Question 1

Which of the following is not a supplier-specific barrier to supplier development?

Accepted Answer

A)   No immediate benefit to supplier development is evident in the buying organization.
B)   Lack of commitment on the part of supplier's management.
C)   Supplier's management agrees to improvements but fails to implement the proposals.
D)   Supplier lacks engineering resources to implement solutions.
E)   Supplier lacks employee skill base to implement solutions. A

Question 2

A single source can never deliver cost and quality improvements over the life of a contract even if a buyer manages that supplier appropriately.

Accepted Answer

A) True 
 B)False  False

Question 3

Sustainability reflects the importance of strategic environmental practices of suppliers but not the management of social responsibility in the supply base.

Accepted Answer

A) True 
 B)False  False

Question 4

The ____ is a normalization factor for the supplier performance index that eliminates high-dollar lot bias.

Accepted Answer

A)   Cp
B)   MRO
C)   Q adjustment factor
D)   Cpk
E)   Rfx

Question 5

If a supplier's product or service is routine,it should be considered for supplier development.

Accepted Answer

A) True 
 B)False

Question 6

____ is any activity undertaken by a buyer to improve a supplier's performance or capabilities to meet the buyer's short- and long-term supply needs.

Accepted Answer

A)   Supply base rationalization
B)   The twenty/eighty rule
C)   Supply base optimization
D)   Supplier development
E)   Six Sigma

Question 7

Which of the following is not a buyer-specific barrier to supplier development?

Accepted Answer

A)   The buying company's purchase volume from the supplier does not justify development investment.
B)   No immediate benefit to supplier development is evident to the buying organization.
C)   Lack of executive support within the buying organization for supplier development.
D)   Importance of purchased item does not justify development efforts.
E)   Supplier's management agrees to improvement but fails to implement the proposals.

Question 8

Which of the following is not a typical supplier development activity?

Accepted Answer

A)   Providing incentives to suppliers for improved performance.
B)   Promoting competition among suppliers.
C)   Raising prices paid for purchased goods and services.
D)   Directly involving buyer personnel with suppliers.
E)   Conducting training and process improvement initiatives.

Question 9

The ____ is often used when the buying organization requires a rapid reduction in the number of suppliers.

Accepted Answer

A)   "improve or else" approach
B)   triage approach
C)   supplier development approach
D)   competency staircase approach
E)   twenty/eighty rule

Question 10

The ____ supplier evaluation system seeks to quantify the total cost of doing business with a supplier,as the lowest purchase price is not always the lowest total cost for an item or service.

Accepted Answer

A)   Six Sigma
B)   zero defects
C)   cost-based
D)   categorical
E)   weighted-point

Question 11

Weighted-point supplier evaluation systems are very inflexible.

Accepted Answer

A) True 
 B)False

Question 12

The buyer and the supplier must agree on how to divide or share the costs and benefits from a supplier development project.

Accepted Answer

A) True 
 B)False

Question 13

There is only one common approach to supply base rationalization and optimization.

Accepted Answer

A) True 
 B)False

Question 14

Maintaining small quantities of inventory has been the traditional methods of dealing with supply base risk.

Accepted Answer

A) True 
 B)False

Question 15

In supplier measurement,the basic logic of the ____ is built around the calculation of a/an ____.

Accepted Answer

A)   categorical system...supplier performance index
B)   cost-based system...process capability index
C)   weighted-point system...Q adjustment factor
D)   weighted-point system...cost accounting system
E)   cost-based system...supplier performance index

Question 16

A smaller supplier with limited capacity may need to eliminate some existing customers in order to meet the increased requirements of its larger customer.

Accepted Answer

A) True 
 B)False

Question 17

All of the following are advantages of a weighted-point supplier evaluation system except ____.

Accepted Answer

A)   flexible system
B)   supplier ranking allowed
C)   moderate implementation costs
D)   total cost approach
E)   quantitative and qualitative factors combined into a single system

Question 18

All of the following are contingency management tools that can be effectively used at the tactical level to assist the supply manager in identifying,analyzing,reducing,and monitoring supply base risk except ____.

Accepted Answer

A)   KSA
B)   inventory
C)   multiple sourcing
D)   use of third party intermediaries
E)   scenario analysis

Question 19

All of the following are advantages of a cost-based supplier evaluation system except ____.

Accepted Answer

A)   total cost approach
B)   specific areas of supplier nonperformance identified
C)   objective supplier ranking
D)   greatest potential for long-range improvement
E)   good for firms with limited resources

Question 20

In ____,a buyer selects or develops suppliers with multiple or redundant capabilities.

Accepted Answer

A)   single sourcing
B)   cross-sourcing
C)   global sourcing
D)   strategic sourcing
E)   sole sourcing

Exam 9: Supplier Management and Development: Creating a World-Class Supply Base

Which of the following is not a supplier-specific barrier to supplier development?

A single source can never deliver cost and quality improvements over the life of a contract even if a buyer manages that supplier appropriately.

Sustainability reflects the importance of strategic environmental practices of suppliers but not the management of social responsibility in the supply base.

The ____ is a normalization factor for the supplier performance index that eliminates high-dollar lot bias.

If a supplier's product or service is routine,it should be considered for supplier development.

____ is any activity undertaken by a buyer to improve a supplier's performance or capabilities to meet the buyer's short- and long-term supply needs.

Which of the following is not a buyer-specific barrier to supplier development?

Which of the following is not a typical supplier development activity?

The ____ is often used when the buying organization requires a rapid reduction in the number of suppliers.

The ____ supplier evaluation system seeks to quantify the total cost of doing business with a supplier,as the lowest purchase price is not always the lowest total cost for an item or service.

Weighted-point supplier evaluation systems are very inflexible.

The buyer and the supplier must agree on how to divide or share the costs and benefits from a supplier development project.

There is only one common approach to supply base rationalization and optimization.

Maintaining small quantities of inventory has been the traditional methods of dealing with supply base risk.

In supplier measurement,the basic logic of the is built around the calculation of a/an .

A smaller supplier with limited capacity may need to eliminate some existing customers in order to meet the increased requirements of its larger customer.

All of the following are advantages of a weighted-point supplier evaluation system except ____.

All of the following are contingency management tools that can be effectively used at the tactical level to assist the supply manager in identifying,analyzing,reducing,and monitoring supply base risk except ____.

All of the following are advantages of a cost-based supplier evaluation system except ____.

In ____,a buyer selects or develops suppliers with multiple or redundant capabilities.