Question 1

The importance of purchasing relates only to the cost of parts and materials purchased, which is often 60% or more of the cost of finished goods.

Accepted Answer

A) True 
 B)False

Question 2

The purchasing cycle begins with:

Accepted Answer

A)  selecting a supplier
B)  placing an order
C)  evaluating potential vendors
D)  conducting a value analysis
E)  receiving a requisitionF) A) and E)
G) A) and B)

Question 3

Managing supply chain visibility involves making sure that potential supply chain partners are aware of your organization's needs.

Accepted Answer

A) True 
 B)False

Question 4

Design and purchasing people should work closely because changes in design, specifications, or materials can impact future purchase requirements.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is not a benefit of RFID?

Accepted Answer

A)  increased productivity
B)  elimination of paper work
C)  frequent deliveries of smaller shipments
D)  reduction in clerical labor
E)  increased accuracyF) B) and C)
G) B) and E)

Question 6

Using third-party fulfillment means losing control of fulfillment.

Accepted Answer

A) True 
 B)False

Question 7

One disadvantage to RFID is that they require a 'line of sight' for reading.

Accepted Answer

A) True 
 B)False

Question 8

Returned goods are part of reverse logistics.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is an advantage of E-business? (I)  reduction of transaction costs
(II)  shortened supply chain response time
(III)  greater customer loyalty

Accepted Answer

A)  I
B)  II
C)  I and II
D)  II and III
E)  I, II, and IIIF) A) and E)
G) All of the above

Question 10

Which of the following is not an application of E-business?

Accepted Answer

A)  internet buying and selling
B)  e-mail
C)  order and shipment tracking
D)  electronic data interchange (EDI) 
E)  universal product codesF) A) and E)
G) C) and D)

Question 11

The materials in the supply chain flow toward the end of the chain, while the information and the dollars move toward the beginning of the chain.

Accepted Answer

A) True 
 B)False

Question 12

Centralized or decentralized purchasing is directly related to the size of an organization.

Accepted Answer

A) True 
 B)False

Question 13

Our organization can obtain visibility to potential trading partners on the internet by using:

Accepted Answer

A)  C2C
B)  B2C
C)  B2B
D)  C2B
E)  None of the aboveF) All of the above
G) C) and D)

Question 14

In purchasing, one's only ethical obligation is to one's suppliers.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is a principle required for ethical behavior in purchasing?

Accepted Answer

A)  loyalty to employer.
B)  justice to those you deal with.
C)  faith in your profession.
D)  all of the above.
E)  none of the above.F) B) and C)
G) A) and B)

Question 16

Examination of the sources of supply for purchased parts or materials in order to improve performance is called:

Accepted Answer

A)  vendor analysis
B)  value analysis
C)  negotiated purchasing
D)  reverse engineering
E)  disintegrationF) C) and E)
G) B) and E)

Question 17

Gate keeping manages the cost of shipping returned goods.

Accepted Answer

A) True 
 B)False

Question 18

Delayed differentiation is a means of increasing product variety without building the customized product from scratch or keeping large inventories of custom products.

Accepted Answer

A) True 
 B)False

Question 19

The purchasing perspective of the supplier as a partner is characterized by:

Accepted Answer

A)  an emphasis on low prices
B)  one or a few suppliers
C)  low flexibility
D)  100% inspection for quality
E)  low volumeF) C) and D)
G) A) and E)

Question 20

In e-commerce, the front-end design is significantly more important than the back-end design.

Accepted Answer

A) True 
 B)False

Exam 15: Supply Chain Management

Which of the following is not an application of E-business?

Correct AnswerverifiedShow Answer

The materials in the supply chain flow toward the end of the chain, while the information and the dollars move toward the beginning of the chain.

Correct AnswerverifiedShow Answer

The importance of purchasing relates only to the cost of parts and materials purchased, which is often 60% or more of the cost of finished goods.

Correct AnswerverifiedShow Answer

Returned goods are part of reverse logistics.

Correct AnswerverifiedShow Answer

One disadvantage to RFID is that they require a 'line of sight' for reading.

Correct AnswerverifiedShow Answer

Using third-party fulfillment means losing control of fulfillment.

Correct AnswerverifiedShow Answer

Which of the following is a principle required for ethical behavior in purchasing?

Correct AnswerverifiedShow Answer

The purchasing cycle begins with:

Correct AnswerverifiedShow Answer

Examination of the sources of supply for purchased parts or materials in order to improve performance is called:

Correct AnswerverifiedShow Answer

In e-commerce, the front-end design is significantly more important than the back-end design.

Correct AnswerverifiedShow Answer

Which of the following is an advantage of E-business? (I) reduction of transaction costs (II) shortened supply chain response time (III) greater customer loyalty

Correct AnswerverifiedShow Answer

Centralized or decentralized purchasing is directly related to the size of an organization.

Correct AnswerverifiedShow Answer

Design and purchasing people should work closely because changes in design, specifications, or materials can impact future purchase requirements.

Correct AnswerverifiedShow Answer

Gate keeping manages the cost of shipping returned goods.

Correct AnswerverifiedShow Answer

In purchasing, one's only ethical obligation is to one's suppliers.

Correct AnswerverifiedShow Answer

The purchasing perspective of the supplier as a partner is characterized by:

Correct AnswerverifiedShow Answer

Which of the following is not a benefit of RFID?

Correct AnswerverifiedShow Answer

Our organization can obtain visibility to potential trading partners on the internet by using:

Correct AnswerverifiedShow Answer

Managing supply chain visibility involves making sure that potential supply chain partners are aware of your organization's needs.

Correct AnswerverifiedShow Answer

Delayed differentiation is a means of increasing product variety without building the customized product from scratch or keeping large inventories of custom products.

Correct AnswerverifiedShow Answer

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