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Chapter 6-10 Practice

Total questions: 25

Worksheet time: 19mins

Name
Class
Date
1.

​In general, the less important the category, the more critical it is that internal stakeholders will be involved.

a)

True

b)

False

2.

​In general, the more important the commodity, the less likely that cross-functional members and user groups will be involved.

a)

True

b)

False

3.

Which of the following is not one of the primary ways that companies create shareholder value?

a)

Increase volume

b)

​Reduce cost of process and waste.

c)

Reduce cost of goods and services.

d)

Lower prices

4.

A _____ is an annual review of a firm’s entire set of purchases.

a)

Make-buy analysis

b)

Spend analysis

c)

Cost analysis

d)

Technology roadmap

5.

Which of the following is not one of the examples of Porter’s threat of substitute products and services?

a)

Relative price of substitutes

b)

Switching costs

c)

Buyer propensity to substitute

d)

Economies of scale

6.

Many purchasers prefer to focus on suppliers who have the “capability to do the job” regardless of size.​

a)

True

b)

False

7.

Which of the following information is not generally maintained in a supplier informational database?

a)

Supplier’s future technology roadmap

b)

Process capability ratios

c)

Advertising campaign information

d)

Past performance

8.

The (a)   buys from the OEM and resells, therefore incurring a transaction cost, and it must make a profit.

9.

A _____ has had its quality systems extensively audited by the buying firm and are capable of consistently meeting or exceeding the buyer’s quality needs.

a)

Partnered supplier

b)

Disqualified supplier

c)

Certified supplier

d)

None of the above

10.

An in-depth evaluation of all potential supply sources should be conducted for every purchase.

a)

True

b)

False

11.

The _____ the proportion of the final product that suppliers provide, the _____ the impact they will have on overall product cost and quality

a)

smaller….greater

b)

larger….greater

c)

larger….lesser

d)

There is no definitive relationship between proportion of final product provided by suppliers and impact on overall product cost and quality

12.

Which of the following is not one of the eight key principles of total quality management?

a)

Strive for zero defects

b)

Define quality in terms of customers and their requirements

c)

Focus on output rather than process

d)

Make quality everyone’s responsibility

13.

In many respects, the cost of quality should actually be considered as the cost of “poor quality.”

a)

True

b)

False

14.

Inconsistency is the enemy of total quality

a)

True

b)

False

15.

Which of the following is not one of Deming’s 14 points?

a)

Create a vision and demonstrate commitment

b)

Utilize fear to motive workers

c)

Improve constantly and forever

d)

Remove barriers to pride in workmanship

16.

Supplier performance that is sufficient today should be competitive in the marketplace of tomorrow

a)

True

b)

False

17.

The _____ is a normalization factor for the supplier performance index (SPI) that eliminates high-dollar lot bias.

a)

Cp

b)

MRO

c)

Q adjustment factor

d)

Cpk

18.

_____ is the process of identifying how many and which suppliers a buyer will maintain

a)

Supply base optimization

b)

Six Sigma

c)

Zero defects

d)

Supply base rationalization

19.

All of the following are possible risks of maintaining fewer suppliers except _____.

a)

Maintaining an all-foreign supply base

b)

Supply disruption

c)

Absence of competition

d)

Overaggressive supply reduction

20.

In (a)   , a buyer selects or develops suppliers with multiple or redundant capabilities.

21.

Buyers are never reluctant to shift business from domestic sources to unknown offshore sources

a)

True

b)

False

22.

Trade shows are often one of the worst ways to gather information on many suppliers at one time

a)

True

b)

False

23.

_____ relates to a commercial purchase transaction between a buyer and a supplier located in different countries.

a)

Global sourcing

b)

Re-shoring

c)

International purchasing

d)

None of the above

24.

(a)   is the sum of the understandings that govern human interaction in a society.

25.

According to the CISG, a/an _____ is one of the countries that have ratified the treaty.

a)

​Independent commonwealth

b)

Trading block

c)

The CISG is no longer in force

d)

Contracting state