Chapter 3: Test

Encourage suppliers to keep their performance high

According to the textbook, Supplier Recognition Programs...

Who have ISO 9001 certifications

In general, European companies prefer suppliers...

False

It is illegal for corporations to provide their suppliers appreciation banquets to award performance (True or False)

SRM

Streamlining the process and communications between the buyer and supplier using software applications that enable these processes to be managed more efficiently and effectively can be referred to as...

Transaction Cost

What type of major cost category is considered in the cost associated with placing receiving the order?

Lean operations

Which of the following is NOT a key tenant of SRM system? A.) Integration B.) Visibility C.) Automation D.) Lean operations

To select the best suppliers

Which of the following is NOT a reason for supplier recognition programs? A.) to encourage suppliers to be more innovative B.) to reward suppliers for excellent performance C.) to select the best suppliers D.) To help suppliers reputation in the marketplace

Understandable, easy to measure, focused on value-added results

According to the text, the goal of a good performance evaluation system is to provide metrics that are...

Individualized Objectives

According to the text, key ingredients for developing successful supply partnerships include all of the following EXCEPT A.) Mutual benefits and needs B.) Performance metrics C.) Individualized objectives D.) Personal Relationships

True

Automating procurement activities can lead to significant cost savings as buyers move toward managing process by exception. (True or False)

10% of their time on expediting orders

Before supplier relationship management, buyers typically spent 40% of their time expediting orders. After SRM implementation buyers spent about...

Performance metrics and personal business relationships are both keys to building successful partnerships

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