Chapter 6

Which of the following is the best description of a Preferred Supplier? A supplier who has high quality A supplier who best meets all of your company's overall purchasing requirements A supplier who has the lowest price A supplier who provides the most product to your company

A supplier who best meets all of your company's overall purchasing requirements

Which of the following new technologies can improve supplier selection and increase the effectiveness of supplier relationship management? Blockchain eFulfillment Artificial Intelligence The Internet of Things

Artificial Intelligence

In which item category would the sourcing strategies of maintaining safety/strategic stocks, developing contingency plans, strengthening relationships, and searching for alternatives, be appropriate? Non-Critical Items Strategic Items Leverage Items Bottleneck Items

Bottleneck Items

The concept which attempts bring about positive social change through organizational buying behavior, is known as? Business Ethics Sustainability Ethical Sourcing Supplier Code of Conduct

Ethical Sourcing

In a Spend Analysis, purchases that involve items representing a low percentage of the firm's total spend and having very little supply risk, are categorized as Leverage Purchases. True or False

False

Which of the following is NOT one of the drivers of Strategic Sourcing? Focusing on the customer Reducing the delivery lead times Optimizing the number of global suppliers Increasing the selling price of the product

Increasing the selling price of the product

In which sourcing category would an item typically be classified, if it is considered to be high value, low risk, and there are multiple potential suppliers?

Leverage

Which general sourcing category comprises items where many alternatives of supply exist, and supply risk is low. Spend is high and there are potential procurement savings? Non-Critical Bottleneck Leverage Strategic

Leverage

In which item category would the sourcing strategies of consolidating volumes as a negotiation tool, using the competitive marketplace to reduce costs, and automating supplier interfaces to minimize process related costs, be appropriate? Non-Critical Items Leverage Items Bottleneck Items Strategic Items

Leverage Items

Which of the following is NOT a reason to have a single supplier? To spread the risk of a supply disruption To establish a good relationship To have less quality variability To achieve transportation economies

To spread the risk of a supply disruption

Strategic Sourcing is a comprehensive approach for locating and sourcing key suppliers, so that an organization can leverage its consolidated purchasing power to find the best possible values in the marketplace True or False

True

Through collaborative negotiations both sides work together to maximize the outcome or create a win-win result. True or False

True

"Rationalizing the supplier base" would mean that the purchasing firm is attempting to reduce the number of suppliers in its supplier network. True or False

True

Among other advantages, preferred suppliers are more likely than non-preferred suppliers to provide capacity for meeting unexpected demand, and also provide cost efficiency due to economies of scale. True or False

True

Products with short product life cycles, volatile demand, high-profit margins, and relatively little competition, are known as Innovative Products. True or False

True

Which sourcing concept involves a supplier directly managing the buyer's inventories to reduce the buyer's inventory carrying costs and avoid stockouts? Reverse Auction Vendor Managed Inventory Co-Managed Inventory Supplier Co-location

Vendor Managed Inventory

Products with low profit margin, relatively stable demand, and high levels of competition, are known as Innovative Products. True or False

False

Sourcing Sustainability is described as the ability to meet the current needs of the supply chain without costing the company any additional time or money. True or False

False

Strategic sourcing is the process of identifying a company that provides a needed good or service True or False

False

The concept of Distributive Negotiations refers to both sides work together to maximize the outcome or crease a win-win result. True or False

False

Which of the following is NOT one of the drivers of Strategic Sourcing? Increasing the selling price of the product Focusing on the customer Optimizing the number of global suppliers Reducing the delivery lead times

Increasing the selling price of the product

Which sourcing strategy would typically be used for items with low profit margins, relatively stable demand, and high levels of competition? Single-source Multi-source Sole-source

Multi-source

In which item category would be the sourcing strategies of ensuring availability of supply, focusing on relationship building, encouraging process integration and innovation, frequent communications, and establishing mutually agreeable supplier performance criteria, be appropriate?

Strategic items

Managing a firm's external resources in ways that support the long-term goals of the firm can be referred to as? Hybrid sourcing Functional sourcing Strategic sourcing Ethical sourcing

Strategic sourcing