Chapter 1-5 Practice

All of the following are roadblocks between measurement and improved performance except _____.​

• Up-to-date information technology

• Too many metrics

• Debate over the correct metrics

• Constantly changing metrics

Global sourcing is a requirement and no longer a luxury for most firms.

• True

• False

​_____ are those items provided by suppliers and used directly during production or service delivery.

• Direct materials

• Indirect materials

• Indirect services

• Internal materials

The key to the success of any company is the quality of its employees.

• True

• False

Cost management is no longer an integral part of purchasing and supply chain management.

• True

• False

All of the following are required elements in a purchase requisition except _____.

• Quantity and date required

• Operating account to be charged

• ​Identification and approval of a supplier by the end user

• Authorized signature

The purchasing cycle begins with the _____.

• Election of an appropriate supplier

• Identification of a need (a requirement)

• Issuance of a purchase order

• ​Receipt of a supplier’s acknowledgement

​A/An _____ is an open order, usually effective for one year, covering repeated purchases of an item or family of items.

• Outstanding order

• Pending order

• Blanket purchase order

• Completed order

For routine, off-the-shelf items, the purchase requisition may contain all the information that purchasing requires.

• True

• False

Contract management should be used to trigger proactive sourcing events only after a contract expires.

• True

• False