Please print your name on this page of the exam, and put your initials on each page in case I need to reassemble your test (ie – the staple fails). Second, record this exam version on the Scantron sheet in the block title, “Marking Instructions.”
This exam consists of 19 questions; you should answer all 19 of them. The value of each of the 15 multiple choice question is 6 points for a total of 90 and the value of each short answer question is printed after the question. The ‘grade book value’ of the test is 150 points.
For all multiple choice questions, answer the questions by circling the letter corresponding to the one, most appropriate response for the question, and then blacken the space for that letter on the computer graded answer sheet --- be sure to use a pencil, not a pen. If there is any discrepancy between the Scantron sheet and what you may have written on the exam, only the Scantron result will be accepted, unless there is a major problem, like being one row out of alignment.
For all short answer questions, CLEARLY AND CONCISELY write your answer to the questions in the space provided below each question. Show all your work and explain your answers. I won’t give any partial credit if you have not shown work and/or explained your answers.
For assistance, you may use both sides of an 8 1/2" by 11" sheet of paper with notes, formulas, etc, and a calculator. When you are finished, turn in your (1) EXAM and (2) your answer bubble sheet and (3) NOTES to the proctor.
DO YOUR OWN WORK (this is not a team exercise!)
! ! ! GOOD LUCK ! ! !
Question 1 (Objective 4c) - A company using a weighted-criteria evaluation system has established these 3 categories and the appropriate weight in parentheses: Quality(0.40), Delivery(0.10), Cost(0.50). The scores for each category are shown below. Based on this, which company appears to be your top supplier?
a) Company A: Quality(85), Delivery(60), Cost(90)
b) Company B: Quality(90), Delivery(90), Cost(80)
c) Company C: Quality(85), Delivery(85), Cost(85)
d) All companies scored the same.
Question 2 (Objective 3f) – You are using the break-even analysis to decide whether to make or buy a small metal part used in your product. The variable costs are $10 to buy and $5 to make. The fixed costs are $2000 to buy and $22,000 to make. Therefore, you should: a) Buy the part if volumes are expected to be greater than 4000 b) Buy the part if volumes are expected to be greater than 3000 c) Make the part if volumes are expected to be greater than 4000 d) Make the part if volumes are expected to be greater than 3000
Question 3 (Objective 3a) - The goals of a purchasing organization include: a) Reducing total cost
b) Ensuring raw materials are on hand when they are needed
c) Reducing price only
d) All the above
e) A and B only
Question 4 (Objective 3b) - A buyer received a materials requisition for a new part. What should the buyer do next? a) Send out a request for quote to potential suppliers.
b) Issue a purchase order to the chosen supplier.
c) Write up a contract for the purchase of this part and pay the invoice. d) Receive the part.
Question 5 (Objective 4b, 4f) – Reverse auctions:
I) Are a poor way to build long term supplier relationships. II) Are used primarily for the purchase of Bottleneck Commodities. III) Help drive quality improvements.
IV) Are a useful tool for buying non-critical and leveraged commodities. a) I and II only
b) I and IV only
c) III only
d) I, II, III and IV
Question 6 (Objective 3g) – Which of the following are true? I) Having fewer suppliers for a commodity may decrease the chances of supply interruption. II) Preferred suppliers tend to offer key customers benefits like access to supply market information III) Having more suppliers tends to increases quality...