Chapter 14-Contract Management
1. In global commerce, people assume that the terms of one market are acceptable in another and do not
recognize cultural or legal landmines.
2. Once a contract has been negotiated and signed, the real
Chapter 18-Supply Chain Information Systems and
1. On the buying side, organizations are becoming much more focused on and sophisticated in making decisions
involving investments in e-SCM systems.
2. Because MRP a
Chapter 11-Strategic Cost Management
1. The price paid for purchased products and services has no direct impact on the end customer's perception of
value provided by the organization.
2. Price analysis focuses simply on a seller's pr
Strategic Alliances Case Study: Summary Document
In 1984, Whirlpool Corporation started to reconsider their strategic goals with the objective of achieving a
competitive advantage from sourcing. On the other hand, Inland Steel, a steel company in the same
Chapter 17-Purchasing Services
1. Virtually all of indirect spend is normally purchased using the organization's formal sourcing function or
well-established supply management processes.
2. One company's indirect spend may be conside
Chapter 12-Purchasing and Supply Chain Analysis: Tools
1. Projects have certain characteristics that make them unique compared with other forms of work.
2. Because a project usually has a defined scope with agreed-upon
Chapter 16-Lean Supply Chain Management
1. According to Shook, lean is a philosophy that seeks to shorten the time between when the customer order and
the shipment to the customer by eliminating waste.
2. In a pull system, an upstrea
Chapter 19-Performance Measurement and Evaluation
1. Few measures include a standard or target against which to evaluate performance results or outcomes.
2. It is difficult to develop performance improvement plans without understandi
Chapter 15-Purchasing Law and Ethics
1. Purchasing activities are concerned with the laws regarding contracts and the laws regarding agency, the
majority of which concern contract laws.
2. Contracts between two or more parties do not
Chapter 13-Negotiation and Conflict Management
1. Everyone negotiates something every day.
2. Negotiation is a skill that applies to only a few purchasing and supply managers.
3. Negotiation is an inefficient way to convey
Chapter 20-Purchasing and Supply Strategy Trends
1. Overall, future purchasing and supply mission and goals will be narrower and less aligned with the strategic
objectives of the firm.
2. Purchasing and supply will be expected to pla