Question 1

Adversarial negotiations and decisions based on total cost of ownership are hallmarks of a successful buyer-supplier partnership.

Accepted Answer

A) True 
 B)False  False

Question 2

Early supply and supplier involvement ESI):

Accepted Answer

A)  pulls both the buyer and supplier into the need recognition and description stages of the acquisition process. 
B)  pulls the buyer into relationship management stage and pulls the supplier into need recognition and description. 
C)  pulls the buyer into the need recognition and description stages and pulls the supplier into the measurement stage. 
D)  pulls the buyer into the measurement stage and pulls the supplier into the need recognition and description stages. 
E)  pulls both the buyer and supplier into the process of measuring results and developing action plans for performance improvement. 
A)  pulls both the buyer and supplier into the need recognition and description stages of the acquisition process. 
B)  pulls the buyer into relationship management stage and pulls the supplier into need recognition and description. 
C)  pulls the buyer into the need recognition and description stages and pulls the supplier into the measurement stage. 
D)  pulls the buyer into the measurement stage and pulls the supplier into the need recognition and description stages. 
E)  pulls both the buyer and supplier into the process of measuring results and developing action plans for performance improvement. A

Question 3

A weighted point evaluation system:

Accepted Answer

A)  is seldom used because the costs usually outweigh the benefits. 
B)  includes evaluation criteria, an importance factor for each, and a rating system. 
C)  includes efficiency and effectiveness metrics weighted by users perceptions. 
D)  is the most commonly used process because of ease of design and use. 
E)  allows each rater to weight the criteria, but all raters user the same rating scales. 
A)  is seldom used because the costs usually outweigh the benefits. 
B)  includes evaluation criteria, an importance factor for each, and a rating system. 
C)  includes efficiency and effectiveness metrics weighted by users perceptions. 
D)  is the most commonly used process because of ease of design and use. 
E)  allows each rater to weight the criteria, but all raters user the same rating scales. B

Question 4

Supply management is critical to effectively managing supply chains, but demand management is not.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is a result of forming a buyer-supplier partnership:

Accepted Answer

A)  the amount of time committed to the buyer-supplier relationship is greatly reduced. 
B)  buyer-supplier relationships are greatly improved at the expense of internal relationships. 
C)  the buying organization can enjoy the benefits of horizontal integration without the disadvantages. 
D)  the design process and the introduction of new designs is faster due to earlier supplier and supply involvement. 
E)  significant quality improvements occur and total cost typically increases. 
A)  the amount of time committed to the buyer-supplier relationship is greatly reduced. 
B)  buyer-supplier relationships are greatly improved at the expense of internal relationships. 
C)  the buying organization can enjoy the benefits of horizontal integration without the disadvantages. 
D)  the design process and the introduction of new designs is faster due to earlier supplier and supply involvement. 
E)  significant quality improvements occur and total cost typically increases.

Question 6

Early supplier involvement only extends to an organization's first tier suppliers because it is the responsibility of these suppliers to manage subsequent tiers of suppliers.

Accepted Answer

A) True 
 B)False

Question 7

A goal of supply chain management is to:

Accepted Answer

A)  gain competitive advantage by acquiring confidential information from chain members. 
B)  drive down prices through competitive online bidding. 
C)  push inventory as far down the supply chain as possible. 
D)  reduce uncertainty and risks between and among members of the supply chain. 
E)  increase competition by increasing the number of suppliers in the supply chain. 
A)  gain competitive advantage by acquiring confidential information from chain members. 
B)  drive down prices through competitive online bidding. 
C)  push inventory as far down the supply chain as possible. 
D)  reduce uncertainty and risks between and among members of the supply chain. 
E)  increase competition by increasing the number of suppliers in the supply chain.

Question 8

Supplier goodwill can be measured regularly through surveys conducted by third party research organizations.

Accepted Answer

A) True 
 B)False

Question 9

Trends in supply management include:

Accepted Answer

A)  switching suppliers frequently through online auctions to get price discounts. 
B)  limiting the number of suppliers and focusing on results from key suppliers. 
C)  increasing the number of suppliers and developing closer relationships. 
D)  negotiating shorter term contracts with fewer suppliers to increase leverage. 
E)  greater concentration of the supplier selection decision in procurement. 
A)  switching suppliers frequently through online auctions to get price discounts. 
B)  limiting the number of suppliers and focusing on results from key suppliers. 
C)  increasing the number of suppliers and developing closer relationships. 
D)  negotiating shorter term contracts with fewer suppliers to increase leverage. 
E)  greater concentration of the supplier selection decision in procurement.

Question 10

An unwillingness to single source and enter into a buyer-supplier partnership is indefensible in a progressive purchasing and supply management organization.

Accepted Answer

A) True 
 B)False

Question 11

Taking negative measures to shift the satisfaction level in the buyer-seller relationship will have little impact on short term objectives, but will positively affect the relationship in the long-term.

Accepted Answer

A) True 
 B)False

Question 12

One of the assumptions on which the purchasing-supplier satisfaction model is based is that:

Accepted Answer

A)  the satisfaction level cannot be assessed well enough to draw definitive conclusions. 
B)  the purchaser and supplier always have the same perceptions of the same relationship. 
C)  attempts to move to a different position fall only in the win-lose and win-win categories. 
D)  there are few tools and techniques available to move positions or improve stability. 
E)  an unsatisfied party may use various tools to improve the relationship. 
A)  the satisfaction level cannot be assessed well enough to draw definitive conclusions. 
B)  the purchaser and supplier always have the same perceptions of the same relationship. 
C)  attempts to move to a different position fall only in the win-lose and win-win categories. 
D)  there are few tools and techniques available to move positions or improve stability. 
E)  an unsatisfied party may use various tools to improve the relationship.

Question 13

Reverse marketing is:

Accepted Answer

A)  discouraged by the rapid rate of technological change and growth in international trade. 
B)  when the buying organization has decided to stop making something in house and identifies a supplier from its existing supply base. 
C)  is an aggressive, purchaser-initiated, approach to finding and developing world class suppliers. 
D)  requires that the marketer fully understand the needs of the buying organization now and in the future. 
E)  is most appropriate when the product is fairly standard and available from multiple local suppliers. 
A)  discouraged by the rapid rate of technological change and growth in international trade. 
B)  when the buying organization has decided to stop making something in house and identifies a supplier from its existing supply base. 
C)  is an aggressive, purchaser-initiated, approach to finding and developing world class suppliers. 
D)  requires that the marketer fully understand the needs of the buying organization now and in the future. 
E)  is most appropriate when the product is fairly standard and available from multiple local suppliers.

Question 14

To select a potential supplier-partner, the buyer should consider:

Accepted Answer

A)  both hard and soft factors with an eye toward long-term outcomes. 
B)  both hard and soft factors with an eye toward short-term outcomes. 
C)  soft factors such as congruence of management values and compatibility. 
D)  hard factors such as quality, quantity, cost, and technology. 
E)  the willingness of the supplier to quickly change processes for results. 
A)  both hard and soft factors with an eye toward long-term outcomes. 
B)  both hard and soft factors with an eye toward short-term outcomes. 
C)  soft factors such as congruence of management values and compatibility. 
D)  hard factors such as quality, quantity, cost, and technology. 
E)  the willingness of the supplier to quickly change processes for results.

Question 15

To enhance the chance for successful strategic alliances, the supply manager must:

Accepted Answer

A)  ensure that price formulation and price escalator clauses are included in the contract terms and conditions. 
B)  clearly establish what is required from the supplier and the penalties for failure to perform. 
C)  reinforce the notion that the supply manager can easily switch to another alliance if the supplier fails to perform. 
D)  analyze the supplier's capability for e-procurement and ensure that the supplier can effectively and efficiently manage online catalogs. 
E)  identify suppliers whose management views on quality and productivity match those of the buying organization and have both parties establish expectations. 
A)  ensure that price formulation and price escalator clauses are included in the contract terms and conditions. 
B)  clearly establish what is required from the supplier and the penalties for failure to perform. 
C)  reinforce the notion that the supply manager can easily switch to another alliance if the supplier fails to perform. 
D)  analyze the supplier's capability for e-procurement and ensure that the supplier can effectively and efficiently manage online catalogs. 
E)  identify suppliers whose management views on quality and productivity match those of the buying organization and have both parties establish expectations.

Question 16

Strategic supply management focuses on only those suppliers of high dollar or high value goods and services.

Accepted Answer

A) True 
 B)False

Question 17

Supply chain management effectiveness is driven primarily by the organization's ability to manage the:

Accepted Answer

A)  internal link between supply management and its internal customers. 
B)  internal link between supply management and senior management. 
C)  internal and external links of customers, the buying organization and suppliers. 
D)  external link between a buying organization and its key suppliers. 
E)  external link between a buying organization and its key customers. 
A)  internal link between supply management and its internal customers. 
B)  internal link between supply management and senior management. 
C)  internal and external links of customers, the buying organization and suppliers. 
D)  external link between a buying organization and its key suppliers. 
E)  external link between a buying organization and its key customers.

Question 18

The perception of a buyer-seller relationship is based on both the results and the process used to attain them.

Accepted Answer

A) True 
 B)False

Question 19

Buyer-supplier relationships fall somewhere on a continuum from traditional, adversarial relationships to fully integrated, seamless relationships.

Accepted Answer

A) True 
 B)False

Question 20

Exceptional suppliers anticipate the operational and strategic needs of the purchaser, and are capable of meeting and exceeding them.

Accepted Answer

A) True 
 B)False

Adversarial negotiations and decisions based on total cost of ownership are hallmarks of a successful buyer-supplier partnership.

Early supply and supplier involvement ESI):

A weighted point evaluation system:

Supply management is critical to effectively managing supply chains, but demand management is not.

Which of the following is a result of forming a buyer-supplier partnership:

Early supplier involvement only extends to an organization's first tier suppliers because it is the responsibility of these suppliers to manage subsequent tiers of suppliers.

A goal of supply chain management is to:

Supplier goodwill can be measured regularly through surveys conducted by third party research organizations.

Trends in supply management include:

An unwillingness to single source and enter into a buyer-supplier partnership is indefensible in a progressive purchasing and supply management organization.

Taking negative measures to shift the satisfaction level in the buyer-seller relationship will have little impact on short term objectives, but will positively affect the relationship in the long-term.

One of the assumptions on which the purchasing-supplier satisfaction model is based is that:

Reverse marketing is:

To select a potential supplier-partner, the buyer should consider:

To enhance the chance for successful strategic alliances, the supply manager must:

Strategic supply management focuses on only those suppliers of high dollar or high value goods and services.

Supply chain management effectiveness is driven primarily by the organization's ability to manage the:

The perception of a buyer-seller relationship is based on both the results and the process used to attain them.

Buyer-supplier relationships fall somewhere on a continuum from traditional, adversarial relationships to fully integrated, seamless relationships.

Exceptional suppliers anticipate the operational and strategic needs of the purchaser, and are capable of meeting and exceeding them.

Purchasing and Supply Management

Supply Strategy

Supply Organization

Supply Processes and Technology

Make or Buy, Insourcing, and Outsourcing

Need Identification and Specification

Quality

Quantity and Inventory

Delivery

Price

Cost Management

Supplier Selection

Global Supply Management

Legal and Ethics

Other Supply Responsibilities

Supply Function Evaluation and Trends

Filters

Exam 13: Supplier Evaluation and Supplier Relations

Adversarial negotiations and decisions based on total cost of ownership are hallmarks of a successful buyer-supplier partnership.

Early supply and supplier involvement ESI):

A weighted point evaluation system:

Supply management is critical to effectively managing supply chains, but demand management is not.

Which of the following is a result of forming a buyer-supplier partnership:

Early supplier involvement only extends to an organization's first tier suppliers because it is the responsibility of these suppliers to manage subsequent tiers of suppliers.

A goal of supply chain management is to:

Supplier goodwill can be measured regularly through surveys conducted by third party research organizations.

Trends in supply management include:

An unwillingness to single source and enter into a buyer-supplier partnership is indefensible in a progressive purchasing and supply management organization.

Taking negative measures to shift the satisfaction level in the buyer-seller relationship will have little impact on short term objectives, but will positively affect the relationship in the long-term.

One of the assumptions on which the purchasing-supplier satisfaction model is based is that:

Reverse marketing is:

To select a potential supplier-partner, the buyer should consider:

To enhance the chance for successful strategic alliances, the supply manager must:

Strategic supply management focuses on only those suppliers of high dollar or high value goods and services.

Supply chain management effectiveness is driven primarily by the organization's ability to manage the:

The perception of a buyer-seller relationship is based on both the results and the process used to attain them.

Buyer-supplier relationships fall somewhere on a continuum from traditional, adversarial relationships to fully integrated, seamless relationships.

Exceptional suppliers anticipate the operational and strategic needs of the purchaser, and are capable of meeting and exceeding them.

Purchasing and Supply Management

Supply Strategy

Supply Organization

Supply Processes and Technology

Make or Buy, Insourcing, and Outsourcing

Need Identification and Specification

Quality

Quantity and Inventory

Delivery

Price

Cost Management

Supplier Selection

Global Supply Management

Legal and Ethics

Other Supply Responsibilities

Supply Function Evaluation and Trends

Filters