Question 1

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

Accepted Answer

specification

Question 2

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:
 $$\begin{array} { | l | l | } 
\hline \begin{array} { l } 
\text { Percentage of orders } \
\text { delivered complete }
\end{array} & \ { \text { Scorecard } } \
 \text { and on-time } & \text { Points } \
\hline 95 - 100 & 25 \
\hline 90 - 95 & 20 \
\hline 80 - 90 & 10 \
\hline > 80 & 0 \
\hline
\end{array}$$ 
  
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?

Accepted Answer

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

Question 3

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

Accepted Answer

A) True 
 B)False  False

Question 4

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:
 $$\begin{array} { | l | l | } 
\hline \begin{array} { l } 
\text { Percentage of orders } \
\text { delivered complete }
\end{array} & \ { \text { Scorecard } } \
 \text { and on-time } & \text { Points } \
\hline 95 - 100 & 25 \
\hline 90 - 95 & 20 \
\hline 80 - 90 & 10 \
\hline > 80 & 0 \
\hline
\end{array}$$ 
  
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?

Accepted Answer

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

Question 5

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? $$\begin{array} { | l | l | l | l | l | l | } 
\hline \text { Performance Factors } & \text { Weight } & \text { Excelsior } & \text { Phoenix } & \text { Mega } & \text { American } \
\hline \text { Quality } & 0.50 & 4 & 4 & 2 & 4 \
\hline \text { Cost } & 0.40 & 4 & 3 & 5 & 3 \
\hline \text { Speed } & 0.10 & 2 & 2 & 4 & 5 \
\hline
\end{array}$$

Accepted Answer

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

Question 6

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

Accepted Answer

The answer of Discuss the role/ purpose of a request...

Question 7

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:
 $$\begin{array} { | l | l | } 
\hline \begin{array} { l } 
\text { Percentage of orders } \
\text { delivered complete }
\end{array} & \ { \text { Scorecard } } \
 \text { and on-time } & \text { Points } \
\hline 95 - 100 & 25 \
\hline 90 - 95 & 20 \
\hline 80 - 90 & 10 \
\hline > 80 & 0 \
\hline
\end{array}$$ 
  
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?

Accepted Answer

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

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Which is the last step in the supplier management process?

Accepted Answer

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

Question 11

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

Accepted Answer

The answer of The document which contains the specifications of...

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

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:
 $$\begin{array} { | l | l | } 
\hline \text { PPM Defect } & \text { Scorecard } \
\ \text { Rate } & \text { Points } \
\hline 0 - 100 & 30 \
\hline 100 - 200 & 20 \
\hline 200 - 300 & 10 \
\hline > 300 & 0 \
\hline
\end{array}$$ 
 $\begin{array}{l|l}
\text { Percent PPM } & \text { Scorecard } \
\text { improvement } & \text { Points } \
\hline 75-100 & 15 \
\hline 50-74 & 10 \
\hline 25-49 & 5 \
\hline<25 & 0 \
\hline
\end{array}$
 
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?

Accepted Answer

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

Question 15

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:
 $$\begin{array} { | l | l | } 
\hline \text { PPM Defect } & \text { Scorecard } \
\ \text { Rate } & \text { Points } \
\hline 0 - 100 & 30 \
\hline 100 - 200 & 20 \
\hline 200 - 300 & 10 \
\hline > 300 & 0 \
\hline
\end{array}$$ 
 $\begin{array}{l|l}
\text { Percent PPM } & \text { Scorecard } \
\text { improvement } & \text { Points } \
\hline 75-100 & 15 \
\hline 50-74 & 10 \
\hline 25-49 & 5 \
\hline<25 & 0 \
\hline
\end{array}$
 
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?

Accepted Answer

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

Question 16

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

Accepted Answer

The answer of The first step in the process of...

Question 17

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

Accepted Answer

The answer of The final step in the process of...

Question 18

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

Accepted Answer

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 19

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:
 $$\begin{array} { | l | l | } 
\hline \text { PPM Defect } & \text { Scorecard } \
\ \text { Rate } & \text { Points } \
\hline 0 - 100 & 30 \
\hline 100 - 200 & 20 \
\hline 200 - 300 & 10 \
\hline > 300 & 0 \
\hline
\end{array}$$ 
 $\begin{array}{l|l}
\text { Percent PPM } & \text { Scorecard } \
\text { improvement } & \text { Points } \
\hline 75-100 & 15 \
\hline 50-74 & 10 \
\hline 25-49 & 5 \
\hline<25 & 0 \
\hline
\end{array}$
 
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?

Accepted Answer

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

Question 20

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

Accepted Answer

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

Exam 7: Supplier Management

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

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

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

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

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

Which is the last step in the supplier management process?

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

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

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

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

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

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

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