BUAD 331 Exam 2 Questions And Answers
(Verified And Updated)
Sourcing is the inputs (or things we buy), including materials, sub-assembled components, equipment,
and services, that are required to create value.
A. True
B. False
B. False
Which of the following is NOT an area in which successful supply managers need expertise?
A. Technologies
B. Customers
C. Suppliers
D. Processes
E. Resources
B. Customers
When purchasing and supply management works well within an organization, the company acquires
the best resources from around the world, which allows its to compete on cost, quality, and
innovation.
A. True
B. False
A. True
The following items for an automobile manufacturer would fit in the Supply Commodity category
titled "Indirect Materials Office Supply Product category".
(images of a pen, whiteout, stapler, water bottle, and pencil)
A. True
B. False
A. True
Which of the following is the most important right of purchasing?
A. Delivery to the RIGHT place
B. The RIGHT price
C. The RIGHT supplier
D. The RIGHT time
E. The RIGHT material
C. The RIGHT supplier
One of the most challenging aspects of purchasing is to ensure an uninterrupted flow of supply.
Which of the following might "interrupt" that flow?
A. Natural disasters
B. Supplier quality issues
C. Logistics interruptions
D. Financial issues
E. All of the above
E. All of the above
A dollar saved in material costs goes directly to an increase in revenue for the organization.
A. True
B. False
, B. False
You are working as a Procurement Manager for a Fortune 500 company and are in charge of buying a
new make and model of work computers for the entire company headquarters. You know it will be an
expensive purchase, but have many options to choose from so you can make the computer
manufacturers bid against each other to get the best price. Which type of commodity are these
computers?
A. Noncritical Commodity
B. Strategic Commodity
C. Leverage Commodity
D. Bottleneck Commodity
C. Leverage Commodity
Purchasing has become a strategic contributor to organizational value by contributing to both the top
and bottom line of the business.
A. True
B. False
A. True
The choice of suppliers is important to ensure an uninterrupted flow of supply and avoid some of the
problems inherent in complex supply chains.
A. True
B. False
A. True
Supplier portfolio analysis was introduced by Michael Porter.
A. True
B. False
B. False
An item with high market complexity and low importance to the organization should be classified as:
A. Non-critical
B. Leverage
C. Strategic
D. Bottleneck
E. None of the above
D. Bottleneck
What supplier management tool is the standard to continuously track a supplier's performance and
financial health and ensure that key goals are being met?
A. Partnerships
B. Six Sigma Projects
C. Negotiations
D. Scorecards
E. Sourcing Projects
D. Scorecards
The key to effective procurement strategy is ______ of suppliers and ___________ management.
A. Comparison, aligned
B. Segmentation, strategically appropriate
(Verified And Updated)
Sourcing is the inputs (or things we buy), including materials, sub-assembled components, equipment,
and services, that are required to create value.
A. True
B. False
B. False
Which of the following is NOT an area in which successful supply managers need expertise?
A. Technologies
B. Customers
C. Suppliers
D. Processes
E. Resources
B. Customers
When purchasing and supply management works well within an organization, the company acquires
the best resources from around the world, which allows its to compete on cost, quality, and
innovation.
A. True
B. False
A. True
The following items for an automobile manufacturer would fit in the Supply Commodity category
titled "Indirect Materials Office Supply Product category".
(images of a pen, whiteout, stapler, water bottle, and pencil)
A. True
B. False
A. True
Which of the following is the most important right of purchasing?
A. Delivery to the RIGHT place
B. The RIGHT price
C. The RIGHT supplier
D. The RIGHT time
E. The RIGHT material
C. The RIGHT supplier
One of the most challenging aspects of purchasing is to ensure an uninterrupted flow of supply.
Which of the following might "interrupt" that flow?
A. Natural disasters
B. Supplier quality issues
C. Logistics interruptions
D. Financial issues
E. All of the above
E. All of the above
A dollar saved in material costs goes directly to an increase in revenue for the organization.
A. True
B. False
, B. False
You are working as a Procurement Manager for a Fortune 500 company and are in charge of buying a
new make and model of work computers for the entire company headquarters. You know it will be an
expensive purchase, but have many options to choose from so you can make the computer
manufacturers bid against each other to get the best price. Which type of commodity are these
computers?
A. Noncritical Commodity
B. Strategic Commodity
C. Leverage Commodity
D. Bottleneck Commodity
C. Leverage Commodity
Purchasing has become a strategic contributor to organizational value by contributing to both the top
and bottom line of the business.
A. True
B. False
A. True
The choice of suppliers is important to ensure an uninterrupted flow of supply and avoid some of the
problems inherent in complex supply chains.
A. True
B. False
A. True
Supplier portfolio analysis was introduced by Michael Porter.
A. True
B. False
B. False
An item with high market complexity and low importance to the organization should be classified as:
A. Non-critical
B. Leverage
C. Strategic
D. Bottleneck
E. None of the above
D. Bottleneck
What supplier management tool is the standard to continuously track a supplier's performance and
financial health and ensure that key goals are being met?
A. Partnerships
B. Six Sigma Projects
C. Negotiations
D. Scorecards
E. Sourcing Projects
D. Scorecards
The key to effective procurement strategy is ______ of suppliers and ___________ management.
A. Comparison, aligned
B. Segmentation, strategically appropriate
