Question 1

The second step of the purchasing process may be performed a number of ways.Perhaps the best way for standard items is ________ which is a description method that is applicable when the requirements are well understood.

Accepted Answer

The answer of The second step of the purchasing process...

Question 2

Profit margin is the ratio of ________ to ________.

Accepted Answer

The answer of Profit margin is the ratio of ________...

Question 3

A description method used when a product or service is proprietary or when there is a perceived advantage to using a particular supplier's product or services is:

Accepted Answer

Description by brand is the best choice when there is a perceived advantage to using a particular supplier's product or service. It emphasizes the brand name and creates brand loyalty among customers.

Question 4

________ is the name for a technique requiring a company to identify and determine all of the major costs associated with different sourcing possibilities.

Accepted Answer

The answer of ________ is the name for a technique...

Question 5

Authorization to a supplier to deliver product,known as a(n)________,increasingly takes the form of ________.

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The answer of Authorization to a supplier to deliver product,known...

Question 6

A company using portfolio analysis decides to form partnerships with suppliers;the products in question probably fall in the ________ quadrant.

Accepted Answer

The answer of A company using portfolio analysis decides to...

Question 7

A recent survey of executives at Global 1000 companies uncovered what fear?

Accepted Answer

The survey of executives at Global 1000 companies uncovered the fear of a supply chain disruption, which indicates that this fear is a significant concern for these companies.

Question 8

Which of these factors is most likely to increase the risk of a missed shipment,communication problem,or human error?

Accepted Answer

Global outsourcing can increase the risk of missed shipments, communication problems, or human error due to factors such as language barriers, time zone differences, cultural differences, and lack of direct control over the supply chain.

Question 9

Top executives name ________ as a significant threat to their companies' revenue streams.

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The answer of Top executives name ________ as a significant...

Question 10

Business partners that transfer payments between banks using an information system are using ________.

Accepted Answer

The answer of Business partners that transfer payments between banks...

Question 11

Terms and conditions for a purchased service that indicate what services will be performed and how the service provider will be evaluated are called a:

Accepted Answer

A statement of work (SOW) outlines the terms and conditions for a purchased service. It specifies what services will be performed, how they will be performed, and how the service provider will be evaluated. A request for quotation (RFQ) is a document used to request pricing and availability of goods or services. A bid specification is a detailed set of requirements that must be met by bidders in order to win a contract. A preferred supplier contract is an agreement between a buyer and a supplier to establish a long-term relationship.

Question 12

________ are high level,often strategic decisions regarding which products or services will be provided internally and which will be provided by external supply chain members.

Accepted Answer

The answer of ________ are high level,often strategic decisions regarding...

Question 13

Horace Smithfield,Esq. ,was insistent that he pay a flat rate of $10,000,000 and not a penny more to transfer his inheritance through your checking account so he could move vast sums of cash out of his country.Sure,he had fallen out of favor with the government and the economy in his country was in a dire situation,but a deal was a deal and $10,000,000 was all he could afford to pay.This type of purchase contract was to be a(n)________ if you would kindly provide your account information..

Accepted Answer

The answer of Horace Smithfield,Esq. ,was insistent that he pay...

Question 14

A company that regularly outsources goods and services may have established close relationships with their sources and therefore will allow these sources the first opportunity to bid for new business needs.These sources are known as ________.

Accepted Answer

The answer of A company that regularly outsources goods and...

Question 15

The purchasing team occasionally examined their spending patterns to identify irregularities as part of a(n)________.

Accepted Answer

The answer of The purchasing team occasionally examined their spending...

Question 16

Among the disadvantages of ________ are that different product attributes with varying qualities may be produced and that it can actually result in increased prices over time.

Accepted Answer

The answer of Among the disadvantages of ________ are that...

Question 17

The two basic types of purchasing contracts are:

Accepted Answer

Fixed-price contracts have a set price for goods or services, while cost-based contracts allow for adjustments based on actual costs incurred during the project. These are the two most common types of purchasing contracts. B, C, and D are not valid types of contracts.

Question 18

The bulk of insourcing costs are usually ________ costs.

Accepted Answer

The answer of The bulk of insourcing costs are usually...

Question 19

________ is a purchasing description method that focuses attention on the outcomes the customer wants.

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The answer of ________ is a purchasing description method that...

Question 20

Use of a single supplier for a part or service in part of the business and another supplier with the same capability for a different part or service in another area of the business is known as ________.

Accepted Answer

The answer of Use of a single supplier for a...

Quiz 8: Supply Management