Question 1

Suppliers seldom use trade journals to advertise their products or services.

Accepted Answer

A) True 
 B)False

Question 2

Progressive supply managers work with their legal group to develop preestablished contract language that can be cut and pasted during a supplier negotiation.

Accepted Answer

A) True 
 B)False

Question 3

A well-defined supplier evaluation scoring system takes criteria that may be highly subjective and develops a quantitative scale for measurement.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is not one of the criteria used to determine whether to buy direct vs.using a distributor?

Accepted Answer

A) Size of the purchase. 
B) Manufacturer's policies regarding direct sales. 
C) Storage space available at the purchaser's facility. 
D) Distance between the manufacturer and the distributor. 
E) Extent of services required. 
A) Size of the purchase. 
B) Manufacturer's policies regarding direct sales. 
C) Storage space available at the purchaser's facility. 
D) Distance between the manufacturer and the distributor. 
E) Extent of services required.

Question 5

_____ are more responsive to the buying firm's changing needs and can economically make frequent smaller deliveries.

Accepted Answer

A) Local suppliers 
B) International suppliers 
C) Global suppliers 
D) National suppliers 
E) There is no relationship with the location of the supplier and customer responsiveness. 
A) Local suppliers 
B) International suppliers 
C) Global suppliers 
D) National suppliers 
E) There is no relationship with the location of the supplier and customer responsiveness.

Question 6

The selection criteria used in a high-technology purchase will be the same as those used for a distributor.

Accepted Answer

A) True 
 B)False

Question 7

Traditional purchasers understand the risk/reward tradeoff and are prepared to manage it better to attain overall lower costs.

Accepted Answer

A) True 
 B)False

Question 8

Many suppliers do not have a sophisticated cost accounting system and are unable to assign overhead costs to products or processes.

Accepted Answer

A) True 
 B)False

Question 9

Progressive purchasing groups increasingly anticipate rather than react to supplier selection needs.

Accepted Answer

A) True 
 B)False

Question 10

A major source of information on potential supply sources comes from current or existing suppliers.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is not a risk of selecting a supplier in poor financial condition?

Accepted Answer

A) The supplier is unwilling to share its technical expertise with the purchaser. 
B) The supplier will go out of business. 
C) The supplier may not have the resources to invest in plant, equipment, or research that is necessary for longer-term technological or other performance improvements. 
D) The supplier may become too financially dependent on the purchaser. 
E) Financial weakness is usually an indication of other underlying problems. 
A) The supplier is unwilling to share its technical expertise with the purchaser. 
B) The supplier will go out of business. 
C) The supplier may not have the resources to invest in plant, equipment, or research that is necessary for longer-term technological or other performance improvements. 
D) The supplier may become too financially dependent on the purchaser. 
E) Financial weakness is usually an indication of other underlying problems.

Question 12

A supplier's willingness to move beyond a traditional purchasing relationship should be part of the evaluation process for items and services where a longer-term relationship might be beneficial.

Accepted Answer

A) True 
 B)False

Question 13

Before committing time to evaluate a supplier further, suppliers should satisfy certain entry qualifiers.

Accepted Answer

A) True 
 B)False

Question 14

Supply departments that are building diversity into their supply base will often deal with a decreased number of small suppliers.

Accepted Answer

A) True 
 B)False

Suppliers seldom use trade journals to advertise their products or services.

Progressive supply managers work with their legal group to develop preestablished contract language that can be cut and pasted during a supplier negotiation.

A well-defined supplier evaluation scoring system takes criteria that may be highly subjective and develops a quantitative scale for measurement.

Which of the following is not one of the criteria used to determine whether to buy direct vs.using a distributor?

_____ are more responsive to the buying firm's changing needs and can economically make frequent smaller deliveries.

The selection criteria used in a high-technology purchase will be the same as those used for a distributor.

Traditional purchasers understand the risk/reward tradeoff and are prepared to manage it better to attain overall lower costs.

Many suppliers do not have a sophisticated cost accounting system and are unable to assign overhead costs to products or processes.

Progressive purchasing groups increasingly anticipate rather than react to supplier selection needs.

A major source of information on potential supply sources comes from current or existing suppliers.

Which of the following is not a risk of selecting a supplier in poor financial condition?

A supplier's willingness to move beyond a traditional purchasing relationship should be part of the evaluation process for items and services where a longer-term relationship might be beneficial.

Before committing time to evaluate a supplier further, suppliers should satisfy certain entry qualifiers.

Supply departments that are building diversity into their supply base will often deal with a decreased number of small suppliers.

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 Quality Management

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

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 7: Supplier Evaluation and Selection

Suppliers seldom use trade journals to advertise their products or services.

Progressive supply managers work with their legal group to develop preestablished contract language that can be cut and pasted during a supplier negotiation.

A well-defined supplier evaluation scoring system takes criteria that may be highly subjective and develops a quantitative scale for measurement.

Which of the following is not one of the criteria used to determine whether to buy direct vs.using a distributor?

_____ are more responsive to the buying firm's changing needs and can economically make frequent smaller deliveries.

The selection criteria used in a high-technology purchase will be the same as those used for a distributor.

Traditional purchasers understand the risk/reward tradeoff and are prepared to manage it better to attain overall lower costs.

Many suppliers do not have a sophisticated cost accounting system and are unable to assign overhead costs to products or processes.

Progressive purchasing groups increasingly anticipate rather than react to supplier selection needs.

A major source of information on potential supply sources comes from current or existing suppliers.

Which of the following is not a risk of selecting a supplier in poor financial condition?

A supplier's willingness to move beyond a traditional purchasing relationship should be part of the evaluation process for items and services where a longer-term relationship might be beneficial.

Before committing time to evaluate a supplier further, suppliers should satisfy certain entry qualifiers.

Supply departments that are building diversity into their supply base will often deal with a decreased number of small suppliers.

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 Quality Management

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

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