chain
savings?
a. Supply chain leverage is about the same for all industries.
b. Supply chain savings exert more leverage as the firm's purchases are a smaller percent of
sales.
,Page 2 of 220
c. Supply chain savings exert more leverage as the firm has a lower net profit margin.
d. Supply chain leverage depends only upon the percent of sales spent in the supply chain.
e. None of the above is true. - ANSWER-c
QUESTION: One dollar saved in purchasing is
a. equivalent to a dollar earned in sales revenue
b. worth even more than a dollar earned in sales revenue
c. worth slightly more than a dollar earned because of taxes
d. worth from 35% in the technical instrument industry to 70% in the food products industry
e. only worthwhile if you are in the 50% tax bracket and still have a low profit margin -
ANSWER-b
QUESTION: Which one of the following statements about purchasing is true?
a. The cost of purchases as a percent of sales is often small.
b. Purchasing provides a major opportunity for price increases.
c. Purchasing is always more efficient than making an item.
,Page 3 of 220
d. Purchasing has an impact on the quality of the goods and services sold.
e. Competitive bidding is a major factor in long-term cost reductions. - ANSWER-d
QUESTION: In the make-or-buy decision, one of the reasons for making is
a. to reduce inventory costs
b. to obtain technical or management ability
c. inadequate capacity
d. reciprocity
e. to assure adequate supply in terms of quantity - ANSWER-e
QUESTION: In the make-or-buy decision, which of the following is a reason for making an item?
a. management can focus on its primary business
b. lower production cost
c. inadequate capacity
d. reduce inventory costs
e. None of the above is a reason for making an item. - ANSWER-b
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QUESTION: In the make-or-buy decision, one of the reasons for buying is
a. to assure adequate supply
b. to obtain desired quality
c. to remove supplier collusion
d. inadequate capacity
e. to maintain organizational talents - ANSWER-d
Q; The three major variations of online catalogs are
a. catalogs by vendors, catalogs by intermediaries, and exchanges provided by buyers
b. EDI, ERP, and ASN
c. cost-based, market-based, and competitive bidding
d. drop shipping, channel assembly, and postponement
e. all auction-based - ANSWER-a
