Which of the following statement is NOT true

Choose the best answer from each question.

1. Which of the following statement is NOT

Products and services are becoming increasingly
inter-connected, related and combined.
No organization is able to meet the increasing
complex customer requirements alone.
c. Organization create and deliver final products
and services through information system
d. Competitive advantage is based on the combined
capabilities of supply chain.
e. All of the above
f. None of the

2. Which of the following statement is

a. If dissimilar products are to be
purchased, then it is better to organized in decentralized structure.
b. If a firm wants more responsiveness to
customers, it is better to organize in centralized structure.
c. If similar products are to be purchased,
then it is better to organize in decentralized structure.
d. If a firm seeks more efficiency in its
purchasing process, then it is better to organized in decentralized structure.

3. Which of the following is NOT regarded
as advantage of centralization?

Leverage purchase volumes
Reduce duplication of supply management effort.
Coordinate of purchasing strategies and plans.
Development of generalized
Meet corporate goals and magnet company-wide change.
B and D

4. Which is NOT regarded as enablers of
sourcing and SCM?
a. Human resources b. Organizational design
c. Information technology d. Measurement
e. Cross-functional integration







5. As a part of organizational mechanisms to
enable center-led structure, _____________________ tend to be more advisory in
nature than corporate purchasing councils and involve in developing sourcing

a. Regional buying groups b. Corporate
purchasing councils
c. Corporate steering committees d. Consortium

6. Which of the following does Not accurately reflect policies
are procedures?

Complex issues are simplified for many people to follow through.
Costly procedures are standardized for efficiency.
Fuzzy issues are clarified for greater understanding.
Informal relational elements are formalized for fair processes.
Serious problems are updated for greater information sharing.

7. Purchasing and supply management job functions
are different from job tasks. Which of
the following is NOT a party of job functions?

Sourcing and
b. Administration
c. Market analysis and research d. Inventory Control
e. Operational support

8. Which is the TRUE statement about changing
patterns of procurement?
a. Purchasing is regarded as advancing
patterns beyond partnership.
b. Alliance requires informal planning
processes and focus on supplier relationships
c. Partnership requires procurement
strategy aligned to product development strategy.
d. World class procurement is the long-term
orientation and the level of added value is the
e. Buying is the short-term orientation
and level of added value is intermediate.

9. Which of the following is regarded as
purchasing for internal linkages?
a. Develop regional and global agreements.
b. Identify requirements for locations
c. Involve communication challenges for
simplifying information needs.
d. Remove global outsourcing of internal
functions and activities.
e. Identify for benchmark failures.








10. Which is regarded as essential to enforce
labor and human rights standards?
a. Communicate code of conducts for
acceptable and unacceptable cognitive norms.
b. Suggest penalties for non-compliances of
code of conduct.
c. Implement regular and independent
evaluation and audits.
d. Strategize intent of compliance to code
of conduct requirements.
e. Consider training programs for potential

11. Which is NOT a part of traditional sourcing
a. Functional responsibilities
b. No common focus
c. Lengthy cycle time
d. Enhanced communication
e. A and D

12. Which of the
following is most fitting to form a cross-functional team?

a. Facing a complex and small scale of
business decisions.
b. Achieving reasonable quality decisions
for functional-specific issues.
c. Keeping up with rivals teams for
competitive results.
d. No function has enough resources or
knowledge to handle challenging issues.

13. Money on the table is
about _____________ and money in the bank is ____________
a. Purchasing, Sourcing b. Making, Delivering
c. Negotiation, Contract d. Sourcing, Buying
e. Purchasing, Procurement

14. Which
is NOT an accurate statement about FedEx’s strategic sourcing process?
a. Confirming user requirement is an
important activity of profiling sourcing group.
b. Verifying sourcing strategy is essential
for selecting sourcing strategy.
c. General supplier portfolio includes
developing supplier “short list”.
d. Developing implementation plan is a part
of selecting implementation path
e. B
and D

15. Which of the following is NOT regarded as
the right of purchasing?
a. to challenge specifications.
b. to select suppliers.
c. to choose method of placement.
d. to communicate non-compliance of other
e. to
control contacts with suppliers









16. Which of the following is regarded as one of
benefits of cross-functional teams?

a. Increased time commitment to complete
b. Separate ownership of decisions
c. Communication barriers among diverse
d. Achieve synergies by combining functional
e. Complicate problem resolution processes

17. Which of the following in NOT true about
Intel’s job ladders pyramid?
a. Three categories are supply chain business,
management and technical tracks.
b. First line managers are largest in numbers
and senior management level is the smallest.
c. General manager or fellow is primarily
from management track.
d. Technologist is regarded as middle level
manager of technical track.

18. ________ refers to strategy implementation,
demand forecasting and performance measures
a. Logistics b. SCM Administration
c. Strategic Sourcing d. Tactical Purchasing
e. Supply Management

19. Which is true about policies and procedures?

a. They are unofficial documents for
constructive suggestions.
b. They are customized set of rules of
action for case by case circumstances.
c. They intend to prepare organizational
members to assess greater business opportunities.
d. They are a translation mechanism of
business strategies and plans into practical actionable
e. They are primarily relational in nature
for strategic priorities.

20. Which of the following is regarded as
crucial role (i.e., order winners) of strategic suppliers?
a. Provide reliable delivery of products
according to the contract specifications.
b. Contribute to the maintenance of current
market base and creation of new emerging markets.
c. Integrate both front-end and back-end of
all supply chain activities.
d. Supervise the quality of other suppliers’








21. Which of the following does NOT accurately
describe cross-functional teams based on personal commitment and time frame?

a. A team member with full-time commitment
and short time frame tends to move from project to project.
b. A team member with full-time commitment
and continuous time frame is better to be assigned permanently to specific
teams with fixed set of responsibilities.

c. A team member with part-time commitment
and short time frame is better support a specific team assignment in addition
to regular responsibilities.
d. A team member with part-time commitment
and continuous time frame is better to choose ongoing support of team
assignments in addition to regular responsibilities.

22. _________ is the strategic management of
external resources.
a. Purchasing b. Procurement
c. Sourcing d. Supply Chain Management

23. Which of the following
is the most constructive approach for cross-functional work?
a. Continue to communicate how indispensable
your work (e.g., purchasing) is.
b. Approach other functional work as important
and central as yours.
c. Willing to assume responsibilities beyond
your expertise areas.
d. Make every effort to stay close to primary
functions rather than support functions.
e. All of the above.
f. None of the above.

24. Which of the following is Not false?
a. Extended value chain network include
primary, intermediate and support activities.
b. Inbound and outbound logistics are
regarded as one of crucial support activities.
c. Purchasing and sourcing are becoming one
of primarily activities.
d. Marketing and sales are essential for
customer services.
e. All of the above.

25. _________ and _______ is the first and last
process of supply management.
a. Establish Specifications and Assess
b. Access Suppliers and Select Suppliers
c. Issue Purchase Order and Maintain Records
d. Receive/Verify and Process Payment.
e. Identify Requirements and Maintain Records








26. Which of the following is NOT what
buyer-supplier improvement teams do?

a. Cost reduction
b. Quality improvement
c. Delivery improvement d. Process technology upgrades
e. Reeducation of cycle time f. Early market introduction

27.________ is the
criteria that differentiate the products and services of one firm from
a. Order Qualifier b. Trade Off
c. Supply Chain d. Risk management
e. Order Winner

28. Which of the following is crucial role of
purchasing for external integration?
a. Involve supply management through
organization of the firm’s supply base.
b. Integrate suppliers for government’s
regulatory requirements
c. Manage new technology for materials and
d. Create market information for better
assessment of market reality.
e. Bring suppliers, governments and local
communities for social action.

29. Which of the following is a true statement
about elements of purchasing process?
a. Purchase order should be archived for up
to 9 years
b. Discounts for early payment should be
taken whenever possible.
c. Receiving is technically a “value-added”
d. ERP applications assume that scheduled
dates are revised on time.
e. The discrete orders provide the
information about terms and conditions.

30. Which of the following is NOT regarded as
advantage of utilizing policies and procedures?

a. Define and clarify top management
b. Facilitate executives to communicate
their leadership and important strategic views and
c. Provide framework for consistent
decision-making and actions.
d. Allow employees to follow through in fair
and clear processes.
e. Enable organizational members to
understand simple issues through complex details

31. Which is regarded most remotely related
to effective policy statements?
a. Formal and action-oriented guidelines
b. Ethical and market relevant for
c. Unambiguous and well-communicated for
d. Relevant, theoretical and future oriented.

e. Cost effective and precise.









32. Which of the following statement is true?
Operations translate strategy into financial outcomes that are the basis
of operations and market outcomes.
Just-in-time and supply chain management practices become quite poplar
in 1990s.
c. Mass
customization era (1980-2015) is characterized with global expansion and
integrative management.
Straddling is about seeking to match a successful competitor by adding
features, services, or technology to existing activities.
33. As a part of fuzzy front end planning
processes, __________________ help the team to rationally plan and align
project targets with the firm’s strategic objectives.

Organizational Plans b. Best Practices
Emerging Technologies d. Heavyweight managers

34. Which is true about integration?

a. Cross-functional collaboration is regarded
as an important way for external integration.
b. Involving suppliers for new productive
development is an example of internal integration.
c. Purchasing function often takes the
linkage role to bring other functions for strategic cost
d. R&D function is most crucial to
achieve cross-functional integration.
e. Operations and marketing works most
exemplary in many organizations.

35. Which of the following is NOT a mark of
effective cross-functional leader?

a. Secure respect and support of senior
b. Sufficient authority among team members
with expert knowledge and good track records.
c. Relational skills and strict functional
d. Heavy-handed supervisory control
e. C and D

36. Which of the following is correct about
having clarity of sourcing team goals among cross-functional teams?

a. Focus on efforts, not end results.
b. Use abstract and bigger goals as the basis
of minimizing potential conflict resolutions.
c. Provide clear benchmark measures for
assessing progress
d. Use for changing leadership roles in








37. ______________ buyer-supplier relationships
are two or more parties adopt high level of purposeful cooperation for
long-term business relationship
a. Coordinative
b. Integrative
c. Constructive
d. Collaborative
e. Independent

38. Which of the following is NOT a part of
business process integration?

a. Cross-functional team collaboration
b. Information systems integration
c. Integrate performance objectives and
d. Co-location of suppliers and customers

39. Which of the following is NOT regarded as
the outcomes of supplier involvement?

a. Greater satisfaction with quality of information
b. Higher reliance on suppliers to directly
support team’s goals.
c. Greater problems coordinating work
activities between cross-functional team and suppliers
d. Greater effort put forth for team

40. _________________ representativesinvolve in
various activities including waste management, process control equipment,
production maintenance, production parts and computer equipment and software to
better serve customer needs.

a. Cross-functional team b. Focus customer
c. Leadership team
d. Improvement team
e. Quality circle team

41. Which of the following is NOT an
accurate statement in regard to HP’s global procurement organization, Tyco
International and RailMarketPlace.Com?

a. All three organizations have fairly large
and complex sourcing structure.
b. Tyco International maintains multi-council
structure to manage large number of suppliers (
c. RailMarketPlace.Com is organized as a
d. HP regards key strategic suppliers as
e. Senior managers in these organizations
possess extraordinary personality and skill-sets that are beyond the reach of ordinary








42. Which of the following statement is NOTtrue
about supply chain management according to Lambert, Cooper and Pagh (1998)?
a. Effective information flows are crucial
for supply chain management.
b. Product flow is through cross-functional
collaboration across supply chain.
c. Demand fulfillment is a business process
that is a part of supply chain management.
d. Customer relationship management is a
bigger concept than supply chain management.

43. Which of the following is regarded the most
desirable attitude as an effective cross-functional team member?
a. Understands team’s mission and has
task-relevant knowledge and skills.
b. Commit limited time for the tasks
c. Strive to occupy leadership position.
d. Insist functional perspective for functional

44. Which of the following dose NOT
characterize effective supplier relationship management?
a. Open exchange of trust relationship.
b. Make credible long-term commitment to
work together
c. Use well-defined performance measures
d. Dedicate to high quality, defect free
and manufacturable products
e. Criticize mutual shortcomings and
weaknesses for emergency needs.

45. Which of the following does describe the
advantage of decentralization?

a. Quality and competitiveness
b. New process change
c. Ownership of decisions affecting
d. Understanding global market reality

46. Which of the following statement is true?
a. Operations Management (OM) is defined as the
design, operations and improvement of the systems that plan to deliver the
firms primary products and services. Its
primary work is formulation of strategy (plans) for competitive capabilities.
b. Operational outcomes are competitive
capabilities in terms of cost, quality, net income and flexibility.
c. Performance outcomes are the results of
chain relationships for which drivers play crucial role.
d. Critical supply chain management processes include new product
development and customer order fulfillment and demand and supply planning.








47. Which of the following is NOT regarded as
affecting purchasing/supply management’s position in the organizational

b. Type of Industry
c. Total value of goods and services d. Type of service quality

48. Which of the following is NOT related to
defining categories of purchasing policies?
a. authority and responsibilities of
purchasing managers.
b. ethical and legal boundaries
c. minority business objectives
d. buyer-supplier relationships
e. quantify financial and cognitive measures

49. Purchasing and supply management job
functions are different from job tasks.
Which of the following is NOT a party of job tasks?

Buying expediting b. Transportation
c. Purchasing Research d. Inventory Control
e. Order follow-up

50. Which of the following is NOT regarded as
strategic sourcing activities?

a. Manage relationships with critical
b. Negotiate companywide supply contracts
c. Implement companywide best practices.
d. Manage transactions with suppliers
e. Develop electronic purchasing systems.







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