Question 1

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 2

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) A) and C)
G) B) and C)

Question 3

Small dollar value purchase orders can be efficiently and effectively managed by implementing an e-procurement system.

Accepted Answer

A) True 
 B)False  True

Question 4

Online reverse auctions are best suited for situations where:

Accepted Answer

A)   specifications are clearly defined.
B)   there is a competitive supply market with qualified suppliers willing to participate.
C)   the buyer is prepared to switch suppliers if necessary.
D)   specifications are clearly defined and there is a competitive supply market with qualified suppliers will to participate.
E)   specifications are clearly defined, there is a competitive supply market with qualified suppliers willing to participate, and the buyer is prepared to switch suppliers if necessary.F) A) and E)
G) B) and C)

Question 5

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) A) and B)
G) None of the above

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) C) and D)
G) A) and B)

Question 7

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) D) and E)
G) A) and E)

Question 8

Effectively and efficiently applying technology to the supply management process will:

Accepted Answer

A)   lead to increased clerical effort from additional data entry.
B)   lead to damaged buyer-supplier relationships from impersonal communication.
C)   lower the total cost of doing business.
D)   inhibit negotiation planning because of time spent accessing and analyzing data.
E)   decrease operating performance because of the volume of available information.F) A) and B)
G) B) and C)

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

An online catalog is a digitized version of a supplier's catalog that can be customized to include the specific items, prices, and other terms and conditions negotiated by the buyer and seller.

Accepted Answer

A) True 
 B)False

Question 11

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) None of the above
G) C) and E)

Question 12

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) A) and E)
G) None of the above

Question 13

Making the procure-to-pay (P2P)  process as seamless as possible can:

Accepted Answer

A)   reduce order cycle times.
B)   increase administrative costs.
C)   improve satisfaction of internal customers and suppliers.
D)   reduce order cycle times and improve satisfaction of internal customers and suppliers.
E)   reduce order cycle times, increase administrative costs, and improve satisfaction of internal customers and suppliers.F) A) and D)
G) B) and E)

Question 14

If the buyer has a clear and unambiguous description or specification, and wants to find out which supplier can deliver the best value when and where needed, he or she will typically issue a:

Accepted Answer

A)   request for proposal (RFP) .
B)   request for information (RFI) .
C)   request for bid (RF
B)  .
D)   request for price (RFP) .
E)   request for quotation (RFQ) .F) None of the above
G) A) and C)

Question 15

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) D) and E)
G) A) and E)

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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  True

Question 18

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) None of the above
G) B) and E)

Question 19

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) None of the above
G) A) and B)

Question 20

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) A) and C)
G) A) and E) A

Exam 4: Supply Processes and Technology

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

Correct AnswerverifiedShow Answer

Blanket purchase orders:

Correct AnswerverifiedShow Answer

Small dollar value purchase orders can be efficiently and effectively managed by implementing an e-procurement system.

Correct AnswerverifiedTrue

Online reverse auctions are best suited for situations where:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Electronic data interchange (EDI) provides:

Correct AnswerverifiedShow Answer

Efficient and effective supply processes are needed because of:

Correct AnswerverifiedShow Answer

Effectively and efficiently applying technology to the supply management process will:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

An online catalog is a digitized version of a supplier's catalog that can be customized to include the specific items, prices, and other terms and conditions negotiated by the buyer and seller.

Correct AnswerverifiedShow Answer

Traveling requisitions are used for:

Correct AnswerverifiedShow Answer

One purpose of a requisition is:

Correct AnswerverifiedShow Answer

Making the procure-to-pay (P2P) process as seamless as possible can:

Correct AnswerverifiedShow Answer

If the buyer has a clear and unambiguous description or specification, and wants to find out which supplier can deliver the best value when and where needed, he or she will typically issue a:

Correct AnswerverifiedShow Answer

Information flows:

Correct AnswerverifiedShow Answer

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

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 AnswerverifiedTrue

Poor internal compliance with the supply process:

Correct AnswerverifiedShow Answer

Expediting:

Correct AnswerverifiedShow Answer

The payment process:

Correct AnswerverifiedA

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True

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A