Test Bank for Purchasing Management

Trends in supply organization and leadership include ________.

• more chief purchasing officers without previous supply experience, greater emphasis on teams and project-based work, and greater differentiation between strategic and tactical supply roles

• more chief purchasing officers without previous supply experience and greater emphasis on project-based work

• greater emphasis on teams and project-based work and greater differentiation between strategic and tactical supply roles

• more chief purchasing officers without previous supply experience and greater differentiation between strategic and tactical supply roles

• more chief purchasing officers without previous supply experience and greater emphasis on teams and project-based work

Studies conducted in supply research include ________.

• customers

• competitors

• customers and competitors

• supply processes

• customers, competitors, and supply processes

Some North American companies are re-examining their global sourcing strategies, and favoring “reshoring,” or sourcing at home, because ________.

• "Buy America" and "Buy Canada" legislation dictate the move

• wages in China have increased close to the same levels as North America

• lower energy costs in China are greatly offset by rapidly rising Chinese wages

• Western currencies have appreciated against the Chinese yuan

• transportation costs have increased and the Covid-19 global pandemic exposed supply chain bottlenecks

Supply management’s role in sustainability initiatives includes ________.

• substituting renewable energy for carbon-based energy, accountability for the social practices of their suppliers, including worker safety, payment of living wages, and child labor, eliminating waste anywhere in the supply chain, and setting clear standards for suppliers related to social conditions in their plants and subcontracting facilities

• substituting renewable energy for carbon-based energy and setting clear standards for suppliers related to social conditions in their plants and subcontracting facilities

• accountability for the social practices of their suppliers, including worker safety, payment of living wages, and child labor and substituting renewable energy for carbon-based energy

• setting clear standards for suppliers related to social conditions in their plants and subcontracting facilities and accountability for the social practices of their suppliers, including worker safety, payment of living wages, and child labor

• eliminating waste anywhere in the supply chain

When cross-functional teams are used to conduct research, it is best if ________.

• no member is stronger than any other, and the leadership role is rotated

• the team has total autonomy to decide objectives and set expectations

• performance evaluation and reward systems foster individual contributions

• each member’s job is rearranged to allocate time and resources for teamwork

• team members are randomly selected from departments

The supply function can play a central role in environmental sustainability in the following area(s) ________.

• measuring suppliers’ environmental sustainability performance

• gathering data and managing suppliers to support compliance with regulations and measuring suppliers’ environmental sustainability performance

• communicating environmental sustainability expectations to suppliers and measuring suppliers’ environmental sustainability performance

• gathering data and managing suppliers to support compliance with regulations, communicating environmental sustainability expectations to suppliers and measuring suppliers’ environmental sustainability performance

• gathering data and managing suppliers to support compliance with regulations and communicating environmental sustainability expectations to suppliers

An example of an effectiveness-oriented metric of supply management performance ________.

• calculates operating cost as a percentage of total dollar volume of purchases

• measures direct and indirect contributions to final customer satisfaction

• calculates the average dollar cost of a purchase order

• calculates operating cost as a percentage of sales

• measures price reductions from the previous contract

The budget that covers all the expenses incurred for the supply function including salaries and wages; space, equipment, and information technology costs; travel and entertainment, educational, postage, telephone, cell phone, and office supplies expenditures, is called the ________.

• capital budget

• cash flow budget

• administrative or operating budget

• materials purchase budget

• organizational budget

Purchasing process benchmarking attempts to ________.

• analyze a firm's own internal trends

• provide industrywide standards for overall firm performance

• determine what results have been achieved by purchasing and supply activities

• determine how an organization achieves results in purchasing and supply

• provide baseline metrics to compare companies’ supply performance

Products that make the most sense to consider for sourcing and manufacturing in developed regions ________.

• have low labor content and are difficult and expensive to transport

• are low value and inexpensive to manufacture

• are easy to transport and require the use of general-purpose equipment

• are low value, inexpensive to manufacture, and require the use of complex equipment and skilled workers for manufacturing and assembly

• are low value, inexpensive to manufacture, and have low labor content