Which one of the following is NOT one of the features of the new model of progressive

purchasing?
a. developing closer relationships with important suppliers
b. performing due diligence on suppliers before awarding longer term contracts
c.focusing primarily on price analysis and short term contracts
d. conducting worldwide internet searches for the best sources of supply
e. inviting key suppliers to participate in product and process development. c
Which of the following is NOT one of the factors driving an emphasis on supply chain
management?
a. an increasing emphasis on domestic sourcing due to the longer lead times and higher levels of
pipeline inventories associated with global sourcing
b. the cost and availability of information resources among entities in the supply chain that allow
easy linkages that eliminate time delays in the network
c. the level of competition in both domestic and international markets requires organizations to
be fast, agile, and flexible
d. customer expectations and requirements that are becoming much more demanding
e. the ability of an organizations supply chain to identify and mitigate risk minimizes disruptions
in both supply and downstream product or services to mitigate the impact on lost sales a
_____ is a functional group
a. engineering
b. purchasing
c. quality assurance
d. logistics
e. treasury operations b
The ____ is a change index and generally a rating over 50 indicates that the economy is
expanding
a. consumer price index
b. producer price index
c. ISM report on business
d. rate of inflation
e. none of the above c
According to the Institute for Supply Management, _____ is the identification, acquisition,
access, positioning, and management of resources and related capabilities an organization needs
or potentially needs in the attainment of its strategic objectives.
a. supply chain management
b. procurement
c. logistics
d. supply management
e. distribution d
Instead of adversarial relationships which characterize _____, _____ features a long term, win
win relationship between a buying company and specially selected suppliers.
a. traditional purchasing...supply management
b. traditional purchasing...logistics management
c. supply management...traditional purchasing
d. strategic sourcing...supply management
e. supply chain management...strategic sourcing a
A ___ is a set of three or more organizations linked directly by one or more of the upstream or
downstream flows of products, services, finances, and information form a source to a customer.
a. process
b. manufacturing system
c. value chain
d. social media chain
e. supply chain e
All of the following are typical processes involved in supply chain management except ____
a. new product development
b. customer order fulfillment
c. supplier evaluation and selection
d. demand and supply planning
e. cash flow management e
According to Michael Porter, a firms ____ is composed of primary and secondary support
activities that can lead to competitive advantage when configured properly.
a. supply chain
b. process
c. value chain
d. marketing channel
e. core competency c
The ____ states that success is a function of effectively managing a linked group of firms past
first-level suppliers or customers.
a. supply chain orientation
b. value chain concept
c. traditional purchasing perspective
d. extended enterprise concept
e. process orientation d
___ are those items provided by suppliers and used directly during production or service delivery
a. direct materials
b. indirect materials
c. indirect services
d. internal materials
e. vendor managed inventories a
Which of the following is an example of a purchased direct item for a manufacturing firm
a. parts and components
b. travel
c. office and janitorial supplies
d. advertising and media
e. personal computers a
Within the downstream portion of a supply chain, ____ are responsible for the actual movement
of materials between locations
a. buyers
b. trucking firms
c. logistics managers
d. accountants
e. purchasing managers c
Which of the following is NOT an example of a typical resource shared between a buyer and
supplier
a. dedicated capacity
b. specific information
c. technological capabilities
d. direct financial support
e. advertising and media e
All of the following are examples of demand planning activities except
a. forecasts of anticipated demand
b. accounts payable
c. inventory adjustments
d. orders taken but not filled
e. spare parts and aftermarket requirements b
____ schedules the firms output while ____ is the process of taking demand data and developing
a supply, production, and logistics network capable of satisfying demand requirements.
a. inventory control....quality control
b. quality control... supply planning
c. order processing.. material control
d. demand planning... customer service
e. demand planning.... supply planning e
____ involves generating the materials release, contacting a supplier directly concerning
changes, and monitoring the status of inbound shipments.
a. order processing
b. material control
c. warehousing
d. customer service
e. quality control b
____ helps ensure that customers receive material when and where they require it and represents
the key link between the producer and the external consumer.
a. order processing
b. inbound transportation
c. customer service
d. scheduling
e. inventory control a
The ___ activity involves physically getting a product ready for distribution to the customer
a. customer service
b. material control
c. materials handling
d. quality control
e. shipping e
Which of the following is NOT one of the four enables of purchasing and supply chain
management
a. sufficient cash flow and large on hand cash deposits
b. capable human resources
c. proper organizational design
d. real time collaborative technology capabilities
e. right measures and measurement systems a
Recent research indicates that all of the following are top knowledge areas for purchasers except
a. supplier relationship management
b. total cost analysis
c. supplier analysis
d. consumer behavior
e. competitive market analysis d
____ refers to the process of assessing and selecting the structure and formal system of
communication, division of labor, coordination, control, authority, and responsibility required to
achieve organizational goals and objectives, including supply chain objectives
a. supply chain orientation
b. human resources management
c. demand planning
d. organizational design
e. extended value chain d
____ seeks to improve forecast accuracy, optimize production scheduling, reduce working
capital costs, shorten cycle times, cut transportation costs, and improve customer service; while
____ helps obtain materials and manage physical flows from suppliers through downstream
distribution to ensure that customers receive the right products at the right location, time, and
cost.
a. RFID...GPS
b. execution software...planning software
c. customer service...inbound transportation
d. the process approach....cost management
e. planning software...execution software e
All of the following are roadblocks between measurement and improved performance except
a. up to date information technology
b. too many metrics
c. debate over the correct metrics
d. constantly changing metrics
e. old data a
Chapter 2
1. The _____ is used to identify user requirements, evaluate the user needs effectively and
efficiently, identify suppliers who can meet that need, develop agreements with those suppliers,
develop the ordering mechanism, ensure payment occurs promptly, ascertain that the need was
effectively met, and drive continuous improvement.
a. demand management process
b. backdoor buying process
c. materials budgeting process
d. forecasting process
e. purchasing process E
2. All of the following are objectives of a world-class purchasing organization except _____.
a. ensure that all hard copies of purchase orders and other paper documents are filed correctly in
a secure area
b. develop integrated supply strategies that support business goals and objectives
c. manage the sourcing process efficiently and effectively
d. supplier performance management
e. supply assurance A
3. Failing to respond to the needs of internal customers will diminish the confidence these users
have in purchasing, and they may try to negotiate contracts themselves (a practice known as
_____).
a. strategic sourcing
b. spend management
c. maverick buying
d. outsourcing
e. internal sourcing C
4. One of the most important objectives of the purchasing function is the selection, development,
and maintenance of suppliers, a process that is sometimes described as _____.
a. supplier performance management
b. category management
c. customer service
d. procure-to-pay
e. maverick buying A
5. Which of the following is not one of the objectives in supplier performance management?
a. Selecting suppliers that are competitive.
b. Identifying new suppliers that have the potential for excellent performance and developing
closer relationships with these suppliers.
c. Improving existing suppliers.
d. Developing new suppliers that are not competitive with current suppliers.
e. Ensuring timely and accurate payment of supplier invoices. E
6. Effective supply market intelligence involves all of the following except _____.
a. updating supply markets and trends and translating their impacts on key business outcomes
b. ensuring that purchasing does not exceed its annual operating budget
c. identifying emerging materials and service technologies to support company strategies in key
performance areas
d. developing supply options and contingency plans to reduce risk
e. supporting the organization's requirements for a diverse and globally competitive supply base
B
7. _____ is the process of collecting historical data by commodity, relative to demand from the
lines of business, with the exception of personnel expenses, occupancy, and corporate spend.
a. Demand management
b. Supply analysis
c. Category management
d. Contract management
e. Spend analysis E
8. _____ is the process of using unit and rate consumption levels to forecast and estimate future
consumption in an internal functional customer and providing guidance and input on how to
optimize usage and educating the user on the tradeoffs.
a. Specification management
b. Demand management
c. Category management
d. Supply market intelligence
e. Cost management B
9. _____ is the process of developing insights into stakeholder requirements, comparing these to
external industry intelligence, supply base capabilities and operational risks, and developing a
strategy to align internal requirements with external supply market conditions.
a. Spend analysis
b. Cost management
c. Contract management
d. Category management (quản lý danh mục)
e. Procure-to-pay D
10. ____ is a situation that occurs when sellers seek to "go around" purchasing and instead
directly contact and attempt to sell directly to end users (stakeholders).
a. Insourcing
b. Bidding
c. Maverick buying and selling
d. Negotiating
e. Outsourcing C
11. _____ is a process associated with defining the contract, defining roles and responsibilities of
both parties, and advising when to modify and ensure appropriate escalation.
a. Spend analysis
b. Contract management
c. Cost management
d. Supplier selection
e. Category management B
12. _____ involves unbundling the price paid and understanding the total cost of ownership over
the life cycle of a product or service to deliver a target cost and a unit rate to determine if it is
priced competitively in the marketplace.
a. Cost management
b. Procure-to-pay
c. Supplier relationship management
d. Category management
e. Spend management A
13. _____ is the end-to-end process of managing a supplier through the entire sourcing life cycle,
which includes first identifying the abilities of a particular company with regard to performing a
service for the internal customer, completing a sourcing event, negotiating a contract, executing
an order, and determining payment.
a. P2P
b. CRM
c. Outsourcing
d. Competitive bidding
e. SRM E
14. Which of the following is not one of the characteristics of a mature, well-developed supply
strategy?
a. A repeatable and well-defined process for building strategy and governance around defining,
planning, managing, and receiving products and services for a business.
b. Clear alignment with executive vision and internal user-specific business goals.
c. Established goals and metrics for short-term project plans, as well as a definite five-year plan
that provides year over year performance improvements.
d. Established communication plan to inform senior management and all lines of business
updated and reviewed quarterly against defined goals and objectives.
e. Required use of an online catalog. E
15. All of the following are benefits of electronically generating and transmitting purchasing-
related documents except _____.
a. a reduction in the need to ensure higher levels of quality from suppliers
b. a virtual elimination of paperwork and paperwork handling
c. improved communication both within the company and with suppliers
d. a reduction in errors
e. a reduction in the time spent in by purchasing personnel on processing purchase orders and
invoices and more time spent on strategic value-adding purchasing activities A
16. The purchasing cycle begins with the _____.
a. selection of an appropriate supplier
b. issuance of a purchase order
c. receipt of a supplier's acknowledgement
d. identification of a need (a requirement)
e. determination of who can authorize the purchase D
17. When a situation arises when an internal customer has a need that comes up suddenly, which
is not planned for and for which there is no preexisting supplier identified to provide the product
or service required, purchasing should use a/an _____ approach.
a. spot buy
b. long term agreement
c. P2P
d. e-procurement
e. None of the above. A
18. Which of the following is not one of the common ways that internal customers should
communicate their needs to purchasing?
a. Purchase requisitions from internal users.
b. Chance meeting in the company cafeteria.
c. Forecasts and customer orders.
d. Material requirements identified during new-product development.
e. Routine reordering systems. B
20. When marketing wants to purchase an advertising media campaign, the _____ should specify
the work that is to be completed, when it is needed, and what type of service provider is required
a. reorder point
b. acknowledgement
c. traveling purchase requisition
d. statement of work
e. sales forecast D
19. All of the following are required elements in a purchase requisition except _____.
a. quantity and date required
b. estimated unit cost
c. operating account to be charged
d. authorized signature
e. identification and approval of a supplier by the end user E
21. In a _____, when inventory is depleted to a given level, the system notifies the materials
control department (or the buyer in some organizations) to issue a request to a supplier for
inventory replenishment.
a. reorder point system
b. traveling purchase requisition system
c. customer service system
d. forecasting system
e. just-in-time system A
22. A _____ involves the physical checking of inventory to verify that system records match
actual on-hand inventory levels.
a. reorder point system
b. stock check
c. just-in-time system
d. forecasting system
e. p-card system B
23. _____ is used when a product or service is proprietary or when there is a perceived advantage
to using a particular supplier's products or services.
a. Description by market grade
b. Description by industry standard
c. Description by specification
d. Description by performance characteristics
e. Description by brand E
24. _____ is might be the best choice for standard items, where the requirements are well
understood and there is common agreement between supply chain partners about what certain
terms mean.
a. Description by market grade
b. Description by brand
c. Description by performance characteristics
d. Use of prototypes
e. Description by specification A
25. _____ can cover such characteristics as the materials used, the manufacturing or service steps
required, and even the physical dimensions of the product.
a. Description by market grade
b. Description by specification
c. Description by brand
d. Description by industry standard
e. Description by performance characteristics B
26. _____ focuses attention on the outcomes the customer wants, not on the precise configuration
of the product or service.
a. Description by industry standard
b. Description by brand
c. Description by specification
d. Description by performance characteristics
e. Description by market grade D
27. A/An _____ has demonstrated its performance capabilities through previous purchase
contracts and therefore receives preference during the supplier selection process.
a. internal supplier
b. new supplier
c. capable supplier
d. final supplier
e. preferred supplier E
28. All of the following are conditions under which competitive bidding is effective except
_____.
a. the buyer has a preferred supplier for the item
b. volume is high enough to justify this method
c. the marketplace is competitive
d. the specifications or requirements are clear to the seller
e. adequate time is available for suppliers to evaluate the RFQs A
29. Which of the following is not one of the conditions under which negotiation is effective?
a. When the purchase requires agreement about a wide range of performance factors, such as
price, quality, delivery, risk sharing, and product support.
b. When the buyer requires early supplier involvement.
c. When the specifications or requirements are clear to the seller.
d. When the supplier cannot determine risks and costs.
e. When the supplier requires a long period of time to develop and produce the items purchased.
C
30. Which of the following is not an appropriate performance criterion to be used when
evaluating suppliers?
a. Ability to develop process and product technology.
b. Commitment to quality.
c. Management capability and commitment.
d. Cost performance.
e. Commitment to effective marketing and promotion. E
31. Good reasons for allowing other departments to view purchase orders and incoming receipts
does not include which of the following?
a. The accounting department gains visibility to future accounts payable obligations.
b. The requestor can refer to the purchase order number when inquiring into the status of an
order.
c. Receiving has a record of the order to match against the receipt of the material.
d. Traffic becomes aware of inbound delivery requirements and can make arrangements with
carriers or use the company's own vehicles to schedule material delivery.
e. There is never a good reason for purchasing to allow other departments access to purchase
orders and incoming receipts due to the confidential nature of the price and delivery terms.
E
32. A/An _____ is an open order, usually effective for one year, covering repeated purchases of
an item or family of items.
a. outstanding order
b. pending order
c. blanket purchase order
d. completed order
e. order acceptance C
33. When using negotiating a/an _____, it is necessary to include a/an _____ that allows a buyer
to terminate the contract in the event of persistently poor quality, delivery problems, and so on.
a. spot buy contract....evergreen clause
b. RFP....RFQ
c. purchase order....purchase agreement
d. blanket purchase order....escape clause
e. online catalog....RFP D
34. In a _____, the price stated in the agreement does not change, regardless of fluctuations in
general overall economic conditions, industry competition, levels of supply, market prices, or
other environmental changes.
a. blanket purchase order
b. RFQ
c. cost-based contract
d. material purchase release
e. fixed-price contract E
35. In a _____, the supplier is reimbursed all of their actual costs plus some agreed on
operational margin and overhead amount.
a. RFP
b. cost-based contract
c. material purchase release
d. fixed-price contract
e. reverse auction B
36. The _____, which the supplier provides, details the contents of a shipment and contains the
description and quantity of the items in a shipment.
a. material packing slip
b. purchase requisition
c. bill of lading
d. electronic funds transfer
e. request for quotation A
37. Transportation carriers use a/an _____ to record the quantity of goods delivered to a facility.
a. electronic transfer of funds
b. material packing slip
c. receiving discrepancy report
d. bill of lading
e. purchase order D
38. The _____ helps protect the carrier against wrongful allegations that the carrier somehow
damaged, lost, or otherwise tampered with a shipment.
a. bill of lading
b. material packing slip
c. invoice
d. material purchase release
e. blanket purchase order A
39. Which of the following is false regarding concealed damage?
a. A user may discover concealed damages after opening a shipping container.
b. Responsibility for concealed damage is often difficult to establish.
c. The carrier may blame the supplier or maintain that the damage occurred after delivery of the
material.
d. The supplier may maintain total innocence and implicate the carrier.
e. The bill of lading protects the carrier against charges of concealed damage. E
40. A _____ details any shipping or receiving discrepancies noted by the receiving department.
a. receiving discrepancy report
b. bill of lading
c. material packing slip
d. change notice
e. RFP A
41. The _____ purchase category includes such items are petroleum, coal, lumber, and metals
such as copper and zinc.
a. semifinished products and components
b. finished products
c. MRO items
d. raw materials
e. capital equipment D
42. A key characteristic of a/an _____ is a lack of processing by the supplier into a newly formed
product.
a. component
b. semifinished product
c. finished good
d. MRO item
e. raw materialE
43. Suppliers are more often being paid through _____, which is the automatic transfer of
payment from the buyer's bank account to the supplier's bank account.
a. RFQ
b. EFT
c. MRO
d. PO
e. None of the above. B
44. _____ include anything that does not go directly into an organization's product.
a. MRO items
b. Raw materials
c. Production support items
d. Services
e. Semifinished products and components A
45. _____ include(s) the materials required to pack and ship final products, such as pallets,
boxes, master shipping containers, tape, bags, wrapping, inserts, and other packaging material.
a. Raw materials
b. Production support items
c. Semifinished products
d. Components
e. Work-in-process inventory B
46. Which of the following is not a feature that separates capital equipment purchases from other
purchases?
a. Capital equipment purchases do not occur with regular frequency.
b. Capital equipment investment requires large sums of money.
c. For accounting purposes, most capital equipment is not depreciable over the life of the item.
d. Buyers can rarely switch suppliers in the middle of a large-scale project or dispose of capital
equipment after delivery because of dissatisfaction.
e. Capital equipment is highly sensitive to general economic conditions. C
47. All the following are expected growth areas in e-commerce except _____.
a. transmitting purchase orders to suppliers
b. submitting requests for quotes to suppliers
c. placing orders with suppliers
d. making electronic funds transfer payments
e. submitting written check requests to accounts payable E
48. Once a purchaser and a supplier reach agreement on a longer-term purchase contract,
material releasing responsibility should shift to _____.
a. marketing
b. purchasing
c. the supplier
d. user groups
e. accounts payable D
49. While similar in concept, blanket purchase orders are typically used more often for _____
purchases.
a. unique
b. lower-value
c. complex
d. spot buy
e. There are no differences in the types of products or amounts purchased in either method.
B
50. Which of the following is not an advantage of online ordering systems?
a. Immediate visibility to back-ordered items.
b. Longer order cycle time from input to delivery.
c. Faster order input time.
d. Reduced ordering errors.
e. Ability to batch multiple items from multiple users on a single order. B
51. [A/An] _____ involves a communications standard that supports inter-organizational
electronic exchange of common business documents and information.
a. electronic catalog
b. cloud-based ordering system
c. Procure-to-pay
d. Electronic data interchange
e. blanket purchase order D
1. _____ involves professionally managing suppliers and developing close working relationships
with different internal groups.
a. Purposeful cooperation
b. Program management
c. Credible commitment
d. Supply integration (cung cấp tích hợp)
e. Relationship management D
2. _____ is the process of incorporating or bringing together different groups, functions, or
organizations, either formally or informally, physically or by information technology, to work
jointly and often concurrently on a common business-related assignment or purpose.
a. Cooptation
b. Program management
c. Collaboration
d. Collusion
e. Integration E
3. Which of the following are not considered relationship management skills?
a. Ability to conduct detailed price and cost analyses
b. Ability to act ethically.
c. Ability to listen effectively.
d. Ability to communicate.
e. Ability to use creative problem-solving. A
4. All of the following are examples of the different methods that supply management will apply
to achieve integration except _____.
a. Cross-functional or cross-organizational committees and teams
b. Hiring English majors into supply management to correct document language
c. Information systems such as videoconferencing and webmail
d. Process-focused organizations that are dedicated to certain processes
e. Colocation of suppliers and customers B
5. _____ is defined as the process by which two or more parties adopt a high level of purposeful
cooperation to maintain a trading relationship over time to achieve specific goals.
a. Supply base management
b. Collaboration
c. KPI
d. Supply integration
e. SRM B
6. All of the following are characteristics that define a collaborative buyer-supplier relationship
except _____.
a. one or a limited number of suppliers for each purchased item or family of items
b. a win-win approach to reward sharing
c. open exchange of information
d. a credible commitment to work together during difficult times
e. the buyer unilaterally resolving disputes E
7. Which of the following is not a common obstacle to closer buyer-seller relationships?
a. Long-term contracts.
b. Confidentiality.
c. Limited interest by suppliers.
d. Legal barriers.
e. Resistance to change. A
8. [A/An] _____ consists of personnel from different functions and increasingly from suppliers
who are brought together to achieve supply management or supply chain-related tasks.
a. Big R
b. External RM
c. cross-functional sourcing team
d. Little r
e. Internal RM C
9. Which of the following is not a benefit of using a cross-functional sourcing team?
a. Reduced time to complete a task.
b. Increased innovation.
c. Joint ownership of decisions.
d. Enhanced communication among functions or organizations.
e. Groupthink. E
10. Which of the following is not a potential drawback of using a cross-functional sourcing
team?
a. Team process loss.
b. Reduced innovation.
c. Negative effects on individual members.
d. Poor team decisions.
e. Groupthink. B
11. _____ is a function of the professional's ability to translate supply market data into
compelling insights that solve business problems and to enable organizational connections and
networking that accelerate business success.
a. SRM
b. Groupthink
c. Reciprocity
d. Process gain
e. Relationship capitalE
12. _____ occurs when a team does not complete its task in the best or most efficient manner or
members are not motivated to employ their resources to create a successful outcome.
a. Groupthink
b. KPI
c. Collaboration
d. Process loss
e. Synergy D
13. When _____ is present, the total group effort is _____ the expected sum of the individual
parts.
a. process loss....less than
b. groupthink....more than
c. process loss....more than
d. collaboration....less than
e. synergy....the same as A
14. _____ is the tendency of a rational group or team to arrive at a bad decision when other
information is available.
a. Serendipity
b. Collusion
c. Process loss
d. Maverick spend
e. Groupthink E
15. Which of the following is not an example of an appropriate use of a cross-functional team?
a. New product development.
b. Preparing a RFQ for a routine commodity product.
c. Locating a new production facility.
d. Developing a commodity or purchase family strategy.
e. Establishing a new business unit. B
16. A _____ is one that requires members to use a variety of higher-level skills, supports giving
members regular feedback about performance, results in an outcome with a significant effect on
the organization and others outside the team, and provides members autonomy for deciding how
they will do the work.
a. gray box design
b. statement of work
c. technology roadmap
d. meaningful task
e. traditional buyer-supplier relationship D
17. Which of the following is not a requirement of being an effective team member?
a. Understands the team's task - the member has task-relevant knowledge.
b. Has the time to commit to the team.
c. Has the right corporate political connections.
d. Has the ability to work with others in a group.
e. Can assume an organizational rather than strict functional perspective. C
18. Management can exert (phát huy) subtle control over a team's tasks through all of the
following except _____.
a. authorizing the creation of the sourcing team
b. selecting the team's task
c. selecting the team leader and members
d. conducting performance reviews and holding teams accountable for performance outcomes
e. sitting in on all team meetings E
19. Which of the following is not true regarding establishing sourcing team goals?
a. Teams with established goals often use those goals as a basis for evaluating how well the team
is performing.
b. Teams will establish, on average, challenging rather than easy goals.
c. External pressure on a team to set goals usually results in the setting of more challenging
goals.
d. Teams establish goals only because they have to.
e. Teams with goals perform better, on average, than teams that are asked simply to perform their
best without explicit end goals. D
20. All of the following are examples of how supply management should monitor and anticipate
activity in its supply market except _____
a. ensuring that cost accounting keeps track of historical prices paid
b. forecasting long-term supply and prices for its basic commodities
c. monitoring technological innovations that impact its primary materials or make substitute
materials economically attractive
d. evaluating not only its existing suppliers but also other potential suppliers
e. providing timely visibility to new-product requirements A
21. All of the following questions are important in considering new or existing suppliers for
integration except _____.
a. Is the supplier capable of hitting affordable targets regarding cost, quality, conductivity,
weight, and other performance criteria?
b. Does the supplier have sufficient marketing funds for promoting its new products?
c. Will the supplier be able to meet product introduction deadlines?
d. Will the supplier be able to increase capacity and production fast enough to meet our market
share requirements?
e. Do the supplier's personnel have the required training to start up required processes and debug
them? B
22. Using _____, the supplier is given blueprints and told to make the product from them.
a. black box design
b. gray box design
c. red box design
d. white box design
e. shadow box design D
23. Using _____, the supplier's engineers work cooperatively with the buying company's
engineers to jointly design the product.
a. shadow box design
b. gray box design
c. red box design
d. white box design
e. black box design B
24. Using _____, suppliers are provided with functional specifications and are asked to complete
all technical specifications, including materials to be used, blueprints, and so on.
a. shadow box design
b. white box design
c. gray box design
d. red box design
e. black box design E
25. The term _____ refers to the set of performance criteria and products and processes an
organization intends to develop or manufacture.
a. concurrent engineering
b. early supplier involvement
c. process loss
d. technology roadmap
e. R&D plan D
26. Which of the following are not examples of technology roadmaps?
a. Incorporation of new AICPA accounting standards into existing accounting systems.
b. Projected performance specifications for a class of products or processes.
c. An intention to integrate a new material or component.
d. Development of a product to meet customer requirements that is currently unavailable in the
market.
e. Integration of multiple complementary technologies that results in a radically new product.
A
27. All of the following are elements of successful supplier suggestion programs except _____.
a. the savings from the suggestion are often shared 50/50, not kept solely by the buying company
b. the program focuses on cost improvement, not simply cutting the supplier's margins
c. successful buying companies provide prompt feedback to the supplier on its suggestion and
also implement good suggestions promptly
d. it is critical to acknowledge the supplier's suggestion, through an awards program, newsletter,
or announcement at a supplier conference
e. the supplier should be allowed to keep 100% of the savings since it came up with the idea
E