All of the following are roadblocks between measurement and improved performance except _____.
Up-to-date information technology
Too many metrics
Debate over the correct metrics
Constantly changing metrics
Global sourcing is a requirement and no longer a luxury for most firms.
_____ are those items provided by suppliers and used directly during production or service delivery.
The key to the success of any company is the quality of its employees.
Cost management is no longer an integral part of purchasing and supply chain management.
All of the following are required elements in a purchase requisition except _____.
Quantity and date required
Operating account to be charged
Identification and approval of a supplier by the end user
The purchasing cycle begins with the _____.
Election of an appropriate supplier
Identification of a need (a requirement)
Issuance of a purchase order
Receipt of a supplier’s acknowledgement
A/An _____ is an open order, usually effective for one year, covering repeated purchases of an item or family of items.
Blanket purchase order
For routine, off-the-shelf items, the purchase requisition may contain all the information that purchasing requires.
Contract management should be used to trigger proactive sourcing events only after a contract expires.
The term _____ refers to the set of purposes, principles, and rules of action that guide an organization.
_____ refer to standard operating procedures along with any rules and regulations.
Rules of action
Once written, policies do not have to be periodically reviewed for clarity and conformance.
All of the following are characteristics of effective policies except _____.
Highly detailed and written
Timely and current
Routine items available from many different sources are seldom purchased through competitive bidding.
_____ is the tendency of a rational group or team to arrive at a bad decision when other information is available.
If positive work is never recognized or reinforced through rewards, the positive effort will likely be extinguished.
Cross-functional sourcing teams are a less-than-ideal way to promote cross-organizational cooperation.
The term _____ refers to the set of performance criteria and products and processes an organization intends to develop.
Early supplier involvement
A team may pressure an individual to support or conform to a lower production norm than the individual’s personal norm.
Center-led organizations have the same total authority that purely centralized units do.
Use of a _____ is most advantageous where geographic concentration exists within a company.
Corporate purchasing council
Regional buying group
Business unit leader
None of the answers above
By definition, _____ is a broad term describing the purchase of raw materials, components, finished goods, or services from suppliers, some of whom can be another operating unit within the organization.
The preparation and transfer of material releases to suppliers is part of the operational support process.
Transportation is a highly specialized activity with its own set of requirements.