MKG460 Ch. 3 and 4 bsmitty

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 (0.20) Cost (0.25) Technology (0.20) Company X received the following ratings in each of the five categories: Quality(90), Responsiveness(90), Delivery(80), Cost(80), Technology(90). What is their total score?

85.5

Benchmarking is:

A practice where companies attempt to learn and apply the best practices of other companies.

Companies consider outsourcing more and more parts when it becomes increasingly more difficult to:

Achieve further cost savings internally

A company using a weighted-criteria evaluation system has established these 3 categories and the appropriate weight in parentheses: Quality(0.30), Delivery(0.20), Cost(0.50). The scores for each category are shown below. Which of the following companies has the highest total score?

All companies scored the same

Successful strategic supplier alliances can result in which of the following?

All of these

Which of the following can be used as a punishment for suppliers that perform poorly?

All of these

Which of the following is a trend in ethical and sustainable sourcing?

All of these

Which of the following is important in developing successful relationships in a partnership?

All of these

One benefit from benchmarking sourcing practices is:

Allows firms to potentially leapfrog the experience-gaining stage by trying things that have worked well for other companies

The application of ethical principles to business situations can be referred to as:

Business ethics

According to a Bridgestone Americas survey, consumers revealed that companies can show they are environmentally responsible by all of the following EXCEPT:

Buying products only manufactured in America

The Ethical Trading Initiative (ETI) does NOT include which of the following:

Children under 13 shall not be employed

A company using a weighted-criteria evaluation system has established these 3 categories and the appropriate weight in parentheses: Quality(0.30), Delivery(0.40), Cost(0.30). The scores for each category are shown below. Which of the following companies has the highest total score?

Company B: Quality(70), Delivery(90), Cost(80)

Which of the following is TRUE?

Continuous improvement and change management are both keys to building successful partnerships.

Which of the following is NOT important in developing a successful strategic alliance?

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

Which of the following is NOT a step suggested in the Supply Chain Sourcing Strategy Framework?

Distribute free samples of all purchased products to the end-user for detailed evaluation and feedback on supply chain development

Promoting diversity by intentionally buying from small firms or ethnic minority businesses. This is an example of:

Ethical Sourcing

The purchasing managers at Sunnydale Corporation decide to intentionally increase purchases from small, women- owned suppliers. This decision can be considered:

Ethical sourcing

The Hormel company awards their Hormel Food Corporation's No. 1 Award to their top supplier. How often to the give this award?

Every 5 years

Cutting back on packaging, fuel, or electricity is an example of:

Green Sourcing

Which third party certification was adopted by the European Union in 1992 that caused US suppliers wanting to stay competitive in European Union countries to get certified?

ISO 9000

The use of environmental supplier certification programs assist companies by which of the following?

Identifying strategic alliance candidates

The benefits of implementing an effective supplier certification program include all of the following EXCEPT:

Increasing supplier base

According to the text, key ingredients for developing successful supply partnerships include all of the following EXCEPT:

Individualized objectives

According to the textbook, which of the following companies utilizes a supplier development program called Supplier Continuous Quality Improvement (SQDI) focused on improving the quality of the goods and services purchased and minimize the time needed to inspect incoming products?

Intel

All of the following are reasons for the increasing use of ethical and sustainable sourcing practices EXCEPT:

Legislation requiring corporate ethical and sustainable sourcing

Which of the following should NOT be used as assessment criteria to evaluate the purchasing department's performance?

Lowering inventory turnover rates

SRM software should be capable of

Making information flow between partners more visible and automating transactional processes

Field failures, loss of goodwill, a decreased reputation, and warranty costs can all be classified as:

Post-transaction costs

Costs associated with investigating alternative suppliers and investigating alternative delivery options can be classified as:

Pre-transaction costs

The process of certifying a new supplier is considered what type of major cost category?

Pre-transaction costs

Supplier Development includes all EXCEPT which of the following?

Reducing the supply base

Direct benefits of ISO 14000 include:

Reduction of pollution emission

According to the text, one of the most basic and successful approaches to protecting trade secrets is:

Requiring employees and vendors to sign non-disclosure agreements

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:

SRM

Summers, Inc. needs to generate a list of good/services purchased per supplier. Which type software program can the manager consult to obtain the information?

SRM

When using a Weighted Criteria Evaluation System to evaluate suppliers, all of the following are true EXCEPT:

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

Managing a firm's external resources in ways that support the long-term goals of the firm can be referred to as:

Strategic sourcing

The management of the firm's external resources through identification and selection of suppliers, management of supplier relationships, and monitoring and rewarding supplier performance in an effort to support the long-term goals of the organization is called:

Strategic sourcing

Supplier relationship management (SRM):

Streamlining the processes and communications between the buyer and supplier using software applications that enable these processes to be managed more efficiently and effectively

An organization's process for evaluating the quality systems of key suppliers in an effort to eliminate incoming inspections can be referred to as:

Supplier Certification

One standard which is measured in environmental supplier certification is:

The suppliers green house gas emissions

According to the text, the goal of a good performance evaluation system is to provide metrics that are:

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

In designing an ethical and sustainable strategy a firm might make use of which of the following?

Use of a performance metric to gauge the success of the firm's efforts.

The following term refers to an act that creates the greatest good for the greatest number of people:

Utilitarianism

Which of the following is TRUE?

VMI stands for Vendor-Managed Inventory

One of the most value enhancing activities performed by a supplier, for a key customer, which minimizes carrying costs and can avoid stockouts:

Vendor managed inventory

Leading companies practicing sustainable sourcing and seeking to reduce costs would NOT use which of the following strategies?

You would increase resource efficiencies, avoiding non compliant suppliers, rethinking transport and distribution systems, not benchmarking

Why do firms assess their sourcing capabilities?

the sourcing function is one of the most value-enhancing functions in an organization