Exam 9: Supplier Management and Development: Creating a World-Class Supply Base

In supplier development, the supplier must be convinced that it is in the supplier's own best interest to accept the buyer's direction and assistance.

Which of the following is not one of the elements of financial risk in a supply base?

Weighted-point supplier evaluation systems are highly inflexible because the user cannot change the weights assigned to each performance category or the actual performance categories themselves.

All of the following are possible risks of maintaining fewer suppliers except _____.

All of the following are general categories of supply base risk except _____.

There is only one common approach to rationalize the supply base.

Sustainability reflects only the importance of strategic environmental practices of an organization's suppliers but not the management of social responsibility in the supply base.

Victims of supply chain fraud are not likely to publicly announce that they were actually victimized by fraudulent behavior because of the potential embarrassment and negative public relations impact.

All supplier measurement systems have some element of subjectivity.

The categorical approach to supplier evaluation is commonly used by smaller organizations because it is both easy and relatively inexpensive to implement.

According to ISM, _____ is defined as the ability to meet current needs without hindering the ability to meet the needs of future generations in terms of economic, environmental, and social challenges.

If a supplier's product or service is routine to the buyer, it should be considered for supplier development.

All of the following are mechanisms of a fraud control system except _____.

The prime reason for hedging is to protect the buyer against major swings in the value of a future purchase.

The _____ requires the systematic evaluation of the performance of individual suppliers and ultimate placement into one of three categories.

Many buyers have now concluded that, if they select suppliers carefully and develop close and collaborative working relationships with fewer suppliers, supply risk can actually decrease.

All of the following are elements of market risk in a supply base except _____.

_____ is the process of identifying how many and which suppliers a buyer will maintain.

All of the following are advantages of a cost-based supplier evaluation system except _____.

Supplier performance that is good enough today should be competitive in the marketplace of tomorrow.