Purchasing and Supply Chain Management
Midterm Exam
Course Introduction
This course provides students with a comprehensive understanding of the principles and practices involved in purchasing and supply chain management within modern organizations. Topics include procurement processes, supplier selection and evaluation, contract negotiation, strategic sourcing, inventory management, logistics, risk management, and the impact of globalization on supply chains. Students will explore the integration of technology and ethical considerations in supply chain operations, analyze case studies, and develop practical skills for effective decision-making in both manufacturing and service industries. The course emphasizes the importance of collaboration, sustainability, and efficiency in achieving organizational goals and gaining a competitive advantage through well-managed supply chains.
Recommended Textbook
Purchasing and Supply Chain Management 6th Edition by Robert M. Monczka
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20 Chapters
1518 Verified Questions
1518 Flashcards
Source URL: https://quizplus.com/study-set/1154 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/22659
Sample Questions
Q1) All of the following are examples of demand planning activities except _____.
A) forecasts of anticipated demand
B) accounts payable
C) inventory adjustments
D) orders taken but not filled
E) spare parts and aftermarket requirements
Answer: B
Q2) The _____ activity involves physically getting a product ready for distribution to the customer.
A) customer service
B) material control
C) materials handling
D) quality control
E) shipping
Answer: E
Q3) Purchasing and supply management has a major impact on product and service quality.
A)True
B)False
Answer: True
Page 3
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Chapter 2: The Purchasing Process
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79 Verified Questions
79 Flashcards
Source URL: https://quizplus.com/quiz/22660
Sample Questions
Q1) _____ is a process associated with defining the contract, defining roles and responsibilities of both parties, and advising when to modify and ensure appropriate escalation.
A) Spend analysis
B) Contract management
C) Cost management
D) Supplier selection
E) Category management
Answer: B
Q2) _____ involves unbundling the price paid and understanding the total cost of ownership over the life cycle of a product or service to deliver a target cost and a unit rate to determine if it is priced competitively in the marketplace.
A) Cost management
B) Procure-to-pay
C) Supplier relationship management
D) Category management
E) Spend management Answer: A
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Page 4
Chapter 3: Purchasing Policy and Procedures
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28 Verified Questions
28 Flashcards
Source URL: https://quizplus.com/quiz/22661
Sample Questions
Q1) The organization's policy on contacts and visits to suppliers should address not only purchasing personnel but also other departments or functions that visitor contact suppliers.
A)True
B)False Answer: True
Q2) Policies defining the role of purchasing often serve as a general or broad policy statement from which more detailed or specific policies evolve.
A)True
B)False Answer: True
Q3) Which of the following is not an example of typical charge-back costs associated with supplier responsibility for defective material shipments?
A) Sales, general, and administrative costs.
B) Cost of material rework.
C) Repackaging for return shipment.
D) Return shipping costs.
E) Costs associated with lost or delayed production.
Answer: A
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Page 5
Chapter 4: Supply Management Integration for Competitive Advantage
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67 Verified Questions
67 Flashcards
Source URL: https://quizplus.com/quiz/22662
Sample Questions
Q1) In forward-thinking enterprises, supply management seldom plays a key role in the development of new products and services.
A)True
B)False
Q2) The use of cross-functional sourcing teams guarantees a successful outcome to a project or assignment.
A)True
B)False
Q3) If given the opportunity, suppliers seldom have a major impact on the overall timing and success of a new product.
A)True
B)False
Q4) A shift to a more trusting buyer-supplier relationship is easy.
A)True
B)False
Q5) Perhaps the most important and challenging linkages exist between supply management and marketing/sales.
A)True
B)False
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Chapter 5: Purchasing and Supply Management Organization
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73 Verified Questions
73 Flashcards
Source URL: https://quizplus.com/quiz/22663
Sample Questions
Q1) Center-led organizations have the same total authority that purely centralized units do.
A)True
B)False
Q2) Many recognition and reward systems today encourage members not to participate on teams.
A)True
B)False
Q3) Decentralized purchasing personnel should gain a greater understanding and appreciation of local operating requirements.
A)True
B)False
Q4) The _____ task involves identifying company spend and matching to the best potential suppliers, negotiating with selected suppliers, and finally managing the contract.
A) market intelligence and research
B) operational support and follow-up
C) administration and data management
D) sourcing, negotiation, and contract management
E) material handling
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Chapter 6: Category Strategy Development
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80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/22664
Sample Questions
Q1) In some cases, a firm may be looking to develop a long-term relationship with a potential supplier, particularly if the supplier is in the "Routine" quadrant of the Strategy Portfolio Matrix and the category of spend is low volume and routine to the company's business.
A)True
B)False
Q2) In the final and most advanced stage of supply management strategy development, supply management has assumed a tactical orientation with reporting directly to lower-level management and a simple internal, rather than a strong external, customer focus.
A)True
B)False
Q3) A longer-term relationship should never include a joint product development relationship with shared development costs and intellectual property.
A)True
B)False
Q4) The RFI constitutes a binding agreement by both the supplier and the purchaser.
A)True
B)False
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Chapter 7: Supplier Evaluation and Selection
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78 Verified Questions
78 Flashcards
Source URL: https://quizplus.com/quiz/22665
Sample Questions
Q1) Which of the following is not a method used to further evaluate and select suppliers once the initial evaluation has taken place?
A) Evaluation of supplier-provided information.
B) Supplier visits.
C) Use of preferred, certified, and partnered suppliers.
D) Trade journals.
E) External or third party information.
Q2) A/An _____ is a minor departure from an intended level of performance, or a nonconformance that is easily resolved and does not materially affect the required output.
A) discrepancy
B) problem
C) defect
D) unacceptable outcome
E) deficiency
Q3) Purchasing from competitors may limit information sharing between the parties.
A)True
B)False
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9
Chapter 8: Supplier Quality Management
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94 Verified Questions
94 Flashcards
Source URL: https://quizplus.com/quiz/22666
Sample Questions
Q1) One property of normally distributed data is that 99.7 percent of all possible observations of process output occur within plus-or-minus standard deviations of the process mean.
A)True
B)False
Q2) It can take only a few months for a company to adequately develop a quality management system that is competitive for the MBNQA.
A)True
B)False
Q3) Which of the following is not one of Deming's 14 points?
A) Create a vision and demonstrate commitment.
B) Utilize fear to motive workers.
C) Improve constantly and forever.
D) Optimize the efforts of teams.
E) Remove barriers to pride in workmanship.
Q4) The Cpk value is always larger than the Cp index.
A)True
B)False
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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) According to ISM, _____ is defined as the ability to meet current needs without hindering the ability to meet the needs of future generations in terms of economic, environmental, and social challenges.
A) Sustainability
B) Scenario analysis
C) Social responsibility
D) Supply chain risk management
E) Standardization
Q2) Maintaining small quantities of inventory has been the traditional methods of dealing with supply base risk.
A)True
B)False
Q3) Considering the cost-based supplier evaluation system, the actual cost per nonconformance event may be difficult to estimate or calculate, as many traditional cost accounting systems are not designed to identify and capture such data.
A)True
B)False
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Page 11
Chapter 10: Worldwide Sourcing
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87 Verified Questions
87 Flashcards
Source URL: https://quizplus.com/quiz/22668
Sample Questions
Q1) 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.
Q2) The most common method for overcoming barriers to worldwide sourcing involves education and training, which can generate support for the process as well help overcome the anxiety associated with change.
A)True
B)False
Q3) _____ involves contracting with independent suppliers outside the organization (domestic or foreign) to provide products or services that were performed inside the organization.
A) Re-shoring
B) Nearshoring
C) Outsourcing
D) offshoring
E) International purchasing
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Page 12
Chapter 11: Strategic Cost Management
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83 Verified Questions
83 Flashcards
Source URL: https://quizplus.com/quiz/22669
Sample Questions
Q1) The main risk in target and cost-based pricing concerns volume variability.
A)True
B)False
Q2) All of the following are examples of broad total cost of ownership categories except _____.
A) purchase price
B) acquisition costs
C) sales, general, and administrative overhead costs
D) usage costs
E) end-of-life costs
Q3) A cost-based approach to determining price is clearly appropriate for all purchased items.
A)True
B)False
Q4) Strategic cost management approaches do not vary according to the stage of the product life cycle.
A)True
B)False
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Page 13
Chapter 12: Purchasing and Supply Chain Analysis: Tools and Techniques
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67 Verified Questions
67 Flashcards
Source URL: https://quizplus.com/quiz/22670
Sample Questions
Q1) In a CPM or PERT project, a network is a graphical representation that shows how each individual activity relates in time and sequence to all other activities.
A)True
B)False
Q2) In a PERT network, the difference between the _____ and the _____ is slack.
A) early start .late finish
B) late start .early finish
C) early start .early finish
D) late start .early start
E) None of the above.
Q3) Historically, the term _____ applies to the reduced direct-labor requirement per unit of output because of the effects of learning, while the term _____ refers to the longer-term factors of production that systematically reduce production costs.
A) learning curve .experience curve
B) learning curve .infinity curve
C) experience curve .Boeing curve
D) experience curve .learning curve
E) None of the above.
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Chapter 13: Negotiation and Conflict Management
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98 Verified Questions
98 Flashcards
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Sample Questions
Q1) _____ includes the ability to punish the other party - financially, physically, emotionally, or mentally.
A) Reward power
B) Coercive power
C) Legitimate power
D) Expert power
E) Referent power
Q2) According to Cialdini, _____ is a principle that says we prefer to be consistent in our beliefs and actions.
A) scarcity
B) liking
C) social proof
D) reciprocation
E) consistency
Q3) All buyer-supplier negotiations are relatively straightforward, only requiring rudimentary preparation and planning.
A)True
B)False
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Chapter 14: Contract Management
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109 Verified Questions
109 Flashcards
Source URL: https://quizplus.com/quiz/22672
Sample Questions
Q1) The _____ clause in a contract provides guidelines regarding what type of reporting statistics and measures the supplier must provide to the buyer on a regular basis, defined clearly.
A) statistics
B) notices
C) most favored customer
D) confidentiality
E) third-party rights
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) The most basic contractual pricing mechanism is called a/an _____ contract.
A) fixed price with escalation
B) cost plus incentive fee
C) firm fixed price
D) cost-sharing
E) fixed price with redetermination
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Page 16
Chapter 15: Purchasing Law and Ethics
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107 Verified Questions
107 Flashcards
Source URL: https://quizplus.com/quiz/22673
Sample Questions
Q1) _____ refers the standard terms and conditions that are usually preprinted on the back of forms used by the purchaser (and the seller).
A) RFQ
B) PO
C) RFI
D) Boilerplate
E) None of the above.
Q2) The purchasing agency relationship is created between the employer and employee when the company hires an individual to perform the purchasing job.
A)True
B)False
Q3) It is illegal for sellers to exaggerate the merits of their products during their sales pitch.
A)True
B)False
Q4) The UCC allows the purchaser to only reject the entire shipment for cause.
A)True
B)False
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Chapter 16: Lean Supply Chain Management
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73 Verified Questions
73 Flashcards
Source URL: https://quizplus.com/quiz/22674
Sample Questions
Q1) Which of the following is not one of the wrong reasons for investing in inventory?
A) Poor quality and material yield.
B) Extended order-cycle times from global sourcing.
C) Hedge against marketplace uncertainty.
D) Specifying custom items for standard applications.
E) Inefficient manufacturing processes.
Q2) The advantage of consignment to the buyer is the ability to defer ownership and avoid committing working capital and incurring carrying charges.
A)True
B)False
Q3) Which of the following is not one of the policies used to improve design simplification and reduce complexity?
A) Increase the number of suppliers.
B) Establish premium pricing for customization.
C) Establish geographic-specific options and standards.
D) Do not eliminate frequently requested options.
E) Utilize business modeling and TCO tools to support complexity reduction decisions.
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18
Chapter 17: Purchasing Services
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98 Verified Questions
98 Flashcards
Source URL: https://quizplus.com/quiz/22675
Sample Questions
Q1) The use of 3PLs is increasingly becoming a viable option for smaller shippers and infrequent shipments
A)True
B)False
Q2) Additional railcars can be added to a freight train with only a minimal increase in its total variable cost, absent any limitations on train length.
A)True
B)False
Q3) _____ can be defined as the sum of all purchased goods and services that are not a direct part of products or services delivered to the customer.
A) Direct spend
B) MRO
C) Indirect spend
D) Consignment inventory
E) Kanban
Q4) In general, supply management should provide and manage suppliers' e-catalogs.
A)True
B)False
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Page 19
Chapter 18: Supply Chain Information Systems and Electronic Sourcing
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69 Verified Questions
69 Flashcards
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Sample Questions
Q1) Increased redundancy of information between files allows different systems to cross-reference and efficiently use the data contained in all files.
A)True
B)False
Q2) In a _____ system, decisions are automated, with exceptions dealt with manually.
A) transaction processing
B) routine decision making
C) strategic decision making
D) decision support
E) None of the above.
Q3) _____ refers to the process of downloading all data buckets into the main system on a regularly scheduled basis.
A) DRP
B) Batch updating
C) DSS
D) Real-time updating
E) None of the above.
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Page 20
Chapter 19: Performance Measurement and Evaluation
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62 Verified Questions
62 Flashcards
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Sample Questions
Q1) A _____ is the increase or decrease in cost resulting from a change in purchasing strategy or practice brought about by an individual or a group.
A) cost change
B) cost avoidance
C) target cost
D) target price
E) purchase price variance
Q2) Supply managers should emphasize purchasing efficiency over purchasing effectiveness as a strict measure of performance.
A)True
B)False
Q3) Few measures drive behavior that is not what is intended or needed.
A)True
B)False
Q4) There is no one best way to measure performance.
A)True
B)False
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21
Chapter 20: Purchasing and Supply Strategy Trends
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36 Verified Questions
36 Flashcards
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Sample Questions
Q1) Perhaps the most obvious area where firms are concentrating their time-reduction efforts is during new-product and process development along with achieving innovation.
A)True
B)False
Q2) Cross-functional teams will continue to be important to supply management strategy.
A)True
B)False
Q3) Technology and supplier selection discussion during new-product development have minimal effect on cost, quality, and product/service launch, as well as future production.
A)True
B)False
Q4) Companies will decreasingly use value-focused sourcing approaches to evaluate how a supplier or group of suppliers may be utilized to gain competitive advantage for categories with high business impact.
A)True B)False
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