Question 1

A company using portfolio analysis decides to simplify the acquisition process by negotiating an ongoing contract.The quadrant that these items fall in is most probably the

Accepted Answer

A) routine quadrant. 
B) leverage quadrant. 
C) bottleneck quadrant. 
D) critical quadrant. 
A) routine quadrant. 
B) leverage quadrant. 
C) bottleneck quadrant. 
D) critical quadrant. A

Question 2

A purchased item with few alternate sources of supply due to complex manufacturing process is typically a(n)________ item.

Accepted Answer

bottleneck

Question 3

The sourcing strategy for items in the critical quadrant would be to

Accepted Answer

A) use reverse auctions. 
B) decentralize purchasing. 
C) narrow item specifications. 
D) develop long-term partnerships with one or two key suppliers. 
A) use reverse auctions. 
B) decentralize purchasing. 
C) narrow item specifications. 
D) develop long-term partnerships with one or two key suppliers. D

Question 4

With reference to strategic sourcing,the portfolio model is

Accepted Answer

A) the result of the sheer volume of spend for a particular item. 
B) used to determine cost discounts targets for different suppliers. 
C) a framework for making purchasing-related decisions. 
D) used to make investment decisions in supplier assets. 
A) the result of the sheer volume of spend for a particular item. 
B) used to determine cost discounts targets for different suppliers. 
C) a framework for making purchasing-related decisions. 
D) used to make investment decisions in supplier assets.

Question 5

A purchased item with few alternate sources of supply typically due to complex specifications is a

Accepted Answer

A) routine item. 
B) leverage item. 
C) bottleneck item. 
D) critical item. 
A) routine item. 
B) leverage item. 
C) bottleneck item. 
D) critical item.

Question 6

A sourcing strategy for items in the leverage quadrant will be to build long-term alliances with a few suppliers.

Accepted Answer

A) True 
 B)False

Question 7

A purchased item that has many sources of supply,but has the potential to affect profit because it is bought in high volumes is a(n)________ item.

Accepted Answer

The answer of A purchased item that has many sources...

Question 8

The sheer volume of spend for a particular item is known as the ________.

Accepted Answer

The answer of The sheer volume of spend for a...

Question 9

The sourcing strategy for procuring routine items would be to

Accepted Answer

A) use reverse auctions. 
B) decentralize purchasing. 
C) narrow item specifications. 
D) develop long-term partnerships with one or two key suppliers. 
A) use reverse auctions. 
B) decentralize purchasing. 
C) narrow item specifications. 
D) develop long-term partnerships with one or two key suppliers.

Question 10

Use the information below to answer the following question(s):
A retailer operating a network of home improvement stores has annual sales of $800 million,annual cost of goods and materials purchased of $500 million,and net income of $125 million.
-What should the new annual sales be to have the same effect on the bottom line as a 15-percent reduction in the cost of goods and materials purchased,other things remaining unchanged?

Accepted Answer

A) $500 million 
B) $800.75 million 
C) $1.280 billion 
D) $1.5 billion 
A) $500 million 
B) $800.75 million 
C) $1.280 billion 
D) $1.5 billion

Question 11

A sourcing strategy for items in the bottleneck quadrant will be to

Accepted Answer

A) narrow the specifications to allow for more product options. 
B) increase competition by encouraging other supplier to offer the item. 
C) develop new suppliers. 
D) all of the above. 
E) only B and C above. 
A) narrow the specifications to allow for more product options. 
B) increase competition by encouraging other supplier to offer the item. 
C) develop new suppliers. 
D) all of the above. 
E) only B and C above.

Question 12

A sourcing strategy for items in the bottleneck quadrant will be to narrow the specifications to allow for more product options.

Accepted Answer

A) True 
 B)False

Question 13

Only 25 percent of an item or service's cost is determined in the design stage.

Accepted Answer

A) True 
 B)False

Question 14

Approximately ________ percent of an item or service's cost is determined in the design stage.

Accepted Answer

The answer of Approximately ________ percent of an item or...

Question 15

Use the information below to answer the following question(s):
A retailer operating a network of home improvement stores has annual sales of $800 million,annual cost of goods and materials purchased of $500 million,and net income of $125 million.
-If a newly implemented strategic sourcing process is able to reduce the cost of goods and materials purchased by 15 percent,what would be the new net profit,given that annual sales and other costs remain unchanged?

Accepted Answer

A) $150 million 
B) $175 million 
C) $200 million 
D) $250 million 
A) $150 million 
B) $175 million 
C) $200 million 
D) $250 million

Question 16

Use the following information to answer the following question(s).
ABC Tools has annual sales of $50 million,annual materials cost of $28 million,and net income of $5 million.
-What is the required increase in sales to have the same effect on the bottom line as a 10-percent reduction in the cost of materials?

Accepted Answer

A) 25% 
B) 50% 
C) 56% 
D) 100% 
A) 25% 
B) 50% 
C) 56% 
D) 100%

Question 17

A purchased good that can have a big effect on profitability but only has a few qualified suppliers is a(n)________ item.

Accepted Answer

The answer of A purchased good that can have a...

Question 18

A dollar saved in cost of materials purchased is a dollar added to the pre-tax profit.

Accepted Answer

A) True 
 B)False

Question 19

The spend on building and large equipment is categorized within the ________ category.

Accepted Answer

The answer of The spend on building and large equipment...

Question 20

A sourcing strategy for items in the bottleneck quadrant will be to develop new suppliers.

Accepted Answer

A) True 
 B)False

A company using portfolio analysis decides to simplify the acquisition process by negotiating an ongoing contract.The quadrant that these items fall in is most probably the

A purchased item with few alternate sources of supply due to complex manufacturing process is typically a(n)________ item.

The sourcing strategy for items in the critical quadrant would be to

With reference to strategic sourcing,the portfolio model is

A purchased item with few alternate sources of supply typically due to complex specifications is a

A sourcing strategy for items in the leverage quadrant will be to build long-term alliances with a few suppliers.

A purchased item that has many sources of supply,but has the potential to affect profit because it is bought in high volumes is a(n)________ item.

The sheer volume of spend for a particular item is known as the ________.

The sourcing strategy for procuring routine items would be to

A sourcing strategy for items in the bottleneck quadrant will be to

A sourcing strategy for items in the bottleneck quadrant will be to narrow the specifications to allow for more product options.

Only 25 percent of an item or service's cost is determined in the design stage.

Approximately ________ percent of an item or service's cost is determined in the design stage.

A purchased good that can have a big effect on profitability but only has a few qualified suppliers is a(n)________ item.

A dollar saved in cost of materials purchased is a dollar added to the pre-tax profit.

The spend on building and large equipment is categorized within the ________ category.

A sourcing strategy for items in the bottleneck quadrant will be to develop new suppliers.

Introduction to Supply Chain and Operations Management

Supply Chain and Operations Strategy

Product and Process Design and Mapping

Service Design

Customer Relationship Management

Supplier Management

Demand Management and Forecasting

Inventory Management Fundamentals and Independent Demand

Sales and Operations Planning and Enterprise Resource Planning

Logistics

Project Management

Supply Chain Quality Management

Statistical Process Control

Lean and Six Sigma Management and Leading Change

Filters

Exam 6: Strategic Sourcing

A company using portfolio analysis decides to simplify the acquisition process by negotiating an ongoing contract.The quadrant that these items fall in is most probably the

A purchased item with few alternate sources of supply due to complex manufacturing process is typically a(n)________ item.

The sourcing strategy for items in the critical quadrant would be to

With reference to strategic sourcing,the portfolio model is

A purchased item with few alternate sources of supply typically due to complex specifications is a

A sourcing strategy for items in the leverage quadrant will be to build long-term alliances with a few suppliers.

A purchased item that has many sources of supply,but has the potential to affect profit because it is bought in high volumes is a(n)________ item.

The sheer volume of spend for a particular item is known as the ________.

The sourcing strategy for procuring routine items would be to

A sourcing strategy for items in the bottleneck quadrant will be to

A sourcing strategy for items in the bottleneck quadrant will be to narrow the specifications to allow for more product options.

Only 25 percent of an item or service's cost is determined in the design stage.

Approximately ________ percent of an item or service's cost is determined in the design stage.

A purchased good that can have a big effect on profitability but only has a few qualified suppliers is a(n)________ item.

A dollar saved in cost of materials purchased is a dollar added to the pre-tax profit.

The spend on building and large equipment is categorized within the ________ category.

A sourcing strategy for items in the bottleneck quadrant will be to develop new suppliers.

Introduction to Supply Chain and Operations Management

Supply Chain and Operations Strategy

Product and Process Design and Mapping

Service Design

Customer Relationship Management

Supplier Management

Demand Management and Forecasting

Inventory Management Fundamentals and Independent Demand

Sales and Operations Planning and Enterprise Resource Planning

Logistics

Project Management

Supply Chain Quality Management

Statistical Process Control

Lean and Six Sigma Management and Leading Change

Filters