Question 1

An organization's process for evaluating the quality systems of key suppliers in an effort to eliminate incoming inspections can be referred to as:

Accepted Answer

A)  Quality Systems Certification 
B)  Supply Management 
C)  Supplier Inspection 
D)  Supplier Certification

Question 2

Automating procurement activities can lead to significant cost savings as buyers move toward managing processes by exception.

Accepted Answer

A) True 
 B)False

Question 3

Suppose your organization is attempting to set up a new strategic alliance with a supplier.You are considered the key manager from your organization to manage this alliance.What would be your goals for the planning stages of this proposed alliance? What would be your goals for the first few months of the alliance? What would be your long-term goals for the alliance?

Accepted Answer

The answer of Suppose your organization is attempting to set...

Question 4

According to the text, key ingredients for developing successful supply partnerships include all of the following EXCEPT:

Accepted Answer

A)  Personal relationships 
B)  Performance metrics 
C)  Mutual benefits and needs 
D)  Individualized objectives

Question 5

Blaize Manufacturing Company is using a weighted criteria evaluation system to certify suppliers.
a.Determine the total weighted score for the supplier shown below.
b.Based on the evaluation system and weights used by this firm, what is their purchasing objective?
c.Give an example of a real company that might be using this type of strategy.
d.If Blaize Mfg.classifies their vendors based on the following scores, how well is this supplier doing?
-Unacceptable (less than 50)
-Conditional (between 50 and 70)
-Certified (between 70 and 90)
-Preferred (greater than 90)

Accepted Answer

The answer of Blaize Manufacturing Company is using a weighted...

Question 6

The Hormel company awards their Hormel Food Corporation's No.1 Award to their top supplier.How often do they give this award?

Accepted Answer

A)  Every year 
B)  Every 6 months 
C)  Every 5 years 
D)  Every 10 years

Question 7

SRM software can automate procurement activities that lead to significant cost savings as purchasing professionals move toward:

Accepted Answer

A)  Collaborative planning 
B)  Diversifying their hiring 
C)  Improving capacity 
D)  Expediting each order

Question 8

Which of the following is important in developing successful relationships in a partnership?

Accepted Answer

A)  Commitment by top management 
B)  Interpersonal business relationships between employees of the companies 
C)  Mutual/compatible needs that result in a win-win situation for the partners 
D)  All of these

Question 9

A SRM strategy refers to a situation wherein a supplier's employee is permanently housed in the purchasing department of the buyer's organization.

Accepted Answer

A) True 
 B)False

Question 10

Field failures, loss of goodwill, a decreased reputation, and warranty costs can all be classified as:

Accepted Answer

A)  Pre-transaction costs 
B)  Post-transaction costs 
C)  Transaction costs 
D)  All of these

Question 11

It is illegal for corporations to provide their suppliers appreciation banquets to award performance.

Accepted Answer

A) True 
 B)False

Question 12

The TCO as defined in the textbook adds "all costs associated with the acquisition, use, and maintenance of a good or service."
The TCO is then broken up into three major cost categories.List the three cost categories, provide a definition of each, and then provide two examples of each of the three types of costs.

Accepted Answer

The answer of The TCO as defined in the textbook...

Question 13

According to the textbook, Supplier Recognition Programs:

Accepted Answer

A)  Are generally not very effective 
B)  Are used by 90% of companies 
C)  Encourage suppliers to keep their performance high 
D)  Are difficult to implement

Question 14

Smoother processes, faster cycle times, reduced new product development, and improved time-to-market are possible benefits from the increased visibility that is offered by SRM software.

Accepted Answer

A) True 
 B)False

Question 15

A company using a weighted-criteria evaluation system has established these 4 categories and the appropriate weight in parentheses: Technology(0.25), Quality(0.30), Environmental (0.20), Cost(0.25).Currently they use supplier ABC that presently has a supplier score of 85.Calculate supplier XYZ's total score and decide (based on supplier score) if the company should change suppliers.
The scores for supplier XYZ are shown below for each category.

Accepted Answer

The answer of A company using a weighted-criteria evaluation system...

Question 16

When using a Weighted Criteria Evaluation System to evaluate suppliers, all of the following are true EXCEPT:

Accepted Answer

A)  Select the key dimensions of performance based on what is important to the end consumer 
B)  The weights for all dimensions must sum to 1 or 100% 
C)  Evaluate each of the performance measures on a rating between zero and one-hundred 
D)  Multiply the dimension ratings by their respective important weights and then sum to get an overall weighted score

Question 17

Which of the following is TRUE?

Accepted Answer

A)  Performance metrics and personal business relationships are both keys to building successful partnerships. 
B)  ISO 75000 is the supplier award given to the highest rated supplier in Japan. 
C)  The key to successful partnerships is developing performance measures with weights greater than 3.50. 
D)  SRM software modules are very affordable (less than $50,000) and can be implemented with a week.

Question 18

Building Trust, Shared Vision and Objectives, Personal Business Relationships, Mutual Benefits and Needs are key factors that contribute to a lasting supplier partnership.

Accepted Answer

A) True 
 B)False

Question 19

In general, European companies prefer suppliers:

Accepted Answer

A)  Who employ the most people 
B)  Whose headquarters are in a developing county 
C)  Who are in the United States 
D)  Who have ISO 9001 certifications

Question 20

When developing successful partnerships, it is best to avoid inter-personal business relationships between buyers and suppliers.

Accepted Answer

A) True 
 B)False

Exam 3: Creating and Managing Supplier Relationships

An organization's process for evaluating the quality systems of key suppliers in an effort to eliminate incoming inspections can be referred to as:

Automating procurement activities can lead to significant cost savings as buyers move toward managing processes by exception.

According to the text, key ingredients for developing successful supply partnerships include all of the following EXCEPT:

The Hormel company awards their Hormel Food Corporation's No.1 Award to their top supplier.How often do they give this award?

SRM software can automate procurement activities that lead to significant cost savings as purchasing professionals move toward:

Which of the following is important in developing successful relationships in a partnership?

A SRM strategy refers to a situation wherein a supplier's employee is permanently housed in the purchasing department of the buyer's organization.

Field failures, loss of goodwill, a decreased reputation, and warranty costs can all be classified as:

It is illegal for corporations to provide their suppliers appreciation banquets to award performance.

According to the textbook, Supplier Recognition Programs:

Smoother processes, faster cycle times, reduced new product development, and improved time-to-market are possible benefits from the increased visibility that is offered by SRM software.

When using a Weighted Criteria Evaluation System to evaluate suppliers, all of the following are true EXCEPT:

Which of the following is TRUE?

Building Trust, Shared Vision and Objectives, Personal Business Relationships, Mutual Benefits and Needs are key factors that contribute to a lasting supplier partnership.

In general, European companies prefer suppliers:

When developing successful partnerships, it is best to avoid inter-personal business relationships between buyers and suppliers.