Supply chain exam 2 Chapter 3 only

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

10% of their time on expediting orders

It is illegal for corporations to provide their suppliers appreciation banquets to award performance.

False

Which of the following is TRUE?

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

According to the text, one of the most basic and successful approaches to protecting trade secrets is:

Requiring employees and vendors to sign non-disclosure agreements

Which of the following is NOT a reason for supplier recognition programs?

To select the best suppliers

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

Transaction Cost

Automating procurement activities can lead to significant cost savings as buyers move toward managing processes by exception.

True

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

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

In general, European companies prefer suppliers:

Who have ISO 9001 certifications

SRM software should be capable of

a. Automating transactional processes b. Integration of the supply chain making it possible to monitor multiple departments and processes both internally and externally c. Making information flow between partners more visible

Which of the following is NOT a key tenant of an SRM system?

Lean operations

A company using a weighted-criteria evaluation system has established these 5 categories and the appropriate weight in parentheses: Quality (0.25)Responsiveness (0.10)Delivery (0.15)Cost (0.15)Technology (0.30)Company X received the following ratings in each of the five categories: Quality(90), Responsiveness(90), Delivery(80), Cost(80), Technology(85). What is its total score?

81.0 Multiply each percentage or weight to the ratings

Supplier Certification

An organization's process for evaluating the quality systems of key suppliers in an effort to eliminate incoming inspections can be referred to as:

SRM software can automate procurement activities that lead to significant cost savings as purchasing professionals move toward:

Collaborative planning

Which of the following is NOT important in developing a successful strategic alliance?

Developing efficient processes that will remain unchanged for the duration of the partnership

According to the textbook, Supplier Recognition Programs:

Encourage suppliers to keep their performance high

According to the text, key ingredients for developing successful supply partnerships include all of the following EXCEPT

Individualized objectives

Streamlining the processes 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:

SRM

When using a Weighted Criteria Evaluation System to evaluate suppliers, all of the following are true EXCEPT:

Select the key dimensions of performance based on what is important to the end consumer

Which of the following is important in developing successful relationships in a partnership?

a. Interpersonal business relationships between employees of the companies b. Mutual/compatible needs that result in a win-win situation for the partners c. Commitment by top management