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