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

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The _____ identifies those 20 percent of suppliers receiving the bulk of purchase spend or that minority of suppliers that cause the most quality problems.

(Multiple Choice)
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Buyers cannot move too aggressively when reducing the supply base.

(True/False)
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The buyer and the supplier must agree on how to divide or share the costs and benefits from the supplier development project.

(True/False)
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A smaller supplier with limited capacity for growth may need to eliminate some existing customers to meet the increased requirements of a larger customer.

(True/False)
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The supplier performance index (SPI) always provides a complete or accurate assessment of supplier performance.

(True/False)
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Which of the following is a disadvantage of a cost-based supplier evaluation system?​

(Multiple Choice)
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All of the following are advantages of a cost-based supplier evaluation system except _____.

(Multiple Choice)
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Suppliers are sometimes not willing to accept outside help in the form of supplier development, either because they are too proud to accept help or because they do not see the value in improving quality or delivery performance.

(True/False)
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_____ can be defined as how supply chain members communicate and collaborate regarding sources of risk, utilizing risk management tools to mitigate and minimize risk and uncertainty across the supply chain.

(Multiple Choice)
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All of the following are general categories of supply base risk except _____.

(Multiple Choice)
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In supplier measurement, the basic logic of the _____ is built around the calculation of a/an _____.

(Multiple Choice)
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The administrative cost of maintaining 5,000 suppliers will be dramatically lower than the cost of maintaining a core group of 500 highly qualified suppliers.

(True/False)
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Pursuing supplier development activities directly with suppliers is both quick and easy.

(True/False)
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All of the following are advantages of a weighted-point supplier evaluation system except _____.

(Multiple Choice)
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All supplier measurement systems have some element of subjectivity.

(True/False)
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Which of the following is not one of the formal approaches to supply base rationalization?

(Multiple Choice)
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In overcoming the barriers to supplier development, which of the following is not one of the approaches typically used?

(Multiple Choice)
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The _____ provides all suppliers, regardless of their performance history, a chance to remain in the supply base.

(Multiple Choice)
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Which of the following is not a buyer-specific barrier to supplier development?

(Multiple Choice)
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Which of the following is a disadvantage of a categorical supplier evaluation system?

(Multiple Choice)
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