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Sourcing and Procurement Multiple Choice Questions

Total questions: 61

Worksheet time: 31mins

Name
Class
Date
1.

A company expands into Asia and faces new tariffs and longer shipping lead times. This is an example of:

a)

Network stability

b)

Drivers for updating network design

c)

Supplier consolidation

d)

Economies of scale

2.

Which factor most directly affects both responsiveness and cost when locating distribution centers?

a)

Proximity to customers

b)

Brand equity in local markets

c)

Employee dress code

d)

Social media reach

3.

Labor availability, transportation access, and tariff structures are all examples of:

a)

Major distribution center location factors

b)

Short-term sourcing tactics

c)

Commodity pricing forces

d)

Negotiation prep techniques

4.

Which fulfillment model requires products to be stocked before demand is known?

a)

ETO

b)

BTO

c)

ATO

d)

MTS

5.

Which fulfillment strategy balances speed and limited customization, such as cars or PCs?

a)

ETO

b)

MTS

c)

ATO

d)

BTO

6.

Producing custom yachts that require several months would most likely use:

a)

MTS

b)

ATO

c)

BTO

d)

ETO

7.

Engineering a one-of-a-kind bridge would be classified under:

a)

MTS

b)

ATO

c)

BTO

d)

ETO

8.

A business chooses only one supplier for a specialized robotic arm. This reflects:

a)

Multiple sourcing

b)

Domestic sourcing

c)

Single sourcing

d)

Joint sourcing

9.

Buying grain from suppliers in multiple countries is an example of:

a)

Single sourcing

b)

Multiple/global sourcing

c)

Domestic sourcing

d)

Nearshoring

10.

Which of the following BEST captures the difference between strategic sourcing and tactical purchasing?

a)

A. Tactical emphasizes speed, strategic emphasizes long-term value

b)

B. Tactical focuses on innovation, strategic ignores it

c)

C. Strategic always means lowest cost, tactical is about quality

d)

D. Strategic has no relation to corporate goals

11.

A company that only focuses on lowest upfront price violates which sourcing principle?

a)

Aligning sourcing with corporate strategy

b)

Building long-term relationships

c)

Total cost of ownership focus

d)

All of the above

12.

Which supplier selection factor MOST directly influences customer delivery performance?

a)

Supplier’s marketing campaigns

b)

Supplier’s delivery reliability

c)

Supplier’s office location décor

d)

Supplier’s website quality

13.

Which is a clear advantage of e-procurement systems?

a)

Higher face-to-face interaction

b)

Increased paperwork

c)

Lower operating costs and faster cycle times

d)

Less control over spending

14.

Which risk grows when firms adopt e-procurement?

a)

Increased supplier pool

b)

Cybersecurity vulnerabilities

c)

Faster order cycle times

d)

Better communications

15.

Which pricing source depends directly on supply and demand for raw materials?

a)

Negotiation

b)

Price lists

c)

Commodity markets

d)

Price quotations

16.

Which negotiation strategy is best for short-term, one-off, price-driven transactions?

a)

Competing

b)

Collaborating

c)

Accommodating

d)

Avoiding

17.

A company co-developing a new product with a supplier is most likely using which strategy?

a)

Competing

b)

Compromising

c)

Collaborating

d)

Avoiding

18.

Which strategy is most appropriate when the issue is minor and conflict is not worth the cost?

a)

Avoiding

b)

Competing

c)

Compromising

d)

Accommodating

19.

A supplier and buyer split the shipping costs evenly to reach agreement. This reflects:

a)

Compromising

b)

Accommodating

c)

Collaborating

d)

Avoiding

20.

Extending extra time for payment to preserve the supplier relationship is an example of:

a)

Competing

b)

Accommodating

c)

Collaborating

d)

Avoiding

21.

Preparation is considered critical in negotiation because:

a)

it allows negotiators to understand their goals and strategies.

b)

it guarantees a win in every negotiation.

c)

it eliminates the need for communication skills.

d)

it makes the process unnecessary.

22.

75% of negotiation outcomes depend on it

a)

75% of negotiation outcomes depend on it

b)

It eliminates the need for BATNA

c)

It prevents suppliers from preparing

d)

It guarantees cost savings

23.

BATNA provides:

a)

A guaranteed deal if the main negotiation fails

b)

A backup alternative that strengthens your leverage

c)

The lowest acceptable price in every negotiation

d)

The final signed agreement

24.

Choosing between efficiency (centralized) and responsiveness (regional) facilities reflects which trade-off?

a)

Make vs Buy

b)

Responsiveness vs Efficiency

c)

Production vs Sourcing

d)

Cost vs Innovation

25.

A company debating whether to outsource or make in-house is deciding on:

a)

Responsiveness vs Efficiency

b)

Make vs Buy

c)

Volume vs Variety

d)

Quality vs Flexibility

26.

Which fulfillment model is fastest but offers zero customization?

a)

ETO

b)

BTO

c)

ATO

d)

MTS

27.

The MAIN reason KPIs are important in supply chain management is:

a)

They help measure and improve performance.

b)

They increase the number of suppliers.

c)

They eliminate the need for communication.

d)

They guarantee zero errors in delivery.

28.

Which of the following is a benefit of using KPIs?

a)

They align operations with corporate goals

b)

They replace accounting systems

c)

They guarantee supplier loyalty

d)

They automatically improve profits

29.

Which KPI category would measure innovation in new product launches?

a)

Compliance

b)

Flexibility & Innovation

c)

Customer responsiveness

d)

Maintenance

30.

Which is a common pitfall when designing KPIs?

a)

Measuring delivery reliability

b)

Encouraging wrong behaviors with poorly chosen metrics

c)

Keeping the number of KPIs to 5–6 per function

d)

Aligning metrics with strategy

31.

Rent and salaries are considered:

a)

Fixed costs

b)

Variable costs

c)

Flexible costs

d)

Marginal costs

32.

Relocating production to a lower-cost overseas facility is known as:

a)

Domestic sourcing

b)

Offshoring

c)

Insourcing

d)

Supplier consolidation

33.

What is a major factor in distribution center location?

a)

Proximity to customers

b)

Cost of labor

c)

Tax incentives

d)

Climate

34.

Which of the following is a major distribution center location factor?

a)

Proximity to customers

b)

Cost of labor

c)

Tax incentives

d)

Climate

35.

Which production strategy is represented by the acronym MTS?

a)

Make to Order

b)

Engineer to Order

c)

Assemble to Order

d)

Make to Stock

36.

Which production strategy is represented by the acronym ATO?

a)

Make to Stock

b)

Engineer to Order

c)

Assemble to Order

d)

Build to Order

37.

Which production strategy is represented by the acronym BTO?

a)

Make to Stock

b)

Engineer to Order

c)

Build to Order

d)

Assemble to Order

38.

Which production strategy is represented by the acronym ETO?

a)

Make to Stock

b)

Build to Order

c)

Assemble to Order

d)

Engineer to Order

39.

What is the sourcing strategy where a company uses only one supplier?

a)

Multiple sourcing

b)

Global sourcing

c)

Single sourcing

d)

Local sourcing

40.

What is the sourcing strategy where a company uses suppliers from multiple or global sources?

a)

Single sourcing

b)

Multiple/global sourcing

c)

Local sourcing

d)

Tactical sourcing

41.

What is the difference between tactical and strategic sourcing?

a)

Tactical = speed, Strategic = long-term value

b)

Tactical = cost, Strategic = quality

c)

Tactical = local, Strategic = global

d)

Tactical = short-term, Strategic = price

42.

Which of the following includes all the options?

a)

Single sourcing

b)

Multiple sourcing

c)

Global sourcing

d)

All of the above

43.

Which of the following is a key factor in supplier selection?

a)

Price

b)

Supplier’s delivery reliability

c)

Location

d)

Size

44.

Which of the following is a benefit of supply chain integration?

a)

Higher costs

b)

Longer cycle times

c)

Lower operating costs and faster cycle times

d)

Increased complexity

45.

Which of the following is a risk in supply chain management?

a)

Supplier reliability

b)

Cybersecurity vulnerabilities

c)

Lower costs

d)

Faster cycle times

46.

Which of the following is an example of a market type in supply chain?

a)

Retail markets

b)

Service markets

c)

Commodity markets

d)

Niche markets

47.

Which of the following is a competitive strategy in supply chain management?

a)

Competing

b)

Sourcing

c)

Collaborating

d)

Integrating

48.

Which of the following is a collaborative strategy in supply chain management?

a)

Competing

b)

Sourcing

c)

Collaborating

d)

Integrating

49.

Fill in the blank: ___ – Avoiding

a)

A

b)

B

c)

C

d)

D

50.

Fill in the blank: ___ – Compromising

a)

A

b)

B

c)

C

d)

D

51.

Fill in the blank: ___ – Accommodating

a)

B

b)

A

c)

C

d)

D

52.

Fill in the blank: ___ – 75% of negotiation outcomes depend on it

a)

A

b)

B

c)

C

d)

D

53.

Fill in the blank: ___ – A backup alternative that strengthens your leverage

a)

B

b)

A

c)

C

d)

D

54.

Fill in the blank: ___ – Responsiveness vs Efficiency

a)

B

b)

A

c)

C

d)

D

55.

Fill in the blank: ___ – Make vs Buy

a)

B

b)

A

c)

C

d)

D

56.

Fill in the blank: ___ – MTS

a)

D

b)

A

c)

B

d)

C

57.

Fill in the blank: ___ – Align operations with corporate goals

a)

A

b)

B

c)

C

d)

D

58.

Fill in the blank: ___ – Flexibility & Innovation

a)

B

b)

A

c)

C

d)

D

59.

Fill in the blank: ___ – Encouraging wrong behaviors with poorly chosen metrics

a)

B

b)

A

c)

C

d)

D

60.

Fill in the blank: ___ – Fixed costs

a)

A

b)

B

c)

C

d)

D

61.

Fill in the blank: ___ – Offshoring

a)

B

b)

A

c)

C

d)

D