Question 1

Although _____ provides optimum leverage and power over the supplier, _____ provides improved assurance of supply.

Accepted Answer

A)  multiple sourcing….single sourcing 
B)  single sourcing….multiple sourcing 
C)  sole sourcing….single sourcing 
D)  multiple sourcing….sole sourcing 
E)  There is no difference in the number of suppliers for these benefits. 
A)  multiple sourcing….single sourcing 
B)  single sourcing….multiple sourcing 
C)  sole sourcing….single sourcing 
D)  multiple sourcing….sole sourcing 
E)  There is no difference in the number of suppliers for these benefits.

Question 2

Which of the following is not one of the criteria used to determine whether to buy direct vs. using a distributor?​

Accepted Answer

A)  Size of the purchase. 
B)  Manufacturer's policies regarding direct sales. 
C)  Storage space available at the purchaser's facility. 
D)  Distance between the manufacturer and the distributor. 
E)  Extent of services required. 
A)  Size of the purchase. 
B)  Manufacturer's policies regarding direct sales. 
C)  Storage space available at the purchaser's facility. 
D)  Distance between the manufacturer and the distributor. 
E)  Extent of services required.

Question 3

A buying firm frequently wants the seller to become more dependent on its business.

Accepted Answer

A) True 
 B)False

Question 4

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 5

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 6

Progressive supply managers work with their legal group to develop pre-established contract language that can be cut and pasted during a supplier negotiation.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is not a method used to further evaluate and select suppliers once the initial evaluation has taken place?​

Accepted Answer

A)  Evaluation of supplier-provided information. 
B)  Supplier visits. 
C)  Use of preferred, certified, and partnered suppliers. 
D)  Trade journals. 
E)  External or third party information. 
A)  Evaluation of supplier-provided information. 
B)  Supplier visits. 
C)  Use of preferred, certified, and partnered suppliers. 
D)  Trade journals. 
E)  External or third party information.

Question 8

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 9

As some suppliers view cost data as highly proprietary, buyers will often develop reverse pricing models that provide estimates of the supplier's cost structure during the initial supplier evaluation.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following key financial ratios is calculated as Profit after taxes/Sales?

Accepted Answer

A)  Current debt to equity. 
B)  Fixed asset turnover. 
C)  Return on assets. 
D)  Says sales outstanding. 
E)  Net profit margin. 
A)  Current debt to equity. 
B)  Fixed asset turnover. 
C)  Return on assets. 
D)  Says sales outstanding. 
E)  Net profit margin.

Question 11

All of the following are examples of entry qualifiers that suppliers must possess before they proceed to the next phase of the evaluation and selection process except _____.

Accepted Answer

A)  appropriate sales and marketing activities 
B)  financial strength 
C)  proven manufacturing or service capability 
D)  capable and supportive management 
E)  adequate facilities 
A)  appropriate sales and marketing activities 
B)  financial strength 
C)  proven manufacturing or service capability 
D)  capable and supportive management 
E)  adequate facilities

Question 12

Professional purchasers should become familiar with financial ratios because they can provide quick and valuable insights into a supplier's financial health.

Accepted Answer

A) True 
 B)False

Question 13

Progressive firms are working to increase the length of their purchase contracts.

Accepted Answer

A) True 
 B)False

Question 14

Due to resource constraints, the use of teams for supplier evaluation and selection is decreasing.

Accepted Answer

A) True 
 B)False

Question 15

A _____ is one that consistently satisfies the performance and service standards defined by the buyer and responds to unexpected changes.

Accepted Answer

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

Question 16

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)  Is management customer focused? 
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)  Is management customer focused? 
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 17

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 18

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 19

Few purchasers expect potential suppliers to have adopted quality systems based on MBNQA or ISO 9000 criteria.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

Although _ provides optimum leverage and power over the supplier, _ provides improved assurance of supply.

Which of the following is not one of the criteria used to determine whether to buy direct vs. using a distributor?

A buying firm frequently wants the seller to become more dependent on its business.

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.

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.

Progressive supply managers work with their legal group to develop pre-established contract language that can be cut and pasted during a supplier negotiation.

Which of the following is not a method used to further evaluate and select suppliers once the initial evaluation has taken place?

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.

As some suppliers view cost data as highly proprietary, buyers will often develop reverse pricing models that provide estimates of the supplier's cost structure during the initial supplier evaluation.

Which of the following key financial ratios is calculated as Profit after taxes/Sales?

All of the following are examples of entry qualifiers that suppliers must possess before they proceed to the next phase of the evaluation and selection process except _____.

Professional purchasers should become familiar with financial ratios because they can provide quick and valuable insights into a supplier's financial health.

Progressive firms are working to increase the length of their purchase contracts.

Due to resource constraints, the use of teams for supplier evaluation and selection is decreasing.

A _____ is one that consistently satisfies the performance and service standards defined by the buyer and responds to unexpected changes.

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

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

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

Few purchasers expect potential suppliers to have adopted quality systems based on MBNQA or ISO 9000 criteria.

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

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

Although _____ provides optimum leverage and power over the supplier, _____ provides improved assurance of supply.

Which of the following is not one of the criteria used to determine whether to buy direct vs. using a distributor?​

A buying firm frequently wants the seller to become more dependent on its business.

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.

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.

Progressive supply managers work with their legal group to develop pre-established contract language that can be cut and pasted during a supplier negotiation.

Which of the following is not a method used to further evaluate and select suppliers once the initial evaluation has taken place?​

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.

As some suppliers view cost data as highly proprietary, buyers will often develop reverse pricing models that provide estimates of the supplier's cost structure during the initial supplier evaluation.

Which of the following key financial ratios is calculated as Profit after taxes/Sales?

All of the following are examples of entry qualifiers that suppliers must possess before they proceed to the next phase of the evaluation and selection process except _____.

Professional purchasers should become familiar with financial ratios because they can provide quick and valuable insights into a supplier's financial health.

Progressive firms are working to increase the length of their purchase contracts.

Due to resource constraints, the use of teams for supplier evaluation and selection is decreasing.

A _____ is one that consistently satisfies the performance and service standards defined by the buyer and responds to unexpected changes.

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

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

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

Few purchasers expect potential suppliers to have adopted quality systems based on MBNQA or ISO 9000 criteria.

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

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

Although _ provides optimum leverage and power over the supplier, _ provides improved assurance of supply.

Which of the following is not one of the criteria used to determine whether to buy direct vs. using a distributor?

Which of the following is not a method used to further evaluate and select suppliers once the initial evaluation has taken place?

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