Purchasing and Supply Chain Management MCQs

Purchasing and Supply Chain Management MCQs

Answer these 40 Purchasing and Supply Chain Management MCQs and assess your grip on the subject of Purchasing and Supply Chain Management.
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1: The buying staff negotiates and processes purchase orders, providing assistance to end users are known as _____.

A.   Buyer

B.   Seller

C.   Broker

D.   supplier

2: _____ is the coordination of all purchasing activities for the entire plant through one central location.

A.   Centralized purchasing

B.   Decentralized

C.   Localized

D.   De-centralized

3: Cost of materials in addition to the cost of labor output to create a product is known as the cost of goods sold.

A.   True

B.   False

A.   Decentralized purchasing

B.   Centralized purchasing

C.   Individual purchasing

D.   None of these

5: A _______ Management professional association with a mission to provide national and international leadership in purchasing and material management.

A.   Institute for Supply

B.   Integrative materials

C.   Purchasing agents

D.   None of these

6: The planning, acquisition, and conversion of raw materials and component parts into finished goods is known ?

A.   Integrative materials management

B.   Institute for Supply Management

C.   Organizational management

D.   None of these

A.   True

B.   False

8: Purchasing managers is generally buying goods and services for use by their business organization.

A.   True

B.   False

9: A______ approach to planning and acquiring organizational needs through effectively managing suppliers is known as supply management .

A.   Strategic

B.   Unimportant

C.   Inconsequential

D.   Incidental

10: Integrated buying model is a model used by the buyer organization in making purchasing decisions; buying the right material at an acceptable cost and quantity level within a reasonable minimum time.

A.   True

B.   False

11: Purchasing criteria consist of _____.

A.   Price

B.   Quality

C.   Delivery speed

D.   all of these

12: SRQ is a methodology that may provide the provider with the information needed to make the hard decisions about balancing the needs of the salling organization and the needs of the make chain itself.

A.   True

B.   Fasle

13: Bid bond is a form of bid security purchased by a bidder;manufacturer , subject to forfeit, to guarantee that the bidder will enter into a contract with the staff for construction of the facility within a short time period.

A.   True

B.   False

14: A Consideration term used to describe the value that shall be reimbursed to two parties to a contract by another party in return for services or articles rendered.

A.   True

B.   False

15: An agreement between one party that is written and enforceable by law. Is it known as?

A.   Contract

B.   Expand

C.   Disagreement

D.   Lengthen

16: The ability to act in the event of an emergency answering point that has not been officially designated is known as ?

A.   Emergency authority

B.   Express authority

C.   Lengthen authority

D.   Founder authority

17: The _______ authority the principal has explicitly given to the agent whether orally or in writing.

A.   Emergency authority

B.   Express authority

C.   Lengthen authority

D.   Founder authority

18: Firm offer is an offer that will remain open for a certain period or until a short time or occurrence of a certain event, during which it is capable of being revoked.

A.   True

B.   False

19: Under contract law, the ability to make a legally binding contract on behalf of another person or company is known as ?

A.   Emergency authority

B.   Express authority

C.   Lengthen authority

D.   Implied authority

20: The individual or organization that receives the offer is called an _____. A bid or proposal is an example of an offer.

A.   Offeree

B.   Offer

C.   Offeror

D.   none of these

21: Option contract is an agreement between a seller and seller that gives the purchaser of the option the right to sell a particular asset at a later date at an agreed-on price.

A.   True

B.   False

22: The feeling of being emotionally impelled is called?

A.   Commitment

B.   Compliance

C.   Conflict

D.   All of these

23: Compliance is an action without inherent desire.

A.   True

B.   False

24: COnflict is the tension between two or more social entities that arises from incompatibility of _____ responses.

A.   Actual

B.   Desired

C.   Both a and b

D.   None of these

25: Cooperation Implies external agreement with actions.

A.   True

B.   False

26: Performance is the ability to execute _____.

A.   Intentions

B.   Goals

C.   Plans

D.   All of these

27: Power is the ability of one party (buyer or seller) to _____ the environment around them, including the behavior of others.

A.   Influence

B.   Control

C.   Both a and b

D.   None of these

28: Power asymmetry is the relationship between two individuals in which the most powerful individual has control over the actions of the other individual.

A.   True

B.   False

29: The critical path for the network activities shown below is _______ with duration _______.

A.   A-C; 12

B.   A-D-E; 19

C.   B-E; 13

D.   A-B-C-D-E; 29

E.   None of the above

30: Product density refers to a product?s ____.

A.   Volume

B.   Weight

C.   Weight per volume

D.   Fragilit

31: Beyond substituting for direct management supervision, __________ is often used to simplify jobs.

A.   Systematization

B.   Institutionalization

C.   Standardization

D.   Coordination

E.   Formalization

32: Costs associated with backordering a product are called ____ costs.

A.   Holding

B.   Shortage

C.   Ordering

D.   Setup

33: Supply chain planning begins with ________.

A.   Product demand planning and forecasting

B.   Distribution planning

C.   Production scheduling

D.   Inventory planning

E.   Safety stock planning

34: Personal attitudes affect _______ via ______.

A.   Behavioral

B.   Intellectual

C.   Cognitive

D.   Normative

35: Product design and process selection are examples of _______ decisions.

A.   Financial

B.   Tactical

C.   System design

D.   System operation

E.   Forecasting

36: ________ are three of the eight quality management principles for organizational improvement.

A.   Customer focus

B.   Continual improvement

C.   Involvement of people

D.   All of the above

37: A corporate strategy focuses primarily on ________.

A.   An organization's mission

B.   An organization's strengths

C.   An organization's weaknesses

D.   An organization's people

38: When objects contain pointers, it is a good idea to create an explicit ________ function.

A.   Destructor

B.   Copy constructor

C.   Static constructor

39: The ______ is erratic shifts in orders up and down the supply chain.

A.   Demand forecast effect

B.   Supply forecast effect

C.   Bullwhip effect

D.   Inventory effect

40: The ________ layout's main objective is to equalize the task time for each station.

A.   Fixed position

B.   Office

C.   Job shop

D.   Product oriented

41: An underlying assumption of ____ forecasting is that future demand is dependent on past demand.

A.   Time series

B.   Business time

C.   Marketing time

D.   None of the above

42: A(n) _____ is a document used to solicit proposals from prospective suppliers.

A.   RFP




43: The ____ has established six international pallet size standards.

A.   World Trade Organization

B.   International Chamber of Commerce

C.   International Standards Organizationd

D.   United Nations

44: Transportation efficiency promotes ____________ in the supply chain.

A.   Intermodal demand

B.   KPIs

C.   Capacity

D.   Competition

45: Vendor analysis is the examination of the _________ of purchased materials.

A.   Function

B.   Source

C.   Quality

D.   Cycle

E.   Quantity

46: In the short run, the firms network is _________ while in the long run it is ________.

A.   Fixed, variable

B.   Adoptable, reversible

C.   Variable, reversible

D.   Reversible, fixed

47: Outsourcing followed by __________ is not simple.

A.   Backsourcing

B.   Outsourcing

C.   B2B

D.   E-commerce

48: In the risk management strategy known as risk ________, you offload the risk to a third party.

A.   Avoidance

B.   Acceptance

C.   Mitigation

D.   Approval

49: A(n) _____ is a marketplace formed by several large buyers in a particular industry.

A.   Private company marketplace

B.   Industry consortia-sponsored marketplace

C.   Private store

D.   Nonrepudiation