Question 1

A _____ refers to a specific family of products or services that is used in delivering value to the end customer.

Accepted Answer

A) spend analysis 
B) decentralized structure 
C) category 
D) centralized structure 
E) hybrid structure 
A) spend analysis 
B) decentralized structure 
C) category 
D) centralized structure 
E) hybrid structure

Question 2

Identifying the major suppliers in a market is an important first step of any supplier analysis, especially when you are talking about global market share.

Accepted Answer

A) True 
 B)False

Question 3

More complex logistics and currency fluctuations require measuring all relevant costs before committing to a worldwide source.

Accepted Answer

A) True 
 B)False

Question 4

The RFI constitutes a binding agreement by both the supplier and the purchaser.

Accepted Answer

A) True 
 B)False

Question 5

SWOT analysis was created to describe the competitive forces in a market economy that help shape an industry.

Accepted Answer

A) True 
 B)False

Question 6

A/An _____ is a formal request for the suppliers to prepare bids, based on the terms and conditions set by the buyer.

Accepted Answer

A) RFQ 
B) purchase order 
C) RFI 
D) supplier analysis 
E) e-RA 
A) RFQ 
B) purchase order 
C) RFI 
D) supplier analysis 
E) e-RA

Question 7

A/An _____ has demonstrated its performance capabilities through previous purchase contracts and, therefore, receives preference during the supplier selection process.

Accepted Answer

A) commodity supplier 
B) preferred supplier 
C) sole source supplier 
D) new supplier responding to a RFQ 
E) marginal supplier 
A) commodity supplier 
B) preferred supplier 
C) sole source supplier 
D) new supplier responding to a RFQ 
E) marginal supplier

Question 8

A/An _____ may be used as a decision support tool in which the sourcing team assigns a weight to the different categories and develops a numerical score for each supplier in each category, thereby developing a final performance score.

Accepted Answer

A) make-buy analysis 
B) portfolio analysis matrix 
C) reverse auction 
D) e-catalog 
E) supplier selection scorecard 
A) make-buy analysis 
B) portfolio analysis matrix 
C) reverse auction 
D) e-catalog 
E) supplier selection scorecard

Question 9

Which of the following is not one of the goals for sourcing a routine commodity?

Accepted Answer

A) Reduce the number of items in this category through substitution. 
B) Elimination of small-volume spend. 
C) Conduct of a detailed negotiation to improve supplier capability. 
D) Elimination of duplicate SKUs. 
E) Simplification of the procurement process using electronic tools. 
A) Reduce the number of items in this category through substitution. 
B) Elimination of small-volume spend. 
C) Conduct of a detailed negotiation to improve supplier capability. 
D) Elimination of duplicate SKUs. 
E) Simplification of the procurement process using electronic tools.

Question 10

A _____ specifies how supply management will (1) support the desired competitive business-level strategy and (2) complement other functional strategies.

Accepted Answer

A) supply management strategy 
B) corporate strategy 
C) marketing strategy 
D) category strategy 
E) business unit strategy 
A) supply management strategy 
B) corporate strategy 
C) marketing strategy 
D) category strategy 
E) business unit strategy

Question 11

All of the following are goals for a strategic category except _____.

Accepted Answer

A) develop a competitive advantage 
B) support and leverage the supplier's core competencies 
C) develop best-in-class suppliers 
D) support the company's overall strategy 
E) simplification of the procurement process using electronic tools 
A) develop a competitive advantage 
B) support and leverage the supplier's core competencies 
C) develop best-in-class suppliers 
D) support the company's overall strategy 
E) simplification of the procurement process using electronic tools

Question 12

A category strategy is a decision process used to identify which suppliers should provide a group of products or services, the form of the contract, the performance measures used to measure supplier performance, and the appropriate level of price, quality, and delivery arrangements that should be negotiated.

Accepted Answer

A) True 
 B)False

Question 13

An e-RA is an offline, static auction between a buying organization and a group of pre-qualified suppliers who compete against each other to win the business to supply goods or services that have ill-defined specifications for design, quantity, quality, delivery, and related terms and conditions.

Accepted Answer

A) True 
 B)False

Question 14

In the _____ of the process of supplier segmentation, suppliers have a significant portion of the buyer's spend but do not view the buyer as an important customer.

Accepted Answer

A) NUISANCE segment 
B) COMMODITY segment 
C) DEVELOP segment 
D) EXPLOIT segment 
E) CORE segment 
A) NUISANCE segment 
B) COMMODITY segment 
C) DEVELOP segment 
D) EXPLOIT segment 
E) CORE segment

Question 15

_____ is the process of identifying cost considerations beyond unit price, transport, and tooling.

Accepted Answer

A) Total cost of ownership 
B) Price analysis 
C) Make-buy analysis 
D) Portfolio analysis 
E) Low-cost country sourcing 
A) Total cost of ownership 
B) Price analysis 
C) Make-buy analysis 
D) Portfolio analysis 
E) Low-cost country sourcing

Question 16

In supplier evaluation, different aspects of _____ include management's commitment to continuous process and quality improvement, its overall professional ability and experience, its ability to maintain positive relationships with its workforce, and its willingness to develop a closer working relationship with the buyer.

Accepted Answer

A) management capability 
B) process and design capabilities 
C) financial condition and cost structure 
D) planning and control systems 
E) environmental regulation compliance 
A) management capability 
B) process and design capabilities 
C) financial condition and cost structure 
D) planning and control systems 
E) environmental regulation compliance

Question 17

The _____ is a solicitation document that is used by organizations to obtain general information about services, products, or suppliers.

Accepted Answer

A) e-RA 
B) PO 
C) RFP 
D) RFI 
E) RFQ 
A) e-RA 
B) PO 
C) RFP 
D) RFI 
E) RFQ

Question 18

Which of the following elements is false regarding Phase 2, Moderate Development, of supply management strategy development?

Accepted Answer

A) e-RAs. 
B) Ad hoc supplier alliances. 
C) International sourcing. 
D) Global supply chains with external customer focus. 
E) Supply-base optimization. 
A) e-RAs. 
B) Ad hoc supplier alliances. 
C) International sourcing. 
D) Global supply chains with external customer focus. 
E) Supply-base optimization.

Question 19

In general, the more important the category, the less likely that cross-functional members and user groups will be involved.

Accepted Answer

A) True 
 B)False

Question 20

Competitive bidding is most effective when all of the following conditions apply except when _____.

Accepted Answer

A) the buying firm can provide qualified suppliers with clear descriptions of the items or services to be purchased 
B) volume is high enough to justify the cost and effort 
C) the firm does not have a preferred supplier 
D) the item is new or technically complex, with only vague specifications 
E) None of these conditions apply to competitive bidding. 
A) the buying firm can provide qualified suppliers with clear descriptions of the items or services to be purchased 
B) volume is high enough to justify the cost and effort 
C) the firm does not have a preferred supplier 
D) the item is new or technically complex, with only vague specifications 
E) None of these conditions apply to competitive bidding.

A _____ refers to a specific family of products or services that is used in delivering value to the end customer.

Identifying the major suppliers in a market is an important first step of any supplier analysis, especially when you are talking about global market share.

More complex logistics and currency fluctuations require measuring all relevant costs before committing to a worldwide source.

The RFI constitutes a binding agreement by both the supplier and the purchaser.

SWOT analysis was created to describe the competitive forces in a market economy that help shape an industry.

A/An _____ is a formal request for the suppliers to prepare bids, based on the terms and conditions set by the buyer.

A/An _____ has demonstrated its performance capabilities through previous purchase contracts and, therefore, receives preference during the supplier selection process.

A/An _____ may be used as a decision support tool in which the sourcing team assigns a weight to the different categories and develops a numerical score for each supplier in each category, thereby developing a final performance score.

Which of the following is not one of the goals for sourcing a routine commodity?

A _____ specifies how supply management will (1) support the desired competitive business-level strategy and (2) complement other functional strategies.

All of the following are goals for a strategic category except _____.

An e-RA is an offline, static auction between a buying organization and a group of pre-qualified suppliers who compete against each other to win the business to supply goods or services that have ill-defined specifications for design, quantity, quality, delivery, and related terms and conditions.

In the _____ of the process of supplier segmentation, suppliers have a significant portion of the buyer's spend but do not view the buyer as an important customer.

_____ is the process of identifying cost considerations beyond unit price, transport, and tooling.

The _____ is a solicitation document that is used by organizations to obtain general information about services, products, or suppliers.

Which of the following elements is false regarding Phase 2, Moderate Development, of supply management strategy development?

In general, the more important the category, the less likely that cross-functional members and user groups will be involved.

Competitive bidding is most effective when all of the following conditions apply except when _____.

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

Supplier Evaluation and Selection

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 6: Supply Management and Commodity Strategy Development

A _____ refers to a specific family of products or services that is used in delivering value to the end customer.

Identifying the major suppliers in a market is an important first step of any supplier analysis, especially when you are talking about global market share.

More complex logistics and currency fluctuations require measuring all relevant costs before committing to a worldwide source.

The RFI constitutes a binding agreement by both the supplier and the purchaser.

SWOT analysis was created to describe the competitive forces in a market economy that help shape an industry.

A/An _____ is a formal request for the suppliers to prepare bids, based on the terms and conditions set by the buyer.

A/An _____ has demonstrated its performance capabilities through previous purchase contracts and, therefore, receives preference during the supplier selection process.

A/An _____ may be used as a decision support tool in which the sourcing team assigns a weight to the different categories and develops a numerical score for each supplier in each category, thereby developing a final performance score.

Which of the following is not one of the goals for sourcing a routine commodity?

A _____ specifies how supply management will (1) support the desired competitive business-level strategy and (2) complement other functional strategies.

All of the following are goals for a strategic category except _____.

An e-RA is an offline, static auction between a buying organization and a group of pre-qualified suppliers who compete against each other to win the business to supply goods or services that have ill-defined specifications for design, quantity, quality, delivery, and related terms and conditions.

In the _____ of the process of supplier segmentation, suppliers have a significant portion of the buyer's spend but do not view the buyer as an important customer.

_____ is the process of identifying cost considerations beyond unit price, transport, and tooling.

The _____ is a solicitation document that is used by organizations to obtain general information about services, products, or suppliers.

Which of the following elements is false regarding Phase 2, Moderate Development, of supply management strategy development?

In general, the more important the category, the less likely that cross-functional members and user groups will be involved.

Competitive bidding is most effective when all of the following conditions apply except when _____.

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

Supplier Evaluation and Selection

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