Chapter 1

In the new competitive environment, the power of buyers is higher than suppliers due to widely available information sources

• True

• False

Purchasing is procurement

• True

• False

5R of purchasing excludes

• Right quality

• Right quality

• Right time

• Right customer

Which of the following is NOT a driver of SCM?

• Increasing global competition

• Decline in information technology

• Rising customer expectations

• Growth of e-commerce

The ISM Report on Business provides information about

• Consumer price index

• Interest rates

• Unemployment rate

• Purchasing management index

When is the ISM Report on Business considered a signal of a growing economy?

• PMI>50

• PMI=50

• PMI<50

• PMI=0

Which of the following is NOT a component of the supply chain?

• Marketing

• Manufacturing

• Transportation

• Finance

The goal of purchasing and SCM is to maximize cost while minimizing value.

• True

• False

Outsourcing non-core activities can help a firm focus on its core competencies.

• True

• False

Early supplier involvement in the product design process can lead to shorter time-to-market.

• True

• False