Purchasing & Supply Chain Management 7th Edition by Robert M. Monczka Test bank
True / False
1. The development of strategic purchasing practices can only help a company maintain its competitive position in a rapidly changing business environment.
a. True
b. False
ANSWER: False
2. Global sourcing is a requirement and no longer a luxury for most firms.
a. True
b. False
ANSWER: True
3. Sophisticated customers, both industrial and consumer, no longer talk about price increases – they demand price reductions!
a. True
b. False
ANSWER: True
4. An abundance of competitors and choices have conditioned customers to want higher quality, faster delivery, and products and services tailored to their individual needs at a higher total cost.
a. True
b. False
ANSWER: False
5. The availability of low-cost domestic supplier alternatives has led to the shift away from outsourcing and offshoring.
a. True
b. False
ANSWER: False
6. Competition today is no longer between firms; it is between the supply chains of those firms.
a. True
b. False
ANSWER: True
7. In the manufacturing sector, the percentage of purchases to sales averages 55 percent.
a. True
b. False
ANSWER: True
8. The traditional approach to purchasing and supply management is to build relations with suppliers to jointly pull costs out of the product or service and expect suppliers to contribute innovative ideas that continually add value to a firm’s products and services.
a. True
b. False
ANSWER: False
9. Few of the features that make their way into final products originate with suppliers.
a. True
b. False
ANSWER: False
10. Purchasing and supply management has a major impact on product and service quality.
a. True
b. False
ANSWER: True
11. Supply management is a broader concept than purchasing.
a. True
b. False
ANSWER: True
12. The routine ordering and follow-up of basic operational supplies is a strategic responsibility.
a. True
b. False
ANSWER: False
13. Supply chain management does not require the coordination of activities and flows that do not extend across boundaries.
a. True
b. False
ANSWER: False
14. According to Porter, a firm’s value chain is composed of primary and support activities that can lead to competitive advantage when configured properly.
a. True
b. False
ANSWER: True
15. Purchasing is becoming less responsible for sourcing indirect goods and services required by internal groups.
a. True
b. False
ANSWER: False
16. 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
17. Today’s emphasis on supplier quality has shifted from detecting defects at the time of receipt or use to prevention early in the materials-sourcing process.
a. True
b. False
ANSWER: True
18. The key to the success of any company is the quality of its employees.
a. True
b. False
ANSWER: True
19. Cost management is no longer an integral part of purchasing and supply chain management.
a. True
b. False
ANSWER: False
20. Formal organizational charts portray the entirety of the workings of an organization.
a. True
b. False
ANSWER: False
21. There is a definitive and prescriptive set of supply chain measures that result in one best way to measure supply chain performance.
a. True
b. False
1. The development of strategic purchasing practices can only help a company maintain its competitive position in a rapidly changing business environment.
a. True
b. False
ANSWER: False
2. Global sourcing is a requirement and no longer a luxury for most firms.
a. True
b. False
ANSWER: True
3. Sophisticated customers, both industrial and consumer, no longer talk about price increases – they demand price reductions!
a. True
b. False
ANSWER: True
4. An abundance of competitors and choices have conditioned customers to want higher quality, faster delivery, and products and services tailored to their individual needs at a higher total cost.
a. True
b. False
ANSWER: False
5. The availability of low-cost domestic supplier alternatives has led to the shift away from outsourcing and offshoring.
a. True
b. False
ANSWER: False
6. Competition today is no longer between firms; it is between the supply chains of those firms.
a. True
b. False
ANSWER: True
7. In the manufacturing sector, the percentage of purchases to sales averages 55 percent.
a. True
b. False
ANSWER: True
8. The traditional approach to purchasing and supply management is to build relations with suppliers to jointly pull costs out of the product or service and expect suppliers to contribute innovative ideas that continually add value to a firm’s products and services.
a. True
b. False
ANSWER: False
9. Few of the features that make their way into final products originate with suppliers.
a. True
b. False
ANSWER: False
10. Purchasing and supply management has a major impact on product and service quality.
a. True
b. False
ANSWER: True
11. Supply management is a broader concept than purchasing.
a. True
b. False
ANSWER: True
12. The routine ordering and follow-up of basic operational supplies is a strategic responsibility.
a. True
b. False
ANSWER: False
13. Supply chain management does not require the coordination of activities and flows that do not extend across boundaries.
a. True
b. False
ANSWER: False
14. According to Porter, a firm’s value chain is composed of primary and support activities that can lead to competitive advantage when configured properly.
a. True
b. False
ANSWER: True
15. Purchasing is becoming less responsible for sourcing indirect goods and services required by internal groups.
a. True
b. False
ANSWER: False
16. 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
17. Today’s emphasis on supplier quality has shifted from detecting defects at the time of receipt or use to prevention early in the materials-sourcing process.
a. True
b. False
ANSWER: True
18. The key to the success of any company is the quality of its employees.
a. True
b. False
ANSWER: True
19. Cost management is no longer an integral part of purchasing and supply chain management.
a. True
b. False
ANSWER: False
20. Formal organizational charts portray the entirety of the workings of an organization.
a. True
b. False
ANSWER: False
21. There is a definitive and prescriptive set of supply chain measures that result in one best way to measure supply chain performance.
a. True
b. False