Purchasing and Supply Management
Textbook Exam Questions
Course Introduction
Purchasing and Supply Management explores the principles, strategies, and processes involved in acquiring goods and services that organizations need to function efficiently and competitively. The course covers supplier selection, contract negotiation, quality assurance, ethical considerations, and the integration of purchasing with supply chain management. Students will learn about global sourcing, strategic partnerships, risk management, and the use of technology in procurement, developing skills necessary for effective purchasing decisions and supply chain optimization in both public and private sector organizations.
Recommended Textbook
Introduction to Operations and Supply Chain Management 4th Edition by Cecil B. Bozarth
Available Study Resources on Quizplus
17 Chapters
1186 Verified Questions
1186 Flashcards
Source URL: https://quizplus.com/study-set/2503 Page 2
Chapter 1: Introduction to Operations and Supply Chain Management
Available Study Resources on Quizplus for this Chatper
67 Verified Questions
67 Flashcards
Source URL: https://quizplus.com/quiz/49762
Sample Questions
Q1) Which of the following is NOT a flow typically found in a supply chain?
A) physical
B) information
C) monetary
D) risk
Answer: D
Q2) Distinguish between upstream and downstream firms in a supply chain and provide an example.
Answer: Upstream and downstream are relative terms that describe the position of a supply chain member from one point of reference.A supply chain member that is upstream from a firm is sending their output to the firm for use as an input.A supply chain member that is downstream from a firm is taking the firm's output and using it as an input to their own processes.It is possible for a single member of a supply chain to be both upstream and downstream from one or more members of their supply chain.Examples may vary.
Q3) Transportation and warehousing are examples of logistics activities.
A)True
B)False
Answer: True
3
To view all questions and flashcards with answers, click on the resource link above.
Chapter 2: Operations and Supply Chain Strategies
Available Study Resources on Quizplus for this Chatper
71 Verified Questions
71 Flashcards
Source URL: https://quizplus.com/quiz/49763
Sample Questions
Q1) At the ________ stage of alignment,the business strategy seeks to exploit core competencies found within the operations and supply areas.
Answer: externally supportive
Q2) Whether the product was made or service performed to specifications is a question of:
A) conformance quality.
B) performance quality.
C) reliability quality.
D) value indices.
Answer: A
Q3) A(n)________ is an example of an infrastructural element.
A) building
B) organizational structure
C) office equipment
D) fleet of delivery trucks
Answer: B
Q4) ________ are the people,policies,and organizational structure choices made by a firm.
Answer: Infrastructural elements
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Process Choice and Layout Decisions in Manufacturing and Services
Available Study Resources on Quizplus for this Chatper
82 Verified Questions
82 Flashcards
Source URL: https://quizplus.com/quiz/49764
Sample Questions
Q1) Refer to the scenario above.What is the takt time?
A) 53.3 seconds
B) 67.5 seconds
C) 75.8 seconds
D) 90 seconds
Answer: B
Q2) A product-based layout arranges resources sequentially according to the steps required to make a product.
A)True
B)False
Answer: True
Q3) Refer to the scenario above.Operations managers and process engineers design a line that contains seven stations.What is the percentage of idle time?
A) 21.9%
B) 14.3%
C) 25.6%
D) 17.8%
Answer: A
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Business Processes
Available Study Resources on Quizplus for this Chatper
71 Verified Questions
71 Flashcards
Source URL: https://quizplus.com/quiz/49765
Sample Questions
Q1) Level 1 of the SCOR model is organized around the five core management processes: plan,source,make,deliver,and return.
A)True
B)False
Q2) ________ is a process improvement philosophy that results in small,incremental changes while ________ is a process improvement philosophy that results in dramatic organizational changes.
Q3) A set of logically related tasks or activities performed to achieve a defined business outcome is a:
A) process.
B) primary process.
C) support process.
D) development process.
Q4) Describe the three types of processes and the relationships between them.
Q5) ________ is the SCOR model process that addresses the movement of defective product from the customer.
Q6) A support process performs necessary,value-added activities of an organization.
A)True
B)False
Page 6
To view all questions and flashcards with answers, click on the resource link above.
Chapter 5: Managing Quality
Available Study Resources on Quizplus for this Chatper
58 Verified Questions
58 Flashcards
Source URL: https://quizplus.com/quiz/49766
Sample Questions
Q1) A housekeeping supervisor inspects rooms after the staff has cleaned them and compares their staff's performance against a checklist of items that should be cleaned,replaced,etc.,according to standard operating procedure at the hotel.Over the past week she finds three rooms that have cleaning mistakes out of the 140 rooms she has inspected.How many additional rooms should she sample to establish an average fraction defective for the p chart she would like to make to monitor this process?
A) 78
B) 93
C) 108
D) 133
Q2) Describe the ISO 9000 family of standards,including the objectives and process of becoming certified.
Q3) Process owners are empowered employees that have the authority and responsibility for improving the organization's business processes.
A)True
B)False
Q4) The ability of a non-centered process to meet certain quality standards is measured by its ________.
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Managing Capacity
Available Study Resources on Quizplus for this Chatper
61 Verified Questions
61 Flashcards
Source URL: https://quizplus.com/quiz/49767
Sample Questions
Q1) Saul Goodman represents several clients and bills by the hour at a reasonable $500 per.He forgot to record the time it took to complete each activity,but he knows his eight hour day was spent representing 13 clients involved in one high profile case.He also remembers that Walt told him once that his learning curve percentage was 80%.How many hours should Saul bill his first client?
A) one hour eight minutes and forty five seconds
B) one hour two minutes and thirty six seconds
C) fifty six minutes and twenty eight seconds
D) fifty minutes and five seconds
Q2) A subdivision is planned for forty houses,each with its own in-ground swimming pool.A contractor estimates it will take him 30 hours to build the first pool and that there is a 90% learning curve associated with this process.How long will it take to build the last pool?
A) 27.2 hours
B) 23.9 hours
C) 20.5 hours
D) 17.1 hours
Q3) The ________ is the output volume level where the firm realizes a $0 net profit.
Q4) Describe the three capacity strategies and the advantages of each.
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 6: A: Advanced Waiting Line Theory and Simulation
Modeling
Available Study Resources on Quizplus for this Chatper
63 Verified Questions
63 Flashcards
Source URL: https://quizplus.com/quiz/49768
Sample Questions
Q1) Why would someone choose to use simulation to analyze a waiting line problem rather than use a formula? What are the advantages and disadvantages of a simulation approach?
Q2) Which of the following statements about simulation is BEST?
A) Tools like optimization and regression analysis work best when they are simulated. B) Simulation permits managers to test the effects of new policies and procedures without disrupting customer service.
C) As computers have increased in power, simulation results have become less accurate.
D) Computer-based simulation is the only "true" simulation.
Q3) Many complex waiting line situations cannot be analyzed through neatly derived formulas.In these cases,________ is the best method of analysis.
Q4) All waiting line formulas assume that customers are served on a first-come first-served (FCFS)basis.
A)True
B)False
Q5) A process is ________ if the outcome of one trial does not have any impact on the next trial.
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 7: Supply Management
Available Study Resources on Quizplus for this Chatper
82 Verified Questions
82 Flashcards
Source URL: https://quizplus.com/quiz/49769
Sample Questions
Q1) The ratio of earnings to sales for a given time period is a firm's profit margin.
A)True
B)False
Q2) Dusty is evaluating three bids to supply fence hardware for the 5 acres of pasture that need to be fenced.Breezy submits a bid of $40 per unit,Lady's bid is $50 per unit,and Spike's bid is $30 per unit.If a section of fence fails,it costs an average of $500 in losses and herding costs to round up all of the capybaras.Dusty believes it will take 500 units to fence in this pasture configuration.What defect rates for the three suppliers would make Dusty indifferent among them from a total cost standpoint?
A) Breezy 5%, Spike 6%, Lady 2%
B) Breezy 3%, Spike 5%, Lady 1%
C) Breezy 1%, Spike 3%, Lady 2%
D) Breezy 2%, Spike 3%, Lady 4%
Q3) The purchasing team occasionally examined its spending patterns to identify irregularities as part of a(n)________.
Q4) The first step of the purchasing process is to select the supplier.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 10
Chapter 8: Logistics
Available Study Resources on Quizplus for this Chatper
78 Verified Questions
78 Flashcards
Source URL: https://quizplus.com/quiz/49770
Sample Questions
Q1) Compare any four transportation modes by volume of goods moved in the United States and apparent strengths and weaknesses.
Q2) Seasonal goods such as holiday decorations and recreational equipment may be placed in a(n)________ close to the marketplace.
Q3) The ________ mode of transportation is highly cost effective for bulky items but has relatively poor delivery speed.
Q4) A logistics manager uses this type of logistics information system to select a carrier for an outgoing shipment or to develop a weekly schedule of deliveries.
A) decision support B) planning C) execution D) operating
Q5) The goods entered doors on one side of the massive building and crossed the floor to the other side,where they were loaded on delivery trucks headed out on their delivery routes.The screams of the workers were drowned out by the constant traffic from the nearby airport and rail yard,making this an ideal ________ for the retail giant.
Q6) Refer to the scenario above.What is the objective function?
To view all questions and flashcards with answers, click on the resource link above.
Page 11
Chapter 9: Forecasting
Available Study Resources on Quizplus for this Chatper
69 Verified Questions
69 Flashcards
Source URL: https://quizplus.com/quiz/49771
Sample Questions
Q1) ________ is unpredictable movement from one time period to the next.
Q2) Two time series techniques that are appropriate when the data display a strong upward or downward trend are ________ and ________.
Q3) Over the long run,fluctuations in demand due to seasonality are greater than those due to randomness.
A)True
B)False
Q4) In order to indicate ________ in a forecast model,you should use the mean forecast error approach rather than the mean absolute deviation approach.
Q5) A seasonal index less than 1.0 means that the model is overforecasted.
A)True B)False
Q6) The slope of the regression equation is positive if the r-squared value is greater than 0.0.
A)True B)False
Q7) A tracking signal value between ________ and ________ would suggest that the forecasting technique in use is appropriate.
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 10: Sales and Operations Planning Aggregate Planning
Available Study Resources on Quizplus for this Chatper
68 Verified Questions
68 Flashcards
Source URL: https://quizplus.com/quiz/49772
Sample Questions
Q1) Sales and operations planning is a necessary task for all companies,but is never a source of competitive advantage.
A)True
B)False
Q2) An organization with twenty people developing sales and operations plans might receive twenty different proposals.What are some factors an organization might consider when deciding among these alternative plans? Provide a ranking for your factors and support your ranking with examples from recent business news media.
Q3) Planning numbers are somewhat aggregated (month by month)in what planning level?
A) strategic planning
B) operational planning
C) tactical planning
D) detailed planning and control
Q4) The objective function of an optimization modeling approach to S&OP should not allow available labor or equipment time to be exceeded.
A)True
B)False
Q5) How can and why should a firm link S&OP throughout the supply chain?
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 11: Managing Inventory Throughout the Supply Chain
Available Study Resources on Quizplus for this Chatper
69 Verified Questions
69 Flashcards
Source URL: https://quizplus.com/quiz/49773
Sample Questions
Q1) The campus bookstore sells 4,000 sets of graduation regalia each year.Placing an order from their supplier costs $25 regardless of order quantity,so they usually place a large order (a half year's supply)at a time.It costs $5 per year to hold a cap and gown in inventory,primarily insurance costs for the highly flammable material.What is the difference in the total cost if they order at their optimal order quantity compared to their current policy?
A) $4,550
B) $5,050
C) $3,550
D) $4,050
Q2) Define the bullwhip effect and discuss the advantages of holding inventory far upstream or downstream in the supply chain.
Q3) In a periodic review system,if the average demand increases by 100%,the safety stock level is:
A) increased by 200%.
B) increased by 100%.
C) decreased by 50%.
D) increased by 40%.
Q4) Describe any four types of inventory and the drivers that spur their need.
Page 14
To view all questions and flashcards with answers, click on the resource link above.
Chapter 12: Managing Production Across the Supply Chain
Available Study Resources on Quizplus for this Chatper
82 Verified Questions
82 Flashcards
Source URL: https://quizplus.com/quiz/49774
Sample Questions
Q1) Which of the following statements regarding master production scheduling calculations is BEST?
A) Forecasted demand always exceeds booked orders.
B) Booked orders always exceed forecasted demand.
C) If booked orders are greater than forecasted orders, there must be a master production schedule for that period.
D) If ending inventory is greater than or equal to zero, there is no master production schedule quantity for that period.
Q2) Distribution requirements planning is identical to material requirements planning except instead of gross requirements,a DRP record shows forecasted demand. A)True B)False
Q3) A(n)________ is a record or graphical rendering that shows how all the subassemblies,intermediates,parts,and raw materials are put together to make the Level 0 item.
Q4) Describe the scope,inputs,and outputs of sales and operations planning,master scheduling,and MRP.
Q5) Confirmed demand for products is called ________ in master scheduling.
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 12: A: Supply Chain Information Systems
Available Study Resources on Quizplus for this Chatper
54 Verified Questions
54 Flashcards
Source URL: https://quizplus.com/quiz/49775
Sample Questions
Q1) Long-term strategic questions such as facility location and sizing are addressed by
Q2) One ERP vendor is known simply as SAP.
A)True
B)False
Q3) A supply chain information system that links a company with an entity upstream is called a(n):
A) customer relationship management system.
B) supplier relationship management system.
C) internal supply chain management system.
D) business process modeling tool.
Q4) A(n)________ as a set of interrelated components that collect,process,store,and distribute information to support decision making,coordination,and control in an organization.
Q5) Which of these is NOT an essential characteristic of the cloud model?
A) rapid elasticity
B) telepresence
C) on-demand self-service
D) resource pooling
Q6) Warehouse and transportation planning systems support ________ planning efforts.
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 13: Jitlean Production
Available Study Resources on Quizplus for this Chatper
64 Verified Questions
64 Flashcards
Source URL: https://quizplus.com/quiz/49776
Sample Questions
Q1) A reduction in inventory levels forces a company to address poor manufacturing practices.
A)True
B)False
Q2) Livermore Industries uses a kanban system to manage production of the KR-9 subassembly.In a ten-hour day,they use 1500 units and use containers that can hold 50 units each.It takes 45 minutes to fill and move a container of parts to the right place on the KR-9 line that is currently rated at a 15% safety factor.How many production cards are needed?
A) 3
B) 26
C) 82
D) 155
Q3) Any activity that does not add value to the good or service in the eyes of the consumer is ________.
Q4) Describe any five of the wastes and their causes identified by the lean philosophy.
Q5) Describe the movements of parts and kanbans in a two-card kanban system.
Q6) The number of kanbans in a production system is inversely related to the ________.
Page 17
To view all questions and flashcards with answers, click on the resource link above.
Chapter 14: Managing Projects
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/49777
Sample Questions
Q1) An activity's duration added to its earliest start time yields the ________.
Q2) Activities on the critical path may have positive or negative slack as long as the overall slack time of the critical path is zero.
A)True
B)False
Q3) An expectation that a new building's foundation would be poured and cured by the end of the year is an example of a(n):
A) activity.
B) scope.
C) milestone.
D) precedence.
Q4) A critical path is composed entirely of critical activities.
A)True
B)False
Q5) Refer to the scenario above.What are the earliest and latest start and finish times for all of these activities?
Q6) The professional organization that serves the needs of project management professionals is ________.
Q7) What are the phases of a project and the activities within each?
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 15: Developing Products and Services
Available Study Resources on Quizplus for this Chatper
75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/49778
Sample Questions
Q1) The DMADV process for improving product and service designs comes to us from what methodology?
A) Project management
B) Optimization
C) Lean
D) Six Sigma
Q2) The ________ is the process whereby many ideas are considered at the concept development phase but few ideas make it to the commercial development and launch phases.
Q3) ________ is a product design in which each functional element maps into its own physical chunk.
Q4) The unexpected expenses associated with overhead and engineering change notices are ________.
Q5) Your supplier works closely with you to jointly design a product in:
A) gray box design.
B) black box design.
C) white box design.
D) red box design.
Q6) In ________,the supplier works with the customer to jointly design the product.
Q7) What is value analysis and how is it typically conducted?
To view all questions and flashcards with answers, click on the resource link above. Page 19