1. Monitoring and evaluating suppliers' performance is first-line managers' job.

True False

2. Supplier selection strategy in Agile supply chains primarily revolves around characteristics such as responsiveness, quality and flexibility.

True False

3. Cost-based contracts offer more flexibility to suppliers than Fixed-priced contracts.

True Fals

4. McDonald's fast food corporation wants to establish uniform quality and taste throughout its outlets located across continents. Ovens and Cooking range play an important role in order to establish the required quality in its franchises; therefore, when management decides to let its franchises choose to purchase their own variety of cooking equipment; it appears to be a sound decision in terms of establishing the standardization. True False

5. The market demand for lean products is generally volatile in nature. True False

6. Normally, strategic level purchasing decision is the responsibility of a Purchasing Manager in a large multinational organization. True False

7. Match with the best option!

Marketplace demand (Agile)

Product Life-cycle (Agile)

Product Life-cycle (Lean)

Typical nature of products (Agile)

Typical nature of products (Lean)

Profit Margin (Lean)

Marketplace demand (Lean)

Profit Margin (Agile)

Dominant Cost (Agile)

Customer Drivers (Lean)

Customer Drivers (Agile)

Type of Forecasting (Agile)

Dominant Cost (Lean)

Kind of Forecasting (Lean)

1.	Algorithmic
2.	Consultative
3.	Physical Costs
4.	Marketability
5.	Low
6.	Predictable
7.	High
8.	Volatile
9.	Low cost
10.	Availability
11.	Short
12.	Commodities
13.	Fashion goods
14.	Long

8. When instead of investing capital on producing its own machineries, the Peel construction and mining company decides to buy multiple construction machineries from the caterpillar Inc., it becomes like an operational level purchasing decision. True False

9. A/An _____ is an open order, usually effective for six months, covering repeated purchases of low value items or family of such items. a. Outstanding order b. Pending order c. Blanket order d. Completed order e. Order acceptance

10. A Purchase order or P.O, and SOW are documents issued by the buyer to supplier. True False

11. Bill of lading is issued by the buyer to transporter. True False

12. Packing list is a receipt confirming that certain products in specific quantities and condition have been received by the buyer. True False

13. Poor scheduling and inaccurate requisition of material can cause conflict between manaufacturing and procurement departments. True False

14. The core responsibility of purchasing department is to conduct quality inspection over the products bought. True False

15. Acquisition of funds and monitoring its use is the core job of purchasing department. True False

16. The _____, which the supplier provides, details the contents of a shipment and contains the description and quantity of the items in a shipment. a. Packing list b. Purchase requisition c. Bill of lading d. Electronic funds transfer e. Request for quotation

17. In electronic reverse auction suppliers submit successively lowered bids during a defined time period. True False

18. The notion of purchasing is more analytical than the idea of procurement. True False

19. Easy and abundant availability of material, and the cost of material can cause conflict between finance and procurement departments. True False

20. KFC which has got food outlets in different parts of North America and Europe, decides to purchase all needed fresh vegetables and chicken from a supplier located in Malaysia, it does not seem like a good decision in terms of responsiveness and speed.: True False

21. Allocation of funds and developing budgets for other departments is the core responsibility of the finance department. True False

22. If organization is huge, its employees are well-trained, experienced and located far-away; it's better to implement a centralization approach. True or False

23.The short-listing of suppliers is done once the P.O has been issued. True False

24. A blanket order is a non-recurring purchase order. True False

25. Global electronics opened up its factory in a less-developed region having poorly qualified staff and local Management; in this situation it's better to have decentralization in purchasing of capital equipment. True False

26. When purchasing decisions are of minor nature, organization structure should have more decentralization. True False

27. Purchasing a small quantity of light bulbs from a retail outlet is considered as a recurring purchase. True False