Question 1

A requisition is a gatekeeping tool to manage the flow of information through three gates:
(1)authority, (2)internal clarity,and (3)internal clearance.

Accepted Answer

A) True 
 B)False

Question 2

The costs of radio frequency identification (RFID)tags and the ability to capture reliable data are both barriers to the adoption of RFID systems.

Accepted Answer

A) True 
 B)False

Question 3

Information flows:

Accepted Answer

A)  only into the supply group from other internal functions.
B)  between and among supply,and other internal functions and external sources.
C)  only back and forth between supply and other internal functions.
D)  only into the supply group from external sources.
E)  only back and forth between supply and external sources.F) All of the above
G) C) and D)

Question 4

One purpose of a requisition is:

Accepted Answer

A)  to request or requisition supplies from external suppliers.
B)  to give users a way to authorize buyers to acquire goods and services.
C)  to clarify the description of need before communicating with potential suppliers.
D)  to solicit price quotes for goods or services from suppliers.
E)  to give finance a way to have the final say in any decision to spend money.F) B) and D)
G) C) and D)

Question 5

The payment process:

Accepted Answer

A)  and the supply process should be aligned in policy and practice.
B)  should always be owned and managed by accounts payable.
C)  should always be owned and managed by supply.
D)  must include paper invoices to avoid legal liability.
E)  has little impact on supply management.F) C) and D)
G) A) and B)

Question 6

Electronic data interchange (EDI) provides:

Accepted Answer

A)  secure transmission of large amounts of data,but with slow turnaround.
B)  slow processing of large amounts of data,but with greater accuracy.
C)  longer process cycle time,but with greater accuracy.
D)  secure transmission,greater accuracy,and shorter process cycle time for all data.
E)  secure and rapid transmission of small amounts of data.F) A) and E)
G) B) and C)

Question 7

Expediting:

Accepted Answer

A)  may be caused by the buyer or the supplier.
B)  is caused by buyer behavior only.
C)  is caused by supplier behavior only.
D)  may be the result of legal noncompliance.
E)  is a routine order tracking process.F) B) and D)
G) A) and B)

Question 8

The application of pressure on a supplier to meet the original delivery promise,to deliver ahead of schedule,or to speed up delivery of a delayed order is called follow-up.

Accepted Answer

A) True 
 B)False  False

Question 9

Blanket purchase orders:

Accepted Answer

A)  reduce costs by decreasing the number of purchase orders issued.
B)  cover multiple purchase requirements on one order.
C)  are difficult to prepare.
D)  reduce costs by decreasing the number of purchase orders issued and cover multiple purchase requirements on one order.
E)  reduce costs by decreasing the number of purchase orders issued,cover multiple purchase requirements on one order,and are difficult to prepare.F) C) and E)
G) B) and D)

Question 10

The first step in optimizing the supply process is to build internal consensus around the opportunities to add value to the organization.

Accepted Answer

A) True 
 B)False

Question 11

A request for proposal is used when there is a clear and unambiguous description of need.

Accepted Answer

A) True 
 B)False

Question 12

Traveling requisitions are used for:

Accepted Answer

A)  sales people on business trips.
B)  service parts orders.
C)  recurring requirements and standard parts.
D)  maintenance,repair,and operations parts (MRO) orders.
E)  sales people on business trips,service parts orders,recurring requirements and standard parts,maintenance,repair,and operations parts (MRO) orders.F) A) and B)
G) A) and C)

Question 13

Improving the efficiency and effectiveness of the process for small value orders can be achieved through:

Accepted Answer

A)  vendor/supplier managed inventory systems.
B)  the use of purchasing cards.
C)  eliminating all small value orders completely.
D)  vendor/supplier managed inventory systems and the use of purchasing cards.
E)  vendor/supplier managed inventory systems,the use of purchasing cards,and eliminating all small value orders completely.F) All of the above
G) A) and B)

Question 14

A master service agreement (MSA)is a type of open-ended purchase order.

Accepted Answer

A) True 
 B)False  False

Question 15

Poor internal compliance with the supply process:

Accepted Answer

A)  indicates that staff in other functional areas are not qualified for their jobs.
B)  has nothing to do with the process itself.
C)  is caused by top management's failure to mandate compliance.
D)  may indicate that internal customers do not trust the process or suppliers.
E)  has nothing to do with organizational structure.F) D) and E)
G) A) and D)

Question 16

A process is a set of activities that has a beginning and an end,occurs in a specific sequence,and has inputs and outputs.

Accepted Answer

A) True 
 B)False

Question 17

An extranet is a private internet that is extended to authorized users outside the company,such as suppliers.

Accepted Answer

A) True 
 B)False

Question 18

The greatest opportunity to affect value in the purchasing process is when:

Accepted Answer

A)  needs are recognized and described.
B)  potential suppliers are identified and analyzed.
C)  the suppliers are selected.
D)  price and terms are determined.
E)  the buyer follows-up and expedites the order.F) All of the above
G) B) and C)

Question 19

Pareto analysis usually reveals that 70-80 percent of transactions account for 10-15 percent of spend.

Accepted Answer

A) True 
 B)False  True

Question 20

Efficient and effective supply processes are needed because of:

Accepted Answer

A)  the large volume of items and dollar value.
B)  severe consequences of poor performance.
C)  the potential contribution to organizational objectives.
D)  the need for an audit trail.
E)  the large volume of items,dollar value,severe consequences of poor performance,the potential contribution to organizational objectives,and the need for an audit trail.F) C) and E)
G) None of the above

Exam 4: Supply Processes and Technology

A requisition is a gatekeeping tool to manage the flow of information through three gates: (1)authority, (2)internal clarity,and (3)internal clearance.

Correct AnswerverifiedShow Answer

The costs of radio frequency identification (RFID)tags and the ability to capture reliable data are both barriers to the adoption of RFID systems.

Correct AnswerverifiedShow Answer

Information flows:

Correct AnswerverifiedShow Answer

One purpose of a requisition is:

Correct AnswerverifiedShow Answer

The payment process:

Correct AnswerverifiedShow Answer

Electronic data interchange (EDI) provides:

Correct AnswerverifiedShow Answer

Expediting:

Correct AnswerverifiedShow Answer

The application of pressure on a supplier to meet the original delivery promise,to deliver ahead of schedule,or to speed up delivery of a delayed order is called follow-up.

Correct AnswerverifiedFalse

Blanket purchase orders:

Correct AnswerverifiedShow Answer

The first step in optimizing the supply process is to build internal consensus around the opportunities to add value to the organization.

Correct AnswerverifiedShow Answer

A request for proposal is used when there is a clear and unambiguous description of need.

Correct AnswerverifiedShow Answer

Traveling requisitions are used for:

Correct AnswerverifiedShow Answer

Improving the efficiency and effectiveness of the process for small value orders can be achieved through:

Correct AnswerverifiedShow Answer

A master service agreement (MSA)is a type of open-ended purchase order.

Correct AnswerverifiedFalse

Poor internal compliance with the supply process:

Correct AnswerverifiedShow Answer

A process is a set of activities that has a beginning and an end,occurs in a specific sequence,and has inputs and outputs.

Correct AnswerverifiedShow Answer

An extranet is a private internet that is extended to authorized users outside the company,such as suppliers.

Correct AnswerverifiedShow Answer

The greatest opportunity to affect value in the purchasing process is when:

Correct AnswerverifiedShow Answer

Pareto analysis usually reveals that 70-80 percent of transactions account for 10-15 percent of spend.

Correct AnswerverifiedTrue

Efficient and effective supply processes are needed because of:

Correct AnswerverifiedShow Answer

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False

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False

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True

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