Deck 7: Supplier Management

Question 1

The first step in the supplier management process is to ________.

Answer 1

identify need

Question 2

What kind of supplier relationship is recommended when the item is a non-critical item and the importance of technology is low?

A)Transactional
B)Long-term
C)Strategic
D)Collaborative

Answer 2

A

Question 3

The first step in the supplier management process is to select the supplier.

Answer 3

False

Question 4

Which is the first step in the supplier management process?

A)Identify needs
B)Select supplier
C)Develop supplier
D)Provide feedback

Question 5

The kind of supplier relationship that is usually recommended when the item is a critical item and supply risk is high is a ________ relationship.

Question 6

The type of relationship in which the buyer and supplier remain independent,with little integration of business processes is known as a(n)________ relationship.

Question 7

Documentation that tells buyers what to buy and the suppliers what is required of them is known as ________.

Question 8

What kind of supplier relationship is recommended when the item is a critical item and supply risk is high?

A)Transactional
B)Arm's-length
C)Collaborative
D)One time

Question 9

A collaborative relationship with the supplier is usually recommended for the procurement of an item for which the supply risk is high.

Question 10

The table below contains a list of four companies that have been rated (on a 1 to 5 scale)on three weighted performance factors.What is the score for Phoenix?

A)2.5
B)3.4
C)3.9
D)4.1

Question 11

A description that details the exact quantities of all purchased raw materials and the precise manner in which an item should be made is known as ________.

Question 12

Which is the last step in the supplier management process?

A)Identify needs
B)Select supplier
C)Develop supplier
D)Provide feedback

Question 13

A complex specification for the product being procured is called the scope of work.

Question 14

When it is important that all items of the product being procured are precisely the same,the supply manager is most likely to use simple specifications in the procurement of the product.

Question 15

Switching costs are usually high in collaborative supplier relationships.

Question 16

A specification for services is known as ________.

Question 17

The type of relationship in which the buyer and supplier work together sharing information,knowledge and expertise integrating their business processes is known as a ________ relationship.

Question 18

A transactional relationship with the supplier is usually recommended for the procurement of a critical item.

Question 19

The kind of supplier relationship that is usually recommended when the item is a non-critical item and the importance of technology is low is a ________ relationship.

Question 20

When precision in the final product is not important,the supply manager is most likely to use simple specifications in the procurement of the product.

Question 21

Which of the following suppliers is not a prime candidate to be chosen as part of the supplier development process?

A)Provides a large volume of products
B)Is a source of competitive advantage
C)Perfectly meets the firm's current needs in terms of quality,delivery and capacity
D)Provides products that are critical

Question 22

The first step in the supplier development process is to identify opportunities for development.

Question 23

The document which contains the specifications of what is needed and details the information that must be submitted by a supplier is known as

A)request for quotation.
B)bid specification.
C)preferred supplier contractor.
D)statement of work.

Question 24

The document which contains the specifications of what is needed and details the information that must be submitted by a supplier is known as ________.

Question 25

Self-assessment to provide accurate and timely feedback to the negotiating team should occur during which step of the negotiation process?

A)Preparation
B)Face-to-face discussions
C)Debriefing
D)None of the above

Question 26

A meeting that the negotiation team holds soon after the negotiation with the supplier in order to provide accurate and timely feedback is known as the ________.

Question 27

A survey administered to suppliers to determine fit with purchaser needs is known as

A)request for quotation.
B)request for proposal.
C)preferred supplier contractor.
D)supplier self-assessment.

Question 28

A survey administered to suppliers to determine fit with purchaser needs is known as ________.

Question 29

Being aware of cultural nuances should occur during which step of the negotiation process?

A)Preparation
B)Face-to-face discussions
C)Debriefing
D)None of the above

Question 30

The table below contains a list of four companies that have been rated (on a 1 to 5 scale with 1 being low and 5 being high)on three weighted performance factors.Which of the following statements regarding this information is best?

A)Phoenix is superior to American.
B)American is superior to Excelsior.
C)Mega is superior to Phoenix.
D)Excelsior is superior to Mega.

Question 31

The multi-criteria decision making method often used for supplier evaluation and selection is known as ________.

Question 32

The Apple Supplier Code of Conduct outlines its

A)high standards for creating safer working conditions.
B)requirement for treating workers fairly.
C)emphasis on using environmentally responsible practices.
D)All of the above
E)Only A and B above

Question 33

Which of the following functional personnel are typical members of a supplier development team?

A)Engineering
B)Operations
C)Quality
D)All of the above
E)Only B and C above

Question 34

Analyzing the relative bargaining positions on parties involved in the negotiation occurs during the debriefing step of the negotiation process.

Question 35

Discuss the role/purpose of a request for quote (RFQ)or a request for proposal (RFP)in the procurement process.

Question 36

The document which contains the specifications of what is needed and details the information that must be submitted by a supplier is known as supplier self-assessment.

Question 37

Discuss the concept of win-win negotiations in supplier selection.

Question 38

Many firms are focused on helping their suppliers become more socially and environmentally sustainable through compliance to a

A)price and delivery plan.
B)supplier code of conduct.
C)transactional relationship.
D)negotiation plan.

Question 39

A request for proposal (RFP)is used when the firm knows exactly what they need,whereas a request for quote (RFQ)is used when the firm is open to the materials and technology to meet their need.

Question 40

Apple outlines its high standards for creating safer working conditions,treating workers fairly,and using environmentally responsible practices through its

A)price and delivery plan.
B)supplier code of conduct.
C)transactional relationship.
D)negotiation plan.

Question 41

Use the information below to answer the following question(s).
A computer manufacturer procures memory chips from its key supplier.The tool that the manufacturer uses to monitor the part supplier is a supplier scorecard.With respect to delivery performance,the primary performance metric monitored is the percentage of orders delivered complete and on-time.The manufacturer also monitors the supplier's service performance and measures the invoice accuracy rate (% of invoices that are accurate).The following measures are used for the scoring criteria:
Data collected on the supplied orders over the present quarter indicated that 350 orders were delivered and out of these 10 orders were incomplete,5 orders were late and another 15 orders were incomplete and late.Also out the 350 invoices for the shipments delivered,there were errors on 50 invoices.
What is the service performance-i.e. ,percentage of invoices that are accurate for this quarter?

A)55%
B)78%
C)86%
D)92%

Question 42

Use the information below to answer the following question(s).
An automotive manufacturer procures an important engine part.The tool that the manufacturer uses to monitor the part supplier is a supplier scorecard.With respect to part quality,two primary performance metrics monitored are parts per million (PPM)defects and percent PPM improvement.The following measures are used for the scoring criteria:
Data collected on the supplied part over the present quarter indicated 15 defects with 325,000 parts received.The PPM defect rate in the prior quarter was 73.
What are the scorecard points received by this supplier for the percentage PPM improvement in this quarter?

A)0
B)5
C)10
D)15

Question 43

Engineering personnel are typically included as members of a cross-functional supplier development team.

Question 44

Defining key metrics and cost-sharing mechanisms occurs after opportunities for development have been identified as part of the supplier development process.

Question 45

The supplier development process is the sole responsibility of mid-level management.

Question 46

Use the information below to answer the following question(s).
A computer manufacturer procures memory chips from its key supplier.The tool that the manufacturer uses to monitor the part supplier is a supplier scorecard.With respect to delivery performance,the primary performance metric monitored is the percentage of orders delivered complete and on-time.The manufacturer also monitors the supplier's service performance and measures the invoice accuracy rate (% of invoices that are accurate).The following measures are used for the scoring criteria:
Data collected on the supplied orders over the present quarter indicated that 350 orders were delivered and out of these 10 orders were incomplete,5 orders were late and another 15 orders were incomplete and late.Also out the 350 invoices for the shipments delivered,there were errors on 50 invoices.
What is the delivery performance-i.e. ,percentage of order delivered complete and on-time for this quarter?

A)95%
B)91.5%
C)83.2%
D)75%

Question 47

Use the information below to answer the following question(s).
A computer manufacturer procures memory chips from its key supplier.The tool that the manufacturer uses to monitor the part supplier is a supplier scorecard.With respect to delivery performance,the primary performance metric monitored is the percentage of orders delivered complete and on-time.The manufacturer also monitors the supplier's service performance and measures the invoice accuracy rate (% of invoices that are accurate).The following measures are used for the scoring criteria:
Data collected on the supplied orders over the present quarter indicated that 350 orders were delivered and out of these 10 orders were incomplete,5 orders were late and another 15 orders were incomplete and late.Also out the 350 invoices for the shipments delivered,there were errors on 50 invoices.
What are the scorecard points received by this supplier for the delivery performance in this quarter?

A)0
B)10
C)20
D)25

Question 48

Use the information below to answer the following question(s).
A computer manufacturer procures memory chips from its key supplier.The tool that the manufacturer uses to monitor the part supplier is a supplier scorecard.With respect to delivery performance,the primary performance metric monitored is the percentage of orders delivered complete and on-time.The manufacturer also monitors the supplier's service performance and measures the invoice accuracy rate (% of invoices that are accurate).The following measures are used for the scoring criteria:
Data collected on the supplied orders over the present quarter indicated that 350 orders were delivered and out of these 10 orders were incomplete,5 orders were late and another 15 orders were incomplete and late.Also out the 350 invoices for the shipments delivered,there were errors on 50 invoices.
What are the scorecard points received by this supplier for the service performance in this quarter?

A)0
B)3
C)7
D)10

Question 49

Use the information below to answer the following question(s).
An automotive manufacturer procures an important engine part.The tool that the manufacturer uses to monitor the part supplier is a supplier scorecard.With respect to part quality,two primary performance metrics monitored are parts per million (PPM)defects and percent PPM improvement.The following measures are used for the scoring criteria:
Data collected on the supplied part over the present quarter indicated 15 defects with 325,000 parts received.The PPM defect rate in the prior quarter was 73.
What are the scorecard points received by this supplier for the PPM defect rate in this quarter?

A)0
B)10
C)20
D)30

Question 50

Use the information below to answer the following question(s).
An automotive manufacturer procures an important engine part.The tool that the manufacturer uses to monitor the part supplier is a supplier scorecard.With respect to part quality,two primary performance metrics monitored are parts per million (PPM)defects and percent PPM improvement.The following measures are used for the scoring criteria:
Data collected on the supplied part over the present quarter indicated 15 defects with 325,000 parts received.The PPM defect rate in the prior quarter was 73.
What is the percent improvement in the defect rate this quarter compared to the prior quarter?

A)37%
B)15%
C)25%
D)59%

Question 51

The final step in the supplier development process is to ________.

Question 52

The first step in the process of designing and implementing a supplier scorecard is to develop the performance measures.

Question 53

Many firms are focused on helping their suppliers become more socially and environmentally sustainable through compliance to a supplier ________ .

Question 54

The process of helping a supplier improve performance in areas such as cost,delivery,and quality is known as ________.

Question 55

Use the information below to answer the following question(s).
An automotive manufacturer procures an important engine part.The tool that the manufacturer uses to monitor the part supplier is a supplier scorecard.With respect to part quality,two primary performance metrics monitored are parts per million (PPM)defects and percent PPM improvement.The following measures are used for the scoring criteria:
Data collected on the supplied part over the present quarter indicated 15 defects with 325,000 parts received.The PPM defect rate in the prior quarter was 73.
What is the PPM defect rate for this quarter?

A)15
B)30
C)46
D)75

Question 56

The first step in the supplier development process is to ________.

Question 57

The final step in the process of designing and implementing a supplier scorecard is to educate the supplier on performance measures and implications.

Question 58

Identifying key projects to work on occurs before the critical supplier is identified for the supplier development process.

Question 59

Apple outlines its high standards for creating safer working conditions,treating workers fairly,and using environmentally responsible practices through its ________.

Question 60

Cross-functional teams are an integral part of the supplier development process.

Question 61

A supplier scorecard is used for price negotiations with the supplier.

Question 62

The first step in the process of designing and implementing a supplier scorecard is to ________.

Question 63

Discuss the process of designing and implementing a supplier scorecard.

Question 64

The final step in the process of designing and implementing a supplier scorecard is to ________.