Exam 6: Strategic Sourcing

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. -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?

With of the following factors determine supply risk for an item?

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

The focus of the purchasing function in the new millennium (year 2000 onwards)has been

The impact of sourcing materials or services with improved quality for a firm is

Purchased goods and services typically make up under 50% of a firm's cost of goods sold.

The process of planning,evaluating,implementing,and controlling sourcing decisions is known as ________.

The sourcing strategy for procuring leverage items would be to

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?

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. -What is the new profit margin with a 15-percent reduction in the cost of goods and materials purchased,assuming sales and other costs remain unchanged?

The focus of the purchasing function in the new millennium (year 2000 onwards)has been solely on reducing prices.

The terms procurement and purchasing are used interchangeably.

The impact of sourcing materials or services with improved quality for a firm is

For a computer manufacturer,items like the processor,which has only a few qualified suppliers,will be classified in the bottleneck quadrant.

The focus of the purchasing function in the war years (1910-1946)was on obtaining scarce materials.

A company using portfolio model for strategic sourcing decisions decides to form long-term alliances with their key suppliers; the products in question most likely fall in the ________ quadrant.

For a manufacturer of canned fruit,the procurement of items like oranges and peaches will fall in the leverage quadrant.

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