Professional Documents
Culture Documents
Supply Management 8th Edition Burt Test Bank instant download all chapter
Supply Management 8th Edition Burt Test Bank instant download all chapter
Supply Management 8th Edition Burt Test Bank instant download all chapter
Test Bank
Go to download the full and correct content document:
https://testbankdeal.com/product/supply-management-8th-edition-burt-test-bank/
More products digital (pdf, epub, mobi) instant
download maybe you interests ...
https://testbankdeal.com/product/operations-and-supply-chain-
management-8th-edition-russell-test-bank/
https://testbankdeal.com/product/operations-and-supply-chain-
management-8th-edition-russell-solutions-manual/
https://testbankdeal.com/product/supply-chain-management-5th-
edition-chopra-test-bank/
https://testbankdeal.com/product/supply-chain-logistics-
management-4th-edition-browersox-test-bank/
Supply Chain Logistics Management 4th Edition Bowersox
Test Bank
https://testbankdeal.com/product/supply-chain-logistics-
management-4th-edition-bowersox-test-bank-2/
https://testbankdeal.com/product/purchasing-and-supply-
management-16th-edition-johnson-test-bank/
https://testbankdeal.com/product/operations-and-supply-
management-12th-edition-jacobs-test-bank/
https://testbankdeal.com/product/purchasing-and-supply-
management-14th-edition-johnson-test-bank/
https://testbankdeal.com/product/operations-management-
sustainability-and-supply-chain-management-12th-edition-heizer-
test-bank/
EXAMINATION QUESTIONS AND ANSWERS
Answer: True
2. All of the following are primary sources of used equipment: used equipment dealers, for sale by
the owner and brokers.
Answer: True
3. Prior to purchasing used equipment, a buyer should check the reputation of the supplier, inspect
the equipment, observe the equipment under power and determine the age.
Answer: True
4. Operating leases are short-term and are used by most firms to facilitate business operations.
Answer: True
5. Among the reasons that firms utilize leases are: they are not interested in ownership and the firm
wants freedom and flexibility.
Answer: True
Answer: True
7. The length of a financial lease is usually shorter than the life of the equipment.
Answer: True
8. All of the following is usually included in a lease contract: responsibility of the parties,
acceptance testing and inspection conditions, guarantee conditions and potential penalties.
Answer: True
Answer: False
10. All of the following are primary sources of used equipment: used equipment dealers, retail sales
outlets and brokers.
Answer: False
Burt, Petcavage and Pinkerton Supply Mangement, 8 th edition
11. Prior to purchasing used equipment, a buyer should check the reputation of the supplier, inspect
the equipment, conduct destructive testing and determine the age.
Answer: False
12. Operating leases are usually long-term and are used by most firms to facilitate business
operations.
Answer: False
13. Among the reasons that firms utilize leases are: they would like to purchase the equipment at a
later time and the firm wants freedom and flexibility.
Answer: False
Answer: False
15. The length of a financial lease is usually longer than the life of the equipment.
Answer: False
Answer: True
17. A cross-functional team must develop the need for and description of the capital equipment.
Answer: True
18. The following factors are major “nuances” or considerations that make the purchase of capital
equipment much more different than materials and services: they are
A) Non-recurring and size of expenditure
B) Operating and maintenance costs are often more important than price
C) Lead times are longer
D) Installation is often a major percentage of total cost
E) All of the above
Answer: E
19. Sourcing for capital equipment often requires a team for sourcing and a project manager because
capital equipment goes on the books as an “employed asset,” the _________ department must be
on this team.
A) Engineering
B) Operations
C) Marketing
Answer: E
20. In many situations, the purchase of used capital equipment is necessary because a firm may:
A) Only have occasional use for the equipment
B) New equipment is not available
C) Not have sufficient capital to buy new
D) Lack of lead time
E) All of the above
Answer: E
21. When buying used equipment, most often the old adage of _________ applies.
A) Read the fine print in the contract
B) Make sure there is a full warranty
C) Check for spare tooling
D) Caveat Emptor
E) Make sure all the manuals for the equipment are available
Answer: D
22. The sourcing team for capital equipment must determine the supplier’s:
A) Reputation, time in business, location
B) Technical production and commercial capabilities’
C) Engineering staff and installation procedure, skill
D) Delivery lead time and history of on time completion
E) All of the above
Answer: E
23. When proposals for capital equipment are received, the sourcing team must tabulate and run
comparisons for a total profitability analysis. The key input in this analysis is:
A) Delivery time
B) Maintenance
C) Labor
D) TCO
E) Pay off time
Answer: D
24. Which of the following is not one of the primary sources of used equipment?
A) Buying from a competitor
B) Through a used equipment dealer
C) For sale by the owner
D) Arrangement through a broker
E) Through auctions, both online and traditional
Answer: A
Answer: D
26. Which of the following is not true about operating leases and the firms that use them?
A) Used by most firms to facilitate business operations
B) Many operating leases are non-cancelable
C) Firm is usually not interested in ownership
D) Most operating leases are short term
E) Most often used when firm wants freedom/flexibility
Answer: B
27. Which of the following is not true about financial leases and the firms that use them?
A) Primary motivation is to obtain financial benefits
B) Usually they are long term
C) Most often used when firm wants freedom/flexibility
D) Length is usually shorter than the life of the equipment
E) Many financial leases are non-cancelable
Answer: C
Answer: D