Exam 9: Supplier Management and Development: Creating a World-Class Supply Base

Weighted-point supplier evaluation systems are very inflexible because the user cannot change the weights assigned to each performance category or the actual performance categories themselves.

Which of the following is not one of the elements of financial risk in a supply base?

A buyer should delay reporting a supplier's poor performance until the next annual performance review.

The _____ requires suppliers to successfully navigate a successive series of performance milestones or hurdles in order to remain in the supply base.

All of the following are elements of market risk in a supply base except _____.

The elimination of both marginal and small-purchase-volume suppliers is usually the last phase of the rationalization process.

Maintaining multiple suppliers for each item can actually increase the probability and level of supply base risk.

All buyers are encouraged to engage in currency hedging activities, regardless of their level of experience.

Which of the following is not a typical supplier development activity?​

Overall reduction in material usage and disposal can be accomplished through engineering design changes and reuse and recycle programs.

During the early phases of supply base rationalization and optimization, the process usually results in an absolute reduction in the total number of suppliers.

Supplier performance that is sufficient today should be competitive in the marketplace of tomorrow.

Supply base rationalization and optimization often involves eliminating those suppliers who are unwilling to achieve (or are incapable of achieving) supply management performance objectives, either currently or expected in the near future.

Sustainability reflects only the importance of strategic environmental practices of an organization's suppliers but not the management of social responsibility in the supply base.

All organizations need to pursue supplier development.

If a/an _____ currency is utilized, the _____ bears the currency risk and is likely to build in additional contingency costs to cover its unknown risk.

_____ in a supply base consists of such factors as: country stability, regional stability, political and governmental stability, levels of official corruption, dissimilarities regarding contract law and intellectual property rights, elections, military actions, civil disturbances, terrorism, trade balance issues, and customs duties and tariffs.

There is only one common approach to supply base rationalization and optimization.

In supplier development, the supplier must be convinced that it is in the supplier's own best interest to accept the buyer's direction and technical assistance.

According to ISM, _____ is a framework of measurable corporate policies and procedures and resulting behavior designed to benefit the workplace and, by extension, the individual, the organization, and the community.