Question 1

Which of the following is not an example of points that should be considered when evaluating a supplier's employee capabilities?

Accepted Answer

A) The degree to which employees are committed to quality and continuous improvement. 
B) The overall skills and abilities of the workforce. 
C) Employee morale. 
D) Workforce turnover. 
E) Disclosure of environmental infractions. 
A) The degree to which employees are committed to quality and continuous improvement. 
B) The overall skills and abilities of the workforce. 
C) Employee morale. 
D) Workforce turnover. 
E) Disclosure of environmental infractions.

Question 2

Purchasers should set minimum acceptable performance requirements for a supplier to meet before they become part of the supply base.

Accepted Answer

A) True 
 B)False

Question 3

_____ involves the identification of the steps, activities, time, and costs involved in a process.

Accepted Answer

A) Data warehousing 
B) Co-location 
C) Process mapping 
D) Supply base optimization 
E) TQM 
A) Data warehousing 
B) Co-location 
C) Process mapping 
D) Supply base optimization 
E) TQM

Question 4

Designation as a preferred supplier means that a supplier consistently satisfies the performance and service standards defined by the buyer and responds to unexpected changes.

Accepted Answer

A) True 
 B)False

Question 5

The complexity and value of a required purchase does not influence the extent to which a buyer evaluates potential supply sources.

Accepted Answer

A) True 
 B)False

Question 6

The _____ buys from the OEM and resells, therefore incurring a transaction cost, and it must make a profit.

Accepted Answer

A) vendor 
B) customer 
C) preferred supplier 
D) single source supplier 
E) distributor 
A) vendor 
B) customer 
C) preferred supplier 
D) single source supplier 
E) distributor

Question 7

Most purchasing experts will agree that there is only one best way to evaluate and select suppliers.

Accepted Answer

A) True 
 B)False

Question 8

_____ is a program that distributors market to manage their customers' inventory for them.

Accepted Answer

A) Just-in-time 
B) Supplier managed inventory 
C) Self-managed inventory 
D) Countertrade 
E) Preferred supplier inventory 
A) Just-in-time 
B) Supplier managed inventory 
C) Self-managed inventory 
D) Countertrade 
E) Preferred supplier inventory

Question 9

A _____ is a supplier who no longer meets the buying organization's standards and will not be considered for future business until its problems are corrected.

Accepted Answer

A) preferred supplier 
B) disqualified supplier 
C) certified supplier 
D) single source supplier 
E) sole source supplier 
A) preferred supplier 
B) disqualified supplier 
C) certified supplier 
D) single source supplier 
E) sole source supplier

Question 10

A _____ is limited to a select group of suppliers who provide critical high value items to the firm.

Accepted Answer

A) disqualified supplier 
B) sole source supplier 
C) preferred supplier 
D) single source supplier 
E) partnered supplier 
A) disqualified supplier 
B) sole source supplier 
C) preferred supplier 
D) single source supplier 
E) partnered supplier

Question 11

Purchasers always want to select suppliers who are profitable and growing.

Accepted Answer

A) True 
 B)False

Question 12

An in-depth evaluation of all potential supply sources should be conducted for every purchase.

Accepted Answer

A) True 
 B)False

Question 13

Many purchasers prefer to focus on suppliers who have the "capability to do the job" regardless of size.

Accepted Answer

A) True 
 B)False

Question 14

The supplier's selection of a production process does little to define its required technology, human resource skills, and capital equipment requirements.

Accepted Answer

A) True 
 B)False

Question 15

One argument against rotating buyers too frequently between product lines or types of purchases is that a buyer may lose the expertise built up over the years.

Accepted Answer

A) True 
 B)False

Question 16

Local suppliers are less responsive to the buying firm's changing needs and cannot economically make frequent smaller deliveries.

Accepted Answer

A) True 
 B)False

Question 17

A/An _____ is a basic component that suppliers must possess before they proceed to the next phase of the evaluation and selection process.

Accepted Answer

A) core competency 
B) technology roadmap 
C) Internet website 
D) entry qualifier 
E) triple bottom line 
A) core competency 
B) technology roadmap 
C) Internet website 
D) entry qualifier 
E) triple bottom line

Question 18

A/An _____ is a discrepancy, nonconformance, or missing requirement that will have a significant negative impact on an important area of concern in an audit statement.

Accepted Answer

A) deficiency 
B) performance problem 
C) entry qualifier 
D) unacceptable outcome 
E) challenge 
A) deficiency 
B) performance problem 
C) entry qualifier 
D) unacceptable outcome 
E) challenge

Question 19

Which of the following is not an example of questions that should be asked when evaluating a supplier's management capability?

Accepted Answer

A) Has management committed the supplier to TQM and continuous improvement? 
B) Does management promote a customer-focused philosophy? 
C) What is the willingness of employees to contribute to improved operations? 
D) Does management put a priority on supply chain management? 
E) What is the history of labor/management relations? 
A) Has management committed the supplier to TQM and continuous improvement? 
B) Does management promote a customer-focused philosophy? 
C) What is the willingness of employees to contribute to improved operations? 
D) Does management put a priority on supply chain management? 
E) What is the history of labor/management relations?

Question 20

The degree of effort associated with supplier selection is inversely related to the importance of the required good or service.

Accepted Answer

A) True 
 B)False

Which of the following is not an example of points that should be considered when evaluating a supplier's employee capabilities?

Purchasers should set minimum acceptable performance requirements for a supplier to meet before they become part of the supply base.

_____ involves the identification of the steps, activities, time, and costs involved in a process.

Designation as a preferred supplier means that a supplier consistently satisfies the performance and service standards defined by the buyer and responds to unexpected changes.

The complexity and value of a required purchase does not influence the extent to which a buyer evaluates potential supply sources.

The _____ buys from the OEM and resells, therefore incurring a transaction cost, and it must make a profit.

Most purchasing experts will agree that there is only one best way to evaluate and select suppliers.

_____ is a program that distributors market to manage their customers' inventory for them.

A _____ is a supplier who no longer meets the buying organization's standards and will not be considered for future business until its problems are corrected.

A _____ is limited to a select group of suppliers who provide critical high value items to the firm.

Purchasers always want to select suppliers who are profitable and growing.

An in-depth evaluation of all potential supply sources should be conducted for every purchase.

Many purchasers prefer to focus on suppliers who have the "capability to do the job" regardless of size.

The supplier's selection of a production process does little to define its required technology, human resource skills, and capital equipment requirements.

One argument against rotating buyers too frequently between product lines or types of purchases is that a buyer may lose the expertise built up over the years.

Local suppliers are less responsive to the buying firm's changing needs and cannot economically make frequent smaller deliveries.

A/An _____ is a basic component that suppliers must possess before they proceed to the next phase of the evaluation and selection process.

A/An _____ is a discrepancy, nonconformance, or missing requirement that will have a significant negative impact on an important area of concern in an audit statement.

Which of the following is not an example of questions that should be asked when evaluating a supplier's management capability?

The degree of effort associated with supplier selection is inversely related to the importance of the required good or service.

Introduction to Purchasing and Supply Chain Management

The Purchasing Process

Purchasing Policies and Procedures

Supply Management Integration for Competitive Advantage

Purchasing and Supply Management Organization

Supply Management and Commodity Strategy Development

Supplier Quality Management

Supplier Management and Development: Creating a World-Class Supply Base

Worldwide Sourcing

Strategic Cost Management

Purchasing and Supply Chain Analysis: Tools and Techniques

Negotiation and Conflict Management

Contract Management

Purchasing Law and Ethics

Lean Supply Chain Management

Purchasing Services

Supply Chain Information Systems and Electronic Sourcing

Performance Measurement and Evaluation

Purchasing and Supply Strategy Trends

Filters

Exam 7: Supplier Evaluation and Selection

Which of the following is not an example of points that should be considered when evaluating a supplier's employee capabilities?

Purchasers should set minimum acceptable performance requirements for a supplier to meet before they become part of the supply base.

_____ involves the identification of the steps, activities, time, and costs involved in a process.

Designation as a preferred supplier means that a supplier consistently satisfies the performance and service standards defined by the buyer and responds to unexpected changes.

The complexity and value of a required purchase does not influence the extent to which a buyer evaluates potential supply sources.

The _____ buys from the OEM and resells, therefore incurring a transaction cost, and it must make a profit.

Most purchasing experts will agree that there is only one best way to evaluate and select suppliers.

_____ is a program that distributors market to manage their customers' inventory for them.

A _____ is a supplier who no longer meets the buying organization's standards and will not be considered for future business until its problems are corrected.

A _____ is limited to a select group of suppliers who provide critical high value items to the firm.

Purchasers always want to select suppliers who are profitable and growing.

An in-depth evaluation of all potential supply sources should be conducted for every purchase.

Many purchasers prefer to focus on suppliers who have the "capability to do the job" regardless of size.

The supplier's selection of a production process does little to define its required technology, human resource skills, and capital equipment requirements.

One argument against rotating buyers too frequently between product lines or types of purchases is that a buyer may lose the expertise built up over the years.

Local suppliers are less responsive to the buying firm's changing needs and cannot economically make frequent smaller deliveries.

A/An _____ is a basic component that suppliers must possess before they proceed to the next phase of the evaluation and selection process.

A/An _____ is a discrepancy, nonconformance, or missing requirement that will have a significant negative impact on an important area of concern in an audit statement.

Which of the following is not an example of questions that should be asked when evaluating a supplier's management capability?

The degree of effort associated with supplier selection is inversely related to the importance of the required good or service.

Introduction to Purchasing and Supply Chain Management

The Purchasing Process

Purchasing Policies and Procedures

Supply Management Integration for Competitive Advantage

Purchasing and Supply Management Organization

Supply Management and Commodity Strategy Development

Supplier Quality Management

Supplier Management and Development: Creating a World-Class Supply Base

Worldwide Sourcing

Strategic Cost Management

Purchasing and Supply Chain Analysis: Tools and Techniques

Negotiation and Conflict Management

Contract Management

Purchasing Law and Ethics

Lean Supply Chain Management

Purchasing Services

Supply Chain Information Systems and Electronic Sourcing

Performance Measurement and Evaluation

Purchasing and Supply Strategy Trends

Filters