Exam 13: Sourcing Materials and Services

Some firms are moving towards increasing their number of suppliers in order to encourage competition and lower procurement costs.

There are several classifications of purchased items. Which of the following is NOT one of those?

Traditional basic input costs and direct transaction costs are the same.

What vendor selection criteria are described by vendor attitude, cultural compatibility, training aids, packaging, and repair service?

Which of these is not a form of purchasing?

Companies with 10,000 purchase transactions or more per year should consider

What vendor selection criteria are described by price and financial stability?

Strategic sourcing as a process is far more broad and comprehensive than procurement. Overall, the process starts with the formation of a

In the Item Procurement Importance Matrix, what describes high risk, low value?

An advantage of e-Sourcing and e-Procurement is that there is little risk involved.

When a firm makes a "make" decision when analyzing whether to "make or buy", they may still have to purchase some types of inputs from outside suppliers.

What is an amalgam of catalogs from vendors within a market that is available via the Internet called?

There are three definitions to aid understanding of some of the similarities, differences, and linkages between purchasing, procurement, and strategic sourcing. Define them, and discuss the differences between the three.

Discuss the features of transactional procurement systems.

The most important factor in vendor selection is usually financial health.

In the Assess Supply Market step, the firm

__________ exist for basic raw materials such as grain, oil, and sugar.

Strategic sourcing is almost the same as procurement.

What vendor selection criteria are described by production capability, labor relations, and operating controls?

Name several criteria that are important in vendor selection. Which one is the most important?