Question 1

All of the following are examples of Porter's power of buyers except _____.

Accepted Answer

A)  buyer concentration 
B)  exit barriers 
C)  price sensitivity 
D)  brand identity 
E)  buyer volume 
A)  buyer concentration 
B)  exit barriers 
C)  price sensitivity 
D)  brand identity 
E)  buyer volume

Question 2

_____ is a simultaneous engineering approach that occurs between buyer and seller and seeks to maximize the benefits received by taking advantage of the supplier's design capabilities.

Accepted Answer

A)  Supplier development 
B)  Early supplier design involvement 
C)  Total cost of ownership 
D)  Supplier relationship management 
E)  Supply base optimization 
A)  Supplier development 
B)  Early supplier design involvement 
C)  Total cost of ownership 
D)  Supplier relationship management 
E)  Supply base optimization

Question 3

Which of the following is not one of the four categories found in a portfolio analysis matrix?

Accepted Answer

A)  Critical. 
B)  Routine. 
C)  Leverage. 
D)  Commodity. 
E)  Bottleneck. 
A)  Critical. 
B)  Routine. 
C)  Leverage. 
D)  Commodity. 
E)  Bottleneck.

Question 4

Longer-term relationships are sought with suppliers that have exceptional performance or unique technological expertise.

Accepted Answer

A) True 
 B)False

Question 5

Objectives drive goals, whether at the highest levels of an organization or at the functional or department level.

Accepted Answer

A) True 
 B)False

Question 6

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 the above 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 the above conditions apply to competitive bidding.

Question 7

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 8

_____ 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 9

Which of the following is not True in regards to low-cost country sourcing?

Accepted Answer

A)  Low-cost country sourcing can be used to access new markets or to gain access to the same suppliers that are helping global companies become more competitive. 
B)  Although there has been a strong push to source from emerging BRIC countries in search of lower costs, there has also been a strong push toward sourcing in these countries because of local content requirements established by governments in these areas. 
C)  Global sourcing is an opportunity to gain exposure to product and process technology, increase the number of available sources, satisfy countertrade requirements, and establish a presence in foreign markets. 
D)  Some buyers source globally to introduce competition to domestic suppliers. 
E)  Firms are highly experienced with global business processes and practices, and there are many personnel qualified to develop and negotiate with global suppliers or manage material pipelines. 
A)  Low-cost country sourcing can be used to access new markets or to gain access to the same suppliers that are helping global companies become more competitive. 
B)  Although there has been a strong push to source from emerging BRIC countries in search of lower costs, there has also been a strong push toward sourcing in these countries because of local content requirements established by governments in these areas. 
C)  Global sourcing is an opportunity to gain exposure to product and process technology, increase the number of available sources, satisfy countertrade requirements, and establish a presence in foreign markets. 
D)  Some buyers source globally to introduce competition to domestic suppliers. 
E)  Firms are highly experienced with global business processes and practices, and there are many personnel qualified to develop and negotiate with global suppliers or manage material pipelines.

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

Which of the following is not one of the examples of Porter's threat of new entrants?

Accepted Answer

A)  Capital markets. 
B)  Economies of scale. 
C)  Supplier concentration. 
D)  Product life cycles. 
E)  Brand equity and customer loyalty. 
A)  Capital markets. 
B)  Economies of scale. 
C)  Supplier concentration. 
D)  Product life cycles. 
E)  Brand equity and customer loyalty.

Question 12

In some cases, a firm may be looking to develop a long-term relationship with a potential supplier, particularly if the supplier is in the "Routine" quadrant of the Strategy Portfolio Matrix and the category of spend is low volume and routine to the company's business.

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

Accepted Answer

A) True 
 B)False

Question 15

[A] _____ is required to identify the specific capabilities and financial health of key suppliers that are in the supply base or that may not currently be in the supply base.

Accepted Answer

A)  Make-buy analysis 
B)  supplier evaluation scorecard 
C)  Price analysis 
D)  Portfolio analysis 
E)  Supplier research 
A)  Make-buy analysis 
B)  supplier evaluation scorecard 
C)  Price analysis 
D)  Portfolio analysis 
E)  Supplier research

Question 16

Only recently have senior executives begun to realize the increased risk attributed to the higher probability of product and service flow disruptions in global sourcing networks.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is not one of the examples of Porter's threat of substitute products and services?

Accepted Answer

A)  Relative performance of substitutes. 
B)  Relative price of substitutes. 
C)  Switching costs. 
D)  Buyer propensity to substitute. 
E)  Economies of scale. 
A)  Relative performance of substitutes. 
B)  Relative price of substitutes. 
C)  Switching costs. 
D)  Buyer propensity to substitute. 
E)  Economies of scale.

Question 18

A _____ is an annual review of a firm's entire set of purchases.

Accepted Answer

A)  cost analysis 
B)  price analysis 
C)  make-buy analysis 
D)  technology roadmap 
E)  spend analysis 
A)  cost analysis 
B)  price analysis 
C)  make-buy analysis 
D)  technology roadmap 
E)  spend analysis

Question 19

Which of the following elements is Falseregarding 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 20

Organizations tend to evolve through four phases as they become mature and sophisticated in their supply management strategy development.

Accepted Answer

A) True 
 B)False

All of the following are examples of Porter's power of buyers except _____.

_____ is a simultaneous engineering approach that occurs between buyer and seller and seeks to maximize the benefits received by taking advantage of the supplier's design capabilities.

Which of the following is not one of the four categories found in a portfolio analysis matrix?

Longer-term relationships are sought with suppliers that have exceptional performance or unique technological expertise.

Objectives drive goals, whether at the highest levels of an organization or at the functional or department level.

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

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

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

Which of the following is not True in regards to low-cost country sourcing?

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

Which of the following is not one of the examples of Porter's threat of new entrants?

In some cases, a firm may be looking to develop a long-term relationship with a potential supplier, particularly if the supplier is in the "Routine" quadrant of the Strategy Portfolio Matrix and the category of spend is low volume and routine to the company's business.

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

[A] _____ is required to identify the specific capabilities and financial health of key suppliers that are in the supply base or that may not currently be in the supply base.

Only recently have senior executives begun to realize the increased risk attributed to the higher probability of product and service flow disruptions in global sourcing networks.

Which of the following is not one of the examples of Porter's threat of substitute products and services?

A _____ is an annual review of a firm's entire set of purchases.

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

Organizations tend to evolve through four phases as they become mature and sophisticated in their supply management strategy development.

Introduction to Purchasing and Supply Chain Management

The Purchasing Process

Purchasing Policy 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: Category Strategy Development

All of the following are examples of Porter's power of buyers except _____.

_____ is a simultaneous engineering approach that occurs between buyer and seller and seeks to maximize the benefits received by taking advantage of the supplier's design capabilities.

Which of the following is not one of the four categories found in a portfolio analysis matrix?

Longer-term relationships are sought with suppliers that have exceptional performance or unique technological expertise.

Objectives drive goals, whether at the highest levels of an organization or at the functional or department level.

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

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

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

Which of the following is not True in regards to low-cost country sourcing?

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

Which of the following is not one of the examples of Porter's threat of new entrants?

In some cases, a firm may be looking to develop a long-term relationship with a potential supplier, particularly if the supplier is in the "Routine" quadrant of the Strategy Portfolio Matrix and the category of spend is low volume and routine to the company's business.

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

[A] _____ is required to identify the specific capabilities and financial health of key suppliers that are in the supply base or that may not currently be in the supply base.

Only recently have senior executives begun to realize the increased risk attributed to the higher probability of product and service flow disruptions in global sourcing networks.

Which of the following is not one of the examples of Porter's threat of substitute products and services?

A _____ is an annual review of a firm's entire set of purchases.

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

Organizations tend to evolve through four phases as they become mature and sophisticated in their supply management strategy development.

Introduction to Purchasing and Supply Chain Management

The Purchasing Process

Purchasing Policy 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