Exam 17: Supply Function Evaluation and Trends

Value engineering is done on purchased items used in the ongoing production process, while value analysis is done in the design stage where items are being specified.

Supply can play a leadership role in corporate social responsibility CSR) by:

In terms of measuring and validating supply savings:

Supplier performance management systems should be designed to capture and communicate the failures of suppliers so penalties can be assessed.

Effectiveness metrics which emphasize price may lead to behavior that drives up total cost of ownership.

The perceptions that non-supply managers have of supply are shaped by interactions with and observations of supply, tangible experiences with supply on a day-to-day basis, and the extent to which supply is seen as contributing to the firm's mission.

The assessment of a supplier's financial capacity:

An efficiency-oriented performance metric:

Research on the supply management process focuses on:

Supply management's contribution may be measured along three dimensions: revenue enhancement, asset management, and cost management.

Internal validation of supply's financial contribution increases joint ownership of goals and outcomes.

Triple bottom line reporting refers to an organization's social, environmental, and financial performance.

The supply planning process is initiated by the supply manager's assessment of the supply base.

When cross-functional teams are used to conduct research, it is best if:

Trends in supply organization and leadership include:

Industry benchmarking allows an individual company to compare itself to its major competitor.

Financial efficiency is indicated by the asset and inventory turnover ratios.

A comprehensive commodity study should result in an):

The budget which begins with an estimate of expected operations, based on sales forecasts and plans, is called the: