Question 1

Which of the following key financial ratios is calculated as Current assets/Current liabilities?

Accepted Answer

A)  Inventory turnover. 
B)  Debt to equity. 
C)  Current ratio. 
D)  Total asset turnover. 
E)  Quick ratio. 
A)  Inventory turnover. 
B)  Debt to equity. 
C)  Current ratio. 
D)  Total asset turnover. 
E)  Quick ratio.

Question 2

_____ focuses on the continued ability of the supplier's human, intellectual, and physical capital to meet the buying firm's requirements with respect to quality and delivery.

Accepted Answer

A)  Operational risk management 
B)  Global sourcing 
C)  Logistics risk management 
D)  Total quality management 
E)  Financial risk management 
A)  Operational risk management 
B)  Global sourcing 
C)  Logistics risk management 
D)  Total quality management 
E)  Financial risk management

Question 3

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 4

The selection criteria used in a high-technology purchase will be the same as those used for a distributor.

Accepted Answer

A) True 
 B)False

Question 5

Sustainable carbon footprint reductions should be measured at product suppliers but not at service suppliers.

Accepted Answer

A) True 
 B)False

Question 6

Supplier site visits are relatively inexpensive and require minimal buyer time in travel and information collection.

Accepted Answer

A) True 
 B)False

Question 7

Most purchasers fail to perform at least a cursory financial analysis of prospective suppliers.

Accepted Answer

A) True 
 B)False

Question 8

All of the following are examples of questions that should be asked when evaluating a supplier for longer-term relationship potential except _____.

Accepted Answer

A)  Has the supplier indicated a willingness or commitment to a longer-term relationship? 
B)  Will the supplier engage in joint problem solving and improvement efforts? 
C)  What is the supplier's on-time delivery performance? 
D)  Is the supplier willing to come to us first with innovations? 
E)  Is the corporate culture similar between the two parties? 
A)  Has the supplier indicated a willingness or commitment to a longer-term relationship? 
B)  Will the supplier engage in joint problem solving and improvement efforts? 
C)  What is the supplier's on-time delivery performance? 
D)  Is the supplier willing to come to us first with innovations? 
E)  Is the corporate culture similar between the two parties?

Question 9

_____ is the process of identifying potential negative events, assessing the likelihood of their occurrence, heading off these events before they occur or reducing the probability that they will occur, and making contingency plans to mitigate the consequences if they do occur.

Accepted Answer

A)  Supplier selection 
B)  Supplier evaluation 
C)  Supplier categorization 
D)  Global sourcing 
E)  Risk management 
A)  Supplier selection 
B)  Supplier evaluation 
C)  Supplier categorization 
D)  Global sourcing 
E)  Risk management

Question 10

Supply departments that are building diversity into their supply base are likely to deal with a decreased number of small suppliers.

Accepted Answer

A) True 
 B)False

Question 11

Supplier size does become a factor when one firm decides to leverage its purchases from one or a few suppliers.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following information is not generally maintained in a supplier informational database?

Accepted Answer

A)  Current products. 
B)  Supplier's future technology roadmap. 
C)  Process capability ratios. 
D)  Advertising campaign information. 
E)  Past performance. 
A)  Current products. 
B)  Supplier's future technology roadmap. 
C)  Process capability ratios. 
D)  Advertising campaign information. 
E)  Past performance.

Question 13

_____ is defined as the continual monitoring of the strength of suppliers' financial condition to ensure their ability to meet the purchaser's performance requirements for products or services.

Accepted Answer

A)  Operational risk management 
B)  Sole sourcing 
C)  Financial risk management 
D)  Multiple sourcing 
E)  None of the above. 
A)  Operational risk management 
B)  Sole sourcing 
C)  Financial risk management 
D)  Multiple sourcing 
E)  None of the above.

Question 14

Which of the following is not an example of a question that should be asked when evaluating a supplier's production scheduling and control systems?

Accepted Answer

A)  Does the supplier use a requirements planning system as part of an ERP system to ensure the availability of required components or meet service requests on a timely basis? 
B)  What lead time does the supplier's production scheduling and control system require? 
C)  What is the supplier's on-time delivery performance history? 
D)  Does the supplier's scheduling system support a purchaser's delivery requirements? 
E)  What safeguards are in place to protect the confidentiality of electronic transfers? 
A)  Does the supplier use a requirements planning system as part of an ERP system to ensure the availability of required components or meet service requests on a timely basis? 
B)  What lead time does the supplier's production scheduling and control system require? 
C)  What is the supplier's on-time delivery performance history? 
D)  Does the supplier's scheduling system support a purchaser's delivery requirements? 
E)  What safeguards are in place to protect the confidentiality of electronic transfers?

Question 15

Certain suppliers who may present the lowest cost seldom present greater risks.

Accepted Answer

A) True 
 B)False

Question 16

_____ 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 17

_____ are more responsive to the buying firm's changing needs and can economically make frequent smaller deliveries.

Accepted Answer

A)  Local suppliers 
B)  International suppliers 
C)  Global suppliers 
D)  National suppliers 
E)  There is no relationship with the location of the supplier and customer responsiveness. 
A)  Local suppliers 
B)  International suppliers 
C)  Global suppliers 
D)  National suppliers 
E)  There is no relationship with the location of the supplier and customer responsiveness.

Question 18

All of the following are characteristics of an effective supplier survey except _____.

Accepted Answer

A)  the survey should include the performance categories considered important to the evaluation and selection process 
B)  the survey process should be as objective as possible 
C)  it is mathematically straightforward 
D)  the buyer should attempt to measure every possible variable every time it is used 
E)  the format of the evaluation should provide some flexibility across different types of purchase requirements 
A)  the survey should include the performance categories considered important to the evaluation and selection process 
B)  the survey process should be as objective as possible 
C)  it is mathematically straightforward 
D)  the buyer should attempt to measure every possible variable every time it is used 
E)  the format of the evaluation should provide some flexibility across different types of purchase requirements

Question 19

A/An _____ involves sending a preliminary survey to suppliers.

Accepted Answer

A)  request for quotation 
B)  request for information 
C)  purchase order 
D)  order release 
E)  All of the above. 
A)  request for quotation 
B)  request for information 
C)  purchase order 
D)  order release 
E)  All of the above.

Question 20

Which of the following is not a risk of selecting a supplier in poor financial condition?​

Accepted Answer

A)  The supplier is unwilling to share its technical expertise with the purchaser. 
B)  The supplier will go out of business. 
C)  The supplier may not have the resources to invest in plant, equipment, or research that is necessary for longer-term technological or other performance improvements. 
D)  The supplier may become too financially dependent on the purchaser. 
E)  Financial weakness is usually an indication of other underlying problems. 
A)  The supplier is unwilling to share its technical expertise with the purchaser. 
B)  The supplier will go out of business. 
C)  The supplier may not have the resources to invest in plant, equipment, or research that is necessary for longer-term technological or other performance improvements. 
D)  The supplier may become too financially dependent on the purchaser. 
E)  Financial weakness is usually an indication of other underlying problems.

Which of the following key financial ratios is calculated as Current assets/Current liabilities?

_____ focuses on the continued ability of the supplier's human, intellectual, and physical capital to meet the buying firm's requirements with respect to quality and delivery.

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

The selection criteria used in a high-technology purchase will be the same as those used for a distributor.

Sustainable carbon footprint reductions should be measured at product suppliers but not at service suppliers.

Supplier site visits are relatively inexpensive and require minimal buyer time in travel and information collection.

Most purchasers fail to perform at least a cursory financial analysis of prospective suppliers.

All of the following are examples of questions that should be asked when evaluating a supplier for longer-term relationship potential except _____.

_____ is the process of identifying potential negative events, assessing the likelihood of their occurrence, heading off these events before they occur or reducing the probability that they will occur, and making contingency plans to mitigate the consequences if they do occur.

Supply departments that are building diversity into their supply base are likely to deal with a decreased number of small suppliers.

Supplier size does become a factor when one firm decides to leverage its purchases from one or a few suppliers.

Which of the following information is not generally maintained in a supplier informational database?

_____ is defined as the continual monitoring of the strength of suppliers' financial condition to ensure their ability to meet the purchaser's performance requirements for products or services.

Which of the following is not an example of a question that should be asked when evaluating a supplier's production scheduling and control systems?

Certain suppliers who may present the lowest cost seldom present greater risks.

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

_____ are more responsive to the buying firm's changing needs and can economically make frequent smaller deliveries.

All of the following are characteristics of an effective supplier survey except _____.

A/An _____ involves sending a preliminary survey to suppliers.

Which of the following is not a risk of selecting a supplier in poor financial condition?

Introduction to Purchasing and Supply Chain Management

The Purchasing Process

Purchasing Policy and Procedures

Supply Management Integration for Competitive Advantage

Purchasing and Supply Management Organization

Category 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 key financial ratios is calculated as Current assets/Current liabilities?

_____ focuses on the continued ability of the supplier's human, intellectual, and physical capital to meet the buying firm's requirements with respect to quality and delivery.

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

The selection criteria used in a high-technology purchase will be the same as those used for a distributor.

Sustainable carbon footprint reductions should be measured at product suppliers but not at service suppliers.

Supplier site visits are relatively inexpensive and require minimal buyer time in travel and information collection.

Most purchasers fail to perform at least a cursory financial analysis of prospective suppliers.

All of the following are examples of questions that should be asked when evaluating a supplier for longer-term relationship potential except _____.

_____ is the process of identifying potential negative events, assessing the likelihood of their occurrence, heading off these events before they occur or reducing the probability that they will occur, and making contingency plans to mitigate the consequences if they do occur.

Supply departments that are building diversity into their supply base are likely to deal with a decreased number of small suppliers.

Supplier size does become a factor when one firm decides to leverage its purchases from one or a few suppliers.

Which of the following information is not generally maintained in a supplier informational database?

_____ is defined as the continual monitoring of the strength of suppliers' financial condition to ensure their ability to meet the purchaser's performance requirements for products or services.

Which of the following is not an example of a question that should be asked when evaluating a supplier's production scheduling and control systems?

Certain suppliers who may present the lowest cost seldom present greater risks.

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

_____ are more responsive to the buying firm's changing needs and can economically make frequent smaller deliveries.

All of the following are characteristics of an effective supplier survey except _____.

A/An _____ involves sending a preliminary survey to suppliers.

Which of the following is not a risk of selecting a supplier in poor financial condition?​

Introduction to Purchasing and Supply Chain Management

The Purchasing Process

Purchasing Policy and Procedures

Supply Management Integration for Competitive Advantage

Purchasing and Supply Management Organization

Category 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

Which of the following is not a risk of selecting a supplier in poor financial condition?