Global2

Arbitration

Arbitration is a process of dispute resolution where parties agree to submit their dispute to an impartial third party, called an arbitrator, who makes a binding decision on the dispute.

Which statement is most accurate when deciding how much and when to buy?

Balancing price, volume, carrying costs, and the cost of stock outs

Total quality management, philosophy and system of management focused on short term success through statistical process control

True

Translating business needs into short and long-term category performance requirements is a key step in step one of the process.

True

Demand for buttons and zippers and sportswear manufacturer is an example of

Derived demand

Independent demand items are

Determined directly by customer orders

examples of prevention costs include

Employee training and awareness costs and costs of pre-certifying and qualifying suppliers

As you develop your category strategy, you can determine strategic options prior to steps one and two

False

Competitive, bidding in general is the most efficient means of obtaining a fair price for items bought

False

Compared to other modes of transportation, motor carriers provide the advantage of

Flexibility of point-to-point service

For the supply function, time based strategies that impact competitive advantage relate to cycle time, reductions, and greater coordination of materials and information flows

True

Life cycle costing can be used to justify the acquisition of expensive equipment on the basis of lower operating costs over the life of the asset

True

Logistics can be divided into three categories: inventory carrying costs, administrative costs, and transportation (with transportation costs accounting for the bulk of the labor cost)

True

Portfolio quadrant analysis may be used to develop longer-terms strategies for moving categories of spend into a more desirable location on the spend map

True

Quality function deployment is a comprehensive quality system that seeks to translate custom requirements into specifications

True

Standardization is a technical concept that means agreement on the definite sizes, design and quality of a product or service

True

The inability to inventory services makes quality assurance more difficult

True

Research on the dark side of the buyer-supplier relationships has identified the following potential problems with overcommitting to supplier partnerships in the long term

loss of objectivity, ineffective decision making and costly investments

The cost approach to pricing

means prices are set to cover direct costs, contribute to indirect costs, and provide a profit

A formal service quality evaluation process:

measures the gap between service expectations and performance perceptions.

When sourcing offshore, a buyer

must have extensive knowledge and analysis of the country

The goal of value engineering and value analysis is to

perform a function at the same or an improved level while reducing costs

A buyer-supplier relationship is formed around leverage items in portfolio analysis to attain the desired levels of quality, quantity, delivery, price, and service at the lowest TCO. This is called:

an operational partnership

Supplier eval criteria

quality, quantity, delivery, price, service

The real cost of quality

rise significantly as defects increase in the finished product.

Common methods of analyzing TCO include

standard cost models, unique cost models and segregating costs on the basis of pre-transactional, transaction, and post-transactional costs

Early supply involvement means:

supply considerations are included during need identification and specification

Strategic alliances

support the idea the supplier relationships contribute to organizational success

The structure of a global purchasing organization is influenced by

the location of the company's operations, the overall organizational structure, the location of key suppliers and the structure of the purchasing function

Historically, the advantages of global sourcing were more dependable service, greater flexibility, and detailed knowledge of the buyers' specific requirements.

true

In portfolio analysis, strategic good and services are both more valuable in the buying organization and risker to acquire

true

Monitoring changes in market trends and technologies can help protect purchasers from the "dark side of buyer-supplier relationships"

true

The typical process for developing a weighted point evaluation system to: (1) meet with the supplier to identify the factors or criteria for evaluation, (2) ask the supplier to determine the importance of each factor, and (3) negotiate a system for rating the supplier on each factor

true

The selection of the FOB point is important to the purchaser, because it determines

who pays the carrier, when legal title to goods being shipped passes to the buyer, who is responsible for preparing and pursuing loss or damage claims and who routes the freight.

A Business need of customer service, benchmark, affordable, innovative and sale effective products can be translated into the following performance needs

Quality and compliance, top line, growth, reliability and customer service, cost

Traditional criteria for supply management are

Quality, quantity, delivery, price and service

A transportation strategy should include consideration of

Safety on the ground, in the air and water, environmental factors, such as pollution, consolidation of freight and alternative transportation modes

Quality Function Deployment (QFD)

She to understand what value represents to the customer, and provide direction on the appropriate level of product performance, and which features should be included

As you develop your strategic choices, you will create your statement of strategic choice, and

Strategic options grouped into themes

The five step category management process consists of business and category needs, strategic options and choices, initiatives, and roadmap, track, and measure... What is missing

Supply market and industry analysis

Supply market and industry analysis consist of analysis of industry and market place, trends and disruptions, cost performance, capability, benchmarks, and

Key implications of market category and enterprise

When comparing the TCO from an international supplier to that other domestic supplier, the international suppliers

Lower labor rates must be considered in the context of productivity and quality

Lean is a management philosophy that focuses on

Maximizing customer value while eliminating waste

Strategies for managing "A" items in ABC analysis are

Minimizing inventory, and reviewing inventory levels frequently

An advantage of buying by performance or function over other specifications methods is that it provides

The opportunity for the potential supplier to establish how to make the most suitable product/service

Purchasing by specifications typically occurs when

There are multiple sources for an identical requirement

A tool to help translate business needs would cover the following cascade in the matrix... Business needs cluster, definition of scope for category strategy, corporate business needs, and category performance

True

An example of a semiformal supplier evaluation tool is

an annual discussion between top executives in the buying organization and those of the supplier

Which supports multiple sourcing

concerns exists about supplier capacity for future volume

Qualifying sources in an example of a post-transaction cost phase in the TCO

false

Trends in supply management include

increasing the number of suppliers and developing closer relationships