Question 1

Which of the following is a typical consideration in favor of multiple sourcing?

Accepted Answer

A)  When the technology path is uncertain 
B)  Just-in-time requirements require a single source 
C)  Significantly lower freight costs may result with a single source 
D)  Special tooling is required 
E)  Total system inventory will be reduced 
A)  When the technology path is uncertain 
B)  Just-in-time requirements require a single source 
C)  Significantly lower freight costs may result with a single source 
D)  Special tooling is required 
E)  Total system inventory will be reduced

Question 2

A local source is defined by the textbook as a source headquartered within the country and has facilities in multiple regions throughout the country.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is typically a reason to buy directly from the manufacturer instead of buying from a distributor?

Accepted Answer

A)  An economy of scale is more likely to be achieved by buying directly from a manufacturer 
B)  Commissions paid to brokers can be eliminate by buying directly from a manufacturer 
C)  Special services are more likely to be provided by a manufacturer 
D)  Technical advice is more likely to be provided by a manufacturer 
E)  Credit is more likely to be provided by a manufacturer 
A)  An economy of scale is more likely to be achieved by buying directly from a manufacturer 
B)  Commissions paid to brokers can be eliminate by buying directly from a manufacturer 
C)  Special services are more likely to be provided by a manufacturer 
D)  Technical advice is more likely to be provided by a manufacturer 
E)  Credit is more likely to be provided by a manufacturer

Question 4

Many forces motivate a buying firm to ensure that MWBE businesses receive a share of the firm's business.Which of the following is not one of those forces?

Accepted Answer

A)  Set-aside quotas in government appropriations 
B)  Political affiliation of upper management 
C)  Customer base includes MWBE businesses and their employees 
D)  Bottom-line profitability 
E)  Good business sense 
A)  Set-aside quotas in government appropriations 
B)  Political affiliation of upper management 
C)  Customer base includes MWBE businesses and their employees 
D)  Bottom-line profitability 
E)  Good business sense

Question 5

The two steps in two-step bidding are: 1.Submission of technical proposals by potential suppliers and 2.Price bidding by potential suppliers that passed the first step.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is not a typical category where the opportunity to reduce costs is increased through early supplier involvement in design?

Accepted Answer

A)  Supply management no longer needs to be involved in design 
B)  Standards may be agreed upon which may increase productivity and quality 
C)  Order quantities may be reduced, thereby reducing inventories 
D)  Lead time may be reduced, thereby saving money 
E)  Processes may be improved through the collaboration 
A)  Supply management no longer needs to be involved in design 
B)  Standards may be agreed upon which may increase productivity and quality 
C)  Order quantities may be reduced, thereby reducing inventories 
D)  Lead time may be reduced, thereby saving money 
E)  Processes may be improved through the collaboration

Question 7

The strategic sourcing plan should be developed in an environment that does not include any functional area representatives.

Accepted Answer

A) True 
 B)False

Question 8

If a supplier is unlikely to meet future requirements,the buying firm has several alternatives.Which is typically not one of the alternatives?

Accepted Answer

A)  Assist with financing to help the supplier meet future requirements 
B)  Negotiate a better price with the supplier for the current contract 
C)  Assist with technological assistance to help the supplier meet future requirements 
D)  Develop new sources to replace the supplier 
E)  Develop the capability internally to replace the supplier 
A)  Assist with financing to help the supplier meet future requirements 
B)  Negotiate a better price with the supplier for the current contract 
C)  Assist with technological assistance to help the supplier meet future requirements 
D)  Develop new sources to replace the supplier 
E)  Develop the capability internally to replace the supplier

Question 9

In the discovery stage of the strategic sourcing plan given in the textbook,several analyses and approaches were presented to aid the decision.Which of the following was not one of those approaches?

Accepted Answer

A)  Supplier Surveys 
B)  Facility Visits 
C)  Trial and Error 
D)  Third Party Evaluators 
E)  Evaluation Conference 
A)  Supplier Surveys 
B)  Facility Visits 
C)  Trial and Error 
D)  Third Party Evaluators 
E)  Evaluation Conference

Question 10

The selection of bidding or negotiation should be decided by using subjective criteria,a lowest price perspective and sound supply management logic.

Accepted Answer

A) True 
 B)False

Question 11

Supply base reduction is achieved through increasing both variety and consolidation.

Accepted Answer

A) True 
 B)False

Question 12

SM requires supply management to develop a tactical sourcing plan that details how supply management will discover and select a growing supplier base.

Accepted Answer

A) True 
 B)False

Question 13

The negotiation process is far more likely than the bidding process to lead to a complete understanding of all issues of the procurement.

Accepted Answer

A) True 
 B)False

Question 14

Development of suppliers is one of the most commonly used approaches in supply chain management.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is a typical consideration in favor of multiple sourcing?

Accepted Answer

A)  Lower total cost results from higher volume 
B)  Quality considerations require a single source 
C)  Buyer obtains more influence with a single source supplier 
D)  Meet local content requirements 
E)  Lower costs to source, process, expedite, inspect 
A)  Lower total cost results from higher volume 
B)  Quality considerations require a single source 
C)  Buyer obtains more influence with a single source supplier 
D)  Meet local content requirements 
E)  Lower costs to source, process, expedite, inspect

Question 16

A local source is defined by the textbook as one where the firm's headquarters and all facilities are located in the city or region where the materials or services will be used.

Accepted Answer

A) True 
 B)False

Question 17

In the discovery stage of the strategic sourcing plan given in the textbook,several analyses were presented.Which of the following was not one of those analyses?

Accepted Answer

A)  Financial Condition Analysis 
B)  Knowledge Based System Analysis 
C)  Quality Capability Analysis 
D)  Capacity Capability Analysis 
E)  Management Capability Analysis 
A)  Financial Condition Analysis 
B)  Knowledge Based System Analysis 
C)  Quality Capability Analysis 
D)  Capacity Capability Analysis 
E)  Management Capability Analysis

Question 18

World class supply management has to develop a strategic sourcing plan that details how supply management will discover,evaluate,select,develop and manage a viable supplier base.

Accepted Answer

A) True 
 B)False

Question 19

A national source is defined by the textbook as one where the firm's headquarters and all facilities are located in the city or region where the materials or services will be used.

Accepted Answer

A) True 
 B)False

Question 20

The strategic sourcing plan presented in Chapter 11 aids in source selection by detailing how suppliers will be discovered,evaluated,selected,developed and managed.

Accepted Answer

A) True 
 B)False

Exam 11: Sourcing

Which of the following is a typical consideration in favor of multiple sourcing?

A local source is defined by the textbook as a source headquartered within the country and has facilities in multiple regions throughout the country.

Which of the following is typically a reason to buy directly from the manufacturer instead of buying from a distributor?

Many forces motivate a buying firm to ensure that MWBE businesses receive a share of the firm's business.Which of the following is not one of those forces?

The two steps in two-step bidding are: 1.Submission of technical proposals by potential suppliers and 2.Price bidding by potential suppliers that passed the first step.

Which of the following is not a typical category where the opportunity to reduce costs is increased through early supplier involvement in design?

The strategic sourcing plan should be developed in an environment that does not include any functional area representatives.

If a supplier is unlikely to meet future requirements,the buying firm has several alternatives.Which is typically not one of the alternatives?

In the discovery stage of the strategic sourcing plan given in the textbook,several analyses and approaches were presented to aid the decision.Which of the following was not one of those approaches?

The selection of bidding or negotiation should be decided by using subjective criteria,a lowest price perspective and sound supply management logic.

Supply base reduction is achieved through increasing both variety and consolidation.

SM requires supply management to develop a tactical sourcing plan that details how supply management will discover and select a growing supplier base.

The negotiation process is far more likely than the bidding process to lead to a complete understanding of all issues of the procurement.

Development of suppliers is one of the most commonly used approaches in supply chain management.

Which of the following is a typical consideration in favor of multiple sourcing?

A local source is defined by the textbook as one where the firm's headquarters and all facilities are located in the city or region where the materials or services will be used.

In the discovery stage of the strategic sourcing plan given in the textbook,several analyses were presented.Which of the following was not one of those analyses?

World class supply management has to develop a strategic sourcing plan that details how supply management will discover,evaluate,select,develop and manage a viable supplier base.

A national source is defined by the textbook as one where the firm's headquarters and all facilities are located in the city or region where the materials or services will be used.

The strategic sourcing plan presented in Chapter 11 aids in source selection by detailing how suppliers will be discovered,evaluated,selected,developed and managed.

The Progression to Professional Supply Management

Organizational Issues

Supply Management: an Organization Spanning Activity

A Portfolio of Relationships

New Product Development

Purchasing Descriptions and Specifications

Managing for Quality

The Procurement of Equipment

Purchasing Services

Outsourcing

Global Supply Management

Total Cost of Ownership

Price and Cost Analysis

Methods of Compensation

Negotiation

Contract Formation and Legal Issues

Contact and Relationship Management

Ethics and Social Responsibilities

Production and Inventory Control

Demand Management and Logistics

Implementing Value Network Management

Filters