Market Research Exam 2 (Chapter 3: Test)

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

True

In general, European companies prefer suppliers: a. Who have ISO 9001 certifications b. Who employ the most people c. Whose headquarters are in a developing county d. Who are in the United States

a. Who have ISO 9001 certifications.

Which of the following is NOT a key tenant of an SRM system? a. Visibility b. Lean operations c. Integration d. Automation

b. Lean operations

According to the text, one of the most basic and successful approaches to protecting trade secrets is: a. Working with law makers to increase fines and sentences for those that steal trade secrets b. Requiring employees and vendors to sign non-disclosure agreements c. Threat of litigation d. Requiring employees and partners to get ISO 9000 certified

b. Requiring employees and vendors to sign non-disclosure agreements

It is illegal for corporations to provide their suppliers appreciation banquets to award performance. a. True b. False

b. False

Which of the following is NOT a reason for supplier recognition programs? a. To select the best suppliers b. To reward suppliers for excellent performance c. To encourage suppliers to be more innovative d. To help suppliers' reputation in the marketplace

a. To select the best suppliers

What type of major cost category is considered in the cost associated with placing and receiving the order? a. Transaction Cost b. Pre-transaction Cost c. Supplier-Development Cost d. Turnover Cost

a. Transaction Cost

SRM software can automate procurement activities that lead to significant cost savings as purchasing professionals move toward: a. Diversifying their hiring b. Collaborative planning c. Improving capacity d. Expediting each order

b. Collaborative planning

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: a. ISO 9000 b. SRM c. SCSS d. CRM

b. SRM

Before supplier relationship management (SRM), buyers typically spent 40% of their time on expediting orders. After SRM implementation buyers spent about: a. 20% of their time on expediting orders b. 30% of their time on expediting orders c. 10% of their time on expediting orders d. None of these choices are correct.

c. 10% of their time on expediting orders

Which of the following is TRUE? a. ISO 75000 is the supplier award given to the highest rated supplier in Japan. b. The key to successful partnerships is developing performance measures with weights greater than 3.50. c. Performance metrics and personal business relationships are both keys to building successful partnerships. d. SRM software modules are very affordable (less than $50,000) and can be implemented with a week.

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

According to the text, key ingredients for developing successful supply partnerships include all of the following EXCEPT: a. Individualized objectives b. Personal relationships c. Mutual benefits and needs d. Performance metrics

a. Individualized objectives

An organization's process for evaluating the quality systems of key suppliers in an effort to eliminate incoming inspections can be referred to as: a. Supplier Certification b. Supply Management c. Quality Systems Certification d. Supplier Inspection

a. Supplier Certification

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? a. 83.0 b. 82.5 c. 81.0 d. 84.5

c. 81.0

Which of the following is NOT important in developing a successful strategic alliance? a. Developing performance metrics b. Developing cross-functional team capabilities externally and within the company c. Developing efficient processes that will remain unchanged for the duration of the partnership d. Open lines of communication that both promote sharing and secure confidentiality

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

According to the textbook, Supplier Recognition Programs: a. Are generally not very effective b. Are used by 90% of companies c. Encourage suppliers to keep their performance high d. Are difficult to implement

c. Encourage suppliers to keep their performance high

According to the text, the goal of a good performance evaluation system is to provide metrics that are: a. Understandable, quantitative, focused of cost-related results b. Understandable, quantitative, focused on quality-related results c. Understandable, easy to measure, focused on value-added results d. Understandable, qualitative, focused on short-term results

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

SRM software should be capable of: a. Making information flow between partners more visible b. Integration of the supply chain making it possible to monitor multiple departments and processes both internally and externally c. Automating transactional processes d. All of these choices are correct.

d. All of these choices are correct.

Which of the following is important in developing successful relationships in a partnership? a. Interpersonal business relationships between employees of the companies b. Commitment by top management c. Mutual/compatible needs that result in a win-win situation for the partners d. All of these choices are correct.

d. All of these choices are correct.

When using a Weighted Criteria Evaluation System to evaluate suppliers, all of the following are true EXCEPT: a. Evaluate each of the performance measures on a rating between zero and one-hundred b. The weights for all dimensions must sum to 1 or 100% c. Multiply the dimension ratings by their respective important weights and then sum to get an overall weighted score d. Select the key dimensions of performance based on what is important to the end consumer

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