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WorksheetsSourcing and Procurement Multiple Choice Questions
Total questions: 61
Worksheet time: 31mins
A company expands into Asia and faces new tariffs and longer shipping lead times. This is an example of:
Network stability
Drivers for updating network design
Supplier consolidation
Economies of scale
Which factor most directly affects both responsiveness and cost when locating distribution centers?
Proximity to customers
Brand equity in local markets
Employee dress code
Social media reach
Labor availability, transportation access, and tariff structures are all examples of:
Major distribution center location factors
Short-term sourcing tactics
Commodity pricing forces
Negotiation prep techniques
Which fulfillment model requires products to be stocked before demand is known?
ETO
BTO
ATO
MTS
Which fulfillment strategy balances speed and limited customization, such as cars or PCs?
ETO
MTS
ATO
BTO
Producing custom yachts that require several months would most likely use:
MTS
ATO
BTO
ETO
Engineering a one-of-a-kind bridge would be classified under:
MTS
ATO
BTO
ETO
A business chooses only one supplier for a specialized robotic arm. This reflects:
Multiple sourcing
Domestic sourcing
Single sourcing
Joint sourcing
Buying grain from suppliers in multiple countries is an example of:
Single sourcing
Multiple/global sourcing
Domestic sourcing
Nearshoring
Which of the following BEST captures the difference between strategic sourcing and tactical purchasing?
A. Tactical emphasizes speed, strategic emphasizes long-term value
B. Tactical focuses on innovation, strategic ignores it
C. Strategic always means lowest cost, tactical is about quality
D. Strategic has no relation to corporate goals
A company that only focuses on lowest upfront price violates which sourcing principle?
Aligning sourcing with corporate strategy
Building long-term relationships
Total cost of ownership focus
All of the above
Which supplier selection factor MOST directly influences customer delivery performance?
Supplier’s marketing campaigns
Supplier’s delivery reliability
Supplier’s office location décor
Supplier’s website quality
Which is a clear advantage of e-procurement systems?
Higher face-to-face interaction
Increased paperwork
Lower operating costs and faster cycle times
Less control over spending
Which risk grows when firms adopt e-procurement?
Increased supplier pool
Cybersecurity vulnerabilities
Faster order cycle times
Better communications
Which pricing source depends directly on supply and demand for raw materials?
Negotiation
Price lists
Commodity markets
Price quotations
Which negotiation strategy is best for short-term, one-off, price-driven transactions?
Competing
Collaborating
Accommodating
Avoiding
A company co-developing a new product with a supplier is most likely using which strategy?
Competing
Compromising
Collaborating
Avoiding
Which strategy is most appropriate when the issue is minor and conflict is not worth the cost?
Avoiding
Competing
Compromising
Accommodating
A supplier and buyer split the shipping costs evenly to reach agreement. This reflects:
Compromising
Accommodating
Collaborating
Avoiding
Extending extra time for payment to preserve the supplier relationship is an example of:
Competing
Accommodating
Collaborating
Avoiding
Preparation is considered critical in negotiation because:
it allows negotiators to understand their goals and strategies.
it guarantees a win in every negotiation.
it eliminates the need for communication skills.
it makes the process unnecessary.
75% of negotiation outcomes depend on it
75% of negotiation outcomes depend on it
It eliminates the need for BATNA
It prevents suppliers from preparing
It guarantees cost savings
BATNA provides:
A guaranteed deal if the main negotiation fails
A backup alternative that strengthens your leverage
The lowest acceptable price in every negotiation
The final signed agreement
Choosing between efficiency (centralized) and responsiveness (regional) facilities reflects which trade-off?
Make vs Buy
Responsiveness vs Efficiency
Production vs Sourcing
Cost vs Innovation
A company debating whether to outsource or make in-house is deciding on:
Responsiveness vs Efficiency
Make vs Buy
Volume vs Variety
Quality vs Flexibility
Which fulfillment model is fastest but offers zero customization?
ETO
BTO
ATO
MTS
The MAIN reason KPIs are important in supply chain management is:
They help measure and improve performance.
They increase the number of suppliers.
They eliminate the need for communication.
They guarantee zero errors in delivery.
Which of the following is a benefit of using KPIs?
They align operations with corporate goals
They replace accounting systems
They guarantee supplier loyalty
They automatically improve profits
Which KPI category would measure innovation in new product launches?
Compliance
Flexibility & Innovation
Customer responsiveness
Maintenance
Which is a common pitfall when designing KPIs?
Measuring delivery reliability
Encouraging wrong behaviors with poorly chosen metrics
Keeping the number of KPIs to 5–6 per function
Aligning metrics with strategy
Rent and salaries are considered:
Fixed costs
Variable costs
Flexible costs
Marginal costs
Relocating production to a lower-cost overseas facility is known as:
Domestic sourcing
Offshoring
Insourcing
Supplier consolidation
What is a major factor in distribution center location?
Proximity to customers
Cost of labor
Tax incentives
Climate
Which of the following is a major distribution center location factor?
Proximity to customers
Cost of labor
Tax incentives
Climate
Which production strategy is represented by the acronym MTS?
Make to Order
Engineer to Order
Assemble to Order
Make to Stock
Which production strategy is represented by the acronym ATO?
Make to Stock
Engineer to Order
Assemble to Order
Build to Order
Which production strategy is represented by the acronym BTO?
Make to Stock
Engineer to Order
Build to Order
Assemble to Order
Which production strategy is represented by the acronym ETO?
Make to Stock
Build to Order
Assemble to Order
Engineer to Order
What is the sourcing strategy where a company uses only one supplier?
Multiple sourcing
Global sourcing
Single sourcing
Local sourcing
What is the sourcing strategy where a company uses suppliers from multiple or global sources?
Single sourcing
Multiple/global sourcing
Local sourcing
Tactical sourcing
What is the difference between tactical and strategic sourcing?
Tactical = speed, Strategic = long-term value
Tactical = cost, Strategic = quality
Tactical = local, Strategic = global
Tactical = short-term, Strategic = price
Which of the following includes all the options?
Single sourcing
Multiple sourcing
Global sourcing
All of the above
Which of the following is a key factor in supplier selection?
Price
Supplier’s delivery reliability
Location
Size
Which of the following is a benefit of supply chain integration?
Higher costs
Longer cycle times
Lower operating costs and faster cycle times
Increased complexity
Which of the following is a risk in supply chain management?
Supplier reliability
Cybersecurity vulnerabilities
Lower costs
Faster cycle times
Which of the following is an example of a market type in supply chain?
Retail markets
Service markets
Commodity markets
Niche markets
Which of the following is a competitive strategy in supply chain management?
Competing
Sourcing
Collaborating
Integrating
Which of the following is a collaborative strategy in supply chain management?
Competing
Sourcing
Collaborating
Integrating
Fill in the blank: ___ – Avoiding
A
B
C
D
Fill in the blank: ___ – Compromising
A
B
C
D
Fill in the blank: ___ – Accommodating
B
A
C
D
Fill in the blank: ___ – 75% of negotiation outcomes depend on it
A
B
C
D
Fill in the blank: ___ – A backup alternative that strengthens your leverage
B
A
C
D
Fill in the blank: ___ – Responsiveness vs Efficiency
B
A
C
D
Fill in the blank: ___ – Make vs Buy
B
A
C
D
Fill in the blank: ___ – MTS
D
A
B
C
Fill in the blank: ___ – Align operations with corporate goals
A
B
C
D
Fill in the blank: ___ – Flexibility & Innovation
B
A
C
D
Fill in the blank: ___ – Encouraging wrong behaviors with poorly chosen metrics
B
A
C
D
Fill in the blank: ___ – Fixed costs
A
B
C
D
Fill in the blank: ___ – Offshoring
B
A
C
D
