Exam 5: Sourcing Materials and Services

Landed costs are independent of sales/FOB terms.

Vendors may offer varying levels of discounts from their published prices.

In the Item Procurement Importance Matrix, what describes high risk, low value?

The first step in managing sourcing and procurement is to determine the type of purchase.

In the Item Procurement Importance Matrix, what item is described as low risk, low value?

What vendor selection criteria are described by production capability, labor relations, and operating controls?

For the buyer, the total procurement price is more than just the basic purchase price. There are other elements to consider. Name these elements, and discuss the primary considerations of each.

What vendor selection criteria are described by price and financial stability?

In the Item Procurement Importance Matrix, what is described as high risk, high value?

Which e-commerce business model used in procurement and sourcing has a seller-operated service that consists of a number of electronic catalogs from suppliers within a market?

There are seven steps in the Strategic Sourcing Methodology. Name at least five, and choose two to discuss in more detail.

To help guide the strategic sourcing process, five core principles are recognized as key drivers to achieve the desired levels of value, which one is not one of those core principles?

Which approach represents a strategy in which the entire organization is focused on the examination of process variability and continuous improvement?

An advantage of e-sourcing and e-procurement is that there is little risk involved.

Which of these is not a form of purchasing?

What vendor selection criteria are described by vendor attitude, cultural compatibility, training aids, packaging, and repair service?

In the Execute Sourcing Strategy step, the most important thing is to:

There are seven steps in the Strategic Sourcing Methodology.

e-Sourcing and e-procurement are the same.

Strategic sourcing is almost the same as procurement.