Question 1

Buyers' perceptions of risk in supplier selection decisions:

Accepted Answer

A) are generally the same for A,B,and C items. 
B) are generally the same for strategic and non-strategic items. 
C) are generally the same for new and current suppliers of the same items. 
D) vary depending on the level of customization of product or service. 
E) vary depending on the level of data available in each case. 
A) are generally the same for A,B,and C items. 
B) are generally the same for strategic and non-strategic items. 
C) are generally the same for new and current suppliers of the same items. 
D) vary depending on the level of customization of product or service. 
E) vary depending on the level of data available in each case. D

Question 2

A request for quotation (RFQ):

Accepted Answer

A) signals the purchaser has identified a supplier as a potential source of supply and asks for information. 
B) asks the supplier to declare at what price and what terms they are prepared to supply. 
C) permits the supplier to fit the specifications for supply to its strengths. 
D) signals the purchaser has identified a supplier as a potential source of supply and asks for information,and asks the supplier to declare at what price and what terms they are prepared to supply. 
E) asks the supplier to declare at what price and what terms they are prepared to supply and permits the supplier to fit the specifications for supply to its strengths. 
A) signals the purchaser has identified a supplier as a potential source of supply and asks for information. 
B) asks the supplier to declare at what price and what terms they are prepared to supply. 
C) permits the supplier to fit the specifications for supply to its strengths. 
D) signals the purchaser has identified a supplier as a potential source of supply and asks for information,and asks the supplier to declare at what price and what terms they are prepared to supply. 
E) asks the supplier to declare at what price and what terms they are prepared to supply and permits the supplier to fit the specifications for supply to its strengths. B

Question 3

Most large organizations use formal supplier codes of conduct to set social sustainability standards and expectations for their suppliers.

Accepted Answer

A) True 
 B)False  True

Question 4

Environmental sustainability in supply chain management includes product and process issues that affect human safety and welfare,community development,and protection from harm.

Accepted Answer

A) True 
 B)False

Question 5

A request for proposal (RFP)allows more latitude to the supplier than an RFQ to fit the proposal to its strengths.

Accepted Answer

A) True 
 B)False

Question 6

Reverse marketing is:

Accepted Answer

A) when the buying organization has decided to stop making something in-house and identifies a supplier from its existing supply base. 
B) when the supply department sells internal users on a specific supplier that the user was opposed to initially. 
C) when the marketing department tries to convince the supply department to stop buying from a specific supplier. 
D) an aggressive,purchaser-initiated approach to finding and developing world class suppliers. 
E) an aggressive,marketing-initiated approach to finding and developing world class suppliers. 
A) when the buying organization has decided to stop making something in-house and identifies a supplier from its existing supply base. 
B) when the supply department sells internal users on a specific supplier that the user was opposed to initially. 
C) when the marketing department tries to convince the supply department to stop buying from a specific supplier. 
D) an aggressive,purchaser-initiated approach to finding and developing world class suppliers. 
E) an aggressive,marketing-initiated approach to finding and developing world class suppliers.

Question 7

When using a request for quotation (RFQ)or request for bid (RFB),the assumption is that specifications are nonstandard and difficult to describe.

Accepted Answer

A) True 
 B)False

Question 8

In the portfolio matrix,characteristics of goods and services in the bottleneck quadrant are:

Accepted Answer

A) item substitution and switching are difficult,but many available suppliers can meet the technical or capacity needs. 
B) item substitution and supplier switching are possible,and several sources of supply are readily available. 
C) item substitution and supplier switching are difficult because few suppliers are available with the capability to meet the unique specification requirements. 
D) substitution is possible,but switching suppliers is difficult even though many suppliers are available. 
E) substitution and supplier switching are relatively easy,but few suppliers have the technical expertise. 
A) item substitution and switching are difficult,but many available suppliers can meet the technical or capacity needs. 
B) item substitution and supplier switching are possible,and several sources of supply are readily available. 
C) item substitution and supplier switching are difficult because few suppliers are available with the capability to meet the unique specification requirements. 
D) substitution is possible,but switching suppliers is difficult even though many suppliers are available. 
E) substitution and supplier switching are relatively easy,but few suppliers have the technical expertise.

Question 9

SA8000 certification is for:

Accepted Answer

A) quality management. 
B) logistics management. 
C) social sustainability. 
D) environmental sustainability. 
E) management of innovation. 
A) quality management. 
B) logistics management. 
C) social sustainability. 
D) environmental sustainability. 
E) management of innovation.

Question 10

Which of the following statements supports multiple sourcing:

Accepted Answer

A) an ongoing long-term contract exists with a preferred supplier. 
B) supply is plentiful and supply assurance is important. 
C) there is a patent involved. 
D) the order is small. 
E) concerns exist about supplier capacity for future volume. 
A) an ongoing long-term contract exists with a preferred supplier. 
B) supply is plentiful and supply assurance is important. 
C) there is a patent involved. 
D) the order is small. 
E) concerns exist about supplier capacity for future volume.

Question 11

The practice of buying directly from manufacturers and bypassing distributors is referred to as disintermediation.

Accepted Answer

A) True 
 B)False

Question 12

Supplier development initiatives may be focused on (1)persuading an existing supplier to expand into new areas that meet the needs of the buying organization,and (2)locating a new,untried/unknown company and identifying potential areas of business.

Accepted Answer

A) True 
 B)False

Question 13

A strategic purchase is mission critical,meaning that it may help or hinder attainment of the supply department's strategic goals and objectives.

Accepted Answer

A) True 
 B)False

Question 14

Best results from supplier visits come from:

Accepted Answer

A) developing,in advance,a general outline of the kinds of information sought. 
B) gathering,in advance,all reasonably available information,both general and specific,about the company. 
C) preparing a detailed report of the findings after the visit. 
D) developing,in advance,a general outline of the kinds of information sought;and gathering,in advance,all reasonably available information,both general and specific,about the company. 
E) developing,in advance,a general outline of the kinds of information sought;gathering,in advance,all reasonably available information,both general and specific,about the company;and preparing a detailed report of the findings after the visit. 
A) developing,in advance,a general outline of the kinds of information sought. 
B) gathering,in advance,all reasonably available information,both general and specific,about the company. 
C) preparing a detailed report of the findings after the visit. 
D) developing,in advance,a general outline of the kinds of information sought;and gathering,in advance,all reasonably available information,both general and specific,about the company. 
E) developing,in advance,a general outline of the kinds of information sought;gathering,in advance,all reasonably available information,both general and specific,about the company;and preparing a detailed report of the findings after the visit.

Question 15

The traditional supplier evaluation criteria are:

Accepted Answer

A) quality,quantity,delivery,price and service. 
B) quality,quantity,delivery,price and sustainability. 
C) price and quality. 
D) price,quality and delivery. 
E) price,quality,delivery and sustainability. 
A) quality,quantity,delivery,price and service. 
B) quality,quantity,delivery,price and sustainability. 
C) price and quality. 
D) price,quality and delivery. 
E) price,quality,delivery and sustainability.

Question 16

Assurance of supply is an argument that favors single sourcing.

Accepted Answer

A) True 
 B)False

Question 17

The ability to extend the advantages of local sourcing to offshore suppliers is primarily due to:

Accepted Answer

A) better educated supply managers making supply decisions. 
B) transformations in communication and transportation. 
C) greater openness to global trade on the part of economically developing countries. 
D) end customer pressure to do business globally. 
E) greater diversity in legal frameworks around the world. 
A) better educated supply managers making supply decisions. 
B) transformations in communication and transportation. 
C) greater openness to global trade on the part of economically developing countries. 
D) end customer pressure to do business globally. 
E) greater diversity in legal frameworks around the world.

Question 18

The buyer's assessment of the risk associated with a supplier is influenced by whether it is a noncritical,leverage,bottleneck,or strategic purchase.

Accepted Answer

A) True 
 B)False

Question 19

Distributors,wholesalers,and retailers:

Accepted Answer

A) may provide valuable services and a better price than the manufacturer. 
B) typically cannot deliver at a lower cost than the manufacturer. 
C) typically carry a very limited supply in an effort to keep inventory costs low. 
D) have an indefensible value proposition in the typical modern supply chain. 
E) never add enough value to a buyer to make it worth doing business with them. 
A) may provide valuable services and a better price than the manufacturer. 
B) typically cannot deliver at a lower cost than the manufacturer. 
C) typically carry a very limited supply in an effort to keep inventory costs low. 
D) have an indefensible value proposition in the typical modern supply chain. 
E) never add enough value to a buyer to make it worth doing business with them.

Question 20

Arguments that favor single sourcing include:

Accepted Answer

A) the order is small. 
B) to obtain greater flexibility. 
C) deliveries are easier to schedule and are most cost efficient. 
D) the order is small and to obtain greater flexibility. 
E) the order is small,and deliveries are easier to schedule and are most cost efficient. 
A) the order is small. 
B) to obtain greater flexibility. 
C) deliveries are easier to schedule and are most cost efficient. 
D) the order is small and to obtain greater flexibility. 
E) the order is small,and deliveries are easier to schedule and are most cost efficient.

Buyers' perceptions of risk in supplier selection decisions:

A request for quotation (RFQ):

Most large organizations use formal supplier codes of conduct to set social sustainability standards and expectations for their suppliers.

Environmental sustainability in supply chain management includes product and process issues that affect human safety and welfare,community development,and protection from harm.

A request for proposal (RFP)allows more latitude to the supplier than an RFQ to fit the proposal to its strengths.

Reverse marketing is:

When using a request for quotation (RFQ)or request for bid (RFB),the assumption is that specifications are nonstandard and difficult to describe.

In the portfolio matrix,characteristics of goods and services in the bottleneck quadrant are:

SA8000 certification is for:

Which of the following statements supports multiple sourcing:

The practice of buying directly from manufacturers and bypassing distributors is referred to as disintermediation.

Supplier development initiatives may be focused on (1)persuading an existing supplier to expand into new areas that meet the needs of the buying organization,and (2)locating a new,untried/unknown company and identifying potential areas of business.

A strategic purchase is mission critical,meaning that it may help or hinder attainment of the supply department's strategic goals and objectives.

Best results from supplier visits come from:

The traditional supplier evaluation criteria are:

Assurance of supply is an argument that favors single sourcing.

The ability to extend the advantages of local sourcing to offshore suppliers is primarily due to:

The buyer's assessment of the risk associated with a supplier is influenced by whether it is a noncritical,leverage,bottleneck,or strategic purchase.

Distributors,wholesalers,and retailers:

Arguments that favor single sourcing include:

Purchasing and Supply Management

Supply Strategy

Supply Organization

Supply Processes and Technology

Make or Buy,insourcing and Outsourcing

Need Identification and Specification

Quality

Quantity and Inventory

Delivery

Price

Cost Management

Supplier Evaluation and Supplier Relationships

Global Supply Management

Legal and Ethics

Other Supply Responsibilities

Supply Function Evaluation and Trends

Filters

Exam 12: Supplier Selection

Buyers' perceptions of risk in supplier selection decisions:

A request for quotation (RFQ):

Most large organizations use formal supplier codes of conduct to set social sustainability standards and expectations for their suppliers.

Environmental sustainability in supply chain management includes product and process issues that affect human safety and welfare,community development,and protection from harm.

A request for proposal (RFP)allows more latitude to the supplier than an RFQ to fit the proposal to its strengths.

Reverse marketing is:

When using a request for quotation (RFQ)or request for bid (RFB),the assumption is that specifications are nonstandard and difficult to describe.

In the portfolio matrix,characteristics of goods and services in the bottleneck quadrant are:

SA8000 certification is for:

Which of the following statements supports multiple sourcing:

The practice of buying directly from manufacturers and bypassing distributors is referred to as disintermediation.

Supplier development initiatives may be focused on (1)persuading an existing supplier to expand into new areas that meet the needs of the buying organization,and (2)locating a new,untried/unknown company and identifying potential areas of business.

A strategic purchase is mission critical,meaning that it may help or hinder attainment of the supply department's strategic goals and objectives.

Best results from supplier visits come from:

The traditional supplier evaluation criteria are:

Assurance of supply is an argument that favors single sourcing.

The ability to extend the advantages of local sourcing to offshore suppliers is primarily due to:

The buyer's assessment of the risk associated with a supplier is influenced by whether it is a noncritical,leverage,bottleneck,or strategic purchase.

Distributors,wholesalers,and retailers:

Arguments that favor single sourcing include:

Purchasing and Supply Management

Supply Strategy

Supply Organization

Supply Processes and Technology

Make or Buy,insourcing and Outsourcing

Need Identification and Specification

Quality

Quantity and Inventory

Delivery

Price

Cost Management

Supplier Evaluation and Supplier Relationships

Global Supply Management

Legal and Ethics

Other Supply Responsibilities

Supply Function Evaluation and Trends

Filters