Exam 8: Lean Systems

Advanced Manufacturing Company is evaluating two suppliers for a component sourcing.After much internal discussion,AMC's management has determined that the critical factors in choosing suppliers are: quality,delivery,price,and service.Further,management has rated the importance of these factors as 0.4,0.3,0.2,and 0.1,respectively.On a scale of 1 to 5,Supplier A is rated at 5,3,3,and 3,respectively.Supplier B's ratings are 4,4,3,and 4.Which supplier has the better-weighted score?

Data on the supply market's structure,price forecasts,and supply chain risk are assessed during a/an:

Outsourcing:

A legally binding document that signals to a supplier that goods and services are needed is a(n):

Many companies are automating the procure-to-pay process using:

An online auction used for sourcing:

A primary reason for using global suppliers is to:

Negotiation is typically used when:

A company that had been using single sourcing decided to add a second supplier for one of its key raw materials.Which supply management goal does this BEST accomplish?

Competitive bidding should be used when:

Jones Company has identified an item for which the supply risk is high and the value of the purchase to the firm is low.A recommended sourcing strategy for Jones is to:

Stainless steel is an important raw material for an appliance company.Steel accounts for a high level of spend and is critical to customer satisfaction.Further,only three suppliers worldwide can produce steel to meet the company's quality standards.Which is appropriate in this situation?

The capability to resist and recover from supply chain disruptions is:

A global food products company makes soups that are specifically tailored to the tastes of consumers in individual countries.What sourcing strategy is the company likely to use for its fresh ingredients such as vegetables?

The identification,evaluation,selection,and management of suppliers is:

A company has decided that it no longer needs to extensively count and inspect the products it receives from a particular supplier.This suggests that the purchasing company has begun:

Which of the following is NOT a benefit of outsourcing?