Exam 7: Supply Management

What is sourcing portfolio analysis? Discuss the model and the strategies and tactics associated with each quadrant.

Which of these is an indirect cost associated with insourcing?

The analyst turned on his banker's lamp, adjusted his eye shade, and slowly pulled a legal pad from his desk. His weathered hands punched the buttons on his desk calculator deliberately as he divided earnings by total assets in order to calculate:

The entire plant needs a fresh coat of paint so you, as the operations manager, are charged with securing a painting contract to accomplish this. You locate four painting contractors and ask them for their performance on four criteria. Their responses, along with your minimum standards and the importance you place on each criterion, is shown in the table. Note that strongly positive references are 9 or better on a ten-point scale and positive references are 7 up to 9 on a ten-point scale. Assign scores from 1 to 5 where 1 is terrible and 5 is excellent, for each contractor's performance on each criterion and determine who should be awarded the contract. Write a brief explanation for all the 1s and 5s you assign. Contractor 20\% Paint Time Experience References Paint Quality 25\% 20\% 20\% 15\% 1 \ 22,000 5 days 15 years Positive 20 year 2 \ 20,000 4 days 10 years Strongly positive Lifetime 3 \ 25,000 8 days 3 years Positive 25 year 4 \ 22,500 5 days 25 years Strongly positive 20 year Minimum Standard Less than \ 25,000 Less than 1 week 5 years in business No negative references out of three 15 year guarantee

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, Lady's bid is $50 per unit, and Spike's bid is $30 per unit. 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 from South America - their leather makes fine gloves). Dusty believes it will take 500 units to fence in this pasture configuration. What defect rates for the three suppliers would make Dusty indifferent among them from a total cost standpoint?

Money is automatically drawn from the buyer's account and deposited into the supplier's account in an electronic funds transfer (EFT).

A manufacturer seeking to reduce the variability of the quality of purchased products should use multiple sourcing.

The purchasing team examined all of its purchasing patterns in order to identify any irregularities or possible areas of cost savings. This refers to:

A sourcing strategy in which two suppliers are used for the same purchased product or service is:

The percentage of value of shipments that come from materials for the average manufacturer is:

In a cost-based contract, the stated price does not change, regardless of fluctuations in the general overall economic conditions.

In the description of the purchasing process, the product should be described only by brand or specification.