Supply Chain: Chapter 7 Questions

Award-winning suppliers serve as role models for other suppliers and may, therefore, be exempt from audits and certification programs. A) True B) False

False

Successful supplier relationships involve equal decision-making control between both the buyer and the supplier. A) True B) False

True

The combination of the purchase price of a good, and the additional costs incurred before or after product delivery is referred to as? A) Total Cost of Acquisition B) Total Cost of Ownership C) Purchase Requisition Cost D) Total Procurement Cost

B) Total Cost of Ownership

Benefits of implementing an effective supplier certification program include all of the following EXCEPT? A) Building long-term relationships B) Reducing time spent on incoming inspections C) Increasing the supplier base D) Recognizing excellence

C) Increasing the supplier base

An organization's process for evaluating the quality systems of key suppliers in an effort to eliminate incoming inspections can be referred to as? A) Quality Systems Certification B) Supply Management C) Supplier Inspection D) Supplier Certification

D) Supplier Certification

The best supplier candidates for Supplier Relationship Management (SRM) include all of the following EXCEPT?

Developmental suppliers that need to make improvements

A strong supplier partnership requires that both buyer and supplier adopt a strong tactical perspective. A) True B) False

False

An effective supplier certification program may increase the time spent on incoming inspections. A) True B) False

False

ISO 14000 is a widely accepted management and quality certification standard. A) True B) False

False

The process commonly utilized in continuous improvement is known as?

Plan, Do, Check, Act

The keys to developing successful supply partnerships include all of the following EXCEPT? A) Personal Relationships B) Individualized Objectives C) Mutual Benefits and Needs D) Performance Metrics

B) Individualized Objectives