Question 1

To reduce errors and complexity, sourcing is the only function that should interact with suppliers.

Accepted Answer

A) True 
 B)False  False

Question 2

Utilizing a request for quotation (RFQ) is part of the ___________ process:

Accepted Answer

A)   Supplier evaluation
B)   Risk mitigation
C)   Request for proposal
D)   Supplier selection
E)   a and b D

Question 3

Benefits to buyers from utilizing e-auctions include:

Accepted Answer

A)   Market transparency
B)   Increased error rate
C)   Complex supplier comparisons
D)   Increased cycle time
E)   Fewer suppliers in the decision set A

Question 4

Attributes of a commercial sourcing include:

Accepted Answer

A)   Multiple suppliers of common products
B)   Buyers are final consumers of products
C)   Buyer does not negotiate purchase price
D)   Buyers have specialized purchasing needs
E)   All of the above

Question 5

Electric car technology would be an example of an evolving supply process.

Accepted Answer

A) True 
 B)False

Question 6

__________ supply chains are best utilized for products that are innovative and have a stable supply base:

Accepted Answer

A)   Risk-hedging
B)   Efficiency-focused
C)   Agile
D)   Responsive
E)   Stable

Question 7

The best way to evaluate price in the sourcing process is:

Accepted Answer

A)   Fair price
B)   Purchase price
C)   Cost
D)   Break even analysis
E)   Total cost of ownership

Question 8

The negotiations approach to supplier selection typically involves multiple criteria in order to select the best supplier.

Accepted Answer

A) True 
 B)False

Question 9

__________ supply chains are best utilized for products that have both high demand and supply uncertainty:

Accepted Answer

A)   Risk-hedging
B)   Efficiency-focused
C)   Agile
D)   Responsive
E)   Stable

Question 10

A consumer purchasing a t-shirt at a retail store is an example of commercial sourcing.

Accepted Answer

A) True 
 B)False

Question 11

Provide three criteria for why an organization would use competitive bidding and three reasons for negotiation in supplier selection.

Accepted Answer

The answer of Provide three criteria for why an organization...

Question 12

When selecting a new supplier, competitive bidding is an effective way to develop a longer-term business relationships.

Accepted Answer

A) True 
 B)False

Question 13

A biotechnology/medical product would be an example of a risk-hedging supply chain with significant focus on supplier stability.

Accepted Answer

A) True 
 B)False

Question 14

The fact that an organization invests significant amounts of cash in the sourcing function relates to which impact of the sourcing function:

Accepted Answer

A)   Risk mitigation
B)   Strategic
C)   Finance
D)   Operational
E)   Information

Question 15

__________ products have short life-cycles and unpredictable demand:

Accepted Answer

A)   Innovative
B)   Standardized
C)   Functional
D)   End of life
E)   Predictable

Question 16

Achieving greater economies of scale is one advantage of single sourcing.

Accepted Answer

A) True 
 B)False

Question 17

______ and _______ are key dimensions for the sourcing function to consider when evaluating an outsourcing or off-shoring strategy:

Accepted Answer

A)   Cost and channels
B)   Innovative and functional
C)   Standardization and customization
D)   Scope and criticality
E)   None of the above

Question 18

Factors in the marketplace that elevated sourcing from a clerical-oriented function include:

Accepted Answer

A)   Internet technology
B)   Global competition
C)   Growth of consumer sourcing
D)   Multiple distribution channels
E)   a and b

Question 19

__________ sourcing focuses on more than just price when selecting suppliers.

Accepted Answer

A)   Innovative
B)   Supply side
C)   Tactical
D)   Functional
E)   Strategic

Question 20

Sourcing is responsible for the "downstream" part of an organization.

Accepted Answer

A) True 
 B)False

Exam 6: Sourcing

To reduce errors and complexity, sourcing is the only function that should interact with suppliers.

Utilizing a request for quotation (RFQ) is part of the ___________ process:

Benefits to buyers from utilizing e-auctions include:

Attributes of a commercial sourcing include:

Electric car technology would be an example of an evolving supply process.

__________ supply chains are best utilized for products that are innovative and have a stable supply base:

The best way to evaluate price in the sourcing process is:

The negotiations approach to supplier selection typically involves multiple criteria in order to select the best supplier.

__________ supply chains are best utilized for products that have both high demand and supply uncertainty:

A consumer purchasing a t-shirt at a retail store is an example of commercial sourcing.

Provide three criteria for why an organization would use competitive bidding and three reasons for negotiation in supplier selection.

When selecting a new supplier, competitive bidding is an effective way to develop a longer-term business relationships.

A biotechnology/medical product would be an example of a risk-hedging supply chain with significant focus on supplier stability.

The fact that an organization invests significant amounts of cash in the sourcing function relates to which impact of the sourcing function:

__________ products have short life-cycles and unpredictable demand:

Achieving greater economies of scale is one advantage of single sourcing.

and _ are key dimensions for the sourcing function to consider when evaluating an outsourcing or off-shoring strategy:

Factors in the marketplace that elevated sourcing from a clerical-oriented function include:

__________ sourcing focuses on more than just price when selecting suppliers.

Sourcing is responsible for the "downstream" part of an organization.