Exam 6: Strategic Sourcing

In the strategic sourcing framework,the margin on a particular item for a supplier is known as the profit impact.

The spend on any item that supports the operation of the firm is categorized within the ________ category.

An auto manufacturer using the portfolio model for strategic sourcing would classify items like office supplies into the leverage items quadrant.

A framework for making purchasing-related strategic management decisions is known as the ________.

The spend on any item that supports the operation of the firm is categorized within the direct spend category.

The spend on an item like spare parts for the factory equipment should be categorized within the ________ category.

What is the strategic impact of the quality of purchased goods and services for a firm?

The extent to which an item is difficult to source due to a lack of qualified sources or lack of substitutes among others is known as ________.

With reference to the strategic sourcing framework,profit impact is

All costs related to the customer's use and disposition of a purchased item are known as ________.

Two suppliers have quoted the following pricing and payment terms for the procurement of a certain part: Supplier A $121.25/unit,payment due in 45 days Supplier B $120.00/unit,payment due on delivery Perform a price analysis with a 10% annual cost of capital.

Use the information below to answer the following question(s): A retailer operating a network of home improvement stores has annual sales of $800 million, annual cost of goods and materials purchased of $500 million,and net income of $125 million. -If a newly implemented strategic sourcing process is able to reduce the cost of goods and materials purchased by 15 percent,what would be the new net profit,given that annual sales and other costs remain unchanged?

A sourcing strategy for items in the bottleneck quadrant will be to

A sourcing strategy for items in the routine quadrant will be to simplify the acquisition process.

The process of determining what a product should cost based on its component raw material,manufacturing and overhead costs as well as reasonable profit margin is known as ________.

The sum of acquisition,ownership,and post ownership costs is known as ________.

The purchasing team examined all of the past purchases from the previous financial year in order to identify possible areas of cost savings.What kind of analysis was the purchasing team conducting?

If a new purchasing agent is able to reduce the cost of materials by 10 percent,what would be the addition to the bottom line?

The focus of the purchasing function in the war years (1910-1946)was

A sourcing strategy for items in the critical quadrant will be to prepare contingency plans to protect against unforeseen risks.