54. Reasons for sourcing globally include: A. a lower price. B. products not available locally. C. a firm’s worldwide operation and attitude. D. all of the above. E. A and B. 55. Investigation of export and import data shows: A. there is a strong relationship between global sourcing and ownership of the foreign sources. B. there is no relationship between global sourcing and ownership of the foreign sources. C. that American firms but not Japanese firms buy from their U.S. subsidiaries. D. American firms import twice as much from their overseas subsidiaries than foreign firms import from their U.S. affiliates. 56. According to the text including such items as maintenance repair operating supplies office equipment and other services and supplies indirect procurement can account for as much as what percent of the total purchasing expenditures in companies? A. 15 percent B. 30 percent C. 50 percent D. 70 percent E. 80 percent 57. According to the text the cost of importing a foreign sourced product: A. is insignificant. B. may range from 26% to 110% of the cost of the product. C. may range from 5% to 20% of the cost of the product. D. may not be charged if the terms of sale are CIF port of entry. 58. Problems associated with e-procurement include: A. it cannot be isolated from the company’s overall business system. B. it must be completed before the firm can engage in other purchasing functions such as supplier determination and analysis. C. It can expose the company to a wide range of potential security issues. D. all of the above E. A and C 59. According to the text when Japanese manufacturers examined their production costs they realized that: A. inventory costs are a major factor. B. bad debts are a major factor. C. competitors’ price-cutting is a major factor. D. too short process times cause machinery breakdowns. 60. To lower manufacturing costs the principal goal of Japanese firms is to: A. reduce workers wages. B. eliminate inventories. C. speed up production lines. D. increase the use of robots. 61. To operate without inventory Japanese firms required A. that components purchased or made in the factory had to be defect free. B. that the parts and components had to be delivered to each point in the production process when they were needed. C. their suppliers to maintain inventories of finished components. D. A and B. E. A B and C. 62. Just-in-time: A. is a patented Japanese process for quality control. B. requires materials and parts arrive at each point in the production process when they are needed. C. requires parts and materials arrive at a manufacturing plant at least one month in advance to avoid “stockouts.” D. permits greater flexibility in Toyota’s production schedule. 63. Quality circles meet to discuss ways to improve: A. production control. B. their functional areas. C. quality of the product. D. B and C. 64. Total quality management: A. is the control of quality in all areas of production not just inspection. B. refers to quality control in not only the production of the firm’s products but also to quality control of all suppliers. C. refers to the control of quality in all functional areas of the firm. D. A and B.
