Question 1

The key to the success of any company is the quality of its employees.

Accepted Answer

The quality of employees directly impacts the productivity, efficiency and overall success of a company. Therefore, having high quality employees is crucial for a company's success.

Question 2

In the manufacturing sector,the percentage of purchases to sales averages 55%.

Accepted Answer

The statement is true. In the manufacturing sector, the percentage of purchases to sales averages 55%.

Question 3

Distribution management involves the management of packaging,storing,and handling of materials at receiving docks,warehouses,and retail outlets.

Accepted Answer

Distribution management is the process of managing the packaging, storing, and handling of materials at various stages of the supply chain, including receiving docks, warehouses, and retail outlets.

Question 4

Virtually all of the features that make their way into final products originate with suppliers.

Accepted Answer

Not all features in final products originate from suppliers; many are developed internally by the company itself or through collaboration with various stakeholders, including in-house R&D teams.

Question 5

Competition today is no longer between firms; it is between the supply chains of those firms.

Accepted Answer

This is because supply chains involve various processes and stages, and improving the performance and efficiency of these stages can benefit the entire supply chain, leading to competitive advantage for the firms involved.

Question 6

The traditional approach to purchasing and supply management is to build relations with suppliers to jointly pull costs out of the product or service and expect suppliers to contribute innovate ideas that continually add value to a firm's products and services.

Accepted Answer

The traditional approach to purchasing and supply management often focused on cost minimization and transactional relationships with suppliers, rather than building long-term partnerships for joint innovation and value addition.

Question 7

Sophisticated customers,both industrial and consumer,no longer talk about price increases; they demand price reductions.

Accepted Answer

Sophisticated customers are becoming more aware and educated about the market and prices, and therefore demand better prices and value for their purchases. This has led to a shift from asking for price increases to price reductions.

Question 8

Supply management is a broader concept than purchasing.

Accepted Answer

Supply management involves the holistic management of the entire supply chain, including sourcing, procurement, logistics, inventory management, and supplier relationship management. Purchasing, on the other hand, is just one of the many aspects of supply management, focused solely on the transactional aspect of procuring goods or services.

Question 9

Organizational design is much more than a series of lines and boxes across a chart.

Accepted Answer

Organizational design involves the structure, culture, processes, and various other elements of an organization, all aimed at achieving the overall goals of the organization. It is a complex and dynamic process that involves several factors beyond just the visual representation of a chart.

Question 10

Purchasing is becoming less responsible for sourcing indirect goods and services required by internal groups.

Accepted Answer

Purchasing departments are increasingly responsible for sourcing not only direct materials but also indirect goods and services, as organizations recognize the importance of managing these expenditures to optimize costs and efficiency.

Question 11

The availability of low-cost domestic supplier alternatives has led to the shift away from outsourcing and offshoring.

Accepted Answer

The answer of The availability of low-cost domestic supplier alternatives...

Question 12

Processes usually move across functional boundaries.

Accepted Answer

Processes often involve multiple functions and departments within an organization, and thus cross functional boundaries in order to be completed.

Question 13

According to Porter,a value chain is a subset of the supply chain.

Accepted Answer

Porter's value chain is a concept that focuses on the internal activities of a company to create value for customers, while a supply chain encompasses the entire process from raw materials to delivering the final product to the consumer. The value chain is not a subset of the supply chain; they are related but distinct concepts.

Question 14

Global sourcing is no longer a requirement and is a luxury for most firms.

Accepted Answer

Global sourcing is still a requirement for many firms as it helps to reduce costs, improve quality, and access a wider range of resources. While it may not be a necessity for all firms, it is still considered important for many businesses to remain competitive in today's global market.

Question 15

An abundance of competitors and choices have conditioned customers to want higher quality,faster delivery,and products and services tailored to their individual needs albeit at a higher total cost.

Accepted Answer

Customers generally expect higher quality, faster delivery, and personalized products/services at competitive or lower costs, not necessarily at a higher total cost.

Question 16

The development of progressive purchasing approaches and strategies can only help a company maintain its competitive position.

Accepted Answer

While progressive purchasing approaches and strategies can enhance a company's competitive position, they are not the only factors. Other elements like innovation, customer service, and market conditions also play crucial roles.

Question 17

The knowledge and skills demanded of today's supply chain professional has not changed and is the same as before.

Accepted Answer

Today's supply chain professional needs to have more advanced skills and knowledge related to technology, data analysis, sustainability, risk management, and global operations management. The increasing complexity of supply chains and the need for agility and resilience have raised the bar for supply chain professionals, requiring them to continually adapt and develop new competencies.

Question 18

In quality control,the emphasis has shifted from detecting defects at the time of receipt or use to prevention early in the materials-sourcing process.

Accepted Answer

This statement is true, as quality control methods have evolved to focus on preventing defects from occurring in the first place rather than simply detecting them afterwards. This can often save time and money in the long run by avoiding the costs of rework, returns, or customer dissatisfaction.

Question 19

Purchasing and supply management has minimal impact on product and service quality.

Accepted Answer

Purchasing and supply management plays a critical role in ensuring that the right materials, components, and services are acquired from reliable and quality suppliers. It involves a series of activities such as supplier selection, negotiation, quality assurance, and supplier relationship management to ensure that the right quality products and services are acquired at the right price and delivered on time. Therefore, it has a significant impact on product and service quality.

Question 20

The routine ordering and follow-up of basic operational supplies is a strategic responsibility.

Accepted Answer

Routine ordering and follow-up of basic operational supplies are considered tactical or operational responsibilities, as they involve day-to-day activities and management rather than long-term planning or strategic decision-making.

Quiz 1: Introduction to Purchasing and Supply Chain Management