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

Overall reduction in material usage can be accomplished through engineering design changes and reuse and recycle programs.

A single source supplier may hold the buyer hostage by unduly raising prices or becoming too complacent,particularly when there are higher switching costs.

All buyers must engage in currency hedging activities,regardless of their experience.

Central to the design of all supplier measurement systems is the decision about what to measure and how to weigh various performance categories.

The ____ provides all suppliers,regardless of their performance history,a chance to remain in the supply base.

Which of the following is not one of the advantages of a rationalized and optimized supply base?

All supplier measurement systems have some element of subjectivity.

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.

Supply base rationalization and optimization should be a one-time activity.

If a/an ____ currency is utilized,the ____ bears the currency risk and is likely to build in additional contingency costs to cover that risk.

Scenario analysis is technically considered forecasting.

Which of the following is not one of the elements of financial risk in a supply base?

Certain risks,such as those arising from war,piracy,and losses attributable to delays in transit are generally covered without the need for additional insurance premiums.

Which of the following is a disadvantage of a cost-based supplier evaluation system?

Supply base rationalization and optimization often involves eliminating those suppliers who are unwilling to achieve (or are incapable of achieving)supply management performance objectives,either currently or expected in the near future.

The supplier performance index (SPI)equals (____ plus ____)divided by ____.

Which of the following is not one of the supply base reduction methods offered by Keki Bhote?

In supplier development,the supplier must be convinced that it is in its own best interest to accept the buyer's direction and assistance.

A buyer may delay reporting a supplier's poor performance until the next annual performance review.

Pursuing supplier development activities directly with suppliers is both quick and easy.