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