Question 1

The terms and conditions included in a purchase order vary depending on the nature of the purchase and may relate to price, quality, and service.

Accepted Answer

The terms and conditions in a purchase order are tailored to the specific transaction and can include various aspects such as price, quality, and service to ensure both parties agree on the expectations and requirements.

Question 2

An online catalog is a digitized version of a supplier's catalog that cannot be customized to include the specific items, prices, and other terms and conditions negotiated by the buyer and seller.

Accepted Answer

An online catalog can be customized to include specific items, prices, and terms negotiated by the buyer and seller, allowing for tailored purchasing experiences.

Question 3

A bill of material BOM) includes a list of potential suppliers for each item needed to make one month's scheduled production.

Accepted Answer

A bill of material (BOM) typically includes a list of raw materials, components, and assemblies required to manufacture a product, but it does not usually include a list of potential suppliers.

Question 4

The benefits) of participation in an e-marketplace include:
A) the ability to aggregate spend
B) the advantages from economies of scale.
C) visibility up- and downstream in the supply chain.
D) the ability to automate and facilitate transactions.
E) all of the above.

Accepted Answer

The answer of The benefits) of participation in an e-marketplace...

Question 5

Application software for the procurement process is available:
A) only through an enterprise resource planning ERP) system.
B) only from a systems developer.
C) only from an application software provider ASP).
D) from an ERP system or systems developer, but not from an ASP.
E) from an ERP system, a systems developer, or an ASP.

Accepted Answer

Application software for the procurement process can be obtained from various sources, including ERP systems, systems developers, and application software providers (ASPs).

Question 6

Electronic data interchange EDI) provides:
A) secure transmission of large amounts of data, but with slow turnaround.
B) secure transmission, greater accuracy and shorter process cycle time for all data.
C) slow processing of large amounts of data, but with greater accuracy.
D) longer process cycle time, but with greater accuracy.
E) secure and rapid transmission of small amounts of data.

Accepted Answer

EDI provides secure transmission, greater accuracy and shorter process cycle time for all data.

Question 7

Before embarking on an e-commerce path, the supply leadership should decide what should be acquired through e-commerce and what tools should be used.

Accepted Answer

Supply leadership must determine the products and tools for e-commerce to ensure alignment with business goals and efficient operations.

Question 8

Online auctions have been most effective when:
A) the good or service is unique or highly customized.
B) technological, logistical, and commercial specifications are ambiguous.
C) the market conditions favor buyers.
D) the organization owns the technology to run the auction.
E) there are a limited number of suppliers available.

Accepted Answer

The answer of Online auctions have been most effective when:
A)...

Question 9

If the buyer does not have a clear and unambiguous description or specification and wants to find out which suppliers can deliver the best value when and where needed, he or she will typically issue a:
A) request for quotation RFQ).
B) request for proposal RFP).
C) request for information RFI).
D) request for bid RFB).
E) request for suggestions RFS).

Accepted Answer

A Request for Proposal (RFP) is used when the buyer does not have a clear specification and seeks proposals from suppliers to determine who can provide the best value.

Question 10

A process is a set of activities that has a beginning and an end, occurs in a specific sequence, and has inputs and outputs.

Accepted Answer

This is a correct definition of a process.

Question 11

It is relatively difficult to develop a global database to consolidate volumes and sourcing strategy because common technical standards and government regulations do not exist across countries.

Accepted Answer

Different countries have varying technical standards and regulations, making it challenging to create a unified global database for volumes and sourcing strategies.

Question 12

Radio frequency identification RFID) will:
A) eliminate bar coding and manual counting.
B) eliminate further investment in information technology.
C) supplement bar coding to reduce theft.
D) be more cost effective to implement than bar coding.
E) improve data capture but slow down inventory picking

Accepted Answer

RFID technology replaces bar coding and manual counting by automatically capturing data about items in real-time using radio waves. This improves inventory accuracy, reduces labor costs, and increases efficiency.

Question 13

A reverse auction is an online, real time, increasing price auction between multiple pre-qualified suppliers and a buying organization.

Accepted Answer

A reverse auction is an online, real-time, decreasing price auction where suppliers compete to offer the lowest price to a buying organization.

Question 14

Efficient and effective supply processes are needed because of:
A) the need for an audit trail.
B) the large volume of items and dollar value.
C) severe consequences of poor performance.
D) the potential contribution to organizational objectives.
E) all of the above.

Accepted Answer

Efficient and effective supply processes are crucial due to the need for an audit trail, the large volume and value of items, the severe consequences of poor performance, and their potential contribution to achieving organizational objectives.

Question 15

Information flows into the supply group from 1) other internal functions and 2) external sources; and information flows out from supply to 1) other internal functions and 2) suppliers.

Accepted Answer

The statement accurately describes the bidirectional flow of information in supply chain management, where information is exchanged both internally within the organization and externally with suppliers.

Question 16

A maverick buyer is a talented member of the supply department whose creativity and innovations have saved the organization large sums of money.

Accepted Answer

A maverick buyer is typically someone who makes purchases outside of the established procurement processes, often leading to inefficiencies and increased costs, rather than savings.

Question 17

Poor internal compliance with supply processes may indicate that internal customers do not trust the supply process or the suppliers to live up to promises.

Accepted Answer

Poor internal compliance can suggest a lack of trust in the supply process or suppliers, as employees may bypass established procedures if they believe these processes or suppliers are unreliable.

Question 18

The greatest opportunity to affect value in the purchasing process is when:
A) the suppliers) is selected.
B) price and terms are determined.
C) potential suppliers are analyzed.
D) needs are recognized and described.
E) the buyer follows-up and expedites the order.

Accepted Answer

Recognizing and describing needs is the earliest stage in the purchasing process, where the greatest opportunity to affect value exists by ensuring that the right products or services are identified to meet the organization's requirements effectively.

Question 19

Effectively and efficiently applying technology to the supply management process will result in:
A) increased clerical effort because there is more data entry than in a manual system.
B) damaged buyer-supplier relationships because of the impersonal nature of electronic communication.
C) an ability to reduce the total cost of doing business by enabling just-in-time systems, bar-coding applications, integrated manufacturing, and electronic funds transfers.
D) poorer negotiation planning and preparation because of the time spent accessing and analyzing data.
E) a decline in operating performance because of the volume of information to be analyzed and considered before making a decision.

Accepted Answer

Effectively applying technology in supply management can streamline processes, reduce costs, and improve efficiency through systems like just-in-time, bar-coding, and electronic funds transfers.

Quiz 4: Supply Processes and Technology

The terms and conditions included in a purchase order vary depending on the nature of the purchase and may relate to price, quality, and service.

An online catalog is a digitized version of a supplier's catalog that cannot be customized to include the specific items, prices, and other terms and conditions negotiated by the buyer and seller.

A bill of material BOM) includes a list of potential suppliers for each item needed to make one month's scheduled production.

The benefits) of participation in an e-marketplace include:

Application software for the procurement process is available:

Electronic data interchange EDI) provides:

Before embarking on an e-commerce path, the supply leadership should decide what should be acquired through e-commerce and what tools should be used.

Online auctions have been most effective when:

If the buyer does not have a clear and unambiguous description or specification and wants to find out which suppliers can deliver the best value when and where needed, he or she will typically issue a:

A process is a set of activities that has a beginning and an end, occurs in a specific sequence, and has inputs and outputs.

It is relatively difficult to develop a global database to consolidate volumes and sourcing strategy because common technical standards and government regulations do not exist across countries.

Radio frequency identification RFID) will:

A reverse auction is an online, real time, increasing price auction between multiple pre-qualified suppliers and a buying organization.

Efficient and effective supply processes are needed because of:

Information flows into the supply group from 1) other internal functions and 2) external sources; and information flows out from supply to 1) other internal functions and 2) suppliers.

A maverick buyer is a talented member of the supply department whose creativity and innovations have saved the organization large sums of money.

Poor internal compliance with supply processes may indicate that internal customers do not trust the supply process or the suppliers to live up to promises.

The greatest opportunity to affect value in the purchasing process is when:

Effectively and efficiently applying technology to the supply management process will result in: