Reference no: EM13517581

Part -1:

(1). Which of the following bullets is not true about the origins of purchasing and supply management:
(a). Prior to the 1960s few purchasing books existed,
(b). Prior to the 1960s purchasing departments rose to equal status with traditional departments, such as accounting and marketing departments,
(c). Prior to the 1960s few purchasing personnel contributed to organizational success,
(d). During the 1960s and 1970s purchasing was largely clerical.

(2). Which of the following is not a value adding benefit of world-class management of suppliers?
(a). Quality improves,
(b). Time is managed better,
(c). Technology from the suppliers is integrated,
(d). Larger inventories are maintained.

(3). For supply management to have a strategic focus, supply professionals must have an understanding of all but one of the following issues. Which issue does not fit in the list?
(a). Service operations,
(b). Business environment,
(c). Component and commodity strategies,
(d). Supply base strategy.

(4). Which of the following is not one of the "Five Major Developments" in supply development in recent years?
(a). Cross-Functional Teams,
(b). Strategic Alliances,
(c). Win-Win Negotiation,
(d). Strategic Sourcing.

(5). E-procurement frees supply managers to focus on value-added activities. Which is not an example of such a value-added activity?
(a). Early involvement in the development of requirements,
(b). Strategic sourcing,
(c). Inspection of deliveries of requirements,
(d). Supply base management.

(6). Which of the following statements is probably not true about the future of supply management?
(a). Supply management personnel will eventually be replaced by information technology,
(b). Supply management as a function will continue to grow in importance,
(c). Supply management will require an understanding of the entire supply chain,
(d). Suppliers will be developed worldwide.

(7). Which of the following is not a characteristic of successful diversity programs?
(a). Top Management Support,
(b). Diversity Coordinators,
(c). Nationality of Suppliers,
(d). Evaluation.

(8). Which of the following is not one of the benefits of supply alliances?
(a). Lower total costs,
(b). Reduced time to market.
(c). Increased inspection levels.
(d). Improved technology flow from suppliers.

(9). Which of the following departments or functions is usually not on a typical cross-functional team that would work with a new supplier?
(a). Supply management,
(b). Design,
(c). Manufacturing,
(d). Security.

(10). Which of the following is not a typical challenge or problem with the cross-functional team approach?
(a). Organizational resistance is higher,
(b). Role conflict,
(c). Overload for key members,
(d). Continuity.

(11). Which of the following is not an approach in developing balanced specifications from the perspective of a supply professional?
(a). Informal Approach,
(b). Supply Management Coordinator Approach,
(c). Engineering Approach,
(d). Consensus Development Approach.

(12). Which of the following is not an organization that can assist as a source of standards in the United States?
(a). American Society for Quality,
(b). Society of Mechanical Engineers,
(c). American Institute of Electrical Engineers,
(d). International Society for Standardization.

(13). Which of the following is not a savings that can result from simplification?
(a). Reduced inventory investment,
(b). More standard parts control,
(c). More competitive prices,
(d). Greater quantity discounts.

(14). Which is generally not one of the ways that materials catalogs, whether paper based or electronic, can aid a firm?
(a). Reduction of supply base,
(b). Reduction in design time,
(c). Reduction of non-standard parts,
(d). Reduction of standard parts.

(15). Which of the following is not one of the primary sources of used equipment?
(a). Buying from a competitor,
(b). Through a used equipment dealer,
(c). For sale by the owner,
(d). Arrangement through a broker.

(16). Which of the following is not true about operating leases and the firms that use them?
(a). Used by most firms to facilitate business operations,
(b). Many operating leases are non-cancelable,
(c). Firm is usually not interested in ownership,
(d). Most operating leases are short term.

(17). Which of the following is not true about financial leases and the firms that use them?
(a). Primary motivation is to obtain financial benefits
(b). Usually they are long term,
(c). Most often used when firms want freedom/flexibility,
(d). Length is usually shorter than the life of the equipment.

(18). Which is usually not included in planning the statement of work?
(a). Work approvals,
(b). Process flows in the supplier's facility,
(c). Use of subcontractors,
(d). Authorized personnel.

(19). Which of the following is not an alternative method of purchasing construction services?
(a). Conventional method,
(b). Cost Plus Discretionary Expenses,
(c). Design & Build, Agree Price Method,
(d). Design & Build, Cost-Reimbursable Method.

(20). Which of the following is a consideration that favors making a product?
(a). Unreliable suppliers,
(b). Stable work force is desired in a period of rising sales,
(c). Multiple-source policy,
(d). Indirect managerial control considerations.

(21). Which of the following is a typical consideration in favor of single sourcing?
(a). Meet customer's volume requirements,
(b). Special tooling is required,
(c). When the customer is a small player in the market for a specific item,
(d). Avoid complacency on the part of the supplier.

(22). Which of the following is typically not a reason for a corporation to pursue global purchasing?
(a). To achieve superior quality,
(b). To achieve better timeliness,
(c). To experience foreign cultures,
(d). To lower costs.

(23). Which of the following is not a common approach that buying firm's use to punish a supplier?
(a). Bad mouthing the supplier to other suppliers,
(b). Litigation and punitive damages,
(c). Not awarding future business,
(d). Downgrading a supplier.

(24). Which of the following reasons is most likely to enable centralization in institutions?
(a). The broad scope of technical effort,
(b). The complete lack of department routine,
(c). An integrated ERP system links all departments and divisions,
(d). Buildings, departments and divisions spread over a large physical areas.

(25). Which of the following does not fit within the code of ethics for government service?
(a). Make private promises only when needed,
(b). Engage in business with the Government,
(c). Never use any information gained confidentially in the performance of
government duties as a means for making private profit,
(d). Expose corruption wherever discovered.

Part -2:

(1). Which of the following is not legislation that has impacted supply management in the United States?
(a). Caustic Waste Superfund Cleanup Act,
(b). Clean Air Act,
(c). Superfund Law,
(d). Resource Conservation Recovery Act (RCRA).

(2). When all or part of a shipment received from a supplier is nonconforming, the buyer has the right under the UCC to all of the following except:
(a). Hold the material for future determination,
(b). Repair the material,
(c). Use the material as is,
(d). Completely or partially reject the material.

(3). Which of the following bullets in the list does not reflect a Global Sullivan Principle?
(a). Express support for universal human rights,
(b). Promote equal opportunity,
(c). Respect voluntary freedom of association,
(d). Use bribery in foreign countries when necessary and ethical acceptable based on
cultural customs.

(4). Which of the following is not a typical prerequisite to successful cross-functional teams?
(a). Executive sponsorship,
(b). Qualified team members,
(c). Adequate time,
(d). Overtime hours,
(e). Inter-firm teams.

(5). Which of the following points does not describe part of the evolution of quality management?
(a). Prior to 1980s, the gurus of quality influenced corporate disciples,
(b). The corporate disciples in turn influenced corporate philosophies that increased the importance of quality management,
(c). The corporate disciples influenced the quality gurus,
(d). The corporate philosophy has essentially driven the selection of a management system.

(6). Which of the following is not one of Deming's fourteen points?
(a). Improve constantly and forever the system of production and service,
(b). Institute training on the job,
(c). Adopt and institute modern methods of supervision & leadership,
(d). Use inspection to ensure zero defects.

(7). Which of the following is not a key law or regulation that impacts supply management in the USA?
(a). Uniform Commercial Code,
(b). The Clinton Act,
(c). The Clayton Act,
(d). The Robinson-Patman Act.

(8). A purchase contract must have certain considerations to be legal. Which of the following is not one of these considerations?
(a). Agreement,
(b). Signers must be over 21,
(c). Consideration, or mutual obligation,
(d). Competent parties.

(9). Which of the following issues are not addressed by the Contracts for the International Sale of Goods (CISG)?
(a). Acceptance of an offer,
(b). Contract price,
(c). Revocation of an offer,
(d). Language used in written contract.

(10). Which of the following is not a recognized quality management approach?
(a). Total Quality Management (TQM),
(b). Continuous Improvement,
(c). Six Sigma.
(d). Quality Ensured in the Supply Triangle (QEST).

(11). Which of the following is not one of the seven wastes?
(a). All processing,
(b). Overproduction,
(c). Unneeded motion,
(d). Unneeded transportation.

(12). Which of the following is not a quality award?
(a). Malcolm Baldridge Award,
(b). European Quality Award,
(c). ISO 9000,
(d). Deming Prize.

(13). In the investigation phase, the development of alternatives encompasses all of the following consideration, except one. Which does not belong to the list?
(a). Value analysis,
(b). Suitability,
(c). Producibility,
(d). Component availability.

(14). Which of the following is not associated with the development phase of the design process?
(a). Development of prototypes,
(b). Design reviews,
(c). Qualification testing,
(d). Value analysis.

(15). Which of the following is not true about risk sharing in government contracts?
(a). Government usually wants the seller to assume all technical and cost risk,
(b). In situations where the risk if high, the supplier must add large contingency sums in the price,
(c). Government supply managers should consider sharing the risk cost through reimbursement and/or incentive contracts,
(d). Government supply managers should consider sharing the risk cost through fixed firm Contracts.

(16). Which of the following is generally not true about government contracts?
(a). The contract may be terminated for default,
(b). The contract may be terminated for not fulfilling the terms of the contract,
(c). The government may not terminate a contract for its convenience,
(d). The government may debar, suspend, or declare ineligible an errant contractor.

(17). Which of the following does not fit within the code of ethics for government service?
(a). Make private promises only when needed,
(b). Engage in business with the Government,
(c). Never use any information gained confidentially in the performance of Government duties
as a means for making private profit,
(d). Expose corruption wherever discovered.

(18). Which of the following activities is typically not conducted in the production phase of the design process?
(a). Process Control,
(b). Material Availability Research,
(c). In Process & Final Testing,
(d). Adjust and calibrate the performance.

(19). Which of the following questions does not typically belong on a value-engineering checklist?
(a). Can the item be eliminated?,
(b). Can the product quality be lowered to reach a lower price point?,
(c). If the item is not standard, can a standard item be used?,
(d). If it is a standard item, does it completely fit the application, or is it a misfit?

(20). All of the following are considerations when assessing technical risk except:
(a). Type and complexity of the item or service,
(b). Supply and demand patterns of the marketplace,
(c). Stability of design specifications or statement of work,
(d). Availability of historical pricing data.

(21). In the PDCA Cycle the D stands for which of the following?
(a). Document,
(b). Do,
(c). Develop,
(d). Describe.

(22). Which of the following is not one of the seven wastes as interpreted by Honda?
(a). Waste in the Work Itself,
(b). Process Time,
(c). Inventory,
(d). Wasted Operator Movement.

(23). Which of the following is not a class of manufacturing inventory?
(a). Raw Materials,
(b). Finished Goods,
(c). In-process Goods,
(d). Stored Materials.

(24). A listing of Intermediate Predecessor activities is important information in a Single Time Estimate CPM analysis for which of the following reasons?
(a). It makes it possible to understand the relationship of the CPM network of activities,
(b). It provides useful timing information,
(c). It includes cost information,
(d). It is the probability information in the final step of the CPM.

(25). In an MRP program, the program accesses the status of any file in specific time periods called which of the following?
(a). Cubed time units,
(b). Time buckets,
(c). BOM units,
(d). Modular units.

Part -3:

(1). Which of the following is not a transactional relationship characteristic?
(a). Long-term contract,
(b). An absence of concern,
(c). One of a series of independent deals,
(d). Costs, data and forecasts are not shared.

(2). Which of the following is not one of the issues that affect a supplier's assessment of a buying firm?
(a). Gifts & gratuities,
(b). Openness and Approachability,
(c). Availability,
(d). Professionalism.

(3). Which of the following is a major element included in a "to buy" cost analysis?
(a). Delivered purchased material costs,
(b). Transportation costs,
(c). Direct labor costs,
(d). Any follow-on costs stemming from quality and related problems.

(4). Which of the following is not one of the six categories of cost presented in the textbook?
(a). Price of goods,
(b). Variable manufacturing costs,
(c). Fixed manufacturing costs,
(d). Semi Variable costs.

(5). Which of the following is not a common source of prices for a price analysis?
(a). Catalog prices,
(b). Internet prices,
(c). The grapevine,
(d). Independent cost estimates.

(6). Which of the following is not a category of discounts?
(a). Trade discounts,
(b). Quantity discounts,
(c). Credit card discounts,
(d). Seasonal discounts.

(7). Which of the following is not considered a major element that affects a supplier's cost?
(a). Effectiveness of competitors,
(b). Capabilities of management,
(c). Efficiency of labor.
(d). Amount and quality of subcontracting.

(8). Which of the following is not a common use of learning curve?
(a). Estimation of Target costs,
(b). Improving Make-or-Buy Analyses,
(c). Estimation Delivery Times,
(d). Estimation of Material costs.

(9). Several potential benefits exist when a buying firm pays for and takes title to special tooling? Which is not one of the potential benefits?
(a). The buying firm gains greater control,
(b). Insurance costs are lower,
(c). Analysis of production costs is easier,
(d). Labor learning curve effect is reduced.

(10). Generally, compensation arrangements do not determine:
(a). Degree & timing of the cost responsibility assumed by the suppliers,
(b). Amount of profit or fee available to the supplier,
(c). Capability of the supplier with respect to quality,
(d). Motivational implications of the fee portion of the compensation arrangements.

(11). Which of the following statements is not true about incentive arrangements in contracts?
(a). Used to motivate the supplier to control costs,
(b). Used to encourage goods supplier performance,
(c). Contract price will usually be lower,
(d). Ceiling price is usually fixed during negotiations.

(12). Which of the following is not a cost type arrangement?
(a). Cost reimbursement,
(b). Cost plus hidden charges,
(c). Cost plus fixed fee,
(d). Cost plus award fee.

(13). Which of the following is usually not one of the objectives of a negotiation with a supplier?
(a). Quality,
(b). Fair & reasonable price,
(c). Cultural values,
(d). On-time performance.

(14). Which of the following is not one of the major steps in the typical negotiation process?
(a). Preparation,
(b). Establishment of objectives,
(c). Litigation prevention,
(d). Face to face discussions.

(15). Which of the following is a traditional non-cost objective in a negotiation?
(a). Liability for claims and damages,
(b). Quantity of labor,
(c). Wage rates,
(d). Quantity of materials.

(16). Which of the following is not a powerful preparation activity or tool for negotiation presented in
the textbook?
(a). Agenda.
(b). Murder Boards,
(c). Mock Negotiations,
(d). Historical Price Data Sheets.

(17). Several changes in business have increased the need for better contract management. Which of
the following is not of those changes?
(a). Collaboration is continuing to become more important,
(b). Large inventories are available,
(c). Quality is expected and becomes increasingly important due to JIT Supply Management,
(d). Deliveries are expected to be on time and become increasingly important due to JIT Supply Management.

(18). What usually does not need to be specified at the pre-award conference?
(a). All items and conditions,
(b). Expected quality levels,
(c). Staffing and supervision,
(d). Site conditions, work rules, safety.

(19). Which of the following is not one of the four categories of actions that exist to resolve a dispute?
(a). Negotiation,
(b). Mediation,
(c). Situation,
(d). Arbitration.

(20). Which of the following is not true about pricing in institutions?
(a). Until recently, many suppliers granted special prices to institutions,
(b). Today, most suppliers view the institutional market as a less preferable market to private industry,
(c). To obtain fair prices in such a market, institutions much have supply managers that can negotiate effectively with their highly competent sales counterparts,
(d). Institutions, as a group, continue to violate one of the basic principles of good supply management-that of not disclosing prices.

(21). Which condition clearly indicates that negotiation is preferred over competitive bidding?
(a). Dollar volume of the potential buy is very large,
(b). Product isn't actually needed until five months into the future,
(c). Each firm that is competing is a technical giant in the field,
(d). There will be substantial pre-production engineering and tooling required.

(22). All of the following factors will strengthen the buying organization's position in a negotiation except:
(a). Unclear specifications,
(b). Strongly competitive field,
(c). Lack of urgency for a contract,
(d). Thorough cost/price analysis.

(23). Which of the following is the least likely source of relevant information about a supplier when planning a negotiation?
(a). External databases,
(b). Persons who previously negotiated with the supplier,
(c). Dun & Bradstreet reports,
(d). Supplier's ranking among Fortune companies.

(24). Which of the following types of costs change in direct proportion to changes in the level of operational activity?
(a). Fixed,
(b). Variable,
(c). Standard,
(d). Direct.

(25). All of the following are elements considered in a cost analysis except:
(a). Direct Labor,
(b). Liability,
(c). Material,
(d). Profit.

Part - 4:

(1). The utility that is created by moving goods from surplus points to points where demand exists is referred to as:
(a). Form,
(b). Place,
(c). Time,
(d). Possession.

(2). What activity involves the movement of goods into a warehouse, the placement of goods in a warehouse, and the movement of goods from storage to order picking areas and eventually to dock areas for transportation out of the warehouse?
(a). Materials handling,
(b). Physical distribution,
(c). Business logistics,
(d). Order fulfillment.

(3). Logistics decisions about inventory, transportation, and warehouse should relate to which of the following?
(a). Globalization of business,
(b). Changing of government infrastructure,
(c). Structural changes in business,
(d). Customer service requirements.

(4). The network intermediaries engaged in transfer, storage, handling, and communication is a
(a). Link,
(b). Logistics channel,
(c). Node,
(d). Logistics provider.

(5). Which of the follow is not an example of customer service?
(a). Guaranteeing delivery within specified time periods,
(b). Installing the product,
(c). Extending the option to sell on consignment,
(d). Outsourcing financial and credit terms.

(6). Which are the major modes of international transportation?
(a). Water and air,
(b). Water and rail,
(c). Rail and motor,
(d). Rail and air.

(7). Which condition must be present before motor carriers and rail carriers can be used for international shipments?
(a). Shipments must be in volume and in bulk,
(b). Shipment must be between adjacent countries,
(c). No custom barriers can be imposed,
(d). Shipment cannot pass through adjacent countries.

(8). Any government unit or authority at any level that owns, operates, or otherwise provides wharf, dock, and other terminal facilities at port locations refers to:
(a). Country government,
(b). Maritime unit.
(c). Free Trade Zone,
(d). Port Authority.

(9). Which one of the following practices is not generally associated with inventory management?
(a). JIT,
(b). DRP,
(c). MRP,
(d). SEC.

(10). What are the two (2) basic warehouse operations?
(a). Movement and order processing,
(b). Movement and storage,
(c). Storage and inventory control,
(d). Purchasing and storage.

(11). Which of the following costs best applies to the use of public warehousing by a firm?
(a). Fixed,
(b). Marginal,
(c). Variable,
(d). Taxable.

(12). Which of the following is not an objective of materials handling?
(a). Increase effective capacity,
(b). Improve operating efficiency,
(c). Increase heavy labor,
(d). Implement effective working conditions.

(13). Which mode of transportation is characteristic of high fixed costs, low variable costs, long transit times, low accessibility, and capability of transporting only liquid products?
(a). Pipelines,
(b). Railroads,
(c). Water carriers,
(d). Air carriers.

(14). How does containerization change the materials handling function?
(a). From capital intensive to labor intensive,
(b). From labor intensive to capital intensive,
(c). From an ancillary to a primary function,
(d). To a market intensive activity.

(15). Piggyback is an example of which type of transportation?
(a). Intrastate,
(b). Interstate,
(c). Intermodal,
(d). Intercarrier.

(16). Which of the following is an ICC licensed freight intermediary whose propose is to bring shippers and carriers together?
(a). Shipper's agent,
(b). Freight wholesaler,
(c). Broker,
(d). Carriage company.

(17). What is an order bill of lading?
(a). Order of goods which a firm issues to a supplier,
(b). Same as a freight bill,
(c). Negotiable instrument that acts as a certificate of title,
(d). Purchase invoice.

(18). Under the term of sale "F.O.B. Delivered", who has the responsibility of filing a claim for damage arising from the shipment?
(a). Buyer,
(b). Supplier,
(c). Carrier,
(d). Demurrage agent.

(19). In an effort to offer a lower rate, carriers will try to:
(a). Separate joint and common costs,
(b). Reverse the rate taper,
(c). Offer a quantity discount,
(d). Disregard the weight of the shipment.

(20). The following are all types of 3PLs, except:
(a). Transportation based,
(b). Warehouse based,
(c). Forwarder based,
(d). B2B payments.

(21). A firm that manages the resources, capabilities, and technology of its own organization with those of complimentary service providers to deliver a comprehensive supply chain solution is called a:

(a). 3PL,
(b). 4PL,
(c). 2PL,
(d). 1PL.

(22). What type of change may suggest a need to reevaluate and/or redesign a firm's logistics network?

(a). Change in customer service requirements,
(b). Change in corporate ownership,
(c). Cost pressures and competitive capabilities,
(d). Shifting locations of customer and/or supply markets.
(e) Any or all of the above.

(23). Which of the following is not a trend in today's logistics environment that may have significant effects on decisions involving logistics facility location?
(a). Cross-docking,
(b). Use of third-party suppliers,
(c). Direct, Plant-to-Customer shipments,
(d). Decentralized facilities.

(24). Which of the following is not a supply chain decision area regarding ROA improvement?
(a). Channel structure management,
(b). Inventory management,
(c). Order management,
(d). Information management.

(25). A core competency is said to exist if each of three (3) conditions are satisfied. Which of the following is not one of these three conditions?
(a). Expertise,
(b). Strategic fit,
(c). Ability to invest,
(d). Sustainable advantage.