TEST BANK
Purchasing and Supply Chain Management – 4th edition
Monczka, Handfield, Giunipero, and Patterson
Chapter 15
True or False
1. Organizational design does not receive much attention within supply management.
a. True (p. 155)
b. False
2. The design of an organization is nothing more than a series of lines and boxes on an
organizational chart.
a. True
b. False (p. 155)
3. Perhaps the least important factor contributing to purchasing’s position in the
organizational hierarchy is history.
a. True
b. False (p. 156)
4. The preparation and transfer of material releases to suppliers is part of the operational
support process.
a. True (p. 160)
b. False
5. The actual expediting process rarely provides new value within the purchasing
process.
a. True (p. 161)
b. False
6. Progressive organizations recognize that a need for expeditors indicates that suppliers
are not performing as required or that suppliers are not receiving realistic or stable
material release schedules.
a. True (p. 161)
b. False
7. Transportation is a highly specialized activity with its own set of requirements.
, a. True (p. 162)
b. False
8. Purchasing never analyzes whether a new or existing purchase requirement should be
internally or externally sourced.
a. True
b. False (p. 162)
9. The objective of value analysis is to enhance value by reducing the cost of a good or
service without sacrificing quality, enhancing functionality without increasing cost, or
providing greater functionality to the use above and beyond any increase in cost.
a. True (p. 162)
b. False
10. Detailed short- and long-term purchasing plans are required for items subject to
technological, economic, or political change.
a. True (pp. 162-163)
b. False
11. Managing day-to-day supply management operations is the same as managing longer-
term responsibilities.
a. True
b. False (p. 163)
12. Strategic responsibilities lack the immediacy of tactical duties and as a result are
often ignored.
a. True (p. 163)
b. False
13. Separation of supply management duties into strategic and tactical responsibilities
means that strategic responsibilities are more important.
a. True
b. False (p. 163)
14. Separation of supply management duties into strategic and tactical responsibilities
means that tactical responsibilities are more important.
a. True
b. False (p. 163)
Purchasing and Supply Chain Management – 4th edition
Monczka, Handfield, Giunipero, and Patterson
Chapter 15
True or False
1. Organizational design does not receive much attention within supply management.
a. True (p. 155)
b. False
2. The design of an organization is nothing more than a series of lines and boxes on an
organizational chart.
a. True
b. False (p. 155)
3. Perhaps the least important factor contributing to purchasing’s position in the
organizational hierarchy is history.
a. True
b. False (p. 156)
4. The preparation and transfer of material releases to suppliers is part of the operational
support process.
a. True (p. 160)
b. False
5. The actual expediting process rarely provides new value within the purchasing
process.
a. True (p. 161)
b. False
6. Progressive organizations recognize that a need for expeditors indicates that suppliers
are not performing as required or that suppliers are not receiving realistic or stable
material release schedules.
a. True (p. 161)
b. False
7. Transportation is a highly specialized activity with its own set of requirements.
, a. True (p. 162)
b. False
8. Purchasing never analyzes whether a new or existing purchase requirement should be
internally or externally sourced.
a. True
b. False (p. 162)
9. The objective of value analysis is to enhance value by reducing the cost of a good or
service without sacrificing quality, enhancing functionality without increasing cost, or
providing greater functionality to the use above and beyond any increase in cost.
a. True (p. 162)
b. False
10. Detailed short- and long-term purchasing plans are required for items subject to
technological, economic, or political change.
a. True (pp. 162-163)
b. False
11. Managing day-to-day supply management operations is the same as managing longer-
term responsibilities.
a. True
b. False (p. 163)
12. Strategic responsibilities lack the immediacy of tactical duties and as a result are
often ignored.
a. True (p. 163)
b. False
13. Separation of supply management duties into strategic and tactical responsibilities
means that strategic responsibilities are more important.
a. True
b. False (p. 163)
14. Separation of supply management duties into strategic and tactical responsibilities
means that tactical responsibilities are more important.
a. True
b. False (p. 163)
