BMGT372 CH11

The development of joint objectives is a benefit of power-based relationships.

False

The greater the criticality of a supplier relationship, the smaller the risk.

False

The most comprehensive buyer-supplier relationship is a partnership.

False

Transactional relationships require significant relationship management.

False

When considering the negotiator's dilemma, distributive opportunities are mutually beneficial.

False

The keiretsu concept is a strategy to diffuse power differentials in a relationship and allows all parties to grow and prosper.

True

The need to coordinate and collaborate across global supply chains makes relationship management one of the most important aspects of SCM.

True

When a supply chain member encompasses small scope, the risks of that relationship are small.

True

When designing and assessing a trust-based relationship, equity is a key component.

True

When resolving a conflict through mediation, the parties involved retain significant control of the resolution process.

True

When scope and criticality are low, the type of relationship would be: a) Non-strategic transactional b) Partnership c) Alliance d) Contractual e) None of the above

a) non-strategic transactional

When the component being supplied is low in scope yet critical to the manufacturing of a product, the relationship would be categorized as: a) Non-strategic transactional b) Partnership c) Alliance d) Contractual e) None of the above

b) partnership

Because of its overlay across all supply chain functions____________ is the most important aspect of SCM. a) Operations b) Relationship management c) Marketing d) CPFR e) Six Sigma

b) relationship management

An _______________ is the most comprehensive and customized buyer-supplier relationship. a) Non-strategic transactional b) Partnership c) Alliance d) Contractual e) None of the above

c) alliance

_______ is an example of an adversarial negotiating tactic. a) Listening b) Inventing c) Anchoring d) Asking e) b and c

c) anchoring

When building trust between supply chain partners, typically the initial step is to establish a: a) Relationship b) Partnership c) Contractual agreement d) Alliance e) None of the above

c) contractual agreement

When a supplier is the only source of a component or service, it would have a high level of ________ to the buyer. a) Scope b) Profitability c) Criticality d) Proximity e) All of the above

c) criticality

Power-based relationships between buyer and supplier can result in: a) Shared objectives b) Information sharing c) Decreased profitability d) Greater coordination e) None of the above

c) decreased profitability

A factor that typically determines the scope of a buyer-supplier relationship is: a) Cost b) Quality c) Degree of customization d) Lead time e) Profitability

c) degree of customization

If a company outsources all of its manufacturing to a supplier, that relationship would have a ______ level of scope. a) Low b) Medium c) High

c) high

SCM relationships that do not require significant management are: a) Alliances b) Partnerships c) Non-strategic Transactions d) Strategic e) None of the above

c) non-strategic transactions

CPFR is an example of __________ interdependence in a relationship. a) Sequential b) Mutual c) Reciprocal d) Transactional e) Contractual

c) reciprocal

__________ interdependence in a trust-based relationship is more likely to result in greater profitability for all SCM partners. a) Sequential b) Mutual c) Reciprocal d) Transactional e) Contractual

c) reciprocal

Trust-based relationships can improve performance for the following reasons: a) Sharing joint objectives b) Coordination is easier to implement c) Elimination of duplicate efforts d) All of the above e) None of the above

d) all of the above

The first step in developing a trust-based relationship between buyer and supplier is: a) Identify operational roles b) Create a contract c) Design a conflict resolution process d) Assess the relationship e) None of the above

d) assess the relationship

One of the biggest problems that arises in SCM relationship management is: a) Profit sharing b) Visibility c) Coordination d) Conflict management e) Contract management

d) conflict management

In a relationship where scope is high but criticality is low, the relationship would be categorized as: a) Non-strategic transactional b) Partnership c) Alliance d) Contractual e) None of the above

d) contractual

A large cope of tasks provided by a SCM partner can be beneficial because it allows a company to focus on its ___________: a) Profitability b) Customers c) Suppliers d) Core competencies e) None of the above

d) core competencies

The most informal and inexpensive dispute resolution procedure is: a) Litigation b) Arbitration c) Mediation d) Negotiation e) Segmentation

d) negotiation

As the level of criticality increases, the relationship between buyer and supplier becomes more: a) Transactional b) Contractual c) Unbalanced d) Relational e) a and d

d) relational

______________ is the degree of responsibility assigned to a supplier. a) Criticality b) Visibility c) Dependency d) Scope e) a and b

d) scope

Unequal power and authority in SCM relationships can be a source of _________ conflict. a) Relational b) Data c) Interest d) Structural e) Value

d) structural

The global nature of SCM relationships, with different cultures, can create _______ conflict between SCM partners. a) Relational b) Data c) Interest d) Structural e) Value

e) value

A CPFR program is a good example of sequential operational roles and processes.

False

All SCM relationships should be treated in a similar manner.

False

As criticality of the supplier relationship increases, the relationship becomes more contractual.

False

Companies should strive to establish multiple alliances because close relationships are always beneficial.

False

Criticality refers to the degree of responsibility assigned to a supplier.

False

For companies in an alliance relationship, it is not necessary to have dispute resolution procedures in place.

False

In SCM relationships, the most effective and fair division of power is an equal 50-50 split.

False

In trust-based relationships, competition between companies typically exists.

False

Litigation is the most inexpensive, quick, and amicable conflict resolution strategy.

False

SCM is primarily about the management of suppliers across complex networks of companies.

False

Alliances typically involve products that are highly customized and processes that require flexibility to business needs of the client/customer.

True

Companies should segment relationships across the supply chain to determine necessary levels of management.

True

For a supplier that provides a commodity product, relationship management can be minimal.

True

In a contractual relationship, scope is high and criticality is low.

True

In effective negotiations, both adversarial and problem-solving tactics may be appropriate and effective.

True

Just-in-time relationships are often characterized as partnerships.

True

Leverage refers to the amount of bargaining power in a negotiation strategy.

True

Poor communication has the potential to cause failure in a supply chain.

True

Scope and criticality are the two defining dimensions of supply chain relationships.

True

The following attributes are important to the success of a trust-based relationship between parties: a) Low visibility b) Equity c) Commitment d) Limited information sharing e) b and c

e) equity, commitment

An example of a problem solving tactic used in negotiations is: a) Inventing b) Referencing c) Anchoring d) Recipricity e) a and b

e) inventing, referencing

Scope refers to the degree of responsibility assigned to a supplier.

true