Question 1

Which of the following is a disadvantage of a categorical supplier evaluation system?

Accepted Answer

A)  Least reliable. 
B)  Cost accounting system required. 
C)  Less frequent generation of evaluations. 
D)  Most subjective. 
E)  Usually manual. 
A)  Least reliable. 
B)  Cost accounting system required. 
C)  Less frequent generation of evaluations. 
D)  Most subjective. 
E)  Usually manual.

Question 2

According to ISM,____ is defined as the ability to meet current needs without hindering the ability to meet the needs of future generations in terms of economic,environmental,and social challenges.

Accepted Answer

A)  Sustainability 
B)  Scenario analysis 
C)  Social responsibility 
D)  Supply chain risk management 
E)  Standardization 
A)  Sustainability 
B)  Scenario analysis 
C)  Social responsibility 
D)  Supply chain risk management 
E)  Standardization

Question 3

The ____ requires the systematic evaluation of the performance of individual suppliers and placement into one of three categories.

Accepted Answer

A)  twenty/eighty rule 
B)  competency staircase approach 
C)  "improve or else" approach 
D)  triage approach 
E)  zero defects approach 
A)  twenty/eighty rule 
B)  competency staircase approach 
C)  "improve or else" approach 
D)  triage approach 
E)  zero defects approach

Question 4

The cost-based supplier evaluation system is the most thorough and least subjective.

Accepted Answer

A) True 
 B)False

Question 5

____ 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.

Accepted Answer

A)  PERT/CPM 
B)  Scenario analysis 
C)  Hedging 
D)  SCRM 
E)  None of these choices. 
A)  PERT/CPM 
B)  Scenario analysis 
C)  Hedging 
D)  SCRM 
E)  None of these choices.

Question 6

Considering the cost-based supplier evaluation system,the actual cost per nonconformance event may be difficult to estimate or calculate,as many traditional cost accounting systems are not designed to identify and capture such data.

Accepted Answer

A) True 
 B)False

Question 7

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.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A)  triage approach 
B)  competency staircase approach 
C)  M*A*S*H approach 
D)  "improve or else" approach 
E)  twenty/eighty rule 
A)  triage approach 
B)  competency staircase approach 
C)  M*A*S*H approach 
D)  "improve or else" approach 
E)  twenty/eighty rule

Question 9

Multiple sourcing can add quality variability to the sourced product due to the use of different materials and processes.

Accepted Answer

A) True 
 B)False

Question 10

Short-term purchase contracts that award small volumes of business to multiple suppliers decrease production costs and provide incentive for individual supplier investments in process improvement.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Buyers cannot move too aggressively when reducing the supply base.

Accepted Answer

A) True 
 B)False

Question 14

All buying organizations need to pursue supplier development.

Accepted Answer

A) True 
 B)False

Question 15

Supplier performance that is good enough today should suffice in the marketplace of tomorrow.

Accepted Answer

A) True 
 B)False

Question 16

The categorical approach to supplier evaluation is commonly used by smaller organizations because it is both easy and relatively inexpensive to implement.

Accepted Answer

A) True 
 B)False

Question 17

____ in a supply base consists of such factors as: country stability,regional stability,party and governmental stability,levels of corruption,differences in contract law and intellectual property rights,elections,military actions,civil disturbances,terrorism,trade balance issues,and duties and tariffs.

Accepted Answer

A)  Financial risk 
B)  Market risk 
C)  Supplier company risk 
D)  Political risk 
E)  Sourcing risk 
A)  Financial risk 
B)  Market risk 
C)  Supplier company risk 
D)  Political risk 
E)  Sourcing risk

Question 18

All of the following are possible risks of maintaining fewer suppliers except ____.

Accepted Answer

A)  supplier dependency 
B)  supply disruption 
C)  overaggressive supply reduction 
D)  maintaining an all-domestic supply base 
E)  absence of competition 
A)  supplier dependency 
B)  supply disruption 
C)  overaggressive supply reduction 
D)  maintaining an all-domestic supply base 
E)  absence of competition

Question 19

A large supply base means the duplication of a wide range of supply management activities,adding to acquisition cost without a corresponding increase in value added.

Accepted Answer

A) True 
 B)False

Question 20

All of the following are advantages of a categorical supplier evaluation system except ____.

Accepted Answer

A)  easy to implement 
B)  requires minimal data 
C)  different personnel contribute 
D)  low-cost system 
E)  greatest potential for long-term improvement 
A)  easy to implement 
B)  requires minimal data 
C)  different personnel contribute 
D)  low-cost system 
E)  greatest potential for long-term improvement

Which of the following is a disadvantage of a categorical supplier evaluation system?

According to ISM,____ is defined as the ability to meet current needs without hindering the ability to meet the needs of future generations in terms of economic,environmental,and social challenges.

The ____ requires the systematic evaluation of the performance of individual suppliers and placement into one of three categories.

The cost-based supplier evaluation system is the most thorough and least subjective.

____ 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.

Considering the cost-based supplier evaluation system,the actual cost per nonconformance event may be difficult to estimate or calculate,as many traditional cost accounting systems are not designed to identify and capture such data.

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.

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

Multiple sourcing can add quality variability to the sourced product due to the use of different materials and processes.

Short-term purchase contracts that award small volumes of business to multiple suppliers decrease production costs and provide incentive for individual supplier investments in process improvement.

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

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

Buyers cannot move too aggressively when reducing the supply base.

All buying organizations need to pursue supplier development.

Supplier performance that is good enough today should suffice in the marketplace of tomorrow.

The categorical approach to supplier evaluation is commonly used by smaller organizations because it is both easy and relatively inexpensive to implement.

All of the following are possible risks of maintaining fewer suppliers except ____.

A large supply base means the duplication of a wide range of supply management activities,adding to acquisition cost without a corresponding increase in value added.

All of the following are advantages of a categorical supplier evaluation system except ____.

Introduction to Purchasing and Supply Chain Management

The Purchasing Process

Purchasing Policy and Procedures

Supply Management Integration for Competitive Advantage

Purchasing and Supply Management Organization

Supply Management and Commodity Strategy Development

Supplier Evaluation and Selection

Supplier Quality Management

Worldwide Sourcing

Strategic Cost Management

Purchasing and Supply Chain Analysis: Tools and Techniques

Negotiation and Conflict Management

Contract Management

Purchasing Law and Ethics

Lean Supply Chain Management

Purchasing Services

Supply Chain Information Systems and Electronic Sourcing

Performance Measurement and Evaluation

Purchasing and Supply Strategy Trends

Filters

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

Which of the following is a disadvantage of a categorical supplier evaluation system?

According to ISM,____ is defined as the ability to meet current needs without hindering the ability to meet the needs of future generations in terms of economic,environmental,and social challenges.

The ____ requires the systematic evaluation of the performance of individual suppliers and placement into one of three categories.

The cost-based supplier evaluation system is the most thorough and least subjective.

____ 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.

Considering the cost-based supplier evaluation system,the actual cost per nonconformance event may be difficult to estimate or calculate,as many traditional cost accounting systems are not designed to identify and capture such data.

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.

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

Multiple sourcing can add quality variability to the sourced product due to the use of different materials and processes.

Short-term purchase contracts that award small volumes of business to multiple suppliers decrease production costs and provide incentive for individual supplier investments in process improvement.

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

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

Buyers cannot move too aggressively when reducing the supply base.

All buying organizations need to pursue supplier development.

Supplier performance that is good enough today should suffice in the marketplace of tomorrow.

The categorical approach to supplier evaluation is commonly used by smaller organizations because it is both easy and relatively inexpensive to implement.

All of the following are possible risks of maintaining fewer suppliers except ____.

A large supply base means the duplication of a wide range of supply management activities,adding to acquisition cost without a corresponding increase in value added.

All of the following are advantages of a categorical supplier evaluation system except ____.

Introduction to Purchasing and Supply Chain Management

The Purchasing Process

Purchasing Policy and Procedures

Supply Management Integration for Competitive Advantage

Purchasing and Supply Management Organization

Supply Management and Commodity Strategy Development

Supplier Evaluation and Selection

Supplier Quality Management

Worldwide Sourcing

Strategic Cost Management

Purchasing and Supply Chain Analysis: Tools and Techniques

Negotiation and Conflict Management

Contract Management

Purchasing Law and Ethics

Lean Supply Chain Management

Purchasing Services

Supply Chain Information Systems and Electronic Sourcing

Performance Measurement and Evaluation

Purchasing and Supply Strategy Trends

Filters