TRUE OR FALSE QUESTIONS

1. The lower purchasing is on the organization chart, the less impact the supply function will have on corporate strategy. 2. The degree of competition for critical materials will be a key factor in the importance of supply management. 3. Even in a firm, which primarily purchases small numbers of standard production parts, the supply department can be a significant value as a profit centre. 4. The mind set or focus on internal processes usually produces the kind of detailed work necessary to achieve significant material savings. 5. The smaller the organization, the less likely the purchasing operations will be strategic.

6. Supplier relationship management includes motivation, assistance, incentives, cooperation, collaboration and on occasion, penalties. 7. Managing supplier relationships is a strategic responsibility. 8. Managing contract and blanket order releases are operational responsibilities. 9. Consolidation provides the opportunity to standardize, simplify and leverage material purchases. 10. E-commerce has strengthened the case for decentralization of purchasing. 11. The materials management organization structure is now obsolete. 12. Supply chain management expanded the materials management structure functions to include all the stake holders and total demand management. 13. Cross function teams are often the key step in a firms evolution to supply chain management. 14. Cross functional teams operate best when they use the brainstorming approach to innovative thinking. 15. One of the key skills for any leader is to be an effective listener.