Question 1

The spend on any item that is part of the final product is categorized within the ________ category.

Accepted Answer

The answer of The spend on any item that is...

Question 2

For a national pizza restaurant chain,the procurement of cheese will fall in the routine quadrant.

Accepted Answer

A) True 
 B)False

Question 3

The spend on an item like spare parts for the factory equipment should be categorized in which spend category?

Accepted Answer

A) Indirect 
B) Direct 
C) Capital 
D) Process 
A) Indirect 
B) Direct 
C) Capital 
D) Process

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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.

Accepted Answer

To equitably compare these two prices,we

Question 6

Use the following information to answer the following question(s).
ABC Tools has annual sales of $50 million,annual materials cost of $28 million,and net income of $5 million.
-What is the new profit margin with a 10-percent reduction in the cost of materials,assuming sales remain the same?

Accepted Answer

A) 10% 
B) 13.5% 
C) 15.6% 
D) 20% 
A) 10% 
B) 13.5% 
C) 15.6% 
D) 20%

Question 7

What has been the focus of the purchasing function in the new millennium (year 2000 onwards)and what is its impact on the firm?

Accepted Answer

Most firms now look to their procurement

Question 8

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

Accepted Answer

The answer of The spend on an item like spare...

Question 9

Purchased goods and services typically make up what percentage of a firm's cost of goods sold?

Accepted Answer

A) 0 to 10 
B) 10 to 50 
C) 50 to 90 
D) Above 90 
A) 0 to 10 
B) 10 to 50 
C) 50 to 90 
D) Above 90

Question 10

A basic item like office supplies is a(n)________ item.

Accepted Answer

The answer of A basic item like office supplies is...

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A procurement organization with strategi

Question 13

What is the role of supply management on the product development and design process?

Accepted Answer

Approximately 85 percent of an item or s

Question 14

Purchasing is the process of ________.

Accepted Answer

buying and

Question 15

The main objective of the portfolio model is to determine cost discount targets for different suppliers.

Accepted Answer

A) True 
 B)False

Question 16

The process of comparing supplier prices against one another or against external benchmarks is known as ________.

Accepted Answer

The answer of The process of comparing supplier prices against...

Question 17

In the portfolio model,depending on the sourcing strategy,an item is assigned to a particular quadrant.

Accepted Answer

A) True 
 B)False

Question 18

A purchased good that can have a big effect on profitability but only has a few qualified suppliers is a

Accepted Answer

A) routine item. 
B) leverage item. 
C) bottleneck item. 
D) critical item. 
A) routine item. 
B) leverage item. 
C) bottleneck item. 
D) critical item.

Question 19

The ABC Tool company is considering the best manufacturing location decision for manufacturing their range of PowerDrills.The 3 options are to manufacture in the USA (current scenario),outsource manufacturing to either China or India.The cost to manufacture the product in the USA location (including all overhead costs)is $50 per unit,whereas the same cost for the China and India locations are $33 per unit and $30 per unit respectively.A container can hold 1000 units and it costs $10,000 to ship a container from China to USA and $11,200 to ship a container from India to USA.Additional inventory carrying costs incurred on account of the China and India locations are $1 and $1.35 per unit respectively.Additional logistics costs (on account of customs duties and related delays)are $2 and $2.5 for the China and India locations respectively.Determine the best (lowest cost)location to manufacture the PowerDrill product line.

Accepted Answer

The table below gives the unit

Question 20

The spend on building and large equipment is categorized within the capital spend category.

Accepted Answer

A) True 
 B)False

The spend on any item that is part of the final product is categorized within the ________ category.

For a national pizza restaurant chain,the procurement of cheese will fall in the routine quadrant.

The spend on an item like spare parts for the factory equipment should be categorized in which spend category?

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

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 following information to answer the following question(s). ABC Tools has annual sales of $50 million,annual materials cost of $28 million,and net income of $5 million. -What is the new profit margin with a 10-percent reduction in the cost of materials,assuming sales remain the same?

What has been the focus of the purchasing function in the new millennium (year 2000 onwards)and what is its impact on the firm?

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

Purchased goods and services typically make up what percentage of a firm's cost of goods sold?

A basic item like office supplies is a(n)________ item.

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

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

What is the role of supply management on the product development and design process?

Purchasing is the process of ________.

The main objective of the portfolio model is to determine cost discount targets for different suppliers.

The process of comparing supplier prices against one another or against external benchmarks is known as ________.

In the portfolio model,depending on the sourcing strategy,an item is assigned to a particular quadrant.

A purchased good that can have a big effect on profitability but only has a few qualified suppliers is a

The spend on building and large equipment is categorized within the capital spend category.

Introduction to Supply Chain and Operations Management

Supply Chain and Operations Strategy

Product and Process Design and Mapping

Service Design

Customer Relationship Management

Supplier Management

Demand Management and Forecasting

Inventory Management Fundamentals and Independent Demand

Sales and Operations Planning and Enterprise Resource Planning

Logistics

Project Management

Supply Chain Quality Management

Statistical Process Control

Lean and Six Sigma Management and Leading Change

Filters

Exam 6: Strategic Sourcing

The spend on any item that is part of the final product is categorized within the ________ category.

For a national pizza restaurant chain,the procurement of cheese will fall in the routine quadrant.

The spend on an item like spare parts for the factory equipment should be categorized in which spend category?

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

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 following information to answer the following question(s). ABC Tools has annual sales of $50 million,annual materials cost of $28 million,and net income of $5 million. -What is the new profit margin with a 10-percent reduction in the cost of materials,assuming sales remain the same?

What has been the focus of the purchasing function in the new millennium (year 2000 onwards)and what is its impact on the firm?

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

Purchased goods and services typically make up what percentage of a firm's cost of goods sold?

A basic item like office supplies is a(n)________ item.

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

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

What is the role of supply management on the product development and design process?

Purchasing is the process of ________.

The main objective of the portfolio model is to determine cost discount targets for different suppliers.

The process of comparing supplier prices against one another or against external benchmarks is known as ________.

In the portfolio model,depending on the sourcing strategy,an item is assigned to a particular quadrant.

A purchased good that can have a big effect on profitability but only has a few qualified suppliers is a

The spend on building and large equipment is categorized within the capital spend category.

Introduction to Supply Chain and Operations Management

Supply Chain and Operations Strategy

Product and Process Design and Mapping

Service Design

Customer Relationship Management

Supplier Management

Demand Management and Forecasting

Inventory Management Fundamentals and Independent Demand

Sales and Operations Planning and Enterprise Resource Planning

Logistics

Project Management

Supply Chain Quality Management

Statistical Process Control

Lean and Six Sigma Management and Leading Change

Filters