Question 1

In most cases, large multidivisional firms like IBM, Ford, and General Motors usually establish a set of ___________ based on the overall corporate missions.

Accepted Answer

Large multidivisional firms typically establish systematic policies based on their overall corporate missions to ensure consistency and direction across all divisions.

Question 2

_________________ is a stockless inventory method for ordering and stocking MRO and related items. The use of ________________ will aid the firm in reducing ordering and inventory costs.

Accepted Answer

Systems contracting is a stockless inventory method that helps in reducing ordering and inventory costs by streamlining the procurement process for MRO (Maintenance, Repair, and Operations) and related items.

Question 3

Top management support has long been recognized as one of the _______ important ingredients necessary for the ___________ of any organizational change, and the same holds true for the ____________ of an EDI system.

Accepted Answer

Top management support is crucial for the successful introduction and implementation of any organizational change, including an EDI system.

Question 4

typical purchasing department is responsible for:

Accepted Answer

The purchasing department is responsible for acquiring a broad range of materials and supplies to support the organization's operations.

Answer: D 
 It is not typical for the purchasing department to monitor the executives' expense accounts. This responsibility typically falls to the accounting or finance department.

Therefore, the best choice is C.

Question 5

The following are the first five steps in the Procurement Order Cycle Standard Procedure with the exception of:

Accepted Answer

The question asks for the exception, and the correct answer is B because it is a step in the procurement process, and all the other options are steps in the procurement order cycle standard procedure.

Question 6

The driving force behind any purchasing corporate policy considers the following objectives with the exception of:

Accepted Answer

The objective listed in A does not consider factors such as quality, reliability, and supplier relationships, which are important considerations in a purchasing policy. The other objectives listed in B, C, and D are commonly recognized as important considerations for a corporate purchasing policy.

Question 7

The _____________ process requires the use of a negotiated agreement between buyers and sellers.

Accepted Answer

Systems contracting involves a negotiated agreement between buyers and sellers to streamline the procurement process.

Question 8

This automation (RFID) provides reductions in the need for the manual scanning of products and the time required for labor-intensive duties, which, in turn, can increase the overall labor costs for companies.

Accepted Answer

RFID technology reduces the need for manual scanning and labor-intensive duties, which typically leads to a decrease in overall labor costs for companies by improving efficiency and reducing the time spent on inventory management and tracking.

Question 9

Increased shrinkage.

Accepted Answer

Increased shrinkage is not a complete statement or question to determine its truthfulness without additional context.

Question 10

There are also some risks when using EDI that should be considered. Which of the following should be considered when using EDI?

Accepted Answer

All of the given factors should be considered when using EDI. The cost of machines and training should not be neglected, as cutting corners may lead to unforeseen expenses in the long run. Security is also an important issue, as technology advances faster than procedural safeguards. Exposure to outside users can also pose a risk, making it necessary to ensure the validity of messages and their sources. Additionally, a company should decide whether to rely solely on EDI or to use both EDI and traditional methods, as this may have an impact on supply chain management and profitability.

Question 11

The negotiated agreement between buyers and sellers includes the following terms: the type of material, ________________, stocking policy, and delivery requirements.

Accepted Answer

The correct answer is D) all of the above because the type of material, price, billing policy, stocking policy, and delivery requirements are all common elements that can be included in a negotiated agreement between buyers and sellers.

Question 12

RFID tags can be read through snow, fog, ice, paint, and crusted grime, unlike the barcode system. The tag also can be programmed to hold information such as the item's serial number, color, size, manufacture date, and current price, as well as a list of all distribution points the item reaches as it moves before arriving at a store.

Accepted Answer

RFID tags can be read through various types of obstacles and can hold a larger amount of information compared to barcodes.

Question 13

ompanies must ask themselves many questions before implementing an RFID system. Some such questions follow, with one exception. Which is the exception?

Accepted Answer

The exception is D, "Will RFID increase the costs of the company to serve its customers?" While this is a valid question, it is not one that companies must necessarily ask themselves before implementing an RFID system. The other questions, A, B, C, and E, all relate to the potential benefits and implications of implementing RFID technology, and are crucial to consider before making a decision.

Question 14

The textbook discusses the significant difference between buying and purchasing. In general the purchasing process refers to buying goods and services for _______________. Buying typically means procuring items for ________.

Accepted Answer

The purchasing process refers to buying goods and services for use by the buying organization, while buying typically means procuring items for resale or external use. Therefore, option D (use by the buying organization/resale) is the best choice.

Question 15

ccording to the Lewin-Schein theory of change the change process consists of the following three steps:

Accepted Answer

The Lewin-Schein theory of change consists of three steps: unfreezing (preparing for change by recognizing the need for it), moving (implementing the change), and refreezing (stabilizing the change as a new norm). Thus, option A correctly identifies the three steps in the correct order.

Question 16

s EDI really takes hold and international EDI becomes more commonplace a major stumbling block will be overcoming the language barriers that now exist. The most widespread EDI language in the United States is _________________

Accepted Answer

The most widespread EDI language in the United States is the ANSI X12 standard. While there are other standards such as EDIFACT and ODETTE, ANSI X12 is the most commonly used in the US. It includes standard business documents such as purchase orders, invoices, and shipping notices, and is supported by many different industries.

Question 17

traveling requisition also may include information regarding the ___________ and ____________________ for inventory control purposes.

Accepted Answer

The traveling requisition may include information regarding the order point and economic order quantity for inventory control purposes, as these factors can help ensure that the right amount of inventory is on hand at all times without overstocking. Information about sales, manufacturers, vendors, and reorder quantity may also be included in the requisition, but they do not necessarily relate to inventory control.

Question 18

Unlike the barcode-based tracking system, a radio frequency identification system offers a __________________________________ .

Accepted Answer

A radio frequency identification system uses radio waves to communicate between a tag and a reader, allowing for no-contact and no-line-of-sight reading and tracking. This makes it more efficient than barcode-based tracking systems that require line-of-sight and contact scanning.

Question 19

Introducing new technologies into organizations will almost always result in some combination of social, technical, psychological, and structural changes. When managers or employers resist the logical arguments presented in support of EDI, they may not be resisting the technical aspects of the proposed change as much as the perceived _______________________ ramifications.

Accepted Answer

When managers or employers resist the logical arguments in support of EDI, they may not be resisting the technical aspects of proposed change as much as the perceived social or psychological ramifications. This implies that the best choice is option D.

Question 20

The way in which the process of developing and implementing an EDI system is managed can greatly influence the success of implementation. Four key areas are:

Accepted Answer

Top management support is crucial in providing resources and setting priorities for the EDI project; commitment to the project is important for ensuring that the project is completed on time and within budget; influence is essential for promoting acceptance of the new system among employees and suppliers; and institutionalization involves integrating the EDI system into the company's operations and ensuring its long-term success. Middle management support and knowledge of the project can also be important, but they are not as critical as top management support and commitment. Therefore, option B is the best choice.

Quiz 7: Purchasing Procedures, E-Purchasing, and Systems Contracting