Question 1

Distinctives are low-risk, high-value items that are fundamental to the company's finished product.

Accepted Answer

A) True 
 B)False

Question 2

There are four types of products and services that are purchased with varying degrees of importance. Name all four, and choose two to discuss in terms of risk and value.

Accepted Answer

The answer of There are four types of products and...

Question 3

There are three definitions to aid understanding of some of the similarities, differences, and linkages between purchasing, procurement, and strategic sourcing. Define them, and discuss the differences between the three.

Accepted Answer

The answer of There are three definitions to aid understanding...

Question 4

When a firm makes a "make" decision when analyzing whether to "make or buy," they may still have to purchase some types of inputs from outside suppliers.

Accepted Answer

A) True 
 B)False

Question 5

Name several criteria that are important in vendor selection. Which one is the most important?

Accepted Answer

The answer of Name several criteria that are important in...

Question 6

Some firms are moving towards increasing their number of suppliers in order to encourage competition and lower procurement costs.

Accepted Answer

A) True 
 B)False

Question 7

What are at least three types of certifications and registrations, what do they signify, and why are they important?

Accepted Answer

The answer of What are at least three types of...

Question 8

The concept that represents the sum of all costs associated with making and delivering products to the point where they are needed is called:

Accepted Answer

A)  purchase/acquisition cost. 
B)  strategic sourcing costs. 
C)  life cycle costs. 
D)  total landed cost.

Question 9

Commodities are items or services that are low in risk but high in value.

Accepted Answer

A) True 
 B)False

Question 10

In the Assess Supply Market step, the firm:

Accepted Answer

A)  determines which are the least cost vendors. 
B)  decides which vendors are located closest to the firm's plant to insure timely delivery. 
C)  identifies all possible suppliers that might be able to satisfy the user's needs. 
D)  defines the parameters of the sourcing strategy process.

Question 11

Procurement serves as a critical link between members of the supply chain.

Accepted Answer

A) True 
 B)False

Question 12

There are four steps in the Managing Sourcing and Procurement Processes. Which of the following is not one of them?

Accepted Answer

A)  Determine the type of purchase 
B)  Determine the necessary levels of investment 
C)  Evaluate the effectiveness of the strategic sourcing process 
D)  Examine off shore and e-procurement suppliers

Question 13

What is an amalgam of catalogs from vendors within a market that is available via the Internet called?

Accepted Answer

A)  Electronic marketplace 
B)  Buy-side system 
C)  Sell-side system 
D)  On-line trading community

Question 14

Strategic sourcing as a process is far more broad and comprehensive than procurement. Overall, the process starts with the formation of a:

Accepted Answer

A)  steering committee. 
B)  list of vendors. 
C)  decision as whether to make or buy. 
D)  list of criticals.

Question 15

The most important factor in vendor selection is usually financial health.

Accepted Answer

A) True 
 B)False

Question 16

Define and discuss the four basic types of e-commerce business models used in procurement and sourcing.

Accepted Answer

The answer of Define and discuss the four basic types...

Exam 5: Sourcing Materials and Services

Distinctives are low-risk, high-value items that are fundamental to the company's finished product.

There are four types of products and services that are purchased with varying degrees of importance. Name all four, and choose two to discuss in terms of risk and value.

There are three definitions to aid understanding of some of the similarities, differences, and linkages between purchasing, procurement, and strategic sourcing. Define them, and discuss the differences between the three.

When a firm makes a "make" decision when analyzing whether to "make or buy," they may still have to purchase some types of inputs from outside suppliers.

Name several criteria that are important in vendor selection. Which one is the most important?

Some firms are moving towards increasing their number of suppliers in order to encourage competition and lower procurement costs.

What are at least three types of certifications and registrations, what do they signify, and why are they important?

The concept that represents the sum of all costs associated with making and delivering products to the point where they are needed is called:

Commodities are items or services that are low in risk but high in value.

In the Assess Supply Market step, the firm:

Procurement serves as a critical link between members of the supply chain.

There are four steps in the Managing Sourcing and Procurement Processes. Which of the following is not one of them?

What is an amalgam of catalogs from vendors within a market that is available via the Internet called?

Strategic sourcing as a process is far more broad and comprehensive than procurement. Overall, the process starts with the formation of a:

The most important factor in vendor selection is usually financial health.

Define and discuss the four basic types of e-commerce business models used in procurement and sourcing.