Question 1

When procuring capital equipment, the operations function may communicate their need for a specific equipment item.

True

False

Question 2

The objectivity of the weighted point method for selecting suppliers would guarantee selecting the right supplier.

True

False

Question 3

When purchasing services, the service contract (referred to a service level agreements) is based on the statement of work.

True

False

Question 4

An increase in the number of out-of-stock occurrences during a fixed time period could be an indication of less effective inventory control.

True

False

Question 5

Buyers and suppliers should show mutual respect and therefore buyers need not have knowledge of the profit mark-up of the suppliers due to its confidentiality.

True

False