Deck 11: Purchasing, Supply Partnerships, and Supply Chain Power

Question 1

"rule of thumb" must be developed that can be used to decide whether or not a partnership _____________.

A) has sufficient potential
B) is appropriate
C) would work for both parties
D) would be a good opportunity for all involved
E) would not have any potential for success

Answer 1

A

Question 2

__________ is action without inherent desire, and, thus, _________ remains a relatively easy factor to measure since it implies action, not feeling.

A) Involvement / involvement
B) Cooperation / cooperation
C) Compliance / compliance
D) Commitment / commitment
E) Response / response

Answer 2

C

Question 3

The first step in the supplier partnership implementation process includes the strategic verification of the need for a supplier partnership. Here, the firm must evaluate the potential ____________ of a partnership in comparison to traditional processes.

A) strengths and weaknesses
B) strengths and benefits
C) strengths and risks
D) duration and strengths
E) risks and benefits

Answer 3

E

Question 4

onflict can be defined as "tension between two or more social entities... which arises from _______________________."

A) mutual distrust between all the parties
B) incompatibility of actual or desired responses
C) a difference of opinions or desires
D) a difference in core values
E) one party taking advantage of the other party

Question 5

Two factors driven by power and critical to the partnership dyad are commitment and trust. Commitment may be defined as the perception of being emotionally impelled.

Question 6

The notion of ______ in an interfirm relationship implies _______ dependence on the source; otherwise the _______ would not need to subject itself to the unbalanced relationship.

A) politics / some / seller
B) politics / heavy / source
C) power politics / seller / seller
D) power politics / target / source
E) power / target / target

Question 7

___________ is nothing more than a form of compliance as well as identification and _________.

A) Commitment / feelings
B) Involvement / feelings
C) Involvement / cooperation
D) Cooperation / involvement
E) Commitment / involvement

Question 8

________ is a direct result of dependence, and the extent of dependence is directly induced by _____________ of power.

A) Power politics / the sources
B) Politics / the targets
C) Power / perceptions
D) Power / sources
E) Power politics / the illusions

Question 9

The notion of interfirm power holds its roots in ______________ literature and has been extensively developed by marketing channel researchers.

A) management science
B) organizational behavior
C) organizational science
D) social science
E) operations science

Question 10

s defined by Maloni and Benton: the power of a supply chain member [is] the ability to control the decision variables in the supply strategy of another member in a given chain at a different level of the supply chain. It should be different from the influenced member's original level of control over their own supply strategy.

Question 11

onflict is present in the supply chain when one supply chain member ________ goal attainment and performance of another. Conflict is an omnipresent factor in any supply chain relationship.

A) hinders
B) blocks
C) facilitates
D) enhances
E) fosters

Question 12

Once a partner is selected, the establishment of the actual relationship provides the critical step in which the partners must create a complete sense of awareness about the ______________ of all involved parties.

A) strengths and weaknesses
B) goals and aspirations
C) needs and participation
D) goals and strategies
E) goals and objectives

Question 13

The final step in the partnering process includes the maintenance of the relationship to ______________________________.

A) improve communications and processes
B) foster good communications and relationships
C) either enhance its development or bring about its dissolution
D) develop unified goals and objectives
E) either improve communications or bring the two organizations closer together

Question 14

The relationship between _______________ is dependent upon the origins of the commitment.

A) power and commitment
B) involvement and commitment
C) power and politics
D) power and involvement
E) politics and involvement

Question 15

__________ in the supply chain can be defined as the extent of contentment with the relationship.

A) Cooperation
B) Good service
C) Good supplier relations
D) Good public relations
E) Satisfaction

Question 16

xploration of the effects of _______ on factors of the supplier-buyer alliance provides the key to understanding the concept of the power-partnership link...

A) politics
B) power
C) negotiations
D) processes
E) persuasion

Question 17

xtremely complex in nature, ________ serves as a composite relationship-oriented variable, affecting both the ______________ in many transparent as well as concealed ways.

A) organizational science / buyers and sellers
B) power science / buyers and sellers
C) a partnership / target and source
D) power / target and source
E) a partnership / buyers and suppliers

Question 18

Ultimate dissolution of the partnership may be necessary if the firms are able to successfully work through the critical steps of partnership formation or synergies can be recognized.

Question 19

Power essentially attempts to force a _______ to comply with the ________ desires, and, like commitment, the level of compliance and more importantly cooperation are critical to the relationship tenure as well as profitability.

A) seller / buyer's
B) buyer / seller's
C) supplier / buyer's
D) target / seller's
E) target / source's

Question 20

bandonment of partners may lead to __________, making future partners _________ to attract.

A) increased production / easier
B) suspicion / difficult easier
C) greater opportunities / easier
D) a search for new partners / somewhat easier
E) suspicion / difficult

Question 21

Recognizing partnerships between buyer and supplier, as a fundamental driver for the success of the Pacific Rim supply chain processes, American firms have begun to _______________.

A) become more competitive
B) operate like Pacific Rim companies
C) use the same processes
D) emulate these supplier alliances
E) improve relationships with suppliers

Question 22

Partnerships move beyond special influence transactions by involving efforts of both firms to coordinate functional activities. The three tiers listed below show how partnerships can be segmented based on the intensity and duration of the leadership.Tier I partnerships entail short-term, single-function/division coordination.Tier II partnerships extend coordination to integration and encompass multiple activities over a longer time span.Tier III partnerships dilate into "significant levels of operational integration."

Question 23

Within the win-win partnership dyad, buyer and supplier share goals as well as inherent risks through joint planning and control, seeking to create a supply chain with increased information flow and enhanced loyalty. Like the overall goal of supply chain management, such coordination allows for ________________________.

A) improved service
B) technological innovation
C) product design with decreased cost
D) all of the above
E) "A" and "C" only

Question 24

Ideally, the end result for both firms should be _____________, yielding greater control of costs, cycle times, inventory, quality, and, ultimately, customer satisfaction.

A) decreased uncertainty
B) improved customer satisfaction
C) decreased customer complaints
D) increased certainty
E) higher quality and reduced defects
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Power Point Slide 5

Question 25

Over recent decades, firms within the supply chain have begun to realize the advantages enjoyed from sharing of technology, information, and planning with other firms. Even competitors, and many modern business thinkers will claim that not only is a more open and relational attitude advantageous, but actually essential and inevitable in maintaining ___________________.

A) strategic advantage
B) a lead over the competition
C) a competitive advantage
D) control of the market
E) an improved market share

Question 26

rivers of satisfaction within supply chain partnerships include relationship-oriented factors such as _________________.

A) planning and mutuality
B) interdependence
C) operational information exchange
D) all of the above
E) "A" and "C" only

Question 27

While many firms have sought ___________ through acquisition to harness supplier expertise, some argue that _____________ can provide similar benefits without the necessity of ownership and arduous exit barriers.

A) horizontal integration / mergers
B) vertical integration / cooperation
C) horizontal integration / cooperatives
D) stakeholders / stakeholders
E) vertical integration / partnerships

Question 28

Harvard Business School study concluded that a key driver in the decline of U.S. competitiveness in the international marketplace has originated from investing _______________, such as supplier relations.

A) more in tangible benefits
B) less in tangible benefits
C) less in intangible benefits
D) more in intangible benefits
E) none of the above

Question 29

Ultimate supply chain partner __________ remains the overriding factor in determining the future of a supply chain partnership.

A) relations
B) service
C) power
D) involvement
E) satisfaction

Question 30

The objective of a drastically ____________ base precludes an acceptance of supplier partnerships because a firm must accept dependence upon _____________ before they can internalize legitimate forms of supply chain management and supplier partnerships.

A) improved supplier / sales representatives
B) reduced supplier / fewer suppliers
C) increased supplier / fewer sales representatives
D) improved marketing / multiple suppliers
E) improved operations / multiple suppliers

Question 31

Supply chain partnerships bridge the barrier between buyer and seller, leading manufacturers to ________________.

A) share more information with their suppliers
B) ally with a reduced supplier base
C) ally with an improved supplier base
D) choose suppliers more wisely
E) choose suppliers more carefully

Question 32

Performance may be defined as the ability to ________________.

A) execute intentions and goals
B) meet goals and objectives
C) attain goals and meet expectations
D) meet expectations and execute strategies
E) execute plans and meet profit goals

Question 33

final point on the effects of power concerns the ultimate ______________ of the supply chain members as well as the supply chain itself.

A) profitability
B) performance and subsequent profitability
C) cost reductions and subsequent profitability
D) productivity and profitability
E) performance

Question 34

nd like supply chain management, _____________ extends beyond a simple interfirm relationship to involve integration of confidential and vital processes such as strategy formation, planning, information flow, and operations.

A) purchasing management
B) buyer-seller management
C) buyer-supplier partnering
D) buyer-seller partnering
E) purchaser-seller relations

Question 35

lso termed a __________, a supply chain partnership is a relationship formed between two independent entities in supply channels to achieve specific objectives and benefits, and it is these partnerships that form the essential building blocks of _______________ management.

A) supply alliance / operations
B) strategic source / supply and operations
C) strategic alliance / supply chain
D) preferred supplier / strategic alliance
E) preferred partner / strategic

Question 36

lthough many firms engage in partnering activities, the specific interpretation of a ___________ or partnership is at best vague.

A) strategic relationship
B) buyer-seller alliance
C) buyer-seller partner
D) buyer-seller relationship
E) strategic alliance

Question 37

Some supply managers argue that implementation of many new manufacturing techniques necessitates _______________________.

A) a reduction in the number of suppliers
B) choosing suppliers more carefully
C) switching to multiple supply sources
D) negotiating delivery terms more favorable to the company
E) insisting on JIT deliveries

Question 38

ritical to the implementation of purchasing and supply management techniques is the development of _________________.

A) suppliers
B) supply chain partnerships
C) sources
D) long range strategies
E) a business plan

Question 39

espite the differences in opinions about the size of the supplier base, the major issue remains that a closer relationship with suppliers facilitates ____________.

A) a reduced number of sales representatives
B) improved performance of all involved
C) a closer bond with supply firms
D) a reduced number of suppliers
E) JIT deliveries of needed supplies

Question 40

Though ___________ has received abundant recognition over the last few decades from both researchers and practitioners alike, the concept of a __________ is perhaps as old as or even older than business itself.

A) buyer relations / partnering
B) partnering / relationships
C) partnering / partnership
D) strategic partners / buyer-seller relations
E) partnering / buyer-seller partnerships

Question 41

uyers can gain from higher quality, and transportation costs may be reduced through economies of scale, decreased administrative and switching efforts, process integration, coordination of processes, and quantity discounts.

Question 42

With its many benefits, supply chain partnerships retain several inherent risks that can be potentially damaging to participants. First and foremost, heavy reliance on one partner can be disastrous if the partner _____________.

A) changes the specifications
B) does not deliver on time
C) fails to produce quality products
D) does not meet expectations
E) increases the price of his materials

Question 43

efore firms can enjoy the benefits of a buyer-supplier partnership, they must first develop and design the partnership implementation process. A supplier partnership involves a significant attitudinal as well as structural change from traditional supply arrangements, so the allying firms must be meticulous to ensure that a true win-win partnership is developed.

Question 44

Guides to the implementation process are summarized below, with one exception. Which one is not one of the steps?

A) Establish strategic need for partnership
B) Develop partner criteria, evaluate suppliers, and select partner
C) Formally establish partnership
D) Maintain and refine partnership (possible reduction or dissolvement
E) Reward partner for superb quality and service