7) What are the two largest cost components which cause the losing supplier to not get the contract ? a. Quality and transportation b. quality and unit cost c. unit cost and tooling cost d. tooling cost and carrying cost Which of the following is not a common cause for the bull whip effect? Price fluctuations Peri odic order policies Shortened lead ti mes Trade deals None of the above D 9) You have been tal ki ng to your co-worker about a document you just sent to a supplier. The document contains your offer to purchase 50 gallons of lubricating oil and has the terms and conditions of the purchase printed on the document. The docu ment is legally bindi ng if the supplier accepts it. This document is a? A) Purchase order B) Purchase requisition O planned order release D Material requisition 10) Many companies and state govern ments are beginning to pursue centralized purchasing of supplies. Which of the following are true with respect to centralized versus decentralized purchasi ng? A) Centralized purchasing can lead to greater quantity discounts B) Centralized purchasi ng leads to local sourcing Decentralized purchasing uses a common supply base D Decentralized purchasing reduces the duplication of activities