Exam 4: Ethical and Sustainable Sourcing

Companies that lack internal expertise in a specific functional area would likely consider insourcing.

Which of the following is TRUE?

Managing a firm's external resources in ways that support the long-term goals of the firm can be referred to as:

What does 3PL stand for? What do 3PLs offer a company? Provide three examples of what a 3PL might do for a client.

The primary benefits of ____ include costs savings and freeing up time for purchasing staff to concentrate on the firm's core activities.

Retail items,which would likely be found at a store like Target or Wal-Mart,like lamps,blankets,microwave ovens,and candy bars would be classified as functional products.

According to the text,driving your suppliers to offer the lowest possible prices,which in turn will lower your cost of goods sold,could prove to be harmful to buyer-supplier relationships and may also decrease the quality levels of the items produced using your suppliers' low cost components.

According to the textbook,Wal-Mart is perhaps the company that is most averse to implementing sustainable business practices.

The organization you work for is characterized by the following: •The organization was incorporated only 18 months ago •Your end products are assembled using international components •The organization competes in a high-tech industry •The lifecycles for your products are relatively short •The market for your products has seen a 30% growth rate in the last 12 months,and you expect to sustain growth rates of 30 to 50% over the next three years All of these points lead to the conclusion that this is a relatively young organization that has grown quickly and will continue to experience considerable growth and change over the next few years. In order to remain competitive the organization is looking to you to develop a plan in terms of establishing a sourcing strategy.Provide FOUR initiatives that you would suggest to management and describe why each is important.

Purchasing departments can be seen as a primary designer and facilitator of important inward- and outward-facing sourcing policies.

Which of the following is NOT a step suggested in the Supply Chain Sourcing Strategy Framework?

The influence of corporate sourcing decisions interacts with internal design,production,finance,marketing,and accounting.

Some strategic supplier agreements reward the highest performing suppliers with a share of the cost reductions resulting from supplier improvements,additional purchasing contracts,or contract extensions on existing contracts.

Sustainable sourcing is a rather common practice among firms in many industries.What are THREE possible benefits companies practicing sustainable sourcing seek to achieve:

The purchasing managers at Sunnydale Corporation decide to intentionally increase purchases from small,women-owned suppliers.This decision can be considered:

All of the following are reasons for the increasing use of ethical and sustainable sourcing practices EXCEPT:

Which of the following can be used as a punishment for suppliers that perform poorly?

Because internationally recognized certifications like ISO 9000 are becoming so common among suppliers,it is becoming more important that purchasing firms develop internal certification programs that are geared toward the specific needs of the purchasing organization.

Which of the following are considered outcomes of implementing a supplier evaluation and selection criteria?

Manufacturers typically have very little influence over second and third tier suppliers when compared to the influence they hold over first tier suppliers.