Question 1

A reliable supplier has low variability of lead time, whereas an unreliable supplier has high variability.

Accepted Answer

A) True 
 B)False  True

Question 2

Single sourcing for a product is used to

Accepted Answer

A)  guarantee the supplier sufficient business when the supplier has to make a significant buyer-specific investment. 
B)  ensure a degree of competition. 
C)  ensure the possibility of a backup should a source fail to deliver. 
D)  control all possible sources of supply in the market. 
A)  guarantee the supplier sufficient business when the supplier has to make a significant buyer-specific investment. 
B)  ensure a degree of competition. 
C)  ensure the possibility of a backup should a source fail to deliver. 
D)  control all possible sources of supply in the market. A

Question 3

Having multiple sources ensures a degree of competition and also the possibility of a backup, should a source fail to deliver.

Accepted Answer

A) True 
 B)False  True

Question 4

Supplier performance should be compared based on

Accepted Answer

A)  purchase price alone. 
B)  its impact on total cost. 
C)  the supplier's quality of material. 
D)  the ability of the supplier to coordinate forecasting and planning. 
A)  purchase price alone. 
B)  its impact on total cost. 
C)  the supplier's quality of material. 
D)  the ability of the supplier to coordinate forecasting and planning.

Question 5

When designing a sourcing strategy, it is important for a firm to

Accepted Answer

A)  develop a process that will procure materials at the lowest possible cost. 
B)  maintain a record of all contracts, receipts, issues and other transactions in the event of lawsuits. 
C)  maximize the profitability of the distributors within the supply chain. 
D)  be clear on the factors that have the greatest influence on performance and target improvement on those areas. 
A)  develop a process that will procure materials at the lowest possible cost. 
B)  maintain a record of all contracts, receipts, issues and other transactions in the event of lawsuits. 
C)  maximize the profitability of the distributors within the supply chain. 
D)  be clear on the factors that have the greatest influence on performance and target improvement on those areas.

Question 6

Why should design collaboration capability be considered in supplier selection decisions?

Accepted Answer

Given that a large part of product cost

Question 7

What are some of the benefits of effective sourcing decisions?

Accepted Answer

Effective sourcing processes within a fi

Question 8

The goal of procurement is

Accepted Answer

A)  to analyze spending across various suppliers and component categories to identify opportunities for decreasing the total cost. 
B)  to analyze spending across various suppliers and component categories to identify opportunities for increasing the total cost. 
C)  to enable orders to be placed and delivered on schedule at the lowest possible overall cost. 
D)  to enable orders to be placed and delivered on schedule regardless of cost. 
A)  to analyze spending across various suppliers and component categories to identify opportunities for decreasing the total cost. 
B)  to analyze spending across various suppliers and component categories to identify opportunities for increasing the total cost. 
C)  to enable orders to be placed and delivered on schedule at the lowest possible overall cost. 
D)  to enable orders to be placed and delivered on schedule regardless of cost.

Question 9

Which of the following is a traditional logistics driver of sourcing?

Accepted Answer

A)  Pricing 
B)  Inventory 
C)  Sourcing 
D)  Information 
A)  Pricing 
B)  Inventory 
C)  Sourcing 
D)  Information

Question 10

The goal of procurement is to enable orders to be placed and delivered on schedule at the lowest possible price.

Accepted Answer

A) True 
 B)False

Question 11

Why should on-time performance be considered in supplier selection decisions?

Accepted Answer

On-time performance affects the variabil

Question 12

What factors should be considered when making sourcing decisions?

Accepted Answer

When designing a sourcing strategy, it i

Question 13

The procurement process for indirect materials should focus on

Accepted Answer

A)  improving coordination and visibility with the supplier. 
B)  decreasing the transaction cost for each order. 
C)  consolidation of orders to take advantage of economies of scale and quantity discounts. 
D)  minimizing communication with the supplier. 
A)  improving coordination and visibility with the supplier. 
B)  decreasing the transaction cost for each order. 
C)  consolidation of orders to take advantage of economies of scale and quantity discounts. 
D)  minimizing communication with the supplier.

Question 14

Using the output from supplier scoring and assessment to identify the appropriate supplier(s) is

Accepted Answer

A)  procurement. 
B)  sourcing. 
C)  supplier scoring and assessment. 
D)  supplier selection. 
A)  procurement. 
B)  sourcing. 
C)  supplier scoring and assessment. 
D)  supplier selection.

Question 15

A contract that is used to induce performance improvement from a supplier along dimensions, such as lead time, where the benefit of improvement accrues primarily to the buyer, whereas the effort for improvement comes primarily from the supplier is a

Accepted Answer

A)  buyback or returns contract. 
B)  revenue-sharing contract. 
C)  quantity flexibility contract. 
D)  shared savings contract. 
A)  buyback or returns contract. 
B)  revenue-sharing contract. 
C)  quantity flexibility contract. 
D)  shared savings contract.

Question 16

What issues need to be considered when evaluating capability for design collaboration?

Accepted Answer

Key themes that must be communicated to

Question 17

Quantity flexibility contracts counter double marginalization by giving the retailer the ability to modify the order based on improved forecasts closer to the point of sale.

Accepted Answer

A) True 
 B)False

Question 18

Effective sourcing processes within a firm can

Accepted Answer

A)  improve profits for the firm and total supply chain surplus. 
B)  reduce profits for the firm and total supply chain surplus. 
C)  reduce total supply chain surplus. 
D)  reduce profits for the firm. 
A)  improve profits for the firm and total supply chain surplus. 
B)  reduce profits for the firm and total supply chain surplus. 
C)  reduce total supply chain surplus. 
D)  reduce profits for the firm.

Question 19

Scenario 15.1 - The Jerk Store
George takes an eclectic mix of spices to make his authentic jerk seasoning as a rub for chicken, pork, and fish. The ingredients and packaging cost $1.50 and he sells the packets by the case to Jerk Stores in the Caribbean for $2.50 per packet. Tourists to the islands gladly pay $8.75 for these packets, eager to host their friends for an authentic Caribbean meal and bore them with vacation photos upon their return. The demand for the packets is normally distributed, with a mean of 2500 packets and a standard deviation of 600.
-If George and a single Jerk Store act as a vertically integrated supply chain, what is the optimal quantity for the Jerk Store to order?

Accepted Answer

A)  2633 
B)  2840 
C)  3069 
D)  3267 
A)  2633 
B)  2840 
C)  3069 
D)  3267

Question 20

The entire set of business processes required to purchase goods and services is

Accepted Answer

A)  procurement. 
B)  sourcing. 
C)  supplier scoring and assessment. 
D)  supplier selection. 
A)  procurement. 
B)  sourcing. 
C)  supplier scoring and assessment. 
D)  supplier selection.

A reliable supplier has low variability of lead time, whereas an unreliable supplier has high variability.

Single sourcing for a product is used to

Having multiple sources ensures a degree of competition and also the possibility of a backup, should a source fail to deliver.

Supplier performance should be compared based on

When designing a sourcing strategy, it is important for a firm to

Why should design collaboration capability be considered in supplier selection decisions?

What are some of the benefits of effective sourcing decisions?

The goal of procurement is

Which of the following is a traditional logistics driver of sourcing?

The goal of procurement is to enable orders to be placed and delivered on schedule at the lowest possible price.

Why should on-time performance be considered in supplier selection decisions?

What factors should be considered when making sourcing decisions?

The procurement process for indirect materials should focus on

Using the output from supplier scoring and assessment to identify the appropriate supplier(s) is

A contract that is used to induce performance improvement from a supplier along dimensions, such as lead time, where the benefit of improvement accrues primarily to the buyer, whereas the effort for improvement comes primarily from the supplier is a

What issues need to be considered when evaluating capability for design collaboration?

Quantity flexibility contracts counter double marginalization by giving the retailer the ability to modify the order based on improved forecasts closer to the point of sale.

Effective sourcing processes within a firm can

The entire set of business processes required to purchase goods and services is

Understanding the Supply Chain

Supply Chain Performance: Achieving Strategic Fit and Scope

Supply Chain Drivers and Metrics

Designing Distribution Networks and Applications to e-Business

Network Design in the Supply Chain

Designing Global Supply Chain Networks

Demand Forecasting in a Supply Chain

Aggregate Planning in a Supply Chain

Sales and Operations Planning: Planning Supply and Demand in a Supply Chain

Coordination in a Supply Chain

Managing Economies of Scale in the Supply Chain: Cycle Inventory

Managing Uncertainty in a Supply Chain: Safety Inventory

Determining the Optimal Level of Product Availability

Transportation in a Supply Chain

Pricing and Revenue Management in a Supply Chain

Sustainability and the Supply Chain

Filters

Exam 15: Sourcing Decisions in a Supply Chain

A reliable supplier has low variability of lead time, whereas an unreliable supplier has high variability.

Single sourcing for a product is used to

Having multiple sources ensures a degree of competition and also the possibility of a backup, should a source fail to deliver.

Supplier performance should be compared based on

When designing a sourcing strategy, it is important for a firm to

Why should design collaboration capability be considered in supplier selection decisions?

What are some of the benefits of effective sourcing decisions?

The goal of procurement is

Which of the following is a traditional logistics driver of sourcing?

The goal of procurement is to enable orders to be placed and delivered on schedule at the lowest possible price.

Why should on-time performance be considered in supplier selection decisions?

What factors should be considered when making sourcing decisions?

The procurement process for indirect materials should focus on

Using the output from supplier scoring and assessment to identify the appropriate supplier(s) is

A contract that is used to induce performance improvement from a supplier along dimensions, such as lead time, where the benefit of improvement accrues primarily to the buyer, whereas the effort for improvement comes primarily from the supplier is a

What issues need to be considered when evaluating capability for design collaboration?

Quantity flexibility contracts counter double marginalization by giving the retailer the ability to modify the order based on improved forecasts closer to the point of sale.

Effective sourcing processes within a firm can

The entire set of business processes required to purchase goods and services is

Understanding the Supply Chain

Supply Chain Performance: Achieving Strategic Fit and Scope

Supply Chain Drivers and Metrics

Designing Distribution Networks and Applications to e-Business

Network Design in the Supply Chain

Designing Global Supply Chain Networks

Demand Forecasting in a Supply Chain

Aggregate Planning in a Supply Chain

Sales and Operations Planning: Planning Supply and Demand in a Supply Chain

Coordination in a Supply Chain

Managing Economies of Scale in the Supply Chain: Cycle Inventory

Managing Uncertainty in a Supply Chain: Safety Inventory

Determining the Optimal Level of Product Availability

Transportation in a Supply Chain

Pricing and Revenue Management in a Supply Chain

Sustainability and the Supply Chain

Filters