Bcor 360 Exam 2
During which step of the strategic sourcing process would you identify potential suppliers?
. Source
Assume that you work for a company that is developing a new technology to allow noise cancellation of loud parties, neighbors, etc. The supplier your company is working closely with on developing that technology should be a ______________________ relationship.
Strategic alliance relationship
A 100 point scoring system allows for more refined differences in supplier scoring that a 5 point scale.
True
Multi-criteria analysis is a tool that helps you compare "distinctly different" options. TrueFalse
True
Prior to WWII, purchasing was primarily a clerical function in most organizations.
True
Suppliers may bring ideas, resources and skills to help make your company more competitive.
True
The Honda BP program is a type of supplier development.
True
To calculate results you multiply the score for each criterion by the associated weight and add up the results.
True
You are only outsourcing if you could have / used to produce the good or service internally, and are now choosing to source from outside the company. TrueFalse
True
Critical items (on the strategic sourcing matrix) are:
a. Also called strategic items
Supplier segmentation using the strategic sourcing matrix occurs during which step of the strategic sourcing process?
a. Analyze
Which of the following is not one of the four reasons to include a multi-criteria analysis in your toolkit?
a. Comprehensiveness
In its relationship with Gordon Foods, Bob Evans did which of the following?
a. Consolidated to a single source c. Gave the drivers access to the restaurants at night for delivery when no one else was there.
A sensitivity analysis as part of a supplier selection model is a good approach to understand:
a. How robust your model is b. What will happen if some of your key assumptions change
General Motors got in trouble with one of its suppliers of trim because:
a. It increased volumes so much that the supplier was no longer profitable b. It allowed its supplier to become too dependent upon it c. The supplier filed bankruptcy and ceased operations
The make or buy decision analysis tells us:
a. It is not that important to the company's success to outsource items that are not strategic to our success c. Before outsourcing a 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:
a. Knowledge is power
A purchase where there are a large number of competitive suppliers and you buy a fairly large amount relative to the market would most likely be classified as:
a. Leverage
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
Potential supplier contributions from ESI include:
a. Providing feedback on feasibility of materials and processes b. Suggesting alternatives c. Improve cost d. Improve lead time
If you are employed in purchasing, you need to become an expert on which of the following?
a. Resources b. Suppliers c. Processes
______________________ increased visibility of purchasing from the mid 70s to the mid 80s.
a. Scarcity/inflation
When considering outsourcing, you should evaluate which of the following factors?
a. Whether the item is strategically important to you b. How good you are at making the item versus how good suppliers are at making it c. The total cost of ownership of the item compared to the cost to make the item internally
The strategic sourcing matrix:
a.. Is used to segment purchases b. Is widely used in practice c. Considers the importance of the category and the complexity of the market to classify purchases
Leverage purchases:
b. A buyer's dream c. Your best opportunity to really save money
Bottleneck buys:
b. Are difficult to manage because there are few options
Category importance is determined by:
b. How much impact a particular category has on firm performance
Which of the following is not a step in the strategic sourcing process?
b. Plan
Which step in the process helps you determine how important each criterion is?
b. Set weights
Which of the following statements is correct?
b. TCO includes landed costs c. You should use landed cost analysis for all purchase decisions
Reasons for early supplier involvement is:
b. To utilize the supplier's innovative ideas c. Because the most cost and functionality is determined during design.
As part of supplier integration:
b. You share information on your plans with the supplier c. You communicate seamlessly
The degree of supplier integration may vary, from ________ to __________ at the extremes.
c. Collaborative forecasting, supplier integrated manufacturing
What type of costs might still remain after you outsource an item?
c. Fixed overhead costs
As a purchasing manager, you have to make many purchasing decisions. The organization's secretary comes to you asking what type of office supplies you want for your employees' desks. This purchasing decision would be considered a _______ item.
c. Non-critical
During which era did outsourcing make purchasing strategic?
c. Strategic era
The most likely area that you will have lengthy supplier negotiations in purchasing is:
c. Strategic items, because of their strategic nature
A leverage buy (on the strategic sourcing matrix) is one where there is:
c. You spend enough money to generate supplier competition for your business
When comparing costs for the outsourcing decision, compare ______________ for the best results.
d. Cost to make less fixed costs remaining after outsourcing versus TCO
A strategic alliance is most likely in which spend category?
d. Critical
During which step of the strategic sourcing process do you actual purchase items you have contracted for?
e. Procure
Purchasing savings can have a huge impact on the firm's profit leverage.
true
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. TrueFalse
False
During the sourcing stage of strategic sourcing, you select the source.
False
If we have more in inventory from one alternative versus the other when considering outsourcing, that is irrelevant.
False
Outsourcing just means that you are buying something instead of making it.
False
TCO analysis should be used for all purchase decisions.
False
During WWII, ___________ increased the emphasis on purchasing.
Materials shortages
What are the five activities of the SCOR model?
Plan, Source, Make, Deliver, Return
