Exam 3: Creating and Managing Supplier Relationships

Which of the following is TRUE?

According to the textbook,SRM software varies based on capabilities offered.AMR research has identified 5 areas of distinction for an SRM system.Provide three of these key tenets of SRM.

According to the text,the goal of a good performance evaluation system is to provide metrics that are:

If a company is effectively focusing on its core competencies,its level of outsourcing is likely to increase.

The process of certifying a new supplier is considered what type of major cost category?

Suppose your organization is attempting to set up a new strategic alliance with a supplier.You are considered the key manager from your organization to manage this alliance.What would be your goals for the planning stages of this proposed alliance? What would be your goals for the first few months of the alliance? What would be your long-term goals for the alliance?

Field failures,loss of goodwill,a decreased reputation,and warranty costs can all be classified as:

One result of an effective supplier certification program is an increase in the supplier base.

A company using a weighted-criteria evaluation system has established these 5 categories and the appropriate weight in parentheses: Quality (0.25) Responsiveness (0.10) Delivery (0.20) Cost (0.25) Technology (0.20) Company X received the following ratings in each of the five categories: Quality(90),Responsiveness(90),Delivery(80),Cost(80),Technology(90).What is their total score?

According to the text,key ingredients for developing successful supply partnerships include all of the following EXCEPT:

ISO 14000 is a family of international standards for environmental management.

In a weighted-criteria evaluation system the weights of all the performance dimensions must add up to total more than 1.00 and less than 100.

The acronym SRM refers to:

The Buyer Company buys their supplies from Company X that presently has a supplier score of 85.0.They are now considering buying from Company Y.Based on supplier score should they buy from Company X or Company Y? Use the data below to calculate this supplier's score: Perfarmance measure Rating Weight Quality 80 0.50 Delivery 90 0.20 Cost 90 0.20 Responsiveness 95 0.10

A company using a weighted-criteria evaluation system has established these 3 categories and the appropriate weight in parentheses: Quality(0.30),Delivery(0.20),Cost(0.50). The scores for each category are shown below.Which of the following companies has the highest total score?

The Hormel company awards their Hormel Food Corporation's No.1 Award to their top supplier.How often to the give this award?

In order to maintain a shared vision,the buyer alone should establish the objectives of the partnership,which must then be fulfilled by the actions of the supplier.

An effective supplier certification program will increase time spent on incoming inspections.

A comprehensive SRM strategy would likely include dedicated supplier managers,processes that would help in establishing standardized best practices,and the utilization of tools that would help gather and evaluate results.

Which third party certification was adopted by the European Union in 1992 that caused US suppliers wanting to stay competitive in European Union countries to get certified?