Purchasing & Supply Chain Management 7th Edition by Robert M. Monczka Test bank
ANSWER: False
22. In Period 4 of the evolution of purchasing and supply chain management, firms faced stable competition and had access to abundant material – conditions that historically have diminished the overall importance of purchasing.
a. True
b. False
ANSWER: True
Multiple Choice
23. _____ involves evaluating suppliers located closer to the United States.
a. Re-shoring
b. Nearshoring
c. Outsourcing
d. Offshoring
e. Insourcing
ANSWER: b
24. Which of the following is not one of the features of the new model of progressive purchasing?
a. Developing closer relationships with important suppliers.
b. Performing due diligence on suppliers before awarding longer-term contracts.
c. Focusing primarily on price analysis and short-term contracts.
d. Conducting worldwide Internet searches for the best sources of supply.
e. Inviting key suppliers to participate in product and process development.
ANSWER: c
25. Which of the following is not one of the factors driving an emphasis on supply chain management?
a. An increasing emphasis on domestic sourcing due to the longer lead times and higher levels of pipeline inventories associated with global sourcing.
b. The cost and availability of information resources among entities in the supply chain that allow easy linkages that eliminate time delays in the network.
c. The level of competition in both domestic and international markets requires organizations to be fast, agile, and flexible.
d. Customer expectations and requirements that are becoming much more demanding.
e. The ability of an organization’s supply chain to identify and mitigate risk minimizes disruptions in both supply and downstream product or services to mitigate the impact on lost sales.
ANSWER: a
26. _____ is a functional group (i.e., a formal entity on the organizational chart as well as a functional activity (i.e., buying goods and services).
a. Engineering
b. Purchasing
c. Quality assurance
d. Logistics
e. Treasury operations
ANSWER: b
27. The _____ is a change index, and generally a rating over 50 indicates that the economy is expanding.
a. Consumer Price Index
b. Producer Price Index
c. ISM Report on Business
d. rate of inflation
e. None of these answers.
ANSWER: c
28. According to the Institute for Supply Management, _____ is the identification, acquisition, access, positioning, and management of resources and related capabilities an organization needs or potentially needs in the attainment of its strategic objectives.
a. supply chain management
b. procurement
c. logistics
d. supply management
e. distribution
ANSWER: d
29. Instead of adversarial relationships which characterize _____, _____ features a long-term, win-win relationship between a buying company and specially selected suppliers.
a. traditional purchasing….supply management
b. traditional purchasing….logistics management
c. supply management….traditional purchasing
d. strategic sourcing….supply management
e. supply chain management….strategic sourcing
ANSWER: a
30. A _____ is a set of three or more organizations linked directly by one or more of the upstream or downstream flows of products, services, finances, and information from a source to a customer.
a. process
b. manufacturing system
c. value chain
d. social media chain
e. supply chain
ANSWER: e
31. 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
32. According to Michael Porter, a firm’s _____ is composed of primary and secondary support activities that can lead to competitive advantage when configured properly.