International Purchasing Final Exam Questions
Course Introduction
International Purchasing explores the strategies, processes, and challenges involved in sourcing goods and services from global suppliers. The course covers key topics such as supplier selection, negotiation tactics, contract management, quality assurance, risk assessment, and the impact of cultural, legal, and ethical considerations on purchasing decisions. Students also examine the dynamics of global supply chains, cost management, and the role of technology in facilitating international procurement. Through case studies and practical examples, the course emphasizes decision-making skills needed to optimize purchasing activities in a globalized marketplace.
Recommended Textbook
Purchasing and Supply Chain Management 6th Edition by Robert M. Monczka
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20 Chapters
1518 Verified Questions
1518 Flashcards
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Page 2
Chapter 1: Introduction to Purchasing and Supply Chain Management
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46 Verified Questions
46 Flashcards
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Sample Questions
Q1) Sophisticated customers, both industrial and consumer, no longer talk about price increases - they demand price reductions!
A)True
B)False
Answer: True
Q2) Cost management is no longer an integral part of purchasing and supply chain management.
A)True
B)False Answer: False
Q3) Distribution management involves the management of packaging, storing, and handling of materials at receiving docks, warehouses, and retail outlets.
A)True
B)False Answer: True
Q4) Global sourcing is a requirement and no longer a luxury for most firms.
A)True
B)False
Answer: True
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Chapter 2: The Purchasing Process
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79 Flashcards
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Sample Questions
Q1) _____ can cover such characteristics as the materials used, the manufacturing or service steps required, and even the physical dimensions of the product.
A) Description by market grade
B) Description by specification
C) Description by brand
D) Description by industry standard
E) Description by performance characteristics
Answer: B
Q2) A/An _____ has demonstrated its performance capabilities through previous purchase contracts and therefore receives preference during the supplier selection process.
A) internal supplier
B) new supplier
C) capable supplier
D) final supplier
E) preferred supplier
Answer: E
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Page 4
Chapter 3: Purchasing Policy and Procedures
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28 Flashcards
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Sample Questions
Q1) The term _____ refers to the set of purposes, principles, and rules of action that guide an organization.
A) government regulation
B) procedure
C) guideline
D) work rule
E) policy
Answer: E
Q2) Examples of irregular dealings with suppliers include all of the following except _____.
A) accepting bribes from suppliers
B) accepting business lunches before a contract is negotiated
C) accepting late bids
D) owning a stake in a supplier's company
E) cronyism
Answer: B
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Page 5
Chapter 4: Supply Management Integration for Competitive Advantage
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67 Verified Questions
67 Flashcards
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Sample Questions
Q1) Which of the following is not a potential drawback of using a cross-functional sourcing team?
A) Team process loss.
B) Reduced innovation.
C) Negative effects on individual members.
D) Poor team decisions.
E) Groupthink.
Q2) _____ is defined as the process by which two or more parties adopt a high level of purposeful cooperation to maintain a trading relationship over time to achieve specific goals.
A) Supply base management
B) Collaboration
C) KPI
D) Supply integration
E) SRM
Q3) The physical co-location of a supplier engineer at a buying company is increasingly becoming a part of the normal product development process structure.
A)True
B)False
Page 6
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Chapter 5: Purchasing and Supply Management Organization
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73 Flashcards
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Sample Questions
Q1) Decentralized purchasing personnel should gain a greater understanding and appreciation of local operating requirements.
A)True
B)False
Q2) All of the following are advantages of decentralized purchasing except _____.
A) ownership of decisions affecting purchases
B) understanding unique operational requirements
C) speed and responsiveness
D) reduced duplication of purchasing effort
E) new-product development support
Q3) The skills required for a strategic focus are the same as those required for an operational focus.
A)True
B)False
Q4) If the CPO at corporate headquarters has the authority for the majority of the organization's purchases, then the organization maintains a decentralized authority structure.
A)True
B)False
Page 7
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Chapter 6: Category Strategy Development
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80 Verified Questions
80 Flashcards
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Sample Questions
Q1) A preferred supplier designation indicates that the selected supplier should receive the business for a critical commodity under all possible conditions.
A)True
B)False
Q2) Which of the following is not one of the examples of Porter's threat of substitute products and services?
A) Relative performance of substitutes.
B) Relative price of substitutes.
C) Switching costs.
D) Buyer propensity to substitute.
E) Economies of scale.
Q3) Increasing revenues involves either raising prices or keeping prices stable and increasing volume.
A)True
B)False
Q4) After the buyer-supplier relationship has been established, buyers no longer need to track supplier performance over time.
A)True
B)False
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Chapter 7: Supplier Evaluation and Selection
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Sample Questions
Q1) Designation as a preferred supplier means that a supplier consistently satisfies the performance and service standards defined by the buyer and responds to unexpected changes.
A)True
B)False
Q2) Local suppliers are less responsive to the buying firm's changing needs and cannot economically make frequent smaller deliveries.
A)True
B)False
Q3) _____ are more responsive to the buying firm's changing needs and can economically make frequent smaller deliveries.
A) Local suppliers
B) International suppliers
C) Global suppliers
D) National suppliers
E) There is no relationship with the location of the supplier and customer responsiveness.
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Chapter 8: Supplier Quality Management
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Sample Questions
Q1) The lowest purchase price of an item may be important in the short run for supply management but may cause increased costs somewhere else in the production system over the long run: excessive scrap and rework, defective products, greater warranty claims, and so on.
A)True
B)False
Q2) All of the following are examples of external failure costs except _____.
A) warranty costs
B) replacement of defective products to customers
C) liability lawsuits
D) quality planning
E) loss of customer goodwill
Q3) In _____, there is an intense focus on identifying and eliminating common causes of waste that add cost, time, and effort to the product or service while not adding value to the customer.
A) supplier evaluation and selection process
B) the MBNQA
C) SIO 14000:2004
D) the Honda BP process
E) None of the above.
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Chapter 9: Supplier Management and Development:
Creating a World-Class Supply Base
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Sample Questions
Q1) The _____ requires suppliers to successfully navigate a successive series of performance milestones or hurdles in order to remain in the supply base.
A) triage approach
B) competency staircase approach
C) M*A*S*H approach
D) "improve or else" approach
E) twenty/eighty rule
Q2) The remaining suppliers in a rationalized and optimized supply base are seldom capable of performing additional tasks or providing other products and services that add value to the buyer-supplier relationship.
A)True
B)False
Q3) All of the following are possible risks of maintaining fewer suppliers except _____.
A) supplier dependency
B) supply disruption
C) overaggressive supply reduction
D) maintaining an all-foreign supply base
E) absence of competition
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Chapter 10: Worldwide Sourcing
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Sample Questions
Q1) A/An _____ is a secure location approved by the appropriate U.S. Customs and Border Protection (CBP) office.
A) offshore supplier
B) international purchasing office
C) agent
D) offset
E) foreign trade zone
Q2) A FTZ _____ is approved for a specific use or a specific company.
A) general-purpose zone
B) offset zone
C) subzone
D) CISG
E) None of the above.
Q3) Which of the following is not an example of cost differentials that arise between countries?
A) Lower labor rates.
B) Fewer documentation requirements.
C) Possible willingness to accept a lower profit margin.
D) Exchange rate differences.
E) Government subsidies.
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Chapter 11: Strategic Cost Management
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Sample Questions
Q1) With the increased amount of outsourcing occurring in every global company today, the majority of the cost of goods sold is driven by suppliers, which are outside the four walls of an organization.
A)True
B)False
Q2) _____ include(s) all costs incurred when a product, service, or capital equipment reaches the end of its useful life, net of amounts received from the sale of remaining product or the equipment (salvage value).
A) Net present value costs
B) Usage costs
C) Purchase price
D) End-of-life costs
E) Opportunity costs
Q3) Under traditional pricing approaches, product cost + profit = selling price.
A)True
B)False
Q4) Building a TCO model is an easy task.
A)True
B)False
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Chapter 12: Purchasing and Supply Chain Analysis: Tools and Techniques
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67 Verified Questions
67 Flashcards
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Sample Questions
Q1) Value analysis traditionally applies to tangible products, and there are many reasons why companies cannot VA techniques to services.
A)True
B)False
Q2) _____ techniques are primarily applied to existing products and services, while _____ is the application of value principles during product or service design.
A) Value analysis .total cost of ownership
B) Value engineering .price analysis
C) Value analysis .value engineering
D) Price analysis .cost analysis
E) Value engineering .value analysis
Q3) When a process crosses functional boundaries, there is a risk that no one actually owns or takes responsibility for the entire process.
A)True
B)False
Q4) The longest path (in time) through a PERT network is the critical path.
A)True
B)False
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Chapter 13: Negotiation and Conflict Management
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98 Flashcards
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Sample Questions
Q1) A negotiator's _____ can be defined as his or her opening offer, which represents the optimistic (or ideal) value of the issue being negotiated.
A) interest
B) need
C) BATNA
D) position
E) want
Q2) The manner in which a negotiator approaches concession making is an important part of every successful negotiation strategy.
A)True
B)False
Q3) Many negotiators fail to prepare adequately before entering into a formal negotiation oftentimes because of a very short timeframe in which to make a deal.
A)True
B)False
Q4) Everyone negotiates something every day.
A)True
B)False
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Page 15
Chapter 14: Contract Management
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109 Verified Questions
109 Flashcards
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Sample Questions
Q1) A/An _____ is defined as a contract purchase that is routinely made over a relatively limited time horizon, typically one year or less.
A) short-term contract
B) alliance
C) spot contract
D) long-term contract
E) partnership
Q2) An important factor to consider when hiring an outside consultant to perform contract services for a company is that such a person is the purchasing company's employee, not its agent.
A)True
B)False
Q3) _____ is defined as the submission of a disagreement to one or more impartial persons with the understanding that the parties will abide by the decision.
A) Negotiation
B) Arbitration
C) Litigation
D) Mediation
E) Authorization
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Page 16
Chapter 15: Purchasing Law and Ethics
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107 Verified Questions
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Sample Questions
Q1) Copyright is automatically assumed.
A)True
B)False
Q2) When the contract is reduced to writing, the written document itself is the actual contract and not simply hard evidence of the existence of the underlying contractual relationship.
A)True
B)False
Q3) _____ include expenses reasonably incurred in inspection, receipt, transportation, and the care and custody of goods appropriately rejected by the purchaser.
A) General damages
B) Consequential damages
C) Specified damages
D) Freight claims
E) Incidental damages
Q4) The concept of damages in the UCC is based on the remedy of a party being "made whole."
A)True
B)False
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Chapter 16: Lean Supply Chain Management
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Sample Questions
Q1) When firms produce goods in response to a customer order, they are operating in a/an _____ environment.
A) make-to-order
B) make-to-stock
C) make-to-forecast
D) WIP
E) None of the above.
Q2) It is often difficult to quantify the total costs associated with ordering and carrying physical inventory.
A)True
B)False
Q3) Lean is an easy approach to implement.
A)True
B)False
Q4) Decisions in lean must be based on the opinions or preferences of influential individuals, as well as on facts and data.
A)True
B)False
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Page 18
Chapter 17: Purchasing Services
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Sample Questions
Q1) Which of the following is not a disadvantage of using a 3PL?
A) Relinquish control, ownership, and expertise.
B) Loss of integration between sales and supply.
C) Loss of dedicated in-house managed staff
D) Concentrate on core business activities.
E) Sacrifice key business service differentiation.
Q2) Air carriers haul the most amount of commercial freight because of their inherent speed advantages.
A)True
B)False
Q3) The use of 3PLs is increasingly becoming a viable option for smaller shippers and infrequent shipments
A)True
B)False
Q4) A preferred supplier list database should be set up to generate a list of preferred suppliers based on previous project performance criteria.
A)True
B)False
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Chapter 18: Supply Chain Information Systems and Electronic Sourcing
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Sample Questions
Q1) At the most basic level, information flows record and retrieve critical data, then execute and control physical and monetary flows, and are referred to as _____.
A) Internet-based information technology
B) EDI
C) strategic decision making
D) DSSs
E) transaction processing
Q2) A _____ system is often used to search for patterns or relationships in the data.
A) routine decision making
B) strategic decision making
C) transaction processing
D) decision support
E) None of the above.
Q3) A set of SRM sourcing modules acts as an interactive system designed to support purchasing managers in making effective decisions concerning supplier selection, contract management, contract compliance, and so on.
A)True
B)False
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Chapter 19: Performance Measurement and Evaluation
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Sample Questions
Q1) The measurement system should rely on quantitative data instead of qualitative feelings and assessments.
A)True
B)False
Q2) Having too little data is the most common problem an organization has with its measurement system.
A)True
B)False
Q3) Purchase price versus market index measures are least appropriate for market-based products where pricing is primarily a function of supply and demand.
A)True
B)False
Q4) A single, overall productivity measure representing purchasing and supply chain performance is feasible.
A)True
B)False
Q5) Well-defined measures use data that are available and accurate.
A)True
B)False
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Chapter 20: Purchasing and Supply Strategy Trends
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Sample Questions
Q1) Outsourcing will likely continue, although firms will be carefully examining and sometimes rebalancing their insourcing/outsourcing patterns.
A)True
B)False
Q2) Wall Street recognizes and rewards firms that achieve higher return-on-investment.
A)True
B)False
Q3) Strong hard-side skills, such as a collaborative working style, innovative supply approaches and leadership abilities versus a narrow process view, will be necessary to lead supply efforts and achieve results.
A)True
B)False
Q4) Category strategies will become less complex, requiring only internal and functional executive engagement, including review and approval.
A)True
B)False
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Page 22