Exam 7: Supply Management

Competitive bidding, active sourcing, and using industry standards are all actions that are appropriate if the sourcing strategy is to:

Dusty is evaluating three bids to supply fence hardware for the 5 acres of pasture that need to be fenced. Breezy submits a bid of $40 per unit with a defect rate of 2%; Lady's bid is $50 per unit with a defect rate of 0.5%; and Spike's bid is $30 per unit with a defect rate of 5%. If a section of fence fails, it costs an average of $500 in losses and herding costs to round up all of the capybaras, giant rodents native to Brazil. Dusty believes it will take 1000 units to fence in this pasture configuration; what is the BEST choice for supplier?

Flingers Inc. reveals the following information in their annual report for FY 2017 Earnings and Expenses Sales \ 10,000,000 Cost of goods sold \ 5,000,000 Pretaxearnings \ 500,000 Selected Balance Sheet Items Merchandise inventory \ 80,000 Total assets \ 2,000,000 Upper management plans to cut cost of goods sold by 5% for the coming year but retain the same sales. What will Flingers' profit leverage effect be for 2018

When a supplier does not exist, competitive bidding and negotiation are two methods commonly used for final supplier selection.

The request for quotation is a formal request for suppliers to deliver a product or service that includes key terms and conditions, such as price, delivery, and quality requirements.

Authorization to a supplier to deliver a product is done through a(n)________, and released using the form of technology known as ________.

In a typical portfolio analysis, office supplies are placed in the:

This table contains the performance criteria and scores (larger numbers are better)for four potential suppliers to Satriale's Pork Store. Evaluate the data and identify the BEST source for Satriale's. Consider the two runners-up to the best source and what points of negotiation might lead them to becoming the optimal supplier. Performance Dimension Company T Company C Company S Company P Innovation (=0.4) 4 4 2 5 Cost (=0.3) 4 3 5 2 Stability (=0.2) 2 1 4 5 Speed (=0.1) 3 5 5 2

________ are high-level, often strategic decisions regarding which products or services will be provided internally and which will be provided by external supply chain members.

The deans' suite hoped to cut costs and decided to perform a total cost analysis on its tequila supplier. Consumption was currently 10,000 bottles per semester and this was predicted to maintain that level for the next few years. Their current source, Byron's, charged $15.50 per bottle and packed 300 bottles in a crate. The cost to ship the crate was $15. Another potential source of tequilas was Pancho's, who charged $14.75 per bottle but could ship only 100 bottles in a crate and at a higher price, $75. Assume that a partial crate may be purchased. Conduct a total cost analysis and make a recommendation.

The first step of the purchasing process is to select the supplier.

Outsourcing can be risky because it decreases the firm's strategic flexibility.

This table contains a list of three companies that have been rated on four weighted performance dimensions (larger numbers are better). Which of the following statements regarding this information is BEST? Performance Dimension Strickland Thatherton Mega-Low Amerigas Quality (=0.5) 4 4 2 4 Cost (=0.4) 4 3 5 3 Speed (=0.1) 2 2 4 5

The deans' suite hoped to cut costs and decided to perform a total cost analysis on its tequila supplier. Consumption was currently 10,000 bottles per semester and this was predicted to maintain that level for the next few years. Their current source, Byron's, charged $15.50 per bottle and packed 300 bottles in a crate. The cost to ship the crate was $15. Another potential source of tequilas was Pancho's, who charged $14.75 per bottle but could ship only 100 bottles in a crate and at a higher price, $75. Assume that a partial crate may be purchased. By how much does Byron need to lower its per bottle price to reduce their total cost to that of Pancho?

A recent survey of executives at Global 1000 companies uncovered what single biggest threat?

A recent trend in supply management is a move towards a more sustainable supply chain.

Terms and conditions for a purchased service that indicate what services will be performed and how the service provider will be evaluated is called a:

Which of the following is required in order to execute a successful spend analysis?

Firms do not compete only against global competitors, but against:

A company that uses portfolio analysis would probably classify things like office supplies in the Bottleneck quadrant.