Question 1

Before embarking on an e-commerce path, the supply leadership should decide what should be acquired through e-commerce and what tools should be used.

Accepted Answer

A) True 
 B)False

Question 2

A bill of material BOM) includes a list of potential suppliers for each item needed to make one month's scheduled production.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A)   increased clerical effort because there is more data entry than in a manual system.
B)   damaged buyer-supplier relationships because of the impersonal nature of electronic communication.
C)   an ability to reduce the total cost of doing business by enabling just-in-time systems, bar-coding applications, integrated manufacturing, and electronic funds transfers.
D)   poorer negotiation planning and preparation because of the time spent accessing and analyzing data.
E)   a decline in operating performance because of the volume of information to be analyzed and considered before making a decision.F) A) and C)
G) C) and D)

Question 4

A reverse auction is an online, real time, increasing price auction between multiple pre-qualified suppliers and a buying organization.

Accepted Answer

A) True 
 B)False

Question 5

It is relatively difficult to develop a global database to consolidate volumes and sourcing strategy because common technical standards and government regulations do not exist across countries.

Accepted Answer

A) True 
 B)False

Question 6

Electronic data interchange EDI)  provides:

Accepted Answer

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

Question 7

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  True

Question 8

Radio frequency identification RFID)  will:

Accepted Answer

A)   eliminate bar coding and manual counting.
B)   eliminate further investment in information technology.
C)   supplement bar coding to reduce theft.
D)   be more cost effective to implement than bar coding.
E)   improve data capture but slow down inventory pickingF) A) and E)
G) A) and D)

Question 9

Application software for the procurement process is available:

Accepted Answer

A)   only through an enterprise resource planning ERP)  system.
B)   only from a systems developer.
C)   only from an application software provider ASP) .
D)   from an ERP system or systems developer, but not from an ASP.
E)   from an ERP system, a systems developer, or an ASP.F) All of the above
G) B) and C)

Question 10

Online auctions have been most effective when:

Accepted Answer

A)   the good or service is unique or highly customized.
B)   technological, logistical, and commercial specifications are ambiguous.
C)   the market conditions favor buyers.
D)   the organization owns the technology to run the auction.
E)   there are a limited number of suppliers available.F) C) and D)
G) All of the above

Question 11

Information flows into the supply group from 1) other internal functions and 2) external sources; and information flows out from supply to 1) other internal functions and 2) suppliers.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

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

Question 13

Poor internal compliance with supply processes may indicate that internal customers do not trust the supply process or the suppliers to live up to promises.

Accepted Answer

A) True 
 B)False

Question 14

Efficient and effective supply processes are needed because of:

Accepted Answer

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

Question 15

The benefits)  of participation in an e-marketplace include:

Accepted Answer

A)   the ability to aggregate spend
B)   the advantages from economies of scale.
C)   visibility up- and downstream in the supply chain.
D)   the ability to automate and facilitate transactions.
E)   all of the above.F) B) and E)
G) C) and E)

Question 16

A maverick buyer is a talented member of the supply department whose creativity and innovations have saved the organization large sums of money.

Accepted Answer

A) True 
 B)False  False

Question 17

The terms and conditions included in a purchase order vary depending on the nature of the purchase and may relate to price, quality, and service.

Accepted Answer

A) True 
 B)False

Question 18

An online catalog is a digitized version of a supplier's catalog that cannot 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 19

If the buyer does not have a clear and unambiguous description or specification and wants to find out which suppliers can deliver the best value when and where needed, he or she will typically issue a:

Accepted Answer

A)   request for quotation RFQ) .
B)   request for proposal RFP) .
C)   request for information RFI) .
D)   request for bid RF
B)  .
E)   request for suggestions RFS) .F) A) and E)
G) A) and B)

Exam 4: Supply Processes and Technology

Before embarking on an e-commerce path, the supply leadership should decide what should be acquired through e-commerce and what tools should be used.

Correct Answer
verified

A bill of material BOM) includes a list of potential suppliers for each item needed to make one month's scheduled production.

Correct Answer
verified

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

Correct Answer
verified

A reverse auction is an online, real time, increasing price auction between multiple pre-qualified suppliers and a buying organization.

Correct Answer
verified

It is relatively difficult to develop a global database to consolidate volumes and sourcing strategy because common technical standards and government regulations do not exist across countries.

Correct Answer
verified

Electronic data interchange EDI) provides:

Correct Answer
verified

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 Answer
verified
True

Radio frequency identification RFID) will:

Correct Answer
verified

Application software for the procurement process is available:

Correct Answer
verified

Online auctions have been most effective when:

Correct Answer
verified

Information flows into the supply group from 1) other internal functions and 2) external sources; and information flows out from supply to 1) other internal functions and 2) suppliers.

Correct Answer
verified

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

Correct Answer
verified
D

Poor internal compliance with supply processes may indicate that internal customers do not trust the supply process or the suppliers to live up to promises.

Correct Answer
verified

Efficient and effective supply processes are needed because of:

Correct Answer
verified

The benefits) of participation in an e-marketplace include:

Correct Answer
verified

A maverick buyer is a talented member of the supply department whose creativity and innovations have saved the organization large sums of money.

Correct Answer
verified
False

The terms and conditions included in a purchase order vary depending on the nature of the purchase and may relate to price, quality, and service.

Correct Answer
verified

An online catalog is a digitized version of a supplier's catalog that cannot be customized to include the specific items, prices, and other terms and conditions negotiated by the buyer and seller.

Correct Answer
verified

If the buyer does not have a clear and unambiguous description or specification and wants to find out which suppliers can deliver the best value when and where needed, he or she will typically issue a:

Correct Answer
verified

Exam 4: Supply Processes and Technology

Before embarking on an e-commerce path, the supply leadership should decide what should be acquired through e-commerce and what tools should be used.

Correct AnswerverifiedShow Answer

A bill of material BOM) includes a list of potential suppliers for each item needed to make one month's scheduled production.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A reverse auction is an online, real time, increasing price auction between multiple pre-qualified suppliers and a buying organization.

Correct AnswerverifiedShow Answer

It is relatively difficult to develop a global database to consolidate volumes and sourcing strategy because common technical standards and government regulations do not exist across countries.

Correct AnswerverifiedShow Answer

Electronic data interchange EDI) provides:

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 AnswerverifiedTrue

Radio frequency identification RFID) will:

Correct AnswerverifiedShow Answer

Application software for the procurement process is available:

Correct AnswerverifiedShow Answer

Online auctions have been most effective when:

Correct AnswerverifiedShow Answer

Information flows into the supply group from 1) other internal functions and 2) external sources; and information flows out from supply to 1) other internal functions and 2) suppliers.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedD

Poor internal compliance with supply processes may indicate that internal customers do not trust the supply process or the suppliers to live up to promises.

Correct AnswerverifiedShow Answer

Efficient and effective supply processes are needed because of:

Correct AnswerverifiedShow Answer

The benefits) of participation in an e-marketplace include:

Correct AnswerverifiedShow Answer

A maverick buyer is a talented member of the supply department whose creativity and innovations have saved the organization large sums of money.

Correct AnswerverifiedFalse

The terms and conditions included in a purchase order vary depending on the nature of the purchase and may relate to price, quality, and service.

Correct AnswerverifiedShow Answer

An online catalog is a digitized version of a supplier's catalog that cannot be customized to include the specific items, prices, and other terms and conditions negotiated by the buyer and seller.

Correct AnswerverifiedShow Answer

If the buyer does not have a clear and unambiguous description or specification and wants to find out which suppliers can deliver the best value when and where needed, he or she will typically issue a:

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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True

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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D

Correct Answer
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Correct Answer
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False

Correct Answer
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Correct Answer
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Correct Answer
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