PURCHASING & SUPPLY CHAIN MANAGEMENT TEST
WITH ANSWERS #19
Why have North American firms outsourced and offshored manufacture of goods and
delivery of services ? - correct answer They have outsourced and offshored due to the
increase in technology and because of logistics improvements, and also because they
realized these were not their core competencies.
What are the factors/forces that have caused an increase in global trade? What
changes do you think will occur in the next 10 years? - correct answer Technology &
logistics; faster deliveries & more sustainable travel techniques
What are legal rights of the buyer if goods delivered by a supplier do not measure up to
specifications? - correct answer Reject/accept the whole shipment, or accept partial
shipment and reject the balance. Must be done in a reasonable time after delivery.
Under what conditions is it realistic for a buyer to cancel a contract for goods?
Services? For a seller to cancel a contract for goods? Services? - correct answer
Buyer : avoid losing money or to take advantage of a price decline
Seller: if there is a change in the original agreement
Where does the borderline fall between gratuities and bribery? - correct answer The
borderline falls between gratuities and bribery when the decision of the purchaser is
swayed by personal gain.
How do environmental concerns affect disposal of scrap, surplus, and obsolete
materials? - correct answer USDOT & OSHA are government agencies that regulate the
disposal of hazardous products. Their environmental concerns provide rules,
regulations, and standard procedures for the disposal of these materials due to
responsibility, damaging to environment,and large company could have detrimental
effects.
Why is responsibility for logistics often given to supply? - correct answer It is often given
to supply because of the need to control inventory levels and coordinate material
availability. These activities include inventory control, materials movement,
scheduling/planning, and warehousing.
What is the triple bottom line? How can supply influence sustainability performance in
the organization? - correct answer The triple bottom line is the combination of social,
environmental, and financial performance of an organization.
The supply function can influence sustainability by:
(1) gathering data and managing suppliers to support compliance with regulations
WITH ANSWERS #19
Why have North American firms outsourced and offshored manufacture of goods and
delivery of services ? - correct answer They have outsourced and offshored due to the
increase in technology and because of logistics improvements, and also because they
realized these were not their core competencies.
What are the factors/forces that have caused an increase in global trade? What
changes do you think will occur in the next 10 years? - correct answer Technology &
logistics; faster deliveries & more sustainable travel techniques
What are legal rights of the buyer if goods delivered by a supplier do not measure up to
specifications? - correct answer Reject/accept the whole shipment, or accept partial
shipment and reject the balance. Must be done in a reasonable time after delivery.
Under what conditions is it realistic for a buyer to cancel a contract for goods?
Services? For a seller to cancel a contract for goods? Services? - correct answer
Buyer : avoid losing money or to take advantage of a price decline
Seller: if there is a change in the original agreement
Where does the borderline fall between gratuities and bribery? - correct answer The
borderline falls between gratuities and bribery when the decision of the purchaser is
swayed by personal gain.
How do environmental concerns affect disposal of scrap, surplus, and obsolete
materials? - correct answer USDOT & OSHA are government agencies that regulate the
disposal of hazardous products. Their environmental concerns provide rules,
regulations, and standard procedures for the disposal of these materials due to
responsibility, damaging to environment,and large company could have detrimental
effects.
Why is responsibility for logistics often given to supply? - correct answer It is often given
to supply because of the need to control inventory levels and coordinate material
availability. These activities include inventory control, materials movement,
scheduling/planning, and warehousing.
What is the triple bottom line? How can supply influence sustainability performance in
the organization? - correct answer The triple bottom line is the combination of social,
environmental, and financial performance of an organization.
The supply function can influence sustainability by:
(1) gathering data and managing suppliers to support compliance with regulations
