Question 1

Procurement aims to integrate environmental considerations into all stages of an organization's buying process with the goal of reducing the impact on human health and the physical environment are referred to as

Accepted Answer

Sustainable procurement refers to the practice of integrating environmental considerations into the purchasing process. It aims to reduce the impact on human health and the physical environment by considering factors such as the sustainability of materials and energy use in products and services. The other answer choices do not accurately describe this practice.

Question 2

A supply partnership exists when a buyer and its supplier adopt mutually beneficial objectives, policies, and procedures for the purpose of

Accepted Answer

A supply partnership focuses on collaboration to reduce costs or enhance the value of products or services for the end consumer, benefiting both parties involved.

Question 3

A relationship that exists when a buyer and its supplier adopt mutually beneficial objectives, policies, and procedures for the purpose of lowering the cost of and/or increasing the value of goods and services delivered to the ultimate customer is referred to as a __________.

Accepted Answer

A supply partnership is a type of relationship between a buyer and supplier where they work together towards common goals of lowering costs and increasing the value of goods and services for the end customer. This type of partnership typically involves open communication, collaboration, and a focus on long-term benefits for both parties.

Question 4

Reciprocity refers to

Accepted Answer

Reciprocity refers to an industrial buying practice in which two organizations agree to purchase each other's products and services. It is a common practice in many industries, particularly in B2B relationships, where each company benefits from the other's products or services. However, it is important to note that reciprocity can sometimes lead to ethical concerns, particularly if it becomes a requirement for doing business or if it excludes other potential suppliers.

Question 5

Starbucks is using its purchasing power to continue its quest to reduce its energy usage by a quarter by the end of 2010.In November of 2009, the company announced plans to replace all of the traditional incandescent and halogen bulbs in its 8000 worldwide stores with more efficient light emitting diodes (LEDs) - in a move the company claims will enable it to cut energy consumption in its stores by up to 7%.Starbucks is a world leader in

Accepted Answer

Starbucks' use of purchasing power to reduce energy usage through sustainable procurement aligns with the definition of sustainable procurement as "the process of making acquisition decisions with regards to the environmental, social and economic impacts of those decisions." This shows a commitment to sustainability beyond just abiding by governmental legislation. While the company may also have ISO 9000 certification and tying agreements with suppliers, these are not necessarily indicative of a focus on sustainable procurement. Binding contracts with developing nations are not mentioned in the article and therefore cannot be determined.

Question 6

This practice, which can affect the natural flow of the free market, is occasionally addressed in the ethics codes of companies or their purchasing policies.

Accepted Answer

Reciprocity in business refers to the practice of exchanging goods or services for mutual benefit, which can disrupt the natural flow of the free market by creating obligations or expectations that may not align with market dynamics. This is why it is often addressed in ethics codes or purchasing policies.

Question 7

Supply partnership refers to

Accepted Answer

Supply partnership is a mutually beneficial relationship between a buyer and a supplier to lower the cost of and/or increase the value of goods and services delivered to the ultimate customer. It involves the collaboration of objectives, policies, and procedures for the benefit of both parties. Option A and B are about precluding purchase of similar products, while option C is about ownership of facilities. Option E is about illegal practices.

Question 8

Sun Microelectronics custom orders processors, chips, and circuit boards for Sun's desktop, server, and storage products.Sun doesn't actually make any of its microelectronic gear itself.Sun contracts the work to outside manufacturers, who in turn rely on components from their own subcontracted suppliers.The 150 suppliers involved in making and delivering Sun products have adopted mutually beneficial objectives and strategies that give Sun's customers value for their money.Sun's method of doing business is an example of a(n)

Accepted Answer

Sun's method of doing business involves a mutually beneficial supply partnership with outside manufacturers and their subcontracted suppliers. This is not a supplier-dominated relationship, as Sun has a significant role in shaping the objectives and strategies of the partnership. The relationship is also not legally unethical, and it does not appear to be manufacturer-dominated, as Sun does not oversee the operations of its suppliers. Therefore, symbiotic partnership and supply partnership are the closest choices, and supply partnership is the best fit.

Question 9

Merrill Lynch and Thompson Financial are two years into a three-year, $1 billion project that will put workstations on the desks of 25,000 Merrill Lynch's brokers.These machines will put the world of investing information at the broker's fingertips.Thompson, the supplier, is obligated not only to deliver technology and services on time and on budget, but to constantly improve customer-satisfaction levels among Merrill's brokers and end customers.This is a(n) example of

Accepted Answer

The scenario describes a long-term buyer-seller relationship between Merrill Lynch and Thompson Financial, as they are working on a three-year, $1 billion project together. Thompson is not only delivering technology and services, but is also responsible for constantly improving customer satisfaction levels among Merrill's brokers and end customers. This indicates a long-term relationship and investment in each other's success.

Question 10

Back in July, 2009, Matt Kistler, a senior vice-president at Walmart claimed the company was making progress on achieving three major goals - to be supplied by 100% renewable energy, to create zero-waste, and to increase the sale of renewable produced products.Walmart is focusing on

Accepted Answer

Walmart's goals of being supplied by 100% renewable energy and creating zero waste are directly related to sustainable procurement, as the company aims to source products and energy in a way that minimizes environmental impact and promotes sustainability. The focus on increasing the sale of renewable produced products also falls under the umbrella of sustainable procurement.

Question 11

A study on ethical practices in purchasing found that smaller firms frequently make agreements with other organizations to purchase each other's goods and services.(This occurs much more frequently with small firms rather than larger firms.) This practice is referred to as

Accepted Answer

The practice of smaller firms making agreements with other organizations to purchase each other's goods and services is commonly known as reciprocity. This practice is a typical form of mutual exchange that occurs mostly with small firms. The two firms agree to purchase each other's products or services in the expectation of gaining a mutual benefit from the arrangement. The practice is ethical and beneficial for smaller firms as they can save on costs, increase demand, and enhance their competitiveness in the market.

Question 12

Procurement that aims to integrate environmental considerations into all stages of an organization's buying process with the goal of reducing the impact on human health and the physical environment is referred to as

Accepted Answer

Sustainable procurement is the procurement process that focuses on integrating environmental considerations into all stages of an organization's buying process, from product design to disposal. The goal of sustainable procurement is to reduce the impact on human health and the physical environment. It involves making purchasing decisions that are socially responsible, environmentally sustainable, and economically viable. This type of procurement promotes the use of eco-friendly products and services while reducing waste, energy consumption, and greenhouse gas emissions.

Question 13

The existence of reciprocal arrangements, long-term contracts, and in some cases, buyer-seller relationships that evolve into supply partnerships are all examples of

Accepted Answer

Reciprocal arrangements, long-term contracts, and supply partnerships are all possible outcomes of relationships between buyers and sellers in organizational buying. These are legal and ethical practices that can benefit both parties by ensuring stable supply and demand, cost savings, and improved quality.

Question 14

Because more and more companies are concerned with the depletion of natural resources, supply partnerships often include provisions for

Accepted Answer

Supply partnerships that include provisions for depletion of natural resources often prioritize sustainable procurement, which involves choosing suppliers and materials that are environmentally responsible and minimize waste. This approach helps to ensure the long-term availability of natural resources and promotes environmental sustainability. The other options (A-D) are either unrelated or potentially counterproductive to this goal.

Question 15

Although the U.S.Justice Department frowns on __________ because it restricts the normal operation of a free market, it is still legal for two companies to buy one another's products as long as no coercion is involved.

Accepted Answer

Reciprocity refers to the practice of two companies buying each other's products, which is legal as long as there is no coercion involved. The U.S. Justice Department frowns upon it because it can restrict free market operations.

Question 16

When Walmart jumps, the retail world shakes.So when Walmart says it's going to work with its suppliers partnerships to cut 20m tons of emissions from its supply chain, is it too far to say it's a leap in the __________?

Accepted Answer

Walmart's announcement to cut emissions from its supply chain signifies a commitment to sustainability, making the most appropriate choice the sustainability revolution. The other choices are not relevant to the context of the statement.

Question 17

If General Motors (GM) purchases Borg-Warner transmissions, and Borg-Warner buys trucks and cars from GM, they would be demonstrating which type of buyer-seller interaction?

Accepted Answer

The scenario describes a reciprocal buying relationship where both GM and Borg-Warner purchase goods or services from each other. This is a common practice in business-to-business transactions to maintain a mutually beneficial relationship.

Question 18

Which of the following characterizes organizational buyer-seller relationships?

Accepted Answer

Organizational buyer-seller relationships are characterized by long-term relationships. These relationships are built on trust and mutual understanding, which leads to repeat business and loyal customers.

Question 19

Starbucks purchases from coffee growers located in more than 20 countries.Starbucks pays the coffee farmers a fair price for the beans; the coffee is grown in an ecologically sound manner; and Starbucks invests in the farming communities where the coffees are produced.This is an example of

Accepted Answer

The answer of Starbucks purchases from coffee growers located in...

Question 20

A __________ exists when a buyer and its supplier adopt mutually beneficial objectives, policies, and procedures for the purpose of lowering the cost of and/or increasing the value of goods and services delivered to the ultimate customer.

Accepted Answer

A supply partnership is a collaborative relationship between a buyer and supplier where both parties work together to achieve common goals and improve the efficiency of the supply chain. This partnership aims to reduce the cost of goods and increase customer satisfaction by sharing information, resources, and risks. It is not a binding partnership as both parties remain independent, nor is it a company partnership as it involves two separate companies working together. It is not a restricted relationship as there are no restrictions or limitations placed on the partnership. While a symbiotic partnership may seem like a good choice, it is not a commonly used term in supply chain management and may not accurately describe this type of relationship.

Quiz 6: Understanding Organizations As Customers