26 Jan What does the term “agent”

Question 1

Which of the following is not one of the wrong reasons for investing in inventory?

Poor quality and material yield.

Extended order-cycle time from global sourcing.

Hedge against marketplace uncertainty.

Specifying custom items for standard applications.

Inefficient manufacturing processes.

Question 2

____ means that customer orders start the work process, which ripples down through the supply chain.

Flow

Striving for excellence

Pull

MRP

None of these choices.

Question 3

____ indicates that the purchaser is responsible for payment of transportation costs and assumes title of the goods at the supplier’s shipping dock.

F.O.B. origin

C.I.F.

F.O.B. carrier

F.O.B. intermediate storage point

F.O.B. destination

Question 4

Which of the following is not one of the components of material ordering cycle time that supply chain management practices affect directly?

Transmission of requirements to suppliers.

Supplier’s ordering and manufacturing cycle time.

Allocation of manufacturing overhead costs.

Delivery from suppliers.

Incoming receipt and inspection.

Question 5

All of the following are important barriers to lean supply except ____.

domestic sourcing

dispersed supply base

historic buyer-supplier relationships

number of suppliers

supplier quality performance

Question 6

____ is money the plaintiff actually paid to the defendant in connection with the contract.

Reliance

Restitution

Expectancy

Due diligence

None of these choices

Question 7

When firms produce goods in response to a customer order, they are operating in a/an ____ environment.

make-to-order

make-to-stock

make-to-forecast

WIP

None of these choices.

Question 8

Which of the following is not one of the common examples of indirect spend?

Professional and consulting services.

Employee benefits.

Travel.

Maintenance, repair, and operating supplies.

Production components.

Question 9

____ is a communications standard that supports interorganizational electronic exchange of common business documents and information.

MRP

DRP

E-SCM

RFID

EDI

Question 10

____ means that two or more parties are competing over a fixed value with the winner taking the larger share.

Lose-lose negotiation

Win-lose negotiation

Winner-take-all negotiation

Integrative bargaining

None of these choices

Question 11

Why will global sourcing increase?

Question 12

What does the term “agent” mean? Under what conditions can purchasing agents be held personally responsible for abusing their position?

Question 13

What are some of the key items you should plan on reviewing with a transportation or logistics service provider during a negotiation?

Question 14

What are likely to be the most important sources of power in a buyer-seller negotiation?

Question 15

Why is it so important to have senior executive support when implementing an indirect spend procurement strategy?