Materials Management
Final Exam Questions
Course Introduction
Materials Management is a comprehensive course focused on the efficient planning, procurement, control, and distribution of materials within manufacturing and service organizations. The curriculum covers essential topics such as inventory management, purchasing processes, supplier relationship management, warehousing, logistics, and the implementation of modern technologies like Just-In-Time (JIT) and Enterprise Resource Planning (ERP) systems. Emphasis is placed on optimizing resource utilization, minimizing costs, and ensuring timely availability of materials to support organizational goals. Through case studies and practical exercises, students develop analytical skills and strategies for effective materials management in dynamic business environments.
Recommended Textbook
Purchasing and Supply Chain Management 7th Edition by van Weele
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15 Chapters
909 Verified Questions
909 Flashcards
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Chapter 1: The Role of Purchasing in the Value Chain
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60 Verified Questions
60 Flashcards
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Sample Questions
Q1) Which of the following terms refers to products,indirect materials or consumable items which are necessary for keeping the organization running in general,and for the support activities in particular?
A) Maintenance, repair and operating materials.
B) Supplies
C) Consumables
D) Tangible goods
Answer: A
Q2) Procurement activities are necessary for running,maintaining and managing which of the following activities?
A) Primary activities
B) Support activities
C) Primary and Support activities
D) Future activities
Answer: C
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Chapter 2: Industrial Buying Behavior: Decision-Making in Purchasing
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58 Verified Questions
58 Flashcards
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Sample Questions
Q1) Which of the following better explains 'Auction Forward'?
A) An e-auction which is used by suppliers to enforce bidding among a number of prospective buyers based on a starting price that is increased during the auction.
B) An e-auction which is used by buyers to enforce bidding among a number of prospective suppliers based on a starting price that is increased during the auction.
C) An e-auction which is used by suppliers to minimise bidding among a number of prospective buyers based on a starting price that is increased during the auction.
D) An e-auction which is used by suppliers to enforce bidding among a number of prospective buyers based on a starting price that is decreased during the auction.
Answer: A
Q2) Which of the following is not a term equivalent to 'Principal'?
A) Customer.
B) Manager.
C) Buyer.
D) Client.
Answer: B
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Chapter 3: The Purchasing Management Process
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60 Flashcards
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Sample Questions
Q1) Which of the following should be provided by purchasing management?
A) Periodical, detailed management reporting.
B) Increased market share.
C) New product development.
D) Risk assessments.
Answer: A
Q2) Which of the following explains 'Global Sourcing'?
A) Proactively integrating and co-ordinating common items and designs, technologies and suppliers across worldwide purchasing and operating locations.
B) Proactively integrating and co-ordinating common items and processes across worldwide purchasing and operating locations.
C) Proactively integrating and co-ordinating common items and materials, processes, designs, technologies and suppliers across worldwide purchasing and operating locations.
D) Proactively integrating and co-ordinating common items and materials across worldwide purchasing and operating locations.
Answer: C
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Chapter 4: Buying Business Services
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61 Flashcards
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Sample Questions
Q1) Which of the following is not an example of an input specification?
A) Materials.
B) Hours.
C) Quality.
D) Equipment hours.
Q2) Which of the following are key performance indicators (KPIs) for a 'Service Level Agreement (SLA)?
A) Quality levels
B) Staff/customer ratio.
C) Profits.
D) Volume of business.
Q3) What of the following may be a consequence of a lack of alignment between the purchasing department and other departments?
A) Competence problems and friction between the parties may occur.
B) Profits decline.
C) Budgets are reduced.
D) Suppliers go elsewhere.
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Chapter 5: Contract Management for Complex Projects
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Sample Questions
Q1) Which of the following best explains 'milestone payments'?
A) Payments for wages and salaries of key managers and workers.
B) Payments made based on deliveries made for each project planning stage.
C) Monthly payments
D) Weekly payments.
Q2) Which of the following best explains 'supply chain perspective'?
A) Contracts are closed based on recognizing interests of key supply chain partners.
B) Contracts are open to any seller in the supply chain.
C) Contracts are closed based upon interests of buyer.
D) Contracts are based on interests of seller only.
Q3) Which of the following best explains 'bank guarantee'?
A) Guarantee issue by supplier.
B) Guarantee issued by the bank of the supplier.
C) Guarantee issued by the purchaser.
D) Guarantee issued by the bank of the purchaser.
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Chapter 6: Public Procurement
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63 Verified Questions
63 Flashcards
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Sample Questions
Q1) Which of the following best explains 'defining specifications'?
A) Specifications are the input for the consecutive stages of the purchasing process.
B) Standard contractual terms.
C) Purchaser obligations.
D) Order quantities.
Q2) Which of the following best explains public procurement 'innovation partnership'?
A) A procedure to develop and acquire innovative solutions to problems face by authorities.
B) A Partnership between two tendering suppliers.
C) A new company partnering an established company to bid for contracts.
D) A partnership from two or more EU countries.
Q3) Which of the following best explains public procurement 'design contest'?
A) Tendering organizations submit designs to be ranked by the purchasing organization.
B) Contracts are awarded prior to design being submitted.
C) Submitted designs are judged by a jury of professionals in fields complimentary to the nature of the design.
D) Designs are given to tendering organizations.
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Chapter 7: Purchasing and Business Strategy
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62 Flashcards
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Sample Questions
Q1) Which of the following best explains 'supplier development and quality management'?
A) Suppliers required to achieve quality accreditation.
B) Suppliers encouraged to diversity.
C) Suppliers challenged to provide new ideas for improvement.
D) Suppliers invited to contribute to strategic planning processes.
Q2) Which of the following is not a generic strategy to sustain profitability?
A) Cost leadership.
B) Product differentiation.
C) Focus.
D) Cost cutting.
Q3) Which of the following best describes 'strategic products'?
A) High-tech, low volume products which are often supplied at customer specification.
B) Low volume products not supplied at customer specification.
C) High-tech, high-volume products which are often supplied at customer specification.
D) Standard products not supplied at customer specification.
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Chapter 8: Outsourcing and Risk Management
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61 Flashcards
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Sample Questions
Q1) Which of the following is not a risk factor?
A) Unavailability of qualified staff.
B) Materials shortages.
C) Occurrence of unforeseen disputes.
D) Exchange rates.
Q2) Which of the following best explains the concept of 'outsourcing'?
A) Transferring activities that were previously conducted in-house, to a third party.
B) Transferring activities to a third party.
C) Transferring activities that were previously externally, to another third party.
D) Transferring activities from one section of the organization to another.
Q3) Which of the following best explains a 'commercial risk'?
A) The potential for machinery to breakdown.
B) The extent to which the supplier has a history of success.
C) The uncertainty with regard to the price to be paid and the costs incurred.
D) The extent to which the provider is trustworthy.
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Chapter 9: Category Sourcing: Developing Effective
Sourcing
Strategies
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62 Verified Questions
62 Flashcards
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Sample Questions
Q1) Which of the following would not be an item in the 'Analysis of historical data' contents of a category sourcing plan?
A) Price and cost analysis.
B) Supply market analysis.
C) Business priorities.
D) Current suppliers.
Q2) Which of the following is not an item of IT office supplies expenditure?
A) Paper.
B) Travel.
C) Copier services.
D) Stationary.
Q3) Which of the following best explains 'supplier cartels'?
A) Agreements between a limited number of suppliers on pricing behaviour and the division of markets.
B) Agreements between a limited number of purchasers on pricing behaviour and the division of markets.
C) Agreements between a limited number of suppliers on pricing behaviour.
D) Agreements between a limited number of suppliers on the division of markets.
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Chapter 10: Purchasing Innovation and Quality Management
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Sample Questions
Q1) Which of the following terms is a collaboration process?
A) How to assess inter-systems compatibility and operability.
B) Pre-selection of potential future technology partners.
C) Screening and selection of project partners.
D) Evaluating supplier development capabilities and performance.
Q2) Which of the following best explains 'assessment costs'?
A) The cost of preventing errors.
B) The cost related to the timely recognition lf errors.
C) The costs that result from rectifying mistakes.
D) Accreditation costs.
Q3) Which of the following is a criterion for developing a 'supplier involvement portfolio'?
A) Market share.
B) The development risk.
C) Trust in the supplier.
D) Financial health of supplier.
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12
Chapter 11: Purchasing Logistics and Supply Chain Management
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60 Verified Questions
60 Flashcards
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Sample Questions
Q1) Which of the following is a disadvantage of JIT for the supplier?
A) It may take some time for a supplier to deliver at zero defects or to produce zero defects.
B) Not regularly informed about the quantities to be delivered.
C) Delivery times and specification often change.
D) Additional costs.
Q2) Which of the following is not a variable used in 'Camp's formula'?
A) Fixed usage per period.
B) Order quantity.
C) Costs per order.
D) Delivery time.
Q3) Which of the following best explains zero defects principle?
A) Everything goes right the first time.
B) Reduce defects over time.
C) Learn from your mistakes.
D) Continuous improvement.
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13
Chapter 12: Purchasing Organization
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Sample Questions
Q1) Which of the following is not a potential consequence of uniform purchasing procedures?
A) Lower price and cost levels.
B) Higher quality.
C) Better service delivery.
D) Outsourcing.
Q2) Which of the following does not greatly influence management's view of purchasing?
A) Purchasing's share in the end-product's cost price.
B) The financial position of the company.
C) The extent to which the company is depending on the suppliers' market.
D) The geographic location of the function.
Q3) Which of the following key factors are not commonly used when deciding to opt for centralization or decentralization in purchasing?
A) Savings potential.
B) Expertise required.
C) Existing approach.
D) Customer demands.
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14
Chapter 13: Performance Measurement and Governance in Purchasing
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61 Flashcards
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Sample Questions
Q1) Which of the following best explains 'critical deliveries'?
A) Critical deliveries are beyond their delivery date and as a result the continuity of the company's business processes is in immediate danger.
B) Critical deliveries are past their delivery date without immediate damage to the company.
C) Critical deliveries are beyond their delivery date.
D) Critical deliveries are on time.
Q2) Which of the following best explains 'cost avoidance'?
A) The variance between the historical and the actual purchase price paid per unit.
B) The reduction on costs against planned costs.
C) The total purchasing budget savings.
D) The purchasing savings budget for each item.
Q3) Which of the following is not a dimension on which measurement and evaluation of purchasing activities can be based?
A) An organizational dimension.
B) A product/quality dimension.
C) A logistics dimension.
D) Favourable supplier relationships
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Chapter 14: Cost Approaches and Techniques
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59 Flashcards
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Sample Questions
Q1) Which of the following is not an external factor influencing the purchase price?
A) Economic.
B) Socio-political.
C) Technological.
D) Logistics.
Q2) Which of the following is not a contributor to changes in the market structure?
A) Change in exchange rates.
B) Change in supply.
C) Change in supply side inventory.
D) Change in supplier capacity utilization.
Q3) Which of the following is not an example of a facility cost driver?
A) Facility scale.
B) Degree of vertical integration.
C) Use of automation.
D) Transportation costs to customer.
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16
Chapter 15: Purchasing, Corporate Social Responsibility and Integrity
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Sample Questions
Q1) What do the letters CSR commonly stand for in business?
A) Commercial and Social Responsibility.
B) Corporate Societal Responsibility.
C) Corporate Social Results.
D) Corporate Social Responsibility.
Q2) Which of the following is not a programme and method to drive sustainability in supply chain management in relation to 'stakeholder management'?
A) Corporate social responsibility committee.
B) Stakeholder meetings on environmental stewardship.
C) Supplier quality assurance programmes.
D) Stakeholder meetings on creating shared value.
Q3) Which of the following International Labour Office (ILO) Conventions relates to the prohibition and immediate action for the elimination of the worst forms of child labour?
A) Convention No. 138.
B) Convention No. 20400.
C) Convention No. 9001.
D) Convention No. 182
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Page 17