IBM1003 Final Exam Review

How many types of failure costs are there?

Buyer-supplier relationships fall somewhere on a continuum from competitive to cooperative to collaborative.

TQM is a philosophy and system of management focused on short-term success through statistical process control.

What is "Clout"

Value engineering (VE) and value analysis (VA) use the same methods, but VE is performed in the design stage.

To avoid risk, a buyer can:

Distributors, wholesalers, and retailers:

What Incoterm generally best protects the Seller?

Kaizen is a Japanese term for cost reduction.

Investment recovery is often assigned to:

Variable Costs: Do not vary directly and proportionally with the number of units produced

This is the best way to prepare for the final exam

Once again the course code for this class is:

Governing convention on shipping terms & responsibilities involved in international transportation is called INCOTERMS

Target Costing = Selling Price + Desired Profit

Most company's standards of conduct for purchasing personnel stress the need to avoid all appearances of impropriety.

Things that are declared obsolete in one organization will be considered obsolete in all other organizations.

Maquiladoras in Mexico:

Target costing starts with the:

A goal of supply chain management is to:

Lean quality management philosophy is based on:

The match between a commercially available material, good or service and the intended function is known as:

In international buying, the type of entity that normally assists in locating suppliers and handling documentation is a:

Supply may contribute to the containment of the costs of poor quality by addressing:

Fixed pricing changes frequently.

The budget which begins with an estimate of expected operations, based on sales forecasts and plans, is called the

A foreign trade zone (FTZ) in the U. S. is completely different in purpose from a maquiladora in Mexico.

Hedging is a way to:

Life cycle costing (LCC):

Strategic supply management is founded on the conviction that a significant contribution to competitive edge is made by:

When developing a negotiation strategy, the negotiator should assess the positions of strength of both (all) parties to:

Hidden costs are easy to identify.

A company’s boilerplate or framework agreement includes the complete terms and conditions that apply to any transaction.

The first step in the internal supply chain is receiving.

Production planning relies heavily on forecasts from sales & marketing to anticipate demand for products and services.

The acts that the agent is directly authorized to perform, come under what type of authority:

The most-cited reason for international trade is:

Near-shoring refers to outsourcing to a contract manufacturer who is located near a coast with a major port facility.

Subsidiary : a company controlled by a holding company.

Value analysis compares:

The growth in international trade has come from an increase in the international sale of goods, but not services.

Charles Demming was a huge proponent of single sourcing

Which of the following statements supports multiple sourcing:

The effective, efficient, profitable recovery & disposal of scrap, surplus, obsolete & waste materials referred to as:

Payment made to a supplier automatically constitutes an acceptance of the goods.

A maquiladora, or maquila, is a company that allows factories to be largely duty free and tariff-free.

This is the reason we're in business.

Governments typically play no role in establishing prices or regulating how buyers and sellers are allowed to behave.

The best type of inspection is:

Maverick buying is when someone purchases without authorization.

The lowest price that ensures a continuous supply of the proper quality where and when needed to:

Benchmarking allows an individual company to compare itself to the average and range of performance other organizations

The learning curve is based on:

Most direct costs are:

Costs incurred in the operation of a production plant or process, are called:

Target costing may result in companywide cost reductions in design to cost, manufacture to cost, and purchase to cost.

Strategic alliances:

Under U. S. product liability law, relevant product defects are:

What is the first step in the internal supply chain process?

Suppliers that anticipate operational & strategic needs of the purchaser & are capable of meeting and exceeding them are

Electronic or digital signatures for contractual purposes:

Qualifying sources is an example of a pre-transaction cost in the total cost of ownership model

In Pareto Analysis what items hold the greatest cost reduction opportunites?