, TESTBANK FOR Purchasing and Supply Chain Management 8th Edition
Handfield
Important Notes
The file includes the complete test bank, organized chapter by chapter.
A sample of selected pages has been provided for preview.
All available appendices and Excel files (if included in the original resources) are
provided.
We continuously update our files to ensure you receive the latest and most accurate
editions.
New editions are added regularly – stay connected for updates!
✅ Why Buy From Us?
📚 Complete & organized chapter-by-chapter – no missing content, no guessing.
⚡ Instant digital delivery – get your file the moment you pay, no waiting.
📅 Always up to date – we track new editions so you always get the latest version.
💬 Friendly support – real humans ready to help, anytime you need us.
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correct version, free of charge.
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Contact Email:
,Name: Class: Date:
Chapter 01
1. Strategic purchasing practices are essential for helping companies maintain their competitive positions in rapidly
changing business environments.
a. True
b. False
ANSWER: True
2. For most US firms, offshoring is the most reliable source of manufactured components which consistently meet high
quality standards.
a. True
b. False
ANSWER: False
3. Today’s customers are very resistant to price increases and, in fact, often demand discounts.
a. True
b. False
ANSWER: True
4. Today’s consumers are used to enjoying variety of product offerings, low prices, and customized services.
a. True
b. False
ANSWER: True
5. The increase in volatility, uncertainty, complexity, and ambiguity associated with long supply chains has led to an
interest in reshoring and nearshoring.
a. True
b. False
ANSWER: True
6. A firm’s supply chain is only as strong as its least-competitive supplier.
a. True
b. False
ANSWER: True
7. On average, in the manufacturing sector, more than half of every sales revenue dollar goes back to suppliers.
a. True
b. False
ANSWER: True
Copyright Cengage Learning. Powered by Cognero. Page 1
,Name: Class: Date:
Chapter 01
8. The traditional approach to purchasing and supply management is to build relationships with suppliers and work jointly
to reduce costs and improve quality.
a. True
b. False
ANSWER: False
9. Few of the product features that become part of a firm’s final products originate with suppliers.
a. True
b. False
ANSWER: False
10. Purchasing and supply management have a major impact on product and service quality.
a. True
b. False
ANSWER: True
11. Supply management involves activities not found in traditional purchasing.
a. True
b. False
ANSWER: True
12. The routine ordering and follow-up of basic operational supplies is a strategic responsibility.
a. True
b. False
ANSWER: False
13. Supply chain management rarely requires coordination of activities that extend across organizational boundaries.
a. True
b. False
ANSWER: False
14. According to Michael Porter, a firm’s value chain is composed of primary and support activities that, when configured
properly, can lead to competitive advantage.
a. True
b. False
ANSWER: True
Copyright Cengage Learning. Powered by Cognero. Page 2
,Name: Class: Date:
Chapter 01
15. One of purchasing’s responsibilities is sourcing indirect goods and services required by internal groups.
a. True
b. False
ANSWER: True
16. D A distribution manager would be responsible for addressing product damage that occurred in handling materials at
the receiving dock.
a. True
b. False
ANSWER: False
17. Today’s emphasis on supplier quality has focused on preventing defects early in the materials-sourcing process rather
than detecting defects at the time of receipt.
a. True
b. False
ANSWER: True
18. A United States firm that replaces an Asian supplier with one located in Canada or Mexico is engaging in which of
the following?
a. Insourcing
b. Outsourcing
c. Reshoring
d. Nearshoring
e. Offshoring
ANSWER: d
19. Well-trained, highly-skilled employees are essential for any company’s success.
a. True
b. False
ANSWER: True
20. If a firm can’t easily raise the price of its products , maintaining long-term profits requires actively managing costs.
a. True
b. False
ANSWER: True
21. The formal organization chart portrays the entirety of the workings of an organization.
a. True
b. False
ANSWER: False
Copyright Cengage Learning. Powered by Cognero. Page 3
,Name: Class: Date:
Chapter 01
22. There are a definitive and prescriptive set of supply chain measures that provide one best way to measure supply
chain performance.
a. True
b. False
ANSWER: False
23. Supply chain software can be grouped into two general categories: planning and execution.
a. True
b. False
ANSWER: True
24. During the Quiet Years (1947-Mid-1960s) of purchasing and supply chain management evolution, firms faced stable
competition and had access to abundant material. These conditions diminished the overall importance of purchasing.
a. True
b. False
ANSWER: True
25. Which of the following is a feature of the new model of progressive purchasing?
a. Restricting supplier communication to negotiation of contract deliverables.
b. Opting for short-term contracts over long-term contracts whenever possible.
c. Focusing primarily on price optimization for essential purchased products
d. Conducting worldwide Internet searches for the best sources of supply.
ANSWER: d
26. Which of the following is a factor driving increased emphasis on supply chain management?
a. Increased domestic sourcing to obtain lower prices
b. The high cost and lack of available information resources among supply chain entities.
c. The elevated level of competition in both domestic and international markets that favors fast, agile, and flexible
organizations.
d. Less demanding customer expectations.
ANSWER: c
27. Which of the following activities is part of the purchasing professional’s historical role?
a. Sending requests for competitive bids to suppliers
b. Awarding long-term contracts to world-class suppliers
c. Meeting corporate wide performance measures
d. Facilitating collaboration with key suppliers
ANSWER: a
Copyright Cengage Learning. Powered by Cognero. Page 4
,Name: Class: Date:
Chapter 01
28. Which of the following is an event likely to contribute supply management volatility, uncertainty, complexity, or
ambiguity (VUCA)?
a. Historically stable prices for goods and services
b. Abundant raw materials
c. Stable political climate
d. Prevalence of counterfeit goods
ANSWER: d
29. For which of the of the following indices does a rating over 50 indicate economic expansion?
a. Consumer Price Index
b. Producer Price Index
c. Inflation Rate
d. Purchasing Manager’s Index
ANSWER: d
30. Which of the following is NOT a functional activity performed by purchasing practitioners?
a. Identify suppliers
b. Perform supply market research
c. Writing quality specifications
d. Establish supplier contracts
ANSWER: c
31. Which of the following organizations is, according to the Institute for Supply Management, responsible for the
identification, acquisition, access, positioning, and management of resources an organization needs to attain its
strategic objective?
a. Supply management
b. Procurement
c. Logistics
d. Distribution
ANSWER: a
32. Supply management strives to avoid which types of relationships between buying companies and specialty suppliers?
a. Collaborative
b. Adversarial
c. Integrated
d. Responsive
ANSWER: b
Copyright Cengage Learning. Powered by Cognero. Page 5
,Name: Class: Date:
Chapter 01
33. Which of the following could be described as a set of three or more organizations linked directly by one or more of the
upstream or downstream flows of products, services, finances, and information from a source to a customer?
a. Process sequence
b. Manufacturing system
c. Value chain
d. Supply chain
ANSWER: d
34. Which of the following is NOT a typical process involved in supply chain management?
a. Customer-order fulfillment
b. Supplier evaluation and selection
c. Demand and supply planning
d. Cash flow management
ANSWER: d
35. According to Michael Porter, which of the following is composed of a firm’s primary and secondary activities that can
lead to competitive advantage when configured properly?
a. A supply chain
b. A production process
c. A value chain
d. A marketing channel
ANSWER: c
36. Which of the following states that success requires effectively managing the linked group of firms from first-level
suppliers to customers.?
a. Supply chain orientation
b. Value chain orientation
c. Traditional purchasing perspective
d. Extended enterprise concept
ANSWER: d
37. An item provided by suppliers and used directly during production or service delivery is known as _____.
a. a direct material
b. an indirect material
c. an indirect service
d. an internal material
e. a managed inventory
ANSWER: a
Copyright Cengage Learning. Powered by Cognero. Page 6
,Name: Class: Date:
Chapter 01
38. Which of the following is an example of a purchased direct item for a manufacturing firm?
a. Raw materials
b. Executive travel
c. Janitorial supplies
d. Advertising and media
ANSWER: a
39. Which of the following is an example of a purchased indirect item for a manufacturing firm?
a. Parts and components
b. Employee healthcare contracts
c. Raw materials
d. Sub-assemblies
ANSWER: b
40. Which of the following functional groups is responsible for managing the downstream movement of materials between
locations in the supply chain?
a. Purchasing Managers
b. Inventory managers
c. Distribution managers
d. Purchasing managers
ANSWER: c
41. Which of the following resources is LEAST likely to be shared between a buyer and supplier?
a. Dedicated capacity
b. Information
c. Technology
d. Skilled labor force
ANSWER: d
42. Which of the following is an example of a demand planning activity?
a. Forecasts of anticipated sales
b. Cash flow JIT inventory
c. Completed and delivered orders
d. Reaction to changing customer expectations
ANSWER: a
Copyright Cengage Learning. Powered by Cognero. Page 7
, Name: Class: Date:
Chapter 01
43. Which of the following is the process of taking demand data and developing a supply, production, and logistics network
capable of satisfying demand requirements?
a. Quality control
b. Supply planning
c. Material control
d. Customer service
ANSWER: b
44. Which of the following involves generating the materials release, contacting a supplier directly concerning charges,
and monitoring the status of inbound shipments?
a. Order processing
b. Material control
c. Logistics planning
d. Customer service
ANSWER: b
45. Which of the following activities helps to ensure that customers receive material when and where they require it and
represents the key link between the producer and the external customer?
a. Order processing
b. Inbound transportation
c. Customer service
d. Supply planning
ANSWER: a
46. Which of the following activities involves physically getting a product ready for distribution to the customer?
a. Material control
b. Quality control
c. Shipping
d. Scheduling
ANSWER: c
47. All of the following are examples of technology impacting supply chain management over the past two decades
EXCEPT
a. social media that allows buyers to gain knowledge of a seller’s personal preferences.
b. cloud based data storage systems providing access to timely data.
c. artificial intelligence (AI) that provides purchasers with trainable digital assistants.
d. simulation software that increases the effectiveness of job safety training.
ANSWER: d
Copyright Cengage Learning. Powered by Cognero. Page 8
Handfield
Important Notes
The file includes the complete test bank, organized chapter by chapter.
A sample of selected pages has been provided for preview.
All available appendices and Excel files (if included in the original resources) are
provided.
We continuously update our files to ensure you receive the latest and most accurate
editions.
New editions are added regularly – stay connected for updates!
✅ Why Buy From Us?
📚 Complete & organized chapter-by-chapter – no missing content, no guessing.
⚡ Instant digital delivery – get your file the moment you pay, no waiting.
📅 Always up to date – we track new editions so you always get the latest version.
💬 Friendly support – real humans ready to help, anytime you need us.
🔒 Safe & secure – thousands of satisfied students trust us every semester.
🛡️Our Guarantees
💰 Money-Back Guarantee: Not satisfied? We offer a full refund – no questions asked.
🔄 Wrong File? No Problem: Contact us and we will replace it immediately with the
correct version, free of charge.
⏰ 24/7 Support: We are always here – reach out anytime and expect a fast response.
Contact Email:
,Name: Class: Date:
Chapter 01
1. Strategic purchasing practices are essential for helping companies maintain their competitive positions in rapidly
changing business environments.
a. True
b. False
ANSWER: True
2. For most US firms, offshoring is the most reliable source of manufactured components which consistently meet high
quality standards.
a. True
b. False
ANSWER: False
3. Today’s customers are very resistant to price increases and, in fact, often demand discounts.
a. True
b. False
ANSWER: True
4. Today’s consumers are used to enjoying variety of product offerings, low prices, and customized services.
a. True
b. False
ANSWER: True
5. The increase in volatility, uncertainty, complexity, and ambiguity associated with long supply chains has led to an
interest in reshoring and nearshoring.
a. True
b. False
ANSWER: True
6. A firm’s supply chain is only as strong as its least-competitive supplier.
a. True
b. False
ANSWER: True
7. On average, in the manufacturing sector, more than half of every sales revenue dollar goes back to suppliers.
a. True
b. False
ANSWER: True
Copyright Cengage Learning. Powered by Cognero. Page 1
,Name: Class: Date:
Chapter 01
8. The traditional approach to purchasing and supply management is to build relationships with suppliers and work jointly
to reduce costs and improve quality.
a. True
b. False
ANSWER: False
9. Few of the product features that become part of a firm’s final products originate with suppliers.
a. True
b. False
ANSWER: False
10. Purchasing and supply management have a major impact on product and service quality.
a. True
b. False
ANSWER: True
11. Supply management involves activities not found in traditional purchasing.
a. True
b. False
ANSWER: True
12. The routine ordering and follow-up of basic operational supplies is a strategic responsibility.
a. True
b. False
ANSWER: False
13. Supply chain management rarely requires coordination of activities that extend across organizational boundaries.
a. True
b. False
ANSWER: False
14. According to Michael Porter, a firm’s value chain is composed of primary and support activities that, when configured
properly, can lead to competitive advantage.
a. True
b. False
ANSWER: True
Copyright Cengage Learning. Powered by Cognero. Page 2
,Name: Class: Date:
Chapter 01
15. One of purchasing’s responsibilities is sourcing indirect goods and services required by internal groups.
a. True
b. False
ANSWER: True
16. D A distribution manager would be responsible for addressing product damage that occurred in handling materials at
the receiving dock.
a. True
b. False
ANSWER: False
17. Today’s emphasis on supplier quality has focused on preventing defects early in the materials-sourcing process rather
than detecting defects at the time of receipt.
a. True
b. False
ANSWER: True
18. A United States firm that replaces an Asian supplier with one located in Canada or Mexico is engaging in which of
the following?
a. Insourcing
b. Outsourcing
c. Reshoring
d. Nearshoring
e. Offshoring
ANSWER: d
19. Well-trained, highly-skilled employees are essential for any company’s success.
a. True
b. False
ANSWER: True
20. If a firm can’t easily raise the price of its products , maintaining long-term profits requires actively managing costs.
a. True
b. False
ANSWER: True
21. The formal organization chart portrays the entirety of the workings of an organization.
a. True
b. False
ANSWER: False
Copyright Cengage Learning. Powered by Cognero. Page 3
,Name: Class: Date:
Chapter 01
22. There are a definitive and prescriptive set of supply chain measures that provide one best way to measure supply
chain performance.
a. True
b. False
ANSWER: False
23. Supply chain software can be grouped into two general categories: planning and execution.
a. True
b. False
ANSWER: True
24. During the Quiet Years (1947-Mid-1960s) of purchasing and supply chain management evolution, firms faced stable
competition and had access to abundant material. These conditions diminished the overall importance of purchasing.
a. True
b. False
ANSWER: True
25. Which of the following is a feature of the new model of progressive purchasing?
a. Restricting supplier communication to negotiation of contract deliverables.
b. Opting for short-term contracts over long-term contracts whenever possible.
c. Focusing primarily on price optimization for essential purchased products
d. Conducting worldwide Internet searches for the best sources of supply.
ANSWER: d
26. Which of the following is a factor driving increased emphasis on supply chain management?
a. Increased domestic sourcing to obtain lower prices
b. The high cost and lack of available information resources among supply chain entities.
c. The elevated level of competition in both domestic and international markets that favors fast, agile, and flexible
organizations.
d. Less demanding customer expectations.
ANSWER: c
27. Which of the following activities is part of the purchasing professional’s historical role?
a. Sending requests for competitive bids to suppliers
b. Awarding long-term contracts to world-class suppliers
c. Meeting corporate wide performance measures
d. Facilitating collaboration with key suppliers
ANSWER: a
Copyright Cengage Learning. Powered by Cognero. Page 4
,Name: Class: Date:
Chapter 01
28. Which of the following is an event likely to contribute supply management volatility, uncertainty, complexity, or
ambiguity (VUCA)?
a. Historically stable prices for goods and services
b. Abundant raw materials
c. Stable political climate
d. Prevalence of counterfeit goods
ANSWER: d
29. For which of the of the following indices does a rating over 50 indicate economic expansion?
a. Consumer Price Index
b. Producer Price Index
c. Inflation Rate
d. Purchasing Manager’s Index
ANSWER: d
30. Which of the following is NOT a functional activity performed by purchasing practitioners?
a. Identify suppliers
b. Perform supply market research
c. Writing quality specifications
d. Establish supplier contracts
ANSWER: c
31. Which of the following organizations is, according to the Institute for Supply Management, responsible for the
identification, acquisition, access, positioning, and management of resources an organization needs to attain its
strategic objective?
a. Supply management
b. Procurement
c. Logistics
d. Distribution
ANSWER: a
32. Supply management strives to avoid which types of relationships between buying companies and specialty suppliers?
a. Collaborative
b. Adversarial
c. Integrated
d. Responsive
ANSWER: b
Copyright Cengage Learning. Powered by Cognero. Page 5
,Name: Class: Date:
Chapter 01
33. Which of the following could be described as a set of three or more organizations linked directly by one or more of the
upstream or downstream flows of products, services, finances, and information from a source to a customer?
a. Process sequence
b. Manufacturing system
c. Value chain
d. Supply chain
ANSWER: d
34. Which of the following is NOT a typical process involved in supply chain management?
a. Customer-order fulfillment
b. Supplier evaluation and selection
c. Demand and supply planning
d. Cash flow management
ANSWER: d
35. According to Michael Porter, which of the following is composed of a firm’s primary and secondary activities that can
lead to competitive advantage when configured properly?
a. A supply chain
b. A production process
c. A value chain
d. A marketing channel
ANSWER: c
36. Which of the following states that success requires effectively managing the linked group of firms from first-level
suppliers to customers.?
a. Supply chain orientation
b. Value chain orientation
c. Traditional purchasing perspective
d. Extended enterprise concept
ANSWER: d
37. An item provided by suppliers and used directly during production or service delivery is known as _____.
a. a direct material
b. an indirect material
c. an indirect service
d. an internal material
e. a managed inventory
ANSWER: a
Copyright Cengage Learning. Powered by Cognero. Page 6
,Name: Class: Date:
Chapter 01
38. Which of the following is an example of a purchased direct item for a manufacturing firm?
a. Raw materials
b. Executive travel
c. Janitorial supplies
d. Advertising and media
ANSWER: a
39. Which of the following is an example of a purchased indirect item for a manufacturing firm?
a. Parts and components
b. Employee healthcare contracts
c. Raw materials
d. Sub-assemblies
ANSWER: b
40. Which of the following functional groups is responsible for managing the downstream movement of materials between
locations in the supply chain?
a. Purchasing Managers
b. Inventory managers
c. Distribution managers
d. Purchasing managers
ANSWER: c
41. Which of the following resources is LEAST likely to be shared between a buyer and supplier?
a. Dedicated capacity
b. Information
c. Technology
d. Skilled labor force
ANSWER: d
42. Which of the following is an example of a demand planning activity?
a. Forecasts of anticipated sales
b. Cash flow JIT inventory
c. Completed and delivered orders
d. Reaction to changing customer expectations
ANSWER: a
Copyright Cengage Learning. Powered by Cognero. Page 7
, Name: Class: Date:
Chapter 01
43. Which of the following is the process of taking demand data and developing a supply, production, and logistics network
capable of satisfying demand requirements?
a. Quality control
b. Supply planning
c. Material control
d. Customer service
ANSWER: b
44. Which of the following involves generating the materials release, contacting a supplier directly concerning charges,
and monitoring the status of inbound shipments?
a. Order processing
b. Material control
c. Logistics planning
d. Customer service
ANSWER: b
45. Which of the following activities helps to ensure that customers receive material when and where they require it and
represents the key link between the producer and the external customer?
a. Order processing
b. Inbound transportation
c. Customer service
d. Supply planning
ANSWER: a
46. Which of the following activities involves physically getting a product ready for distribution to the customer?
a. Material control
b. Quality control
c. Shipping
d. Scheduling
ANSWER: c
47. All of the following are examples of technology impacting supply chain management over the past two decades
EXCEPT
a. social media that allows buyers to gain knowledge of a seller’s personal preferences.
b. cloud based data storage systems providing access to timely data.
c. artificial intelligence (AI) that provides purchasers with trainable digital assistants.
d. simulation software that increases the effectiveness of job safety training.
ANSWER: d
Copyright Cengage Learning. Powered by Cognero. Page 8
