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