SCM 372 FINAL EXAM QUESTIONS & ANSWERS
1. The use of a "limited time offer" in a negotiation is an example of? - Answer -a.
Investment time
1. The longer parties negotiate, the more willing they are to make concession. The
discussion mentions that roughly ___% of the concessions in a negotiation are made
during the last ___% of the negotiation - Answer -80/20
1. At the end of the day, as a supply professional you will negotiate for two basic
reasons: 1.) to claim value your company, and 2.) to lower price - Answer -False
1. Success in life depends on your ability to negotiate well - Answer -True
1. You might need to negotiate even in the case of mundane situations, such as your
favorite band coming to town. - Answer -True
1. As you negotiate with a supplier, you attempt to drive down price by pointing out an
undesirable characteristic of her product. This is an example of which negotiation tactic?
- Answer -The ding tactic
1. As you negotiate with a potential employer, you ask for an additional $3,000 in annual
salary. The employer asks why you why you want this increase, and learns that you
need to begin repaying a student loan. The employer states that he cannot increase
your salary, but that his company can assume your loan at a 0% interest rate. In this
example, the employer has identified your . . .? - Answer -Interest
1. Which of the following are common negotiation outcome mistakes? - Answer -a.
Leave money on the table
b. The winner's curse
c. Failing to ask
1. The threat of leaving the negotiation table is known as . . .? - Answer -The walkaway
1. One of the two basic reasons why supply managers negotiate is to . . .? - Answer -a.
Expand value for the buying company and the supplier, if possible
1. As a rule of thumb, a Cpk of 1.5 or higher indicates that your supplier's process can
meet your desired quality levels. - Answer -True
1. Who should participate in developing your firm's buyer appraisal system? - Answer -
All of the above
1. Who should participate in developing your firm's buyer appraisal system? - Answer -
a. Purchasing leadership
1. The use of a "limited time offer" in a negotiation is an example of? - Answer -a.
Investment time
1. The longer parties negotiate, the more willing they are to make concession. The
discussion mentions that roughly ___% of the concessions in a negotiation are made
during the last ___% of the negotiation - Answer -80/20
1. At the end of the day, as a supply professional you will negotiate for two basic
reasons: 1.) to claim value your company, and 2.) to lower price - Answer -False
1. Success in life depends on your ability to negotiate well - Answer -True
1. You might need to negotiate even in the case of mundane situations, such as your
favorite band coming to town. - Answer -True
1. As you negotiate with a supplier, you attempt to drive down price by pointing out an
undesirable characteristic of her product. This is an example of which negotiation tactic?
- Answer -The ding tactic
1. As you negotiate with a potential employer, you ask for an additional $3,000 in annual
salary. The employer asks why you why you want this increase, and learns that you
need to begin repaying a student loan. The employer states that he cannot increase
your salary, but that his company can assume your loan at a 0% interest rate. In this
example, the employer has identified your . . .? - Answer -Interest
1. Which of the following are common negotiation outcome mistakes? - Answer -a.
Leave money on the table
b. The winner's curse
c. Failing to ask
1. The threat of leaving the negotiation table is known as . . .? - Answer -The walkaway
1. One of the two basic reasons why supply managers negotiate is to . . .? - Answer -a.
Expand value for the buying company and the supplier, if possible
1. As a rule of thumb, a Cpk of 1.5 or higher indicates that your supplier's process can
meet your desired quality levels. - Answer -True
1. Who should participate in developing your firm's buyer appraisal system? - Answer -
All of the above
1. Who should participate in developing your firm's buyer appraisal system? - Answer -
a. Purchasing leadership
