Question 1

Milso Manufacturing markets __________ in partnership with its customers.

Accepted Answer

The answer of Milso Manufacturing markets __________ in partnership with...

Question 2

Purchasing 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 process of integrating 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. Ecological procurement, green marketing, supplier partnership, and stakeholder procurement are related concepts but do not fully encompass the broad approach to purchasing that is sustainable procurement.

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 or increasing the value of products and services delivered to the ultimate consumer is referred to as a __________.

Accepted Answer

A supply partnership involves a close relationship between a buyer and its supplier, where both parties work together towards mutually beneficial objectives, policies, and procedures. The ultimate goal is to reduce costs and increase the value of products and services delivered to the consumer. This type of relationship goes beyond a simple transactional arrangement and involves a long-term commitment from both parties to collaborate and innovate together. Supplier development agreement, reciprocal arrangement, and shareholder relationship are not as specific and comprehensive as the concept of a supply partnership. A strategic alliance is also a close relationship between two or more parties, but it may have a broader scope and may involve multiple objectives beyond cost reduction and value enhancement.

Question 4

The practice of __________,which can affect the normal operation of the free market and limit the flexibility of buyers,is occasionally addressed in the ethics codes of companies or their purchasing policies.

Accepted Answer

Reciprocity is a practice where a company agrees to buy goods or services from another company in exchange for that company buying goods or services from them. This can affect the normal operation of the free market and limit the flexibility of buyers, which is why it is occasionally addressed in the ethics codes of companies or their purchasing policies.

Question 5

A study on ethical practices in purchasing found that smaller firms frequently make agreements with other organizations to purchase each other's products and services.This practice is referred to as

Accepted Answer

Reciprocity refers to two or more organizations agreeing to purchase each other's products or services. This practice is commonly used by smaller firms to gain access to resources and to strengthen relationships with other organizations. It is important to note that while reciprocity can be an ethical practice, it can also lead to anti-competitive behavior if used to exclude other suppliers from the market.

Question 6

In a buyer-seller relationship,reciprocity refers to

Accepted Answer

Key term definition-reciprocity.

Question 7

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

This is an example of reciprocity, where two firms buy goods from each other as a way of maintaining their business relationship.

Question 8

Apple,Inc.custom orders the manufacture of microprocessors for its iMac,iPhone,and iPad.For example,Intel makes chips for the iMac and Samsung produces Apple-designed chips for the iPhone and iPad.These two suppliers in turn rely on components from their own subcontracted suppliers.The suppliers involved in making and delivering microprocessors have adopted mutually beneficial objectives and strategies that ultimately give Apple's customers value for their money.Apple's method of doing business this way is an example of a(n)

Accepted Answer

A supply partnership involves collaboration between a company and its suppliers to achieve mutually beneficial objectives, as seen in Apple's collaboration with Intel and Samsung.

Question 9

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 there is no coercion involved.

Accepted Answer

Reciprocity refers to the practice of two companies buying each other's products, which the U.S. Justice Department frowns upon as it can restrict free market operations.

Question 10

Recently,Walmart asked that Procter & Gamble (P&G)link its computerized cash register scanning equipment and direct electronic ordering and replenishing systems to all of its stores.This way,Walmart can tell P&G what merchandise it needs to replenish,along with how much,when,and to which store to deliver it on a daily basis.From this description,Walmart is engaged in __________.

Accepted Answer

Walmart is engaged in a supply partnership with Procter & Gamble (P&G) by linking their computerized cash register scanning equipment and direct electronic ordering and replenishing systems to all Walmart stores. This allows Walmart to inform P&G of the merchandise it needs to replenish, along with how much, when, and to which store to deliver it on a daily basis.

Question 11

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

Accepted Answer

The question mentions that companies are concerned with the depletion of natural resources, which indicates a focus on sustainability. Thus, the most relevant provision for supply partnerships would be sustainable procurement, which involves selecting suppliers and products based on their environmental and social impact. The other options, such as green marketing or regulatory exemptions, do not directly address the issue of sustainable sourcing.

Question 12

A supply partnership refers to

Accepted Answer

A supply partnership refers to a relationship between a buyer and supplier that is mutually beneficial and aims at reducing costs and increasing the value of products and services delivered to the end consumer. It involves the adoption of common goals, policies, and procedures to achieve the same. A supply partnership does not involve illegal practices, and it is different from exclusive dealing or tying arrangements (options A, B, and E).

Question 13

Recently,Matt Kistler,a senior vice-president at Walmart,claimed the company was making progress on achieving three major goals: (1)to be supplied by 100% renewable energy; (2)to create zero-waste;and (3)to increase the sale of renewably-produced products.Walmart is focusing on

Accepted Answer

Walmart is focusing on using sustainable procurement practices to achieve their goals of being supplied by 100% renewable energy, creating zero-waste, and increasing the sale of renewably-produced products.

Question 14

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

Accepted Answer

The description given matches the concept of a supply partnership, where a buyer and supplier work together to reduce costs and increase value for the end consumer. A supplier development agreement typically refers to a specific agreement between a buyer and supplier focused on developing and improving the supplier's capabilities. A reciprocal arrangement generally involves an exchange of goods or services between two parties. A shareholder relationship reflects the ownership of shares in a company. A strategic alliance refers to a broader partnership between two or more companies to achieve specific business goals.

Question 15

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 exists to lower costs or increase value of products or services to the ultimate consumer. This involves adopting mutually beneficial objectives, policies, and procedures between the buyer and its supplier. The aim is to create a sustainable and long-term relationship that benefits both parties and improves the overall value proposition for the end consumer.

Question 16

Milso Manufacturing emphasizes

Accepted Answer

Milso Manufacturing emphasizes supplier partnerships when designing products for its customers. This means that they work closely with their suppliers to create products that meet the needs and specifications of their customers. By involving their suppliers in the design process, they can also ensure that they are able to produce the products efficiently and cost-effectively, which helps to maximize profits for both Milso and their suppliers.

Question 17

Although not strictly illegal,the U.S.Justice Department frowns on reciprocity because the practice

Accepted Answer

Reciprocity agreements restrict the normal operation of the free market by favoring certain companies or industries over others, leading to unfair competition. This is why the Justice Department frowns upon these agreements, although they are not strictly illegal.

Question 18

Starbucks purchases from coffee growers located in more than 20 countries.Starbucks: (1)pays the coffee farmers a fair price for the beans; (2)the coffee is grown in an ecologically sound manner;and (3)Starbucks invests in the farming communities where the coffees are produced.This is an example of

Accepted Answer

This scenario describes sustainable procurement, which involves purchasing goods and services in a way that takes into account social, economic, and environmental factors. Starbucks prioritizes paying fair prices to coffee farmers, promoting ecologically sound growing practices, and investing in the communities where the coffee is produced. This demonstrates a commitment to sustainability throughout their supply chain.

Question 19

The group of people within an organization who participate in the buying process and share common goals,risks,and knowledge important to a purchase decision is referred to as the

Accepted Answer

The term "buying center" refers to the group of people within an organization who participate in the buying process and share common goals, risks, and knowledge important to a purchase decision. The other options (gatekeeper, purchasing department, procurement committee, acquisition office) may also be involved in the buying process, but they do not necessarily encompass the entire group of decision-makers within the organization.

Question 20

Starbucks is using its purchasing power to continue its quest to reduce its energy usage.Recently,the company announced plans to replace all of the traditional incandescent and halogen bulbs in its stores worldwide with more efficient light emitting diode (LED)bulbs-a move the company claims will enable it to cut energy consumption in its stores by up to 7%.Starbucks would be considered a leader in

Accepted Answer

Starbucks' decision to replace traditional bulbs with LED bulbs demonstrates their commitment to sustainable procurement, as they are using their purchasing power to prioritize environmentally friendly products and reduce their overall energy usage. While the other options may also align with Starbucks' values and practices, sustainable procurement is the most directly applicable to this specific initiative.

Quiz 6: Understanding Organizations As Customers