Sanpson Products

2076 Words Jun 4th, 2013 9 Pages
Chapter 1 The Progression to Professional Supply Management

True/False Questions

Note to students, select the answer that is true or false “most of the time”, few situations in social sciences are simply black or white.

1. Purchasing is primarily a clerical activity. 2. Supply management is also known as procurement at many firms and government agencies. 3. Strategic sourcing starts with the analysis of the supply market. 4. Materials have always been vital in the history of industrial growth. 5. In the history of power source relationships, percentage wise, labor costs went down while materials costs went up. 6. Supply management plays a major role in improving the “bottom line” by driving sales up and
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The term supply management is broader than the purchasing function because it:: A) includes marketing B) includes operations/production C) includes managing relationships with suppliers D) includes negotiating enforceable contracts E) includes measuring the total cost of ownership

34. Strategic sourcing differs from tactical purchasing in that this activity periodically: A) analyzes the organization’s spend B) analyzes the supply market C) develops sourcing strategy and plans D) outsources basic business services such as security E) A, B &C

35. Supply management’s impact on the bottom line includes the ability to increase sales by: A) reducing the development time of new products by using cross functional teams including suppliers B) obtaining the lowest possible prices C) finding suppliers with the fastest delivery times D) all of the above E) none of the above

36. “Lean Thinking” can help reduce total cost of ownership (TCO), this means the supply team in the entire “chain” must work to: A) lower conversion cost B) reduce cycle time cost C) reduce risk cost D) reduce non-value costs E) reduce processing costs 37. The major reason supply management

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