Bcor 360
When considering outsourcing you should evaluate which of the following factors?
-When the item is strategically important to you -How good you are at making the item versus how good suppliers are at making it -The total cost of ownership of the item compared to the cost to make the item internally
A leverage Buy (on the strategic sourcing matrix) is one where there is:
-You spend enough money to generate supplier competition for your business
leverage purchases
-a buyers dream -best opportunity to really save money
Critical items (on the strategic matrix) are:
-also called strategic items
Bottleneck buys:
-are difficult to manage b/c there are few options
The degree of supplier integration may vary, from _____________ to_____________ at the extremes.
-collaborative forecasting, -supplier integrated manufacturing
In its relationship w/ Gordon Foods. Bob Evens did which of the following?
-consolidated to a single source -gave the drivers access to the restaurants at night for delivery when no one else was there
When comparing costs for outsourcing decision, compare __________________________________________________________.
-cost to make less fixed costs remaining after outsourcing versus TCO.
The source stage of the strategic sourcing process:
-involves identifying and selecting potential suppliers
Strategic sourcing matrix
-is used to segment purchases -is widely used in practice -considers the importance of the category and the complexity of the market to classify purchases
The Make or Buy analysis tells us:
-it is not that important to the company's success to outsource items that are not strategic to our success -before outsourcing at strategic item, we should seriously consider our own ability to successfully make that item
When it comes to negotiations, it is important to know that:
-knowledge is power
Potential supplier contributions from ESI include:
-providing feedback on feasibility of materials and process -suggesting alternatives -improve cost -improve lead time
Reasons for Early Supplier Involvement is: (ESI)
-to utilize the suppliers innovative ideas -B/c the most cost and functionality is determined during design
As part of supplier integrations:
-you share information on your plans with the supplier -you communicate seamlessly
Which of the following is not a step in the strategic sourcing process?
a. Analyze b.(<<< Plan>>>) c.Source d.Reconcile and pay e.Procure
Which of the following is a "right" in the less formal definition of purchasing?
a. Obtaining the right material b. In the right quantity c. At the right time d. For delivery to the right place -<<All of the above>>
Assume that you work for a company that is developing a new technology to allow noise cancellation of loud parties, neighbors, ect. The Supplier your company is working closely with on developing that technology shield be a _________________ relationship.
Strategic Alliance
Category importance is determined by:
-How much impact a particular category has on a firm performance
Category Importance is determined by:
-How much impact a particular category has on firm performance
A purchase where there are a large number of competitive suppliers and you buy a fairly large amount relative to the amount to the market would most likely be classified as:
-Leverage
During WWII, ___________ ____________increased The emphasis on purchasing
-Materials shortages
What should the weight equal to?
-ONE
In the SCOR model, purchasing is represented by:
-Plan -Source -Deliver -<<<All the above>>>
What are the five activities of the SCOR model?
-Plan, source, make, deliver, return
During which step of the strategic sourcing process do you actual purchase items you have contracted for?
-Procedure
Which step in the process helps you determine how important each criterion is?
-Set Weights
During which step of the strategic sourcing process would you identify potential suppliers?
-Source
A "routine buy" on the strategic sourcing matrix has which of the following characteristics?
-Straight forward competitive marketplaces
During which era did outsourcing make purchasing strategic?
-Strategic Era
Which of the following statements is correct?
-TCO includes landed costs -You should use landed costs analysis for all purchase decisions
One reason that those employed in purchasing need to understand process is:
-To understand the purchasing process -To understand the manufacturing process( if applicable)
Sensitivity analysis is the outsourcing decision can include both hard and soft costs
-Tree
A 100 point scoring system allows for more refined difference in supplier scoring than a 5 point scale:
-True
Landed costs should be considered in all purchase decisions:
-True
Multi-Criteria Analysis is a tool that helps you compare "distinctly different options:
-True
Ongoing supplier assessment is generally unrelated to the supplier section process.
-True
Purchasing savings can have a huge impact on the firm's profit leverage.
-True
Suppliers may bring ideas, resources and skills to help make your company more competitive.
-True
To calculate results you multiply the score for each criterion by the associated weight and add up the results:
-True
If we have more in inventory from one alternative versus the other when considering outsourcing, that is irrelevant.
- False it is relevant
Reasons for supply development include:
- create a source of supply when the item you want is not readily available -Help existing suppliers improve their capabilities in some way
Supplier Segmentation, using the strategic sourcing matrix ,occurs during which step of the strategic sourcing process?
-Analyze
Which of the following are stages (in order) in the strategic sourcing process
-Analyze -Source -Bid/negotiate contract -Procure -Reconcile and pay
which of the following is not one of the 4 reasons to include a multi-criteria analysis in your toolkit?
-Comprehensiveness
A Strategic Alliance is most likely in which spend category?
-Critical
Honda emphasizes which of the following approaches in its BP Program?
-Deming's PDCA
Which step in the process asks you to fill in your comparison matrix?
-Evaluate options
As a purchasing manager, you should spend the same amount of time and effort on each purchasing decision:
-False
In bidding or contracting, you also use the same approach and try to get the best prices
-False
Outsourcing just means that you are buying something instead of making it.
-False
Sensitivity analysis is not relevant to the outsourcing decision:
-False
TCO analysis should be used for all purchase decisions.
-False
Selecting weight is one of the least important aspects of developing a supplier selection model:
-False its one of the most important aspects
What type of costs might still remain after you outsource an item?
-Fixed overhead costs
Some of the effective ways that purchasing can help an organization compete include which of the following?
-Get the best resources available in order to compete based on cost, quality and innovation -Make sure you have enough supplies so that you don't have to shut the factory down