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
DIFFICULTY:
Easy
KEYWORDS:
Bloom’s: Understanding
OTHER:
Analytic
NOTES:
1
2. Global sourcing is a requirement and no longer a luxury for most firms.
a.
True
b.
False
ANSWER:
True
DIFFICULTY:
Easy
KEYWORDS:
Bloom’s: Understanding
OTHER:
Analytic
NOTES:
1
3. Sophisticated customers, both industrial and consumer, no longer talk about price increases – they demand price reductions!
a.
True
b.
False
ANSWER:
True
DIFFICULTY:
Easy
KEYWORDS:
Bloom’s: Understanding
OTHER:
Analytic
NOTES:
1
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
DIFFICULTY:
Easy
KEYWORDS:
Bloom’s: Understanding
OTHER:
Analytic
NOTES:
1
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
DIFFICULTY:
Easy
KEYWORDS:
Bloom’s: Understanding
OTHER:
Analytic
NOTES:
1
6. Competition today is no longer between firms; it is between the supply chains of those firms.
a.
True
b.
False
ANSWER:
True
DIFFICULTY:
Moderate
KEYWORDS:
Bloom’s: Understanding
OTHER:
Analytic
NOTES:
1
7. In the manufacturing sector, the percentage of purchases to sales averages 55 percent.
a.
True
b.
False
ANSWER:
True
DIFFICULTY:
Easy
KEYWORDS:
Bloom’s: Remembering
OTHER:
Analytic
NOTES:
1
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 innovate ideas that continually add value to a firm’s products and services.
a.
True
b.
False
ANSWER:
False
DIFFICULTY:
Moderate
KEYWORDS:
Bloom’s: Understanding
OTHER:
Analytic
NOTES:
1
9. Most of the features that make their way into final products originate with suppliers.
a.
True
b.
False
ANSWER:
False
DIFFICULTY:
Easy
KEYWORDS:
Bloom’s: Understanding
OTHER:
Analytic
NOTES:
1
10. Purchasing and supply management has a major impact on product and service quality.
a.
True
b.
False
ANSWER:
True
DIFFICULTY:
Easy
KEYWORDS:
Bloom’s: Understanding
OTHER:
Analytic
NOTES:
1
11. Supply management is a broader concept than purchasing.
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
DIFFICULTY:
Easy
KEYWORDS:
Bloom’s: Understanding
OTHER:
Analytic
NOTES:
1
2. Global sourcing is a requirement and no longer a luxury for most firms.
a.
True
b.
False
ANSWER:
True
DIFFICULTY:
Easy
KEYWORDS:
Bloom’s: Understanding
OTHER:
Analytic
NOTES:
1
3. Sophisticated customers, both industrial and consumer, no longer talk about price increases – they demand price reductions!
a.
True
b.
False
ANSWER:
True
DIFFICULTY:
Easy
KEYWORDS:
Bloom’s: Understanding
OTHER:
Analytic
NOTES:
1
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
DIFFICULTY:
Easy
KEYWORDS:
Bloom’s: Understanding
OTHER:
Analytic
NOTES:
1
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
DIFFICULTY:
Easy
KEYWORDS:
Bloom’s: Understanding
OTHER:
Analytic
NOTES:
1
6. Competition today is no longer between firms; it is between the supply chains of those firms.
a.
True
b.
False
ANSWER:
True
DIFFICULTY:
Moderate
KEYWORDS:
Bloom’s: Understanding
OTHER:
Analytic
NOTES:
1
7. In the manufacturing sector, the percentage of purchases to sales averages 55 percent.
a.
True
b.
False
ANSWER:
True
DIFFICULTY:
Easy
KEYWORDS:
Bloom’s: Remembering
OTHER:
Analytic
NOTES:
1
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 innovate ideas that continually add value to a firm’s products and services.
a.
True
b.
False
ANSWER:
False
DIFFICULTY:
Moderate
KEYWORDS:
Bloom’s: Understanding
OTHER:
Analytic
NOTES:
1
9. Most of the features that make their way into final products originate with suppliers.
a.
True
b.
False
ANSWER:
False
DIFFICULTY:
Easy
KEYWORDS:
Bloom’s: Understanding
OTHER:
Analytic
NOTES:
1
10. Purchasing and supply management has a major impact on product and service quality.
a.
True
b.
False
ANSWER:
True
DIFFICULTY:
Easy
KEYWORDS:
Bloom’s: Understanding
OTHER:
Analytic
NOTES:
1
11. Supply management is a broader concept than purchasing.