Purchasing and Materials Management Practice Exam - 1000 Verified Questions

Purchasing and Materials Management Practice Exam https://quizplus.com/study-set/3046 22 Chapters 1000 Verified Questions

Purchasing and Materials Management Practice Exam Course Introduction Purchasing and Materials Management is a course that explores the strategic role of procurement and the management of materials in organizations. It examines the processes of sourcing, acquiring, and controlling raw materials, components, and services essential for production and operations. Topics include supplier selection and evaluation, negotiation strategies, inventory control, just-in-time systems, quality assurance, and ethical considerations in purchasing. The course also covers the impact of global supply chains, technology advancements, and sustainability practices on purchasing functions. Students will learn how effective materials management contributes to organizational efficiency, cost savings, and competitive advantage.

Recommended Textbook Supply Management 8th Edition by David N. Burt

Available Study Resources on Quizplus 22 Chapters 1000 Verified Questions 1000 Flashcards Source URL: https://quizplus.com/study-set/3046

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Chapter 1: The Progression to Professional Supply Management Available Study Resources on Quizplus for this Chatper 64 Verified Questions 64 Flashcards Source URL: https://quizplus.com/quiz/60533

Sample Questions Q1) Of the factors that make up total cost of ownership (TCO),the big majority of this cost is in the acquisition cost.

A)True B)False Answer: False Q2) Materials have always been vital in the history of industrial growth.

A)True B)False Answer: False Q3) Strategic sourcing is about dominating the markets you're purchasing from through force and intimidation,never letting the supplier forget that you are the "boss."

A)True B)False Answer: False Q4) World-class supply managers proactively improve supply processes.

A)True B)False Answer: True Page 3 To view all questions and flashcards with answers, click on the resource link above.

Chapter 2: Organizational Issues Available Study Resources on Quizplus for this Chatper 30 Verified Questions 30 Flashcards Source URL: https://quizplus.com/quiz/60532

Sample Questions Q1) Aside from reducing potential duplication of efforts,the major advantage of centralized purchasing is: : A) improved inventory control B) leveraged volume purchasing C) consolidation D D) transportation savings E E) lower administrative costs F Answer: B Q2) The materials management organization structure paved the way for _____ structure: : A) value network chain structures B) supply chain management structure C) procurement management structure M D) purchasing centralization N E) purchasing decentralization O Answer: B Q3) E-commerce has strengthened the case for decentralization of purchasing.

A)True B)False Answer: False To view all questions and flashcards with answers, click on the resource link above.

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Chapter 3: Supply Management: an Organization Spanning Activity Available Study Resources on Quizplus for this Chatper 42 Verified Questions 42 Flashcards Source URL: https://quizplus.com/quiz/60531

Sample Questions Q1) Very few advances in supply management originated in the federal government.

A)True B)False Answer: False Q2) In assuming lesser strategic responsibility,the activities of supply managers are increasingly spanning less organizational boundaries.

A)True B)False Answer: False Q3) Almost all of the problems present in manufacturing organizations are not present in government procurement.

A)True B)False Answer: False Q4) In assuming greater strategic responsibility,the activities of supply managers increasingly span organizational boundaries.

A)True B)False Answer: True

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Chapter 4: A Portfolio of Relationships Available Study Resources on Quizplus for this Chatper 63 Verified Questions 63 Flashcards Source URL: https://quizplus.com/quiz/60530

Sample Questions Q1) Which of the following is not one of the outcomes that collaborative relationships tend to foster?

A) Longer term contracts B) Reduction of risk for suppliers C) Reducing total costs D) A focus on price E) Improvement of processes Q2) The failure to develop and manage institutional trust is the principle reason that so many supply alliances fail.

A)True B)False Q3) Which of the following is not an action to develop and manage trust?

A) An inter-firm team is appointed B) Discussions conducted in an atmosphere of respect C) A team of attorneys is appointed to manage the relationship D) Inter-firm team receives guidance and training in the implementation of practices E) Listening, understanding, time, energy are invested To view all questions and flashcards with answers, click on the resource link above.

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Chapter 5: New Product Development Available Study Resources on Quizplus for this Chatper 26 Verified Questions 26 Flashcards Source URL: https://quizplus.com/quiz/60529

Sample Questions Q1) Which of the following questions does not typically belong on a value-engineering checklist?

A) Can the item be eliminated?

B) Can the product quality be lowered to reach a lower price point?

C) If the item is not standard, can a standard item be used?

D) If it is a standard item, does it completely fit the application, or is it a misfit?

E) Does the item have greater capacity than required?

Q2) Value engineering is a systematic study of every element of cost in a material,item of equipment,service or construction project that is conducted by design engineering only.

A)True B)False Q3) The design stage provides the greatest opportunity to reduce costs the life cycle costs of products.Supply management and the firm's suppliers have major contributions to make during this process.

A)True B)False To view all questions and flashcards with answers, click on the resource link above.

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Chapter 6: Purchasing Descriptions and Specifications Available Study Resources on Quizplus for this Chatper 67 Verified Questions 67 Flashcards Source URL: https://quizplus.com/quiz/60534

Sample Questions Q1) What type of specification describes the function to be performed and the way the item is to fit into the larger system, together with several design objectives?

Q2) Industrial standardization deals with such things as operating practices, procedures, and systems.

A)True B)False Q3) How does standardization enable customization?

Q4) What does the term "balanced" imply in the balanced specifications?

Q5) How does a materials catalog help reduce design time?

Q6) In the Chili's example, what is the analogy given for supply managers?

Q7) Complex or detailed specifications are descriptions that tell the seller exactly what the buyer wants to purchase.

A)True B)False Q8) Simplification is a corollary of standardization.

A)True B)False 8 what type of standardization does it Q9) When Dell develops a DVD player Page module, utilize?

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Chapter 7: Managing for Quality Available Study Resources on Quizplus for this Chatper 56 Verified Questions 56 Flashcards Source URL: https://quizplus.com/quiz/60528

Sample Questions Q1) Which of the following is not a Six Sigma theme?

A) Genuine Focus on the Customer B) Proactive Management C) Involvement of People D) Boundaryless Collaboration E) Drive for Perfection Q2) Which of the following points is not true about Philip Crosby?

A) One of Crosby's best selling books was "Quality is Free" B) Crosby developed the Cost of Quality model C) One of Crosby's best selling books was "Quality without Tears" D) Crosby believed strongly in the philosophy of Zero Defects E) Crosby believed that companies should "Do it right the first time!"

Q3) Supply professionals that plan to guide their organization and chain to SM must understand how to evaluate the management of quality within their own facilities and those

of

their

suppliers.Evaluation

of

the

underlying

philosophy,management

system,facilitating tools and methodologies of a supplier is the first step; however,SM calls for going beyond mere evaluation to aiding in the development and improvement of supplier quality.

A)True B)False To view all questions and flashcards with answers, click on the resource link above.

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Chapter 8: The Procurement of Equipment Available Study Resources on Quizplus for this Chatper 28 Verified Questions 28 Flashcards Source URL: https://quizplus.com/quiz/60527

Sample Questions Q1) Sourcing for capital equipment often requires a team for sourcing and a project manager because capital equipment goes on the books as an "employed asset," the _________ department must be on this team.

A) Engineering B) Operations C) Marketing D) Purchasing E) Finance Q2) Which of the following is usually not included in a lease contract?

A) Responsibility of both parties B) Acceptance testing and inspection C) Guarantee conditions D) Maintenance refund arrangements E) Penalties Q3) Operating leases are short-term and are used by most firms to facilitate business operations.

A)True B)False To view all questions and flashcards with answers, click on the resource link above.

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Chapter 9: Purchasing Services Available Study Resources on Quizplus for this Chatper 29 Verified Questions 29 Flashcards Source URL: https://quizplus.com/quiz/60526

Sample Questions Q1) Which of the following is not one of the tips on writing an effective S.O.W.given in the textbook?

A) Be clear B) Use active, not passive tenses C) Utilize legalese to hide negative issues D) Be precise E) Spell out the buyer's obligations carefully Q2) The conventional method and the owner as a contractor are alternative methods of purchasing construction services as presented in the textbook.

A)True B)False Q3) The procurement of services is a relatively simple assignment in supply management that usually results in lower pay for the supply manager.

A)True B)False Q4) Satisfaction is built into service products rather than added as an afterthought.

A)True B)False To view all questions and flashcards with answers, click on the resource link above.

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Chapter 10: Outsourcing Available Study Resources on Quizplus for this Chatper 27 Verified Questions 27 Flashcards Source URL: https://quizplus.com/quiz/60525

Sample Questions Q1) Many companies are not readily staffed to keep a company competitive in e-business.As a result,companies are outsourcing infrastructure development and maintenance to "Netsourcers."

A)True B)False Q2) Which of the following is not true about outsourcing?

A) Outsourcing is increasing rapidly in not just materials, many business functions are being outsourced B) Outsourcing should be used for all materials when suppliers are available C) Outsourcing can enable leveraging of the supplier's expertise and increases in innovation D) Outsourcing can result in lower staffing levels E) Outsourcing can result in reduced costs and more flexibility Q3) Which of the following is a major element typically included in a "to make" cost analysis?

A) Direct labor costs at your facility B) Purchase price of the part from the supplier C) Transportation costs D) Receiving and inspection costs of incoming goods E) Any follow-on costs related to quality or service provided by the supplier To view all questions and flashcards with answers, click on the resource link above.

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Chapter 11: Sourcing Available Study Resources on Quizplus for this Chatper 61 Verified Questions 61 Flashcards Source URL: https://quizplus.com/quiz/60524

Sample Questions Q1) Which of the following is not a typical advantage of national buying?

A) Delivery dates are more certain B) Economies of scale C) Superior technical assistance D) Better handling of fluctuating demand E) Shortages are less likely Q2) Early supplier involvement (ESI)is an approach in supply management to bring the expertise and collaborative synergy of suppliers into the design process A)True B)False Q3) Reverse auctions should only be used when: A) The materials are generic, i.e. standard shelf items.

B) All responding suppliers are fully qualified C) All supplier materials are identical D) The buyer does not need a long term relationship E) All of the above Q4) Supply base reduction is achieved through increasing both variety and consolidation.

A)True B)False Page 13 To view all questions and flashcards with answers, click on the resource link above.

Chapter 12: Global Supply Management Available Study Resources on Quizplus for this Chatper 64 Verified Questions 64 Flashcards Source URL: https://quizplus.com/quiz/60523

Sample Questions Q1) Which of the following is not an advantage of the Euro as presented in the textbook?

A) Greatly Reduced Transaction Costs B) Increased Competition C) Elimination of Tariffs D) Reduced Exchange Rate Risk E) Increased Trade and Capital Movement Q2) Which of the following is typically not a reason for a corporation to pursue global purchasing?

A) To Achieve Superior Quality B) To Achieve Better Timeliness C) To Experience Foreign Cultures D) To Lower Costs E) To Acquire More Advanced Technology Q3) Which of the following is not one of the original goals of NAFTA? A) Elimination of tariffs B) Subsidize border companies C) Remove agricultural barriers D) Remove manufacturing barriers E) Remove service trade barriers To view all questions and flashcards with answers, click on the resource link above.

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Chapter 13: Total Cost of Ownership Available Study Resources on Quizplus for this Chatper 30 Verified Questions 30 Flashcards Source URL: https://quizplus.com/quiz/60522

Sample Questions Q1) TCO analysis may include the study of all but one of the following issues.Which issue does not belong in the TCO analysis?

A) Structure of foreign and domestic tariffs/duties/taxes B) Foreign political/economic stability C) Foreign exchange risk D) Foreign language syntax E) Language/communication requirements Q2) Accurate estimation of total costs requires a cross-functional approach.Supply management is a critical member of such a cross-functional approach.

A)True B)False Q3) TCO is not applicable in one's private life to enable better decision-making.

A)True B)False Q4) TCO analysis of the labor base can reap lower per person costs,greater benefits,and improved morale.

A)True B)False To view all questions and flashcards with answers, click on the resource link above.

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Chapter 14: Price and Cost Analysis Available Study Resources on Quizplus for this Chatper 68 Verified Questions 68 Flashcards Source URL: https://quizplus.com/quiz/60521

Sample Questions Q1) Cost Analysis should be employed when either a price analysis is impractical or price analysis does not allow a buyer to reach the conclusion that a price is fair and reasonable.

A)True B)False Q2) What was not recommended by the textbook to be included in documentation in a price analysis report?

A) Whether to develop the supplier as an alliance B) Information that was considered C) Weight given to each piece of information and why D) Logic supporting the determination that a seller's price is or is not reasonable E) Soundness of that logic (logic supporting the determination that a seller's price is or is not reasonable) Q3) A supply manager does not require an understanding of cost analysis and costing systems to individually aspire towards shifting his or her organization towards world class performance.

A)True B)False To view all questions and flashcards with answers, click on the resource link above.

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Chapter 15: Methods of Compensation Available Study Resources on Quizplus for this Chatper 35 Verified Questions 35 Flashcards Source URL: https://quizplus.com/quiz/60520

Sample Questions Q1) FPEPA contracts are used to recognize hidden cost contingencies,such as poor quality or late delivery.

A)True B)False Q2) Three general types of contract compensation arrangements were presented in the textbook: fixed price contracts,incentive contracts and cost-type contracts.

A)True B)False Q3) Contract schedule risk is the risk associated with material and labor cost increases and possible schedule slippages.

A)True B)False Q4) Cost Plus Incentive Fee arrangements combine the incentive arrangement and the cost plus fixed fee arrangement.

A)True B)False To view all questions and flashcards with answers, click on the resource link above.

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Chapter 16: Negotiation Available Study Resources on Quizplus for this Chatper 64 Verified Questions 64 Flashcards Source URL: https://quizplus.com/quiz/60519

Sample Questions Q1) Among the advantages of online negotiations are: it can help focus on the issues separately from personalities,online communication can free the buyer and supplier from location dependency,and the time for conducting the negotiation is relatively flexible as long as it is not being done live.

A)True B)False Q2) Which of the following is a traditional non-cost objective in a negotiation?

A) Liability for claims and damage B) Quantity of labor C) Wage rates D) Quantity of materials E) Prices of materials Q3) Which of the following is not a typical collaborative and alliance negotiating technique?

A) Use diversions B) Separate the people (negotiators) from the problem (quality, price) C) Focus on interests, not positions D) Invent options for mutual gain E) Insist on using objective criteria To view all questions and flashcards with answers, click on the resource link above.

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Chapter 17: Contract Formation and Legal Issues Available Study Resources on Quizplus for this Chatper 34 Verified Questions 34 Flashcards Source URL: https://quizplus.com/quiz/60518

Sample Questions Q1) F.O.B.origin designates that the supplier owns the material until it is off-loaded at the buyer's receiving dock.

A)True B)False Q2) Most disputes are best resolved through negotiation and compromise.

A)True B)False Q3) The most powerful tool a supply professional has to avoid legal problems is skill in selecting sound,reliable suppliers.

A)True B)False Q4) A purchase contract must have certain considerations to be legal.Which of the following is not one of these considerations?

A) Agreement B) Signers must be over 21 C) Consideration, or mutual obligation D) Competent parties E) Lawful purpose To view all questions and flashcards with answers, click on the resource link above.

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Chapter 18: Contact and Relationship Management Available Study Resources on Quizplus for this Chatper 25 Verified Questions 25 Flashcards Source URL: https://quizplus.com/quiz/60517

Sample Questions Q1)

Supply

Management

calls

for

contract

and

relationship

management

techniques,tools,and philosophies that enable collaboration,where appropriate.The key objectives are timely delivery,desired quality and performance; while simultaneously empowering supply professionals to foster synergistic opportunities.

A)True B)False Q2) A typical cost ratio expresses the cost as a percent of the total dollar purchase from that supplier.

A)True B)False Q3) SM calls for contract and relationship management techniques,tools,and philosophies that enforce collaboration through penalties and punishment for nonconformance.

A)True B)False Q4) Critical path analysis lets us know which activities do not need to be managed as strictly.

A)True B)False To view all questions and flashcards with answers, click on the resource link above.

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Chapter 19: Ethics and Social Responsibilities Available Study Resources on Quizplus for this Chatper 52 Verified Questions 52 Flashcards Source URL: https://quizplus.com/quiz/60516

Sample Questions Q1) Supply professionals should only solicit or accept gifts,entertainment,and favors from potential suppliers when they feel that the supplier has failed to influence them in making their supply management decisions.

A)True B)False Q2) Supply management's involvement in employer-sponsored programs of personal purchases that are not business related is not only ethically okay,but it is a typical perk of being a supply professional.

A)True B)False Q3) According to a study discussed in the textbook,a majority of supply professionals feel that any form of gratuity constitutes a conflict with ethical standards.

A)True B)False Q4) Supply professionals should limit the sharing of confidential or proprietary information belonging to employers and/or suppliers.

A)True B)False To view all questions and flashcards with answers, click on the resource link above.

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Chapter 20: Production and Inventory Control Available Study Resources on Quizplus for this Chatper 68 Verified Questions 68 Flashcards Source URL: https://quizplus.com/quiz/60515

Sample Questions Q1) The buyer-planner concept developed because: A) The supplier scheduler concept did not work well with MRP B) In many MRP systems, the buyer is the logical person to issue release orders under long term contracts C) Reliability in terms of quality and delivery must be monitored daily D) It facilitates closer relationships with suppliers E) It helps improve supplier flexibility and reliability Q2) The relationship between the aggregate plan and Master Production Schedule (MPS)is: A) The aggregate plan balances the plant's capacity with demand and the MPS translates this plan into numbers of specific products in time frames B) The aggregate plan is for 6 months and the MPS is for 3 months C) The aggregate plan uses simulation and the MPS uses regression analysis D) The MPS calculates labor time and the aggregate calculates labor and material E) MPS starts with macro units and the aggregate plan starts with micro units Q3) Capacity Requirements Planning (CRP)converts shop orders produced by the MRP system into scheduled work loads for the various work centers.

A)True B)False To view all questions and flashcards with answers, click on the resource link above.

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Chapter 21: Demand Management and Logistics Available Study Resources on Quizplus for this Chatper 29 Verified Questions 29 Flashcards Source URL: https://quizplus.com/quiz/60514

Sample Questions Q1)

Operations

management

plans,implements,and

controls

is

the the

part

of

the

supply

efficient,effective

flow

chain

process

that

and

storage

of

goods,services,and related information from point of origin to point of consumption with the purpose of conforming to customer requirements.

A)True B)False Q2) The definition of Supply Chain Management (SCM)depends on one's perspective.

A)True B)False Q3) Network management focus often requires: A) Complex legal contracts B) Full Alliances C) Outsourcing of non-strategic functions D) A supplier focus E) A logistics focus Q4) Logistics can be defined as synonymous with the term SCM. A)True B)False To view all questions and flashcards with answers, click on the resource link above.

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Chapter 22: Implementing Value Network Management Available Study Resources on Quizplus for this Chatper 38 Verified Questions 38 Flashcards Source URL: https://quizplus.com/quiz/60513

Sample Questions Q1) A conclusion of the authors of the textbook is that "world class supply managers will never have the essential skill set to become Chief Executive Officers!"

A)True B)False Q2) Which of the following is not one of the characteristics of successful leaders given in Chapter 22?

A) Helps to establish a vision B) Uses power over employees to force results C) Helps employees cope with change D) Motivates and facilitates adaptive work E) Energizes people Q3) Which of the following was not one of the initiatives at Megatronics related to either standardization or value engineering/value analysis (VE/VA)?

A) Create a Measurement and Standards Group B) Develop and implement a standardization program C) Hire an outside consultant firm to benchmark D) Provide training in VE/VA E) Hire one or more value engineers for each division To view all questions and flashcards with answers, click on the resource link above.

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