International Purchasing Test Preparation
Course Introduction
International Purchasing explores the strategies and practices involved in procuring goods and services from global suppliers. The course examines the complexities of international sourcing, including supplier selection, negotiation, legal and ethical considerations, cultural influences, risk management, quality assurance, and logistics. Students will analyze real-world case studies to understand the impact of currency fluctuations, trade regulations, and technological advancements on the international supply chain, preparing them to make informed decisions in a global business environment.
Recommended Textbook
Purchasing and Supply Chain Management 5th Edition by Robert M. Monczka
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20 Chapters
1411 Verified Questions
1411 Flashcards
Source URL: https://quizplus.com/study-set/3207
Page 2
Chapter 1: Introduction to Purchasing and Supply Chain Management
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46 Verified Questions
46 Flashcards
Source URL: https://quizplus.com/quiz/63491
Sample Questions
Q1) ____ helps ensure that customers receive material when and where they require it.
A) Order processing
B) Inbound transportation
C) Customer service
D) Scheduling
E) Inventory control
Answer: A
Q2) All of the following are typical processes involved in supply chain management except ____.
A) new product development
B) customer-order fulfillment
C) supplier evaluation and selection
D) demand and supply planning
E) cash flow management
Answer: E
Q3) According to Porter,a value chain is a subset of the supply chain.
A)True
B)False
Answer: False
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Chapter 2: The Purchasing Process
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77 Verified Questions
77 Flashcards
Source URL: https://quizplus.com/quiz/63480
Sample Questions
Q1) Good reasons for allowing other departments to view purchase orders and incoming receipts does not include which of the following?
A) The accounting department gains visibility to future accounts payable obligations.
B) The requestor can refer to the purchase order number when inquiring into the status of an order.
C) Receiving has a record of the order to match against the receipt of the material.
D) Traffic becomes aware of inbound delivery requirements and can make arrangements with carriers or use the company's own vehicles to schedule material delivery.
E) There is never a good reason for purchasing to allow other departments access to purchase orders and incoming receipts due to the confidential nature of the price and delivery terms.
Answer: E
Q2) Almost all firms establish blanket purchase orders with their suppliers. A)True
B)False
Answer: True
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Chapter 3: Purchasing Policy and Procedures
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28 Verified Questions
28 Flashcards
Source URL: https://quizplus.com/quiz/63478
Sample Questions
Q1) ____ refer(s)to the set of purposes,principles,and rules of action that guide an organization.
A) Government regulations
B) Procedures
C) Guidelines
D) Work rules
E) Policy
Answer: E
Q2) ____ refer(s)to standard operating procedures along with any rules and regulations.
A) Union contracts
B) Rules of action
C) Government regulations
D) Policy
E) OSHA rules
Answer: B
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Chapter 4: Supply Management Integration for Competitive Advantage
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66 Verified Questions
66 Flashcards
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Sample Questions
Q1) Which of the following is not an example of an appropriate use of a cross-functional team?
A) New product development.
B) Preparing a RFQ for a routine commodity product.
C) Locating a new production or distribution facility.
D) Developing a commodity or purchase family strategy.
E) Establishing a new business unit.
Q2) If given the opportunity,suppliers seldom have a major impact on the overall timing and success of a new product.
A)True
B)False
Q3) ____ occurs when a team does not complete its task in the best or most efficient manner or members are not motivated to employ their resources to create a successful outcome.
A) Groupthink
B) KPI
C) Collaboration
D) Process loss
E) Synergy
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Chapter 5: Purchasing and Supply Management Organization
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71 Verified Questions
71 Flashcards
Source URL: https://quizplus.com/quiz/63476
Sample Questions
Q1) The ____ function monitors the day-to-day management of purchased and in-process inventory at each using location.
A) inventory control
B) buying
C) material handling
D) expediting
E) transportation
Q2) ____ focus on the company and industry future by managing total cost,enhancing value,and minimizing risks whereas ____ focus more on the day-to-day challenges required to meet the organization's current needs.
A) Tactically-oriented buyers....strategically-oriented buyers
B) Strategically-oriented buyers....tactically-oriented buyers
C) Specialized buyers....general buyers
D) General buyers....specialized buyers
E) There is no difference between buyers.
Q3) The advantage of center-led organizations is their ability to garner savings on common purchases yet allow local purchasing decisions on unique items.
A)True
B)False
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Chapter 6: Supply Management and Commodity Strategy Development
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74 Verified Questions
74 Flashcards
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Sample Questions
Q1) Which of the following is true regarding Phase 4,Fully Integrated Supply Chains,of supply management strategy development?
A) The only impetus for change is the demand for change by management.
B) Non-value-added activities such as purchase order follow-up and expediting have been automated.
C) Limited cross-functional integration is occurring.
D) Purchasers begin to pursue strategic supplier relationships that focus on customer needs and the organization's competitive advantage.
E) Execution of supply management strategy takes place primarily at the business unit or local level.
Q2) The strategic sourcing process ends when a contract is signed with a supplier.
A)True
B)False
Q3) The problem with secondary data is that they are often outdated and may not provide the specific information for which the sourcing team is looking.
A)True
B)False
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Page 8
Chapter 7: Supplier Evaluation and Selection
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68 Verified Questions
68 Flashcards
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Sample Questions
Q1) A buyer has no greater influence even though it has a relative size advantage over the supplier or represents a larger share of the supplier's total business.
A)True
B)False
Q2) Progressive firms are working to increase the length of their purchase contracts.
A)True
B)False
Q3) A major source of information on potential supply sources comes from current or existing suppliers.
A)True
B)False
Q4) Most purchasers fail to perform at least a cursory financial analysis of prospective suppliers.
A)True
B)False
Q5) Suppliers seldom use trade journals to advertise their products or services.
A)True
B)False
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Chapter 8: Supplier Quality Management
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94 Verified Questions
94 Flashcards
Source URL: https://quizplus.com/quiz/63473
Sample Questions
Q1) In recent years,the concept of quality has changed radically from meeting customer requirements or expectations to exceeding them.
A)True
B)False
Q2) Supplier certification applies only to entire companies or finished products,rather than a specific part,process,or site.
A)True
B)False
Q3) Which of the following is one of the dimensions used in developing a clear understanding of the buyer's expectations and requirements?
A) The ability of the buying company to succinctly identify, clearly define, quantify, or specify its technical and sourcing requirements.
B) The seller's ability to effectively communicate its requirements.
C) How compatible the buyer's and supplier's respective corporate cultures are.
D) The ability of the selling company to succinctly identify, clearly define, quantify, or specify its technical and sourcing requirements.
E) None of these choices.
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Chapter 9: Supplier Management and Development:
Creating a World-Class Supply Base
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84 Verified Questions
84 Flashcards
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Sample Questions
Q1) 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-domestic supply base
E) absence of competition
Q2) Which of the following is not one of the elements of financial risk in a supply base?
A) Inventory carrying costs.
B) Currency exchange rates.
C) INCOTERMS
D) Hard vs. soft currencies.
E) Legal systems.
Q3) A buyer may delay reporting a supplier's poor performance until the next annual performance review.
A)True
B)False
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Chapter 10: Worldwide Sourcing
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76 Verified Questions
76 Flashcards
Source URL: https://quizplus.com/quiz/63490
Sample Questions
Q1) Which of the following is not an element of culture?
A) Language.
B) Religion.
C) Values and attitudes.
D) Currency.
E) Social institutions.
Q2) What is an illegal activity in the U.S.is never an accepted business practice in many other regions.
A)True
B)False
Q3) ____ requires a selling firm to purchase a specified amount of goods from the country that purchased its products.
A) Switch trading
B) Barter
C) Compensation trading
D) Counterpurchase
E) Buy-back
Q4) The use of forward exchange contracts encourages speculation.
A)True
B)False
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Chapter 11: Strategic Cost Management
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75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/63489
Sample Questions
Q1) Traditional pricing practices have supported cooperative efforts to make design,product,and process improvements with suppliers.
A)True B)False
Q2) Price analysis focuses simply on a seller's price with little or no consideration given to the actual cost of production.
A)True B)False
Q3) Identification of all costs provides the basis for establishing joint improvement targets.
A)True
B)False
Q4) Examples of monopolies in the United States include the steel,automobile,and appliance industries.
A)True B)False
Q5) The main risk in target and cost-based pricing concerns volume variability. A)True B)False
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Chapter 12: Purchasing and Supply Chain Analysis: Tools and Techniques
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51 Verified Questions
51 Flashcards
Source URL: https://quizplus.com/quiz/63488
Sample Questions
Q1) There is a strong correlation between effective planning and successful project outcomes.
A)True
B)False
Q2) [A/An] ____ establishes the rate of improvement due to learning as producers realize direct-labor cost improvements as production volumes increase.
A) leverage
B) learning curve
C) knowledge curve
D) product life cycle
E) short-term contract
Q3) In a PERT network,a/an ____ is the latest point in time an activity can begin without delaying the entire project.
A) late start
B) late finish
C) early start
D) early finish
E) on time finish
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Chapter 13: Negotiation and Conflict Management
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97 Verified Questions
97 Flashcards
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Sample Questions
Q1) People seldom show the tendency to fill in the gaps when a discussion encounters silence.
A)True
B)False
Q2) A win-lose negotiation approach works best for items or services that are important to the buyer's products or business or when the item involves high-dollar items or services where cost control is critical.
A)True
B)False
Q3) According to Cialdini,____ is a principle that states that we work well and are more agreeable with people we like or who are like us.
A) Boulwarism
B) liking
C) authority
D) reciprocation
E) consistency
Q4) Deciding where to negotiate is an unimportant part of the planning process.
A)True
B)False
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Chapter 14: Contract Management
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92 Verified Questions
92 Flashcards
Source URL: https://quizplus.com/quiz/63486
Sample Questions
Q1) In the ____ approach to a systems supplier's level of service,the service provider and the client company share resources and operational control over the outsourced service.
A) shared
B) commonality
C) evergreen
D) modular
E) turnkey
Q2) Even when there is no contract,most transactions are covered by a "gap filler" known as the Uniform Commercial Code.
A)True
B)False
Q3) In a systems outsourcing situation,acceptance test criteria can only be determined after issuing the contract as actual operating conditions cannot be specified until the system is fully operational.
A)True
B)False
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Chapter 15: Purchasing Law and Ethics
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97 Verified Questions
97 Flashcards
Source URL: https://quizplus.com/quiz/63485
Sample Questions
Q1) ____ is the idea that organizations and institutions have an obligation to society that extends beyond compliance with regulations in considering the broader effects of their actions.
A) Ethics
B) Influence
C) Corporate social responsibility
D) Mutual assent
E) Warranty of infringement
Q2) Copyright is automatically assumed.
A)True
B)False
Q3) ____ is money the plaintiff lost because he or she was relying on the contract,depending on the defendant to live up to his/her obligations under the contract.
A) Expectancy
B) Restitution
C) Due diligence
D) Mutual assent
E) Reliance
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Page 17
Chapter 16: Lean Supply Chain Management
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72 Verified Questions
72 Flashcards
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Sample Questions
Q1) From the financial accounting perspective,inventory has historically been considered a current asset.
A)True
B)False
Q2) ____ represents the funds committed to operating a business,including the purchase and holding of inventory.
A) Pipeline inventory
B) WIP
C) MRO
D) Working capital
E) None of these choices.
Q3) Which of the following is not one of the functions of a distribution resource planning system?
A) Forecasting finished-goods inventory requirements.
B) Establishing correct inventory levels at each stocking location.
C) Determining the timing and replenishment of finished-goods inventories.
D) Producing a time-phased set of material, component, and subassembly requirements timed to support an expected build schedule.
E) Transportation planning and vehicle load scheduling.
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Page 18
Chapter 17: Purchasing Services
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93 Verified Questions
93 Flashcards
Source URL: https://quizplus.com/quiz/63483
Sample Questions
Q1) A two-day shipment by truck can often take a week or more by rail due to the extra handling involved.
A)True
B)False
Q2) Which of the following is not one of the major transportation service linkages throughout a typical supply chain?
A) Production planning.
B) Inbound logistics.
C) Intraorganizational movements.
D) Outbound logistics.
E) Recovery and recycling.
Q3) If indirect spend is to be leveraged,supply management must have a clear understanding of exactly what indirect goods and services are being purchased by individual SBUs.
A)True
B)False
Q4) Use of a pipeline is usually part of the decision tradeoff between transportation modes.
A)True
B)False
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Chapter 18: Supply Chain Information Systems and Electronic Sourcing
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57 Verified Questions
57 Flashcards
Source URL: https://quizplus.com/quiz/63482
Sample Questions
Q1) When it comes time to create an information system around business processes,few companies discover that they must also reengineer or change those business processes before they can build an information system around them.
A)True
B)False
Q2) A ____ is an independent firm that neither buys nor sells goods but seeks to facilitate the electronic purchasing process through value enhancement.
A) strategic alliance
B) partnership
C) third-party marketplace
D) 3PL
E) None of these choices.
Q3) EDI is a highly interactive communications medium.
A)True
B)False
Q4) Data held in data warehouses are time-dependent,historical data; they may also be aggregated.
A)True
B)False
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Chapter 19: Performance Measurement and Evaluation
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58 Verified Questions
58 Flashcards
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Sample Questions
Q1) A single,overall productivity measure representing purchasing and supply chain performance is feasible.
A)True
B)False
Q2) ____ refers to the relationship between planned and actual sacrifices made to realize a previously agreed-upon goal.
A) Strategic benchmarking
B) Effectiveness
C) Efficiency
D) Operational benchmarking
E) None of these choices.
Q3) A very serious problem in measurement is that the data that managers pay attention to are often the wrong data.
A)True
B)False
Q4) Few measures include a standard or target against which to evaluate performance results or outcomes.
A)True
B)False
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Chapter 20: Purchasing and Supply Strategy Trends
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35 Verified Questions
35 Flashcards
Source URL: https://quizplus.com/quiz/63479
Sample Questions
Q1) Supply management will decreasingly need both broader general business knowledge and multidiscipline skills.
A)True
B)False
Q2) Which of the following is a question that companies will need to ask strategically to most effectively structure the supply base for each of their purchase category families?
A) How many suppliers do we want for this category (and in the supply base), and what role should each play?
B) What current and future capabilities are required, and where in the world should the supplier(s) be located?
C) Do we want to lead and/or manage supplier networks at the Tier 2 and Tier 3 levels?
D) All of these choices.
E) None of these choices.
Q3) The supply management leader will act as the chief cost-management officer.
A)True
B)False
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