Question 1

Regarding supply base risk, every sourcing decision is different and must be carefully evaluated in its own right.

Accepted Answer

A) True 
 B)False

Question 2

All buyers are encouraged to engage in currency hedging activities, regardless of their level of experience.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is not a typical qualitative service factor in a supplier performance measurement system?

Accepted Answer

A) Problem resolution ability. 
B) Technical ability. 
C) Process capability. 
D) Ongoing progress reporting. 
E) Wavelength. 
A) Problem resolution ability. 
B) Technical ability. 
C) Process capability. 
D) Ongoing progress reporting. 
E) Wavelength.

Question 4

Which of the following is not one of the formal approaches to supply base rationalization?

Accepted Answer

A) Twenty/eighty rule. 
B) "Improve or else" approach. 
C) Global sourcing. 
D) Triage approach. 
E) Competency staircase approach. 
A) Twenty/eighty rule. 
B) "Improve or else" approach. 
C) Global sourcing. 
D) Triage approach. 
E) Competency staircase approach.

Question 5

Which of the following is a disadvantage of a weighted-point supplier evaluation system?

Accepted Answer

A) Tends to focus on unit price. 
B) Most complex, so implementation costs are high. 
C) Most subjective. 
D) Least reliable. 
E) Cost accounting system required. 
A) Tends to focus on unit price. 
B) Most complex, so implementation costs are high. 
C) Most subjective. 
D) Least reliable. 
E) Cost accounting system required.

Question 6

Full awareness of the causes and effects of supply chain fraud are typically recognized outside the accounting professions.

Accepted Answer

A) True 
 B)False

Question 7

_____ can be defined as how supply chain members communicate and collaborate regarding sources of risk, utilizing risk management tools to mitigate and minimize risk and uncertainty across the supply chain.

Accepted Answer

A) PERT/CPM 
B) Scenario analysis 
C) Hedging 
D) SCRM 
E) None of these answers. 
A) PERT/CPM 
B) Scenario analysis 
C) Hedging 
D) SCRM 
E) None of these answers.

Question 8

Supply base rationalization and optimization often involves eliminating those suppliers who are unwilling to achieve (or are incapable of achieving) supply management performance objectives, either currently or expected in the near future.

Accepted Answer

A) True 
 B)False

Question 9

Scenario analysis is technically considered forecasting and attempts to explore and prepare for a few possible future scenarios that may have a significant negative impact on the costs and operations of an organization.

Accepted Answer

A) True 
 B)False

Question 10

_____ is an internal situation when a buyer or manager at the buying company has an undisclosed ownership or financial interest in the supplier or when goods or services are purchased for the buyer's or manager's own personal use.

Accepted Answer

A) Buyer conflict of interest 
B) Falsified counts 
C) Fictitious invoices 
D) Improper specifications 
E) Loss in transit 
A) Buyer conflict of interest 
B) Falsified counts 
C) Fictitious invoices 
D) Improper specifications 
E) Loss in transit

Question 11

Which of the following is not one of the advantages of a rationalized and optimized supply base?

Accepted Answer

A) Longer lead-times. 
B) Use of full-service suppliers. 
C) Lower total product cost. 
D) Ability to pursue complex supply management strategies. 
E) Buying from world-class suppliers. 
A) Longer lead-times. 
B) Use of full-service suppliers. 
C) Lower total product cost. 
D) Ability to pursue complex supply management strategies. 
E) Buying from world-class suppliers.

Question 12

Certain risks, such as those arising from war, piracy, and losses attributable to delays in transit, are generally covered by standard insurance policies.

Accepted Answer

A) True 
 B)False

Question 13

Supplier rationalization and optimization should be a one-time activity.

Accepted Answer

A) True 
 B)False

Question 14

Pursuing supplier development activities directly with suppliers is both quick and easy.

Accepted Answer

A) True 
 B)False

Question 15

Overall reduction in material usage can be accomplished through engineering design changes and reuse and recycle programs.

Accepted Answer

A) True 
 B)False

Question 16

Multiple sourcing can add quality variability to the sourced product because of the use of different materials and processes.

Accepted Answer

A) True 
 B)False

Question 17

The supplier performance index (SPI) equals (_____ plus _____) divided by _____.

Accepted Answer

A) Total Purchases….Nonperformance Costs….Total Purchases 
B) Nonperformance Costs….Total Purchases….Nonperformance Costs 
C) Total Purchases….Appraisal Costs….External Failure Costs 
D) External Failure Costs….Internal Failure Costs….Total Purchases 
E) Transportation Costs….Appraisal Costs….Prevention Costs 
A) Total Purchases….Nonperformance Costs….Total Purchases 
B) Nonperformance Costs….Total Purchases….Nonperformance Costs 
C) Total Purchases….Appraisal Costs….External Failure Costs 
D) External Failure Costs….Internal Failure Costs….Total Purchases 
E) Transportation Costs….Appraisal Costs….Prevention Costs

Question 18

Which of the following is not one of the management uses for the data derived from a comprehensive cost-base supplier evaluation system?​

Accepted Answer

A) Such a system provides the necessary information that allows a buyer to justify buying from a preferred supplier despite a higher unit price. 
B) The system allows a buyer to communicate the cost of specific nonperformance events to the originating supplier, which then helps identify improvement opportunities. 
C) Quantifying nonconformance costs can result in a chargeback to the offending supplier for unplanned costs. 
D) The system allows customized assignment of cost accounting codes depending on how much money is left in the annual budget. 
E) A buyer can use this data to identify longer-term sources of supply based on a supplier's total cost performance history. 
A) Such a system provides the necessary information that allows a buyer to justify buying from a preferred supplier despite a higher unit price. 
B) The system allows a buyer to communicate the cost of specific nonperformance events to the originating supplier, which then helps identify improvement opportunities. 
C) Quantifying nonconformance costs can result in a chargeback to the offending supplier for unplanned costs. 
D) The system allows customized assignment of cost accounting codes depending on how much money is left in the annual budget. 
E) A buyer can use this data to identify longer-term sources of supply based on a supplier's total cost performance history.

Question 19

In overcoming the barriers to supplier development, which of the following is not one of the approaches typically used?

Accepted Answer

A) Direct-involvement activities. 
B) Single sourcing. 
C) Incentives and rewards. 
D) Warnings and penalties. 
E) Hands-on activities. 
A) Direct-involvement activities. 
B) Single sourcing. 
C) Incentives and rewards. 
D) Warnings and penalties. 
E) Hands-on activities.

Question 20

Which of the following is not a supplier-specific barrier to supplier development?

Accepted Answer

A) No immediate benefit to supplier development is evident in the buying organization. 
B) Lack of commitment by supplier's management. 
C) Poor implementation of improvements. 
D) Lack of skilled engineering resources. 
E) Insufficient employee skill levels. 
A) No immediate benefit to supplier development is evident in the buying organization. 
B) Lack of commitment by supplier's management. 
C) Poor implementation of improvements. 
D) Lack of skilled engineering resources. 
E) Insufficient employee skill levels.

Regarding supply base risk, every sourcing decision is different and must be carefully evaluated in its own right.

All buyers are encouraged to engage in currency hedging activities, regardless of their level of experience.

Which of the following is not a typical qualitative service factor in a supplier performance measurement system?

Which of the following is not one of the formal approaches to supply base rationalization?

Which of the following is a disadvantage of a weighted-point supplier evaluation system?

Full awareness of the causes and effects of supply chain fraud are typically recognized outside the accounting professions.

_____ can be defined as how supply chain members communicate and collaborate regarding sources of risk, utilizing risk management tools to mitigate and minimize risk and uncertainty across the supply chain.

Supply base rationalization and optimization often involves eliminating those suppliers who are unwilling to achieve (or are incapable of achieving) supply management performance objectives, either currently or expected in the near future.

Scenario analysis is technically considered forecasting and attempts to explore and prepare for a few possible future scenarios that may have a significant negative impact on the costs and operations of an organization.

_____ is an internal situation when a buyer or manager at the buying company has an undisclosed ownership or financial interest in the supplier or when goods or services are purchased for the buyer's or manager's own personal use.

Which of the following is not one of the advantages of a rationalized and optimized supply base?

Certain risks, such as those arising from war, piracy, and losses attributable to delays in transit, are generally covered by standard insurance policies.

Supplier rationalization and optimization should be a one-time activity.

Pursuing supplier development activities directly with suppliers is both quick and easy.

Overall reduction in material usage can be accomplished through engineering design changes and reuse and recycle programs.

Multiple sourcing can add quality variability to the sourced product because of the use of different materials and processes.

The supplier performance index (SPI) equals (___ plus _) divided by ___.

Which of the following is not one of the management uses for the data derived from a comprehensive cost-base supplier evaluation system?

In overcoming the barriers to supplier development, which of the following is not one of the approaches typically used?

Which of the following is not a supplier-specific barrier to supplier development?

Introduction to Purchasing and Supply Chain Management

The Purchasing Process

Purchasing Policies and Procedures

Supply Management Integration for Competitive Advantage

Purchasing and Supply Management Organization

Supply Management and Commodity Strategy Development

Supplier Evaluation and Selection

Supplier Quality Management

Worldwide Sourcing

Strategic Cost Management

Purchasing and Supply Chain Analysis: Tools and Techniques

Negotiation and Conflict Management

Contract Management

Purchasing Law and Ethics

Lean Supply Chain Management

Purchasing Services

Supply Chain Information Systems and Electronic Sourcing

Performance Measurement and Evaluation

Purchasing and Supply Strategy Trends

Filters

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

Regarding supply base risk, every sourcing decision is different and must be carefully evaluated in its own right.

All buyers are encouraged to engage in currency hedging activities, regardless of their level of experience.

Which of the following is not a typical qualitative service factor in a supplier performance measurement system?

Which of the following is not one of the formal approaches to supply base rationalization?

Which of the following is a disadvantage of a weighted-point supplier evaluation system?

Full awareness of the causes and effects of supply chain fraud are typically recognized outside the accounting professions.

_____ can be defined as how supply chain members communicate and collaborate regarding sources of risk, utilizing risk management tools to mitigate and minimize risk and uncertainty across the supply chain.

Supply base rationalization and optimization often involves eliminating those suppliers who are unwilling to achieve (or are incapable of achieving) supply management performance objectives, either currently or expected in the near future.

Scenario analysis is technically considered forecasting and attempts to explore and prepare for a few possible future scenarios that may have a significant negative impact on the costs and operations of an organization.

_____ is an internal situation when a buyer or manager at the buying company has an undisclosed ownership or financial interest in the supplier or when goods or services are purchased for the buyer's or manager's own personal use.

Which of the following is not one of the advantages of a rationalized and optimized supply base?

Certain risks, such as those arising from war, piracy, and losses attributable to delays in transit, are generally covered by standard insurance policies.

Supplier rationalization and optimization should be a one-time activity.

Pursuing supplier development activities directly with suppliers is both quick and easy.

Overall reduction in material usage can be accomplished through engineering design changes and reuse and recycle programs.

Multiple sourcing can add quality variability to the sourced product because of the use of different materials and processes.

The supplier performance index (SPI) equals (_____ plus _____) divided by _____.

Which of the following is not one of the management uses for the data derived from a comprehensive cost-base supplier evaluation system?​

In overcoming the barriers to supplier development, which of the following is not one of the approaches typically used?

Which of the following is not a supplier-specific barrier to supplier development?

Introduction to Purchasing and Supply Chain Management

The Purchasing Process

Purchasing Policies and Procedures

Supply Management Integration for Competitive Advantage

Purchasing and Supply Management Organization

Supply Management and Commodity Strategy Development

Supplier Evaluation and Selection

Supplier Quality Management

Worldwide Sourcing

Strategic Cost Management

Purchasing and Supply Chain Analysis: Tools and Techniques

Negotiation and Conflict Management

Contract Management

Purchasing Law and Ethics

Lean Supply Chain Management

Purchasing Services

Supply Chain Information Systems and Electronic Sourcing

Performance Measurement and Evaluation

Purchasing and Supply Strategy Trends

Filters

The supplier performance index (SPI) equals (___ plus _) divided by ___.

Which of the following is not one of the management uses for the data derived from a comprehensive cost-base supplier evaluation system?