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5810-5820 (1). Which of the following is not legislation that has impacted supply management in the United States?

(1). Which of the following is not legislation that has impacted supply management in the United
(a). Caustic Waste Superfund Cleanup Act,
(b). Clean Air Act,
(c). Superfund Law,
(d). Resource Conservation Recovery Act (RCRA).

(2). When all or part of a shipment received from a supplier is nonconforming, the buyer has the right
under the UCC to all of the following except:
(a). Hold the material for future determination,
(b). Repair the material,
(c). Use the material as is,
(d). Completely or partially reject the material.

(3). Which of the following bullets in the list does not reflect a Global Sullivan Principle?
(a). Express support for universal human rights,
(b). Promote equal opportunity,
(c). Respect voluntary freedom of association,
(d). Use bribery in foreign countries when necessary and ethical acceptable based on
cultural customs.

(4). Which of the following is not a typical prerequisite to successful cross-functional teams?
(a). Executive sponsorship,
(b). Qualified team members,
(c). Adequate time,
(d). Overtime hours,
(e). Inter-firm teams.

(5). Which of the following points does not describe part of the evolution of quality management?
(a). Prior to 1980s, the gurus of quality influenced corporate disciples,
(b). The corporate disciples in turn influenced corporate philosophies that increased the
importance of quality management,
(c). The corporate disciples influenced the quality gurus,
(d). The corporate philosophy has essentially driven the selection of a management system.

(6). Which of the following is not one of Deming’s fourteen points?
(a). Improve constantly and forever the system of production and service,
(b). Institute training on the job,
(c). Adopt and institute modern methods of supervision & leadership,
(d). Use inspection to ensure zero defects.

(7). Which of the following is not a key law or regulation that impacts supply management in the
(a). Uniform Commercial Code,
(b). The Clinton Act,
(c). The Clayton Act,
(d). The Robinson-Patman Act.

(8). A purchase contract must have certain considerations to be legal. Which of the following is not
one of these considerations?
(a). Agreement,
(b). Signers must be over 21,
(c). Consideration, or mutual obligation,
(d). Competent parties.

(9). Which of the following issues are not addressed by the Contracts for the International Sale of
Goods (CISG)?
(a). Acceptance of an offer,
(b). Contract price,
(c). Revocation of an offer,
(d). Language used in written contract.

(10). Which of the following is not a recognized quality management approach?
(a). Total Quality Management (TQM),
(b). Continuous Improvement,
(c). Six Sigma.
(d). Quality Ensured in the Supply Triangle (QEST).

(11). Which of the following is not one of the seven wastes?
(a). All processing,
(b). Overproduction,
(c). Unneeded motion,
(d). Unneeded transportation.

(12). Which of the following is not a quality award?
(a). Malcolm Baldridge Award,
(b). European Quality Award,
(c). ISO 9000,
(d). Deming Prize.

(13). In the investigation phase, the development of alternatives encompasses all of the following
consideration, except one. Which does not belong to the list?
(a). Value analysis,
(b). Suitability,
(c). Producibility,
(d). Component availability.

(14). Which of the following is not associated with the development phase of the design process?
(a). Development of prototypes,
(b). Design reviews,
(c). Qualification testing,
(d). Value analysis.

(15). Which of the following is not true about risk sharing in government contracts?
(a). Government usually wants the seller to assume all technical and cost risk,
(b). In situations where the risk if high, the supplier must add large contingency sums in the
(c). Government supply managers should consider sharing the risk cost through reimbursement
and/or incentive contracts,
(d). Government supply managers should consider sharing the risk cost through fixed firm

(16). Which of the following is generally not true about government contracts?
(a). The contract may be terminated for default,
(b). The contract may be terminated for not fulfilling the terms of the contract,
(c). The government may not terminate a contract for its convenience,
(d). The government may debar, suspend, or declare ineligible an errant contractor.

(17). Which of the following does not fit within the code of ethics for government service?
(a). Make private promises only when needed,
(b). Engage in business with the Government,
(c). Never use any information gained confidentially in the performance of Government duties
as a means for making private profit,
(d). Expose corruption wherever discovered.

(18). Which of the following activities is typically not conducted in the production phase of the design
(a). Process Control,
(b). Material Availability Research,
(c). In Process & Final Testing,
(d). Adjust and calibrate the performance.

(19). Which of the following questions does not typically belong on a value-engineering checklist?
(a). Can the item be eliminated?,
(b). Can the product quality be lowered to reach a lower price point?,
(c). If the item is not standard, can a standard item be used?,
(d). If it is a standard item, does it completely fit the application, or is it a misfit?

(20). All of the following are considerations when assessing technical risk except:
(a). Type and complexity of the item or service,
(b). Supply and demand patterns of the marketplace,
(c). Stability of design specifications or statement of work,
(d). Availability of historical pricing data.

(21). In the PDCA Cycle the D stands for which of the following?
(a). Document,
(b). Do,
(c). Develop,
(d). Describe.

(22). Which of the following is not one of the seven wastes as interpreted by Honda?
(a). Waste in the Work Itself,
(b). Process Time,
(c). Inventory,
(d). Wasted Operator Movement.

(23). Which of the following is not a class of manufacturing inventory?
(a). Raw Materials,
(b). Finished Goods,
(c). In-process Goods,
(d). Stored Materials.

(24). A listing of Intermediate Predecessor activities is important information in a Single Time Estimate
CPM analysis for which of the following reasons?
(a). It makes it possible to understand the relationship of the CPM network of activities,
(b). It provides useful timing information,
(c). It includes cost information,
(d). It is the probability information in the final step of the CPM.

(25). In an MRP program, the program accesses the status of any file in specific time periods called
which of the following?
(a). Cubed time units,
(b). Time buckets,
(c). BOM units,
(d). Modular units.
(1). Which of the following is not a transactional relationship characteristic?
(a). Long-term contract,
(b). An absence of concern,
(c). One of a series of independent deals,
(d). Costs, data and forecasts are not shared.

(2). Which of the following is not one of the issues that affect a supplier’s assessment of a buying
(a). Gifts & gratuities,
(b). Openness and Approachability,
(c). Availability,
(d). Professionalism.

(3). Which of the following is a major element included in a “to buy” cost analysis?
(a). Delivered purchased material costs,
(b). Transportation costs,
(c). Direct labor costs,
(d). Any follow-on costs stemming from quality and related problems.

(4). Which of the following is not one of the six categories of cost presented in the textbook?
(a). Price of goods,
(b). Variable manufacturing costs,
(c). Fixed manufacturing costs,
(d). Semi Variable costs.

(5). Which of the following is not a common source of prices for a price analysis?
(a). Catalog prices,
(b). Internet prices,
(c). The grapevine,
(d). Independent cost estimates.

(6). Which of the following is not a category of discounts?
(a). Trade discounts,
(b). Quantity discounts,
(c). Credit card discounts,
(d). Seasonal discounts.

(7). Which of the following is not considered a major element that affects a supplier’s cost?
(a). Effectiveness of competitors,
(b). Capabilities of management,
(c). Efficiency of labor.
(d). Amount and quality of subcontracting.

(8). Which of the following is not a common use of learning curve?
(a). Estimation of Target costs,
(b). Improving Make-or-Buy Analyses,
(c). Estimation Delivery Times,
(d). Estimation of Material costs.

(9). Several potential benefits exist when a buying firm pays for and takes title to special tooling? Which is not one of the potential benefits?
(a). The buying firm gains greater control,
(b). Insurance costs are lower,
(c). Analysis of production costs is easier,
(d). Labor learning curve effect is reduced.

(10). Generally, compensation arrangements do not determine:
(a). Degree & timing of the cost responsibility assumed by the suppliers,
(b). Amount of profit or fee available to the supplier,
(c). Capability of the supplier with respect to quality,
(d). Motivational implications of the fee portion of the compensation arrangements.

(11). Which of the following statements is not true about incentive arrangements in contracts?
(a). Used to motivate the supplier to control costs,
(b). Used to encourage goods supplier performance,
(c). Contract price will usually be lower,
(d). Ceiling price is usually fixed during negotiations.

(12). Which of the following is not a cost type arrangement?
(a). Cost reimbursement,
(b). Cost plus hidden charges,
(c). Cost plus fixed fee,
(d). Cost plus award fee.

(13). Which of the following is usually not one of the objectives of a negotiation with a supplier?
(a). Quality,
(b). Fair & reasonable price,
(c). Cultural values,
(d). On-time performance.

(14). Which of the following is not one of the major steps in the typical negotiation process?
(a). Preparation,
(b). Establishment of objectives,
(c). Litigation prevention,
(d). Face to face discussions.

(15). Which of the following is a traditional non-cost objective in a negotiation?
(a). Liability for claims and damages,
(b). Quantity of labor,
(c). Wage rates,
(d). Quantity of materials.

(16). Which of the following is not a powerful preparation activity or tool for negotiation presented in
the textbook?
(a). Agenda.
(b). Murder Boards,
(c). Mock Negotiations,
(d). Historical Price Data Sheets.

(17). Several changes in business have increased the need for better contract management. Which of
the following is not of those changes?
(a). Collaboration is continuing to become more important,
(b). Large inventories are available,
(c). Quality is expected,
(d). Deliveries are expected to be on time, or early or late.

(18). What usually does not need to be specified at the pre-award conference?
(a). All items and conditions,
(b). Expected quality levels,
(c). Staffing and supervision,
(d). Site conditions, work rules, safety.

(19). Which of the following is not one of the four categories of actions that exist to resolve a dispute?
(a). Negotiation,
(b). Mediation,
(c). Situation,
(d). Arbitration.

(20). Which of the following is not true about pricing in institutions?
(a). Until recently, many suppliers granted special prices to institutions,
(b). Today, most suppliers view the institutional market as a less preferable market to private
(c). To obtain fair prices in such a market, institutions much have supply managers that can
negotiate effectively with their highly competent sales counterparts,
(d). Institutions, as a group, continue to violate one of the basic principles of good supply
management-that of not disclosing prices.

(21). Which condition clearly indicates that negotiation is preferred over competitive bidding?
(a). Dollar volume of the potential buy is very large,
(b). Product isn’t actually needed until five months into the future,
(c). Each firm that is competing is a technical giant in the field,
(d). There will be substantial pre-production engineering and tooling required.

(22). All of the following factors will strengthen the buying organization’s position in a negotiation
(a). Unclear specifications,
(b). Strongly competitive field,
(c). Lack of urgency for a contract,
(d). Thorough cost/price analysis.

(23). Which of the following is the least likely source of relevant information about a supplier when
planning a negotiation?
(a). External databases,
(b). Persons who previously negotiated with the supplier,
(c). Dun & Bradstreet reports,
(d). Supplier’s ranking among Fortune companies.

(24). Which of the following types of costs change in direct proportion to changes in the level of
operational activity?
(a). Fixed,
(b). Variable,
(c). Standard,
(d). Direct.

(25). All of the following are elements considered in a cost analysis except:
(a). Direct Labor,
(b). Liability,
(c). Material,
(d). Profit.
(1). The utility that is created by moving goods from surplus points to points where demand exists is
referred to as:
(a). Form,
(b). Place,
(c). Time,
(d). Possession.

(2). What activity involves the movement of goods into a warehouse, the placement of goods in a
warehouse, and the movement of goods from storage to order picking areas and eventually to dock
areas for transportation out of the warehouse?
(a). Materials handling,
(b). Physical distribution,
(c). Business logistics,
(d). Order fulfillment.

(3). Logistics decisions about inventory, transportation, and warehouse should relate to which of the
(a). Globalization of business,
(b). Changing of government infrastructure,
(c). Structural changes in business,
(d). Customer service requirements.

(4). The network intermediaries engaged in transfer, storage, handling, and communication is a
(a). Link,
(b). Logistics channel,
(c). Node,
(d). Logistics provider.

(5). Which of the follow is not an example of customer service?
(a). Guaranteeing delivery within specified time periods,
(b). Installing the product,
(c). Extending the option to sell on consignment,
(d). Outsourcing financial and credit terms.

(6). Which are the major modes of international transportation?
(a). Water and air,
(b). Water and rail,
(c). Rail and motor,
(d). Rail and air.

(7). Which condition must be present before motor carriers and rail carriers can be used for international
(a). Shipments must be in volume and in bulk,
(b). Shipment must be between adjacent countries,
(c). No custom barriers can be imposed,
(d). Shipment cannot pass through adjacent countries.

(8). Any government unit or authority at any level that owns, operates, or otherwise provides wharf,
dock, and other terminal facilities at port locations refers to:
(a). Country government,
(b). Maritime unit.
(c). Free Trade Zone,
(d). Port Authority.

(9). Which one of the following practices is not generally associated with inventory management?
(a). JIT,
(b). DRP,
(c). MRP,
(d). SEC.

(10). What are the two (2) basic warehouse operations?
(a). Movement and order processing,
(b). Movement and storage,
(c). Storage and inventory control,
(d). Purchasing and storage.

(11). Which of the following costs best applies to the use of public warehousing by a firm?
(a). Fixed,
(b). Marginal,
(c). Variable,
(d). Taxable.

(12). Which of the following is not an objective of materials handling?
(a). Increase effective capacity,
(b). Improve operating efficiency,
(c). Increase heavy labor,
(d). Implement effective working conditions.

(13). Which mode of transportation is characteristic of high fixed costs, low variable costs, long transit
times, low accessibility, and capability of transporting only liquid products?
(a). Pipelines,
(b). Railroads,
(c). Water carriers,
(d). Air carriers.

(14). How does containerization change the materials handling function?
(a). From capital intensive to labor intensive,
(b). From labor intensive to capital intensive,
(c). From an ancillary to a primary function,
(d). To a market intensive activity.

(15). Piggyback is an example of which type of transportation?
(a). Intrastate,
(b). Interstate,
(c). Intermodal,
(d). Intercarrier.

(16). Which of the following is an ICC licensed freight intermediary whose propose is to bring shippers
and carriers together?
(a). Shipper’s agent,
(b). Freight wholesaler,
(c). Broker,
(d). Carriage company.

(17). What is an order bill of lading?
(a). Order of goods which a firm issues to a supplier,
(b). Same as a freight bill,
(c). Negotiable instrument that acts as a certificate of title,
(d). Purchase invoice.

(18). Under the term of sale “F.O.B. Delivered”, who has the responsibility of filing a claim for damage
arising from the shipment?
(a). Buyer,
(b). Supplier,
(c). Carrier,
(d). Demurrage agent.

(19). In an effort to offer a lower rate, carriers will try to:
(a). Separate joint and common costs,
(b). Reverse the rate taper,
(c). Offer a quantity discount,
(d). Disregard the weight of the shipment.

(20). The following are all types of 3PLs, except:
(a). Transportation based,
(b). Warehouse based,
(c). Forwarder based,
(d). B2B payments.

(21). A firm that manages the resources, capabilities, and technology of its own organization with those
of complimentary service providers to deliver a comprehensive supply chain solution is called a:
(a). 3PL,
(b). 4PL,
(c). 2PL,
(d). 1PL.

(22). What type of change may suggest a need to reevaluate and/or redesign a firm’s logistics network?
(a). Change in customer service requirements,
(b). Change in corporate ownership,
(c). Cost pressures and competitive capabilities,
(d). Shifting locations of customer and/or supply markets.

(23). Which of the following is not a trend in today’s logistics environment that may have significant
effects on decisions involving logistics facility location?
(a). Cross-docking,
(b). Use of third-party suppliers,
(c). Direct, Plant-to-Customer shipments,
(d). Decentralized facilities.

(24). Which of the following is not a supply chain decision area regarding ROA improvement?
(a). Channel structure management,
(b). Inventory management,
(c). Order management,
(d). Information management.

(25). A core competency is said to exist if each of three (3) conditions are satisfied. Which of the
following is not one of these three conditions?
(a). Expertise,
(b). Strategic fit,
(c). Ability to invest,
(d). Sustainable advantage.
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This question was asked on May 01, 2013.

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