Exam 6: Sourcing

Single sourcing is no longer a risky strategy due to technological advances in purchasing.

A key concept for sourcing managers to understand is the difference between cost and price.

A strategy utilized when delaying product differentiation until later in the supply chain is:

Sourcing addresses the __________ part of the supply chain:

Building longer term supplier relationships is more effective through ________ practices:

The risk mitigation role that sourcing plays in an organization relates to evaluating suppliers' ethical standards.

An example of a product with a stable supply process would be:

Scope and criticality are important when considering an outsourcing or off-shoring strategy.

Understanding inventory turnover is critical to evaluating the effectiveness of the sourcing function.

Criteria for utilizing competitive bidding practices include:

Briefly describe the five critical roles that sourcing provides in an organization.

Industries/Products that typically need a high inventory turn measure include:

Attributes of functional product sourcing include:

Innovative products have higher profit margins but they are more difficult for the sourcing function to manage.

Briefly describe the advantages and disadvantages to a single sourcing strategy.

__________ is responsible for all activities related to purchasing goods and services.

Chicken soup would be an example of a stable supply process with an efficiency-focused supply chain.

In consumer purchasing, there are many suppliers of common goods and services.