Procurement and Supply Chain Management Exam 1 questions with answers

Procurement and Supply Chain |\ |\ |\ |\




Management Exam 1 questions with |\ |\ |\ |\ |\




answers

Competition today is no longer between firms; it is |\ |\ |\ |\ |\ |\ |\ |\ |\



between the supply chains of those firms. - CORRECT
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ANSWERS ✔✔True |\




Purchasing is becoming less important for souring indirect
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goods and services required by internal groups. -
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CORRECT ANSWERS ✔✔False |\ |\




Purchasing can directly affect (positively and negatively)
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the long term growth, revenue, and operating outcomes
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and plans of stakeholders and business units. - CORRECT
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ANSWERS ✔✔True |\




The authority to review and challenge specifications (for
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products or for services) is within purchasing's span of
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control in managing demand, although internal
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stakeholders sometimes dispute this right. - CORRECT |\ |\ |\ |\ |\ |\ |\



ANSWERS ✔✔True |\

,Purchasing's right to evaluate and select suppliers means |\ |\ |\ |\ |\ |\ |\ |\



that sales representatives are not allowed to talk with
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non-purchasing personnel. - CORRECT ANSWERS ✔✔False |\ |\ |\ |\ |\




Buyers use competitive bidding when price is a minor
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criteria and the required item (or service) has complex
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material specifications. - CORRECT ANSWERS ✔✔False
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For standard items, the negotiation process is an efficient
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method to purchase relatively straightforward
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requirements. - CORRECT ANSWERS ✔✔False |\ |\ |\ |\




If the requested item is complex or requires an untested
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or new production process, purchasing can include
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additional information or attachments on its RFQ to assist
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the supplier, which might include detailed blueprints,
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samples, or technical drawings. - CORRECT ANSWERS |\ |\ |\ |\ |\ |\ |\



✔✔True


In drafting a purchase order, purchasing must include a
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large number of details regarding policies because it is a
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legally binding document. - CORRECT ANSWERS ✔✔True
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Managing the purchase of semifinished components is not |\ |\ |\ |\ |\ |\ |\



a critical purchasing responsibility because components
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, rarely affect product quality and cost. - CORRECT
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ANSWERS ✔✔False |\




Capital equipment purchasing involves buying assets
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intended for use less than one year. - CORRECT ANSWERS
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✔✔False
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The total cost of ownership of buy one item is its price. -
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CORRECT ANSWERS ✔✔False |\ |\




Although policies are usually documented in writing,
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unwritten or informal policies can also exist. - CORRECT
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ANSWERS ✔✔True |\




For companies that routinely use or produce hazardous
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materials, the law requires a policy that outlines in detail
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the legal requirements and conditions for the handling of
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toxic waste. - CORRECT ANSWERS ✔✔True
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Organizations do not need to be cautious about liabilities |\ |\ |\ |\ |\ |\ |\ |\ |\



associated with accepting and using ideas provided by
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suppliers interested in doing business with a purchaser. -
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CORRECT ANSWERS ✔✔False |\ |\