MGT 375 CHAPTER 1 EXAM QUESTIONS
AND ANSWERS ALL CORRECT
A decrease in purchasing expenditures that directly increase profits before taxes
(assuming no reduction in quality or buying total cost) is known as
___________________
A) the profit-leverage effect
B) the sales game effect
C) the supply attention effect
D) the profit and loss effect - Answer- A
Purchasers who have the means and readiness to pay has _______________
A) valuable bargaining strength
B) the ability to refuse to pay
C) the flexibility to demand unfair prices from the supplier
D) to pay higher premiums for higher quality goods - Answer- A
Many organizations allocate the number of _________________
for the supply department based on the amount of dollars spent on supplies. - Answer-
resources
___________ supply decisions are the day-to-day decisions that allow management to
focus on their strategic contribution. _________ choices, however, focus on new and
innovative solutions and supply challenges. - Answer- Operational, Strategic
True or false: Dollars spent on supplier costs compared to total revenues is a good
indicator of supply's performance for an organization. - Answer- True
Organizations must meet strategic goals by placing importance on _______________
and knowledge management. - Answer- process
True or false: The supply industry uses the same types of measurements throughout
every industry to measure supply contribution. - Answer- False: Not one set of
measurements works for all supply organizations; the most appropriate for each
organization should be considered carefully.
Supply functions can increase customer satisfaction by
A) securing suppliers that offer speedy delivery times with lower quality.
B) securing suppliers who offer better quality, have slower delivery times, and with a
premium price.
, C) securing suppliers that offer lower quality and low prices.
D) securing suppliers who deliver better quality, faster, and with a better price. -
Answer- D
Strict regulatory requirements regarding _______ processes and policies are one way
public organizations differ from private organizations.
A) health
B) acquisition
C) security
D) facilities - Answer- B
Companies must increase revenue, decrease costs, or do both to
A) decrease long-term shareholder value
B) increase long-term supplier value
C) increase long-term technology investments
D) increase long-term shareholder value - Answer- D
An organization with strong financial strength has ________
buying power. - Answer- greater
Private organizations have custom requirements as a form of
A) financial security
B) standardization
C) generalization
D) competitive advantage - Answer- D
What are the seven standard steps of the procurement process? - Answer- 1.
Recognition of need
2. Translation of need into commercially equivalent description
3. search for potential suppliers
4. selection of a suitable source
5. agreement on the contract details
6. delivery of the products or services
7. payment of suppliers
The Institute for Supply Management releases the monthly "ISM Report on Business"
for the ___________
sector. - Answer- manufacturing
Information that is often provided by the supply function includes (multiple answers)
A) new sources of supply
B) new products
C) new customers
D) new technology - Answer- A, B, D
AND ANSWERS ALL CORRECT
A decrease in purchasing expenditures that directly increase profits before taxes
(assuming no reduction in quality or buying total cost) is known as
___________________
A) the profit-leverage effect
B) the sales game effect
C) the supply attention effect
D) the profit and loss effect - Answer- A
Purchasers who have the means and readiness to pay has _______________
A) valuable bargaining strength
B) the ability to refuse to pay
C) the flexibility to demand unfair prices from the supplier
D) to pay higher premiums for higher quality goods - Answer- A
Many organizations allocate the number of _________________
for the supply department based on the amount of dollars spent on supplies. - Answer-
resources
___________ supply decisions are the day-to-day decisions that allow management to
focus on their strategic contribution. _________ choices, however, focus on new and
innovative solutions and supply challenges. - Answer- Operational, Strategic
True or false: Dollars spent on supplier costs compared to total revenues is a good
indicator of supply's performance for an organization. - Answer- True
Organizations must meet strategic goals by placing importance on _______________
and knowledge management. - Answer- process
True or false: The supply industry uses the same types of measurements throughout
every industry to measure supply contribution. - Answer- False: Not one set of
measurements works for all supply organizations; the most appropriate for each
organization should be considered carefully.
Supply functions can increase customer satisfaction by
A) securing suppliers that offer speedy delivery times with lower quality.
B) securing suppliers who offer better quality, have slower delivery times, and with a
premium price.
, C) securing suppliers that offer lower quality and low prices.
D) securing suppliers who deliver better quality, faster, and with a better price. -
Answer- D
Strict regulatory requirements regarding _______ processes and policies are one way
public organizations differ from private organizations.
A) health
B) acquisition
C) security
D) facilities - Answer- B
Companies must increase revenue, decrease costs, or do both to
A) decrease long-term shareholder value
B) increase long-term supplier value
C) increase long-term technology investments
D) increase long-term shareholder value - Answer- D
An organization with strong financial strength has ________
buying power. - Answer- greater
Private organizations have custom requirements as a form of
A) financial security
B) standardization
C) generalization
D) competitive advantage - Answer- D
What are the seven standard steps of the procurement process? - Answer- 1.
Recognition of need
2. Translation of need into commercially equivalent description
3. search for potential suppliers
4. selection of a suitable source
5. agreement on the contract details
6. delivery of the products or services
7. payment of suppliers
The Institute for Supply Management releases the monthly "ISM Report on Business"
for the ___________
sector. - Answer- manufacturing
Information that is often provided by the supply function includes (multiple answers)
A) new sources of supply
B) new products
C) new customers
D) new technology - Answer- A, B, D
