Exam 7: Supplier Evaluation and Selection

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

Many suppliers do not have a sophisticated cost accounting system and are unable to assign overhead costs to products or processes.

Purchasers often perform a first cut or preliminary evaluation of potential suppliers to narrow the list before conducting an in-depth formal evaluation.

Although many sources exist to discover information about a potential supplier, visiting the actual facility provides the most complete way to ensure an accurate assessment of the supplier.

Which of the following is not a commonly accepted source of information regarding potential supply sources?

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

The popularity of JIT and quick replenishment systems favor using fewer local suppliers.

Before committing time to evaluate a supplier in depth, suppliers should satisfy certain entry qualifiers.

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

A supplier's willingness to move beyond a traditional purchasing relationship should be part of the evaluation process for items and services where a longer-term relationship might be beneficial.

Using third-party information can be a timely and effective way to gain insight into potential suppliers.

A _____ has had its quality systems extensively audited by the buying firm and are capable of consistently meeting or exceeding the buyer's quality needs.

Databases allow the purchaser to quickly identify suppliers potentially qualified to support a requirement and may contain information on current products, the supplier's future technology roadmap, process capability ratios, and past performance.

Today, buyers seldom use the Internet to help locate potential sources that might qualify for further evaluation.

A major source of information on potential supply sources comes from current or existing suppliers.

All of the following are examples of commonly used environmental performance criteria except _____.

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 key financial ratios is calculated as Sales/Total assets?​

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

In supplier evaluation, reliability refers to the different individuals or groups reviewing the same items and measurement scales will arrive at the same conclusion.