Final Test

The following are all functional responsibilities of the buyer EXCEPT?

How important the purchasing function will be to an organization depends on?

An essential objective of procurement is to always buy at the lowest price.

Goods purchased for resale is a key category of purchasing.

Which of these functions would be an advantage of a decentralized purchasing organizational structure?

When developing a procurement strategy which of the following activities should be performed first?

Purchased items of low cost, but of high risk would be classified as

Purchasing includes inventory control.

The planner/buyer will provide time for the buyer to do more of which activity?

All of the following are submitted by the buying organization EXCEPT?

Which of the following is true regarding the impact on the financial statements when the cost of direct material is reduced?

When should suppliers be involved in the product development process?

Tactical buying is used for which type of materials?

Which would be the best example of a type of material that strategic sourcing would be helpful as part of the purchasing process?

An EOQ is calculated to determine the maximum lot size?

What is the primary purpose of conducting a break-even analysis on a specific part from a supplier?

What type of supplier relationship has the most strategic focus?

Giving suppliers projections of future orders provides support for which of the following supplier activities?

I. Workforce stabilization

II. Raw materials cost reduction

III. Capacity utilization improvement

The goal of a supplier evaluation system is to

Which of the following principles of supplier partnership is LEAST important?

Price analysis should be done for

Which purchasing method assumes the lowest level of operational integration between supplier and customer?

Which of the following factors would point to the need for a make-or-buy decision for a particular product?

Which of the following are principles of partnership with suppliers?

All of the following are true regarding item record EXCEPT?

Which of the following is true regarding calculating net requirements in material requirements planning (MRP)?

Which of the following is true regarding the periodic review?

Cash-to-cash cycle calculation includes all of the following EXCEPT

Supplier relationship management (SRM) often includes all of the following EXCEPT?

A buying organization seeks a supplier who will provide goods while retaining title to the product until the customer uses it in production or sells it. Which of the following best describes this type of stock?

The purchase order flow includes generating the requisition?

All of the following are example of action messages EXCEPT?

A company has a portal for suppliers as part of SRM (supplier relationship management).  Which of the following is a true statement regarding portals?

Which of the following purchasing-related difficulties is most effectively addressed by implementation of MRP?

Hedging is used to

When would a buyer consider the use of a blanket order?

Comparing a product considered a commodity to a product considered leverage, which of the following is true for negotiations? 

All of the following are phases of contract management EXCEPT?

When negotiating a product considered a bottleneck, the primary consideration is which of the following? 

Which of the following is true regarding dispute resolution? 

All countries must adhere to the Uniform Commercial Code (UCC)?

Fill in the blanks. In a buyer’s market there are __________ substitutes for raw material, or the level of competition is _____________. 

In the five-forces model of competition, when rivalry is high between competitive sellers, profits typically increase? 

In PDCA, where is the result studied? 

Fill in the blanks by selecting which two answers best complete the sentence.

A(n)  __________ warranty is beyond ________ agreement in the contract. 

Negotiation as defined in the APICS Dictionary is to agree on the conditions in a mutually beneficial manner. 

Boilerplate is best defined as which of the following according to APICS Dictionary? 

Which of the following protects the buyer from escalating costs? 

Companies often require suppliers to obtain ISO 14001 certification in order to

The purpose of life cycle assessment (LCA) is to determine

Which of the following describes conflict minerals?

Which of the following statements is true regarding SA 8000 standards?

A company’s sustainability policy should be which of the following?

When buying materials from suppliers, whose responsibility is it to ensure that the suppliers are compliant with government trade restrictions?

A company has determined that a supplier’s offshore resource for a component has been accused of human rights abuses.  The best action for a company to take is 

Which of the following describes the use of bribery with a supplier?

The most appropriate reason for a business to comply with United National Global Compact practices is to

Which of the following would be considered an ethical practice?

Which of the following has the greatest opportunity for long-term environmental improvement?

A company redesigns its packaging so that the same box containing the product can be used for the consumer to return the product. This is an example of which of the following?

The term big data refers to which of the following?

Which of the following is true of an effective supplier evaluation system?

The purpose of the Supply Chain Operations Reference (SCOR) model is to

Which of the following enables the design team to use supplier expertise in sourcing, cost management, and value analysis and otherwise access core competencies they do not possess or in which they are weak?

Which of the following describes the Internet of Things (IoT)?

Purchase price variance (PPV) is used to do which of the following?

Which of the following results of a supplier evaluation process would necessitate a supplier development process?

One method for shortening the cash-to-cash cycle time is to

A company is beginning a major improvement initiative in their procurement processes.  A recommended place to start would be

Which of the following is a benefit of blockchain technology?

Which of the following best describes appropriate measurable objectives?

Which of the following is true concerning performance measurement data?