Exam 7: Supplier Evaluation and Selection

Databases allow the purchaser to quickly identify suppliers potentially qualified to support a requirement and may contain information on current products, the supplier's future technology roadmap, process capability ratios, and past performance.

Certain suppliers who may present the lowest cost seldom present greater risks.

Which of the following key financial ratios is calculated as Sales/Total assets?

Which of the following is not a commonly accepted source of information regarding potential supply sources?

Trade shows are seldom an ineffective way to gain exposure to a large number of suppliers at one time.

Most purchasers fail to perform at least a cursory financial analysis of prospective suppliers.

A buying firm frequently wants the seller to become more dependent on its business.

Traditionally, purchasing from competitors would limit information sharing between the parties.

Most purchase contracts address areas that are similar.

_____ is defined as the continual monitoring of the strength of suppliers' financial condition to ensure their ability to meet the purchaser's performance requirements for products or services.

All of the following are examples of entry qualifiers that suppliers must possess before they proceed to the next phase of the evaluation and selection process except _____.

Sustainable carbon footprint reductions should be measured at product suppliers but not at service suppliers.

All of the following are examples of commonly used environmental performance criteria except _____.

Few purchasers expect potential suppliers to have adopted quality systems based on ISO 9000 criteria.

Purchasers often perform a first cut or preliminary evaluation of potential suppliers to narrow the list before conducting an in-depth formal evaluation.

Although _____ provides optimum leverage and power over the supplier, _____ provides improved assurance of supply.

A _____ is responsible for understanding in depth entire families or groups of purchased goods and services.

A _____ is one that consistently satisfies the performance and service standards defined by the buyer and responds to unexpected changes.

Supplier site visits are relatively inexpensive and require minimal buyer time in travel and information collection.

_____ focuses on the continued ability of the supplier's human, intellectual, and physical capital to meet the buying firm's requirements with respect to quality and delivery.