Reference no: EM13813976

Question 1. When using a weighted-criteria evaluation system with five or more categories, vendors should be ranked based on their score in the two highest weighted categories, the others should be discarded.

True

False

Question 2. Product parts, processes, and product assembly should all be designed by the manufacturing firm to assure a single-minded approach that the suppliers can follow. Supplier involvement in these design phases is considered counterproductive.

True

False

3. Which of the following is TRUE?

SRM software modules are very affordable (less than $50,000) and can be implemented with a week.

ISO 75000 is the supplier award given to the highest rated supplier in Japan.

The key to successful partnerships is developing performance measures with weights greater than 3.50.

Continuous improvement and change management are both keys to building successful partnerships.

Question 4. A company using a weighted-criteria evaluation system has established these five categories and the appropriate weight in parentheses- Quality (0.25), Responsiveness (0.10), Delivery (0.20), Cost (0.25), Technology (0.20). Company X received the following ratings in each of the five categories- Quality(90), Responsiveness(90), Delivery(80), Cost(80), Technology(90). What is their total score?

87.0

85.5

86.0

86.5

Question 5. "Rationalizing the supplier base" would mean that the purchasing firm is attempting to reduce the number of suppliers in its supplier network by eliminating poor performing suppliers in its present supplier base.

True

False

Question 6. Benchmarking is:

A system of performance metrics that seeks to motivate suppliers to perform better.

A practice where companies attempt to learn and apply the best practices of other companies.

A system of marking defective inbound inventory so it can quickly be identified for return to the supplier.

A program where suppliers compete for contracts, but those companies who are outbid are provided advice for winning future contracts

Question 7. A company using a weighted-criteria evaluation system has established these 3 categories and the appropriate weight in parentheses: Quality(0.30), Delivery(0.40), Cost(0.30). The scores for each category are shown below. Which of the following companies has the highest total score?

Company A: Quality(90), Delivery(80), Cost(60)

Company C: Quality(70), Delivery(95), Cost(60)

Company B: Quality(70), Delivery(80), Cost(80)

All companies scored the same.

Question 8. Hard-bargaining sourcing departments focused on decreasing purchasing spend may experience which of the following from their suppliers?

Lower levels of quality from their suppliers

Lower levels of service from their suppliers

Deteriorating buyer-supplier relationships

All of these

Question 9. Costs associated with supplier certification, investigating alternative suppliers, and investigating alternative delivery options can all be classified as

Pre-transaction costs

Post-transaction costs

Transaction costs

All of these

Question 10. An outsourcing program can result in all of the following positive outcomes, except-

Reducing staffing levels

Decreased need for supplier management

Cost reduction

Gains in manufacturing flexibility