Question 1

The ultimate goal of just-in-time (JIT)inventory control is to eventually eliminate all inventory except products in production and transit.

Accepted Answer

The ultimate goal of JIT inventory control is to reduce inventory to the minimum level required for production and transit, but not necessarily to eliminate it completely. Some safety stock may still be necessary to prevent disruptions in the supply chain.

Question 2

Your supervisor directs you to investigate alternatives to regular postal service delivery.Your supervisor is acting as the gatekeeper in the buying process.

Accepted Answer

In the buying process, a gatekeeper controls the flow of information and access to decision-makers, not necessarily directing investigations into alternatives.

Question 3

The needs of both the organization and the individuals making the decisions affect the evaluation and selection of products and suppliers.

Accepted Answer

Both the organization and the individuals making the decisions have their own set of requirements and constraints that impact the selection and evaluation of products and suppliers. The organization may prioritize factors such as cost, quality, and reliability, while the individual decision-makers may also consider their personal preferences and biases. Ultimately, the decision-making process is influenced by the needs of both the organization and the individuals involved.

Question 4

Sales to original equipment manufacturers (OEMs)and resellers are based on direct demand rather than derived demand.

Accepted Answer

Sales to OEMs and resellers are based on derived demand, which means that the demand for their products is ultimately determined by the demand for the final products in which they will be used.

Question 5

A buying center is an informal,cross-department group of people involved in a purchase decision.

Accepted Answer

A buying center is a group of individuals from different departments or functional areas within a company who work together to make purchasing decisions that align with the organization's objectives. This group may include people from departments such as finance, marketing, operations, and purchasing.

Question 6

Automatic replenishment is a form of supplier relationship management (SRM).

Accepted Answer

The answer of Automatic replenishment is a form of supplier...

Question 7

"Always a share" is a strategy for risk reduction employed by buying centers.

Accepted Answer

"Always a share" means that the risk is spread out among multiple suppliers or vendors instead of relying on a single one, thus reducing the risk of disruption or failure.

Question 8

Resellers consider two elements when making decisions about what products to sell: customer profiles and targeted return.

Accepted Answer

The answer of Resellers consider two elements when making decisions...

Question 9

When the office manager of an established dentist orders a new case of the same brand of dental floss that the dentist's office has been using for years from the same source,it is considered a straight rebuy.

Accepted Answer

A straight rebuy is a situation where a buyer routinely reorders a product without much evaluation or consideration of alternatives. In this case, the office manager is ordering the same brand of dental floss from the same source that the dentist's office has been using for years, indicating a routine purchase without the need for extensive evaluation.

Question 10

Effective JIT requires that customers inform suppliers only when their current stocks have been completely depleted.

Accepted Answer

Effective JIT requires close communication and coordination between customers and suppliers, including sharing information about inventory levels and demand forecasts. It is not necessary to completely deplete current stocks before informing the supplier.

Question 11

Members of the purchasing department and technical experts from engineering,production,and quality control departments perform value analysis.

Accepted Answer

Value analysis typically involves cross-functional teams, including members from purchasing, engineering, production, and quality control departments, among others.

Question 12

"Always a share" means the buyer will always allocate all shares to only one vendor.

Accepted Answer

"Always a share" typically refers to a policy or practice where shares or allocations are distributed among multiple vendors, not just one.

Question 13

Salespeople often trigger the buying process by demonstrating how their products can improve the efficiency of the customer's operation.

Accepted Answer

Salespeople often use the strategy of demonstrating how their products can improve the efficiency of the customer's operation in order to trigger the buying process. This is a common approach to showing the customer the value of their product and how it can solve their problems or meet their needs.

Question 14

Creeping commitment means that a customer becomes increasingly committed to a particular course of action while going through the steps in the buying process.

Accepted Answer

Creeping commitment is a real phenomenon where customers become increasingly committed to a certain course of action as they proceed through the buying process, often due to factors like sunk costs or cognitive dissonance.

Question 15

Value analysis begins with the examination of the product's function.

Accepted Answer

Value analysis does indeed begin with the examination of the product's function, with the aim of identifying ways to optimize the function and reduce costs while maintaining or improving quality.

Question 16

From the salesperson's point of view,the initial steps in the buying process are critical in straight rebuy situations.

Accepted Answer

In straight rebuy situations, the buying process is routine and the customer reorders the same product without much involvement or evaluation. Therefore, initial steps are not critical from the salesperson's point of view.

Question 17

Derived demand means demand is derived from the increase in GDP.

Accepted Answer

Derived demand refers to demand for a product or service that is a result of the demand for another product or service. It is not dependent on the increase in GDP.

Question 18

Salespeople selling original equipment manufacturer (OEM)products need to demonstrate that their products help customers produce products which will offer superior value.

Accepted Answer

Demonstrating superior value is important for selling OEM products because customers are looking for the best products to use in their own manufacturing processes. Showing how your product can help them produce higher quality or more efficient products will make it more appealing to them.

Question 19

Life-cycle costing is also known as quality-based costing.

Accepted Answer

Life-cycle costing is a method of accounting for all the costs associated with a product or service over its entire life cycle, from conception to disposal. It includes not only the initial purchase price but also the cost of operating, maintaining, repairing, and disposing of the product or service. Quality-based costing, on the other hand, is a method of accounting that focuses on the cost of achieving a certain level of quality in a product or service. While life-cycle costing may take quality into account, it is not the same as quality-based costing.

Question 20

Global sourcing is a key factor in achieving a sustainable competitive advantage.

Accepted Answer

Global sourcing allows companies to access a wider range of resources at a lower cost, which can help them to lower costs, improve efficiency, and reduce supply chain risks. This can help companies to achieve a sustainable competitive advantage by improving their ability to meet customer needs, respond quickly to changing market conditions, and differentiate themselves from competitors.

Quiz 3: Buying Behavior and the Buying Process