Ch.10 Exam Questions Sourcing and Supply Management Swink - Managing Operations Supply Chain 4e Complete Test Bank by Morgan Swink. DOCX document preview.
Chapter 10 Test Bank
Multiple Choice Questions
1. All of the following are supply management goals EXCEPT:
A. Ensure timely availability of resources.
B. Purchase at the lowest price.
C. Enhance quality.
D. Assess technology and innovation.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
Learning Objective: 10-02 Define and describe each of the six supply management goals.
Topic: Supply Management's Impact on Firm and Supply Chain Performance
2. In its own country, a former supplier to your company recently began selling its own product that is identical to a product that was developed by your company. This is an example of:
A. Supply chain risk.
B. Sustainability.
C. Insourcing.
D. Strategic sourcing.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Apply
Difficulty: 3 Hard
Gradable: automatic
Learning Objective: 10-02 Define and describe each of the six supply management goals.
Topic: Supply Management's Impact on Firm and Supply Chain Performance
3. Zanda Corp. had outsourced its production to a company located in Asia. Recently it decided to continue to outsource but bring the production back to a company located in the United States. This decision was likely made after Zanda:
A. Conducted a spend analysis.
B. Conducted a make or buy analysis.
C. Examined total cost of ownership.
D. Developed supplier certification processes.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Understand
Difficulty: 2 Medium
Gradable: automatic
Learning Objective: 10-02 Define and describe each of the six supply management goals.
Topic: Supply Management's Impact on Firm and Supply Chain Performance
4. If you are evaluating whether a supplier's workforce is receiving fair wages, you are most likely doing a(n):
A. Spend analysis.
B. Assessment of sustainability.
C. ISO 9000 assessment.
D. Total cost of ownership assessment.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Understand
Difficulty: 2 Medium
Gradable: automatic
Learning Objective: 10-02 Define and describe each of the six supply management goals.
Topic: Supply Management's Impact on Firm and Supply Chain Performance
5. Which of the following would NOT be a step in conducting an insourcing/outsourcing analysis?
A. Assessing quantitative costs of outsourcing
B. Evaluating new suppliers who could make the SKU
C. Assessing the relationship of the product to the firm's core competencies
D. Conducting a detailed internal audit of purchasing practices
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
Learning Objective: 10-03 Analyze costs and make insourcing/outsourcing decisions.
Topic: Making an Insourcing/Outsourcing Decision
6. Outsourcing is often a good choice when:
A. There are only a few suppliers.
B. A product is in the mature phase of the life cycle.
C. Technology is new.
D. The product is critical to a firm's competitiveness.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Understand
Difficulty: 2 Medium
Gradable: automatic
Learning Objective: 10-03 Analyze costs and make insourcing/outsourcing decisions.
Topic: Making an Insourcing/Outsourcing Decision
7. Qualitative factors that should be assessed when making an insourcing/outsourcing decision include all of the following EXCEPT:
A. Compatibility of the supplier's organizational culture and values with your company
B. The importance assigned to the supplier's location
C. The skills and knowledge of the supplier's management team
D. The costs incurred at the start of the contract
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
Learning Objective: 10-03 Analyze costs and make insourcing/outsourcing decisions.
Topic: Making an Insourcing/Outsourcing Decision
8. Which of the following is NOT a benefit of outsourcing?
A. Greater flexibility to change technology
B. Better access to market information
C. Lower supply management costs
D. Less capital needed for investment
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
Learning Objective: 10-03 Analyze costs and make insourcing/outsourcing decisions.
Topic: Making an Insourcing/Outsourcing Decision
9. The process of understanding how a firm is spending its money and with which suppliers is called:
A. Strategic sourcing.
B. Make or buy analysis.
C. Market analysis.
D. Spend analysis.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Understand
Difficulty: 2 Medium
Gradable: automatic
Learning Objective: 10-04 Describe the steps in supply category management.
Topic: Supply Category Management
10. Aspen Corporation has discovered that it uses 10 different suppliers for a particular type of item, has bought 20 different models of that item, and total expenditures last year for the item were $100,000. Aspen most likely is conducting:
A. Supplier audits.
B. Spend analysis.
C. Supplier certification.
D. Make or buy analysis.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Apply
Difficulty: 3 Hard
Gradable: automatic
Learning Objective: 10-04 Describe the steps in supply category management.
Topic: Supply Category Management
11. Jones Company has identified an item for which the supply risk is high and the value of the purchase to the firm is low. A recommended sourcing strategy for Jones is to:
A. Use multiple sourcing.
B. Increase efficiencies.
C. Build partnerships.
D. Consolidate purchases.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Apply
Difficulty: 3 Hard
Gradable: automatic
Learning Objective: 10-04 Describe the steps in supply category management.
Topic: Supply Category Management
12. Which approach is likely to be used for leverage purchases?
A. Purchasing cards
B. Vendor-managed inventory
C. Using executive champions
D. Standardizing purchases
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Apply
Blooms: Remember
Difficulty: 3 Hard
Gradable: automatic
Learning Objective: 10-04 Describe the steps in supply category management.
Topic: Supply Category Management
13. Moderate- to high-risk purchases with low to moderate levels of spend are categorized as:
A. Noncritical.
B. Leverage.
C. Bottleneck.
D. Strategic.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Apply
Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
Learning Objective: 10-04 Describe the steps in supply category management.
Topic: Supply Category Management
14. Benefits of single sourcing include all of the following EXCEPT:
A. Quantity discounts.
B. More consistent quality.
C. Better supplier relationships.
D. Less supply risk.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
Learning Objective: 10-04 Describe the steps in supply category management.
Topic: Supply Category Management
15. Squeaky Klean, a small consumer products company, purchases custom-designed plastic bottles for its cleaning products that are made at a single plant in Cleveland, Ohio. To make these bottles, specialized tooling must be purchased at a high cost and installed at a supplier's plant. Its sourcing strategy for bottles should be to:
A. Use three or more suppliers.
B. Dual source.
C. Single source.
D. Insource bottle production.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Apply
Difficulty: 3 Hard
Gradable: automatic
Learning Objective: 10-04 Describe the steps in supply category management.
Topic: Supply Category Management
16. A primary reason for using global suppliers is to:
A. Improve sustainability.
B. Reduce transportation costs.
C. Take advantage of free trade agreements.
D. Work with the same suppliers in many different regions of the world.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
Learning Objective: 10-04 Describe the steps in supply category management.
Topic: Supply Category Management
17. A global food products company makes soups that are specifically tailored to the tastes of consumers in individual countries. What sourcing strategy is the company likely to use for its fresh ingredients such as vegetables?
A. Local, close to its production plant when possible.
B. National, using suppliers within each country.
C. Global, using the same suppliers across the world.
D. Low-cost country sourcing.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Apply
Difficulty: 3 Hard
Gradable: automatic
Learning Objective: 10-04 Describe the steps in supply category management.
Topic: Supply Category Management
18. Which of the following is (are) advantage(s) of full partnerships with suppliers, as compared to traditional adversarial relationships?
I. They help reduce uncertainties for both buyer and supplier.
II. The full partnership is easier to establish and maintain than other relationships, so more suppliers can be dealt with.
III. The full partnership assures the lowest material price.
A. I only
B. II only
C. III only
D. I and II only
E. II and III only
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Understand
Difficulty: 2 Medium
Gradable: automatic
Learning Objective: 10-04 Describe the steps in supply category management.
Topic: Supply Category Management
19. Zanda Corp. is considering trying to develop a full partnership with a particular supplier. This suggests that the item Zanda buys from the supplier is:
A. A noncritical part.
B. A "bottleneck" item.
C. A strategically important part.
D. An item appropriate for a "leverage" strategy.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Apply
Difficulty: 3 Hard
Gradable: automatic
Learning Objective: 10-04 Describe the steps in supply category management.
Topic: Supply Category Management
20. A relationship with a supplier that is characterized by high levels of distrust, little communication, and short-term transactions is called a(n):
A. Adversarial relationship.
B. Arm's-length relationship.
C. Acceptance of mutual goals.
D. Full partnership.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
Learning Objective: 10-04 Describe the steps in supply category management.
Topic: Supply Category Management
21. When you need to identify a supplier for a new purchase, the FIRST place that you should look is:
A. A local trade show.
B. The list of your company's current suppliers.
C. The list of suppliers that your company has used in the past.
D. The websites of industry groups.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Understand
Difficulty: 2 Medium
Gradable: automatic
Learning Objective: 10-05 Explain the steps in the sourcing process.
Topic: Examining the Sourcing Process
22. Which of the following is NOT true with respect to an RFQ or RFP?
A. It describes the purchase requirements.
B. It is the first step in competitive bidding.
C. It is often communicated to suppliers electronically.
D. It is used to determine weights in supplier scorecards.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
Learning Objective: 10-05 Explain the steps in the sourcing process.
Topic: Examining the Sourcing Process
23. Advanced Manufacturing Company is evaluating two suppliers for a component sourcing. After much internal discussion, AMC's management has determined that the critical factors in choosing suppliers are: quality, delivery, price, and service. Further, management has rated the importance of these factors as 0.4, 0.3, 0.2, and 0.1, respectively. On a scale of 1 to 5, Supplier A is rated at 5, 3, 3, and 3, respectively. Supplier B's ratings are 4, 4, 3, and 4. Which supplier has the better-weighted score?
A. Supplier A
B. Supplier B
C. Neither, they both have the same weighted score.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Analyze
Difficulty: 3 Hard
Gradable: automatic
Learning Objective: 10-06 Describe how to assess and select suppliers.
Topic: Examining the Sourcing Process
24. Which of the following is true about the use of weighted scoring models for supplier selection?
A. Once developed, the model weights should never change.
B. The supply management department should determine the weights.
C. The highest-scoring supplier should always be selected to receive the business.
D. There is a good deal of subjectivity in developing and using the model.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Understand
Difficulty: 2 Medium
Gradable: automatic
Learning Objective: 10-06 Describe how to assess and select suppliers.
Topic: Examining the Sourcing Process
25. An online auction used for sourcing:
A. Typically drives prices up as suppliers compete against each other.
B. Is used in situations similar to negotiation.
C. Can hurt supplier relationships.
D. Can only consider price.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
Learning Objective: 10-06 Describe how to assess and select suppliers.
Topic: Examining the Sourcing Process
26. Negotiation is typically used when:
A. Price is the most important factor.
B. There are many equally qualified suppliers who are willing to compete.
C. Early supplier involvement is needed in new product development.
D. There are standard product specifications that are clear and complete.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
Learning Objective: 10-06 Describe how to assess and select suppliers.
Topic: Examining the Sourcing Process
27. A legally binding document that signals to a supplier that goods and services are needed is a(n):
A. Purchase requisition.
B. Electronic data interchange.
C. Purchase order.
D. Supplier relationship management document.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
Learning Objective: 10-07 Understand ways to manage ongoing supplier relationships.
Topic: Examining the Sourcing Process
28. All of the following are true about supplier scorecards EXCEPT:
A. They reduce the need for incoming quality inspection.
B. They are used to provide performance feedback to suppliers.
C. They are often used to categorize suppliers based on an overall score.
D. They are used to measure supplier performance based on key performance indicators.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
Learning Objective: 10-07 Understand ways to manage ongoing supplier relationships.
Topic: Examining the Sourcing Process
29. A company has decided that it no longer needs to extensively count and inspect the products it receives from a particular supplier. This suggests that the purchasing company has begun:
A. Spend analysis.
B. Supplier certification.
C. Process simplification.
D. Time reduction analysis.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Understand
Difficulty: 2 Medium
Gradable: automatic
Learning Objective: 10-07 Understand ways to manage ongoing supplier relationships.
Topic: Examining the Sourcing Process
30. Williams Inc. has acquired software to help manage interactions with its supply base. This suggests that Williams Inc. is involved in:
A. Vendor-managed inventory.
B. Supplier relationship management.
C. Online reverse auctions.
D. Supplier auditing.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Apply
Difficulty: 3 Hard
Gradable: automatic
Learning Objective: 10-07 Understand ways to manage ongoing supplier relationships.
Topic: Examining the Sourcing Process
31. The identification, acquisition, positioning, and management of resources and capabilities that a firm needs to attain its strategic objectives is:
A. Sourcing.
B. Supply management.
C. Supply chain management.
D. Spend analysis.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
Learning Objective: 10-01 Define supply management and understand its impact on a firm s performance.
Topic: Supply Management's Impact on Firm and Supply Chain Performance
32. Supply management:
A. Only focuses on direct materials that are used in a company’s products.
B. Is essential for an organization to attain its strategic objectives.
C. Is only involved with supplier selection.
D. Should always strive for the lowest purchase price.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Understand
Difficulty: 2 Medium
Gradable: automatic
Learning Objective: 10-01 Define supply management and understand its impact on a firm s performance.
Topic: Supply Management's Impact on Firm and Supply Chain Performance
33. The identification, evaluation, selection, and management of suppliers is:
A. Sourcing.
B. Supply management.
C. Supply chain management.
D. Spend analysis.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
Learning Objective: 10-01 Define supply management and understand its impact on a firm s performance.
Topic: Supply Management's Impact on Firm and Supply Chain Performance
34. A company that had been using single sourcing decided to add a second supplier for one of its key raw materials. Which supply management goal does this BEST accomplish?
A. Fostering sustainability.
B. Reducing total costs.
C. Identifying, assessing, and mitigating supply chain risk.
D. Accessing technology and innovation.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Apply
Difficulty: 3 Hard
Gradable: automatic
Learning Objective: 10-02 Define and describe each of the six supply management goals.
Topic: Supply Management's Impact on Firm and Supply Chain Performance
35. A company requires its suppliers to make its products in at least three different locations around the world. Which supply management goal does this BEST accomplish?
A. Fostering sustainability.
B. Reducing total costs.
C. Identifying, assessing, and mitigating supply chain risk.
D. Accessing technology and innovation.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Apply
Difficulty: 3 Hard
Gradable: automatic
Learning Objective: 10-02 Define and describe each of the six supply management goals.
Topic: Supply Management's Impact on Firm and Supply Chain Performance
36. A company’s supplier for a critical part was selected based on the lowest purchase price. Six months later, the company’s warranty costs began to rise because of defective parts. The company has experienced:
A. Reduced sustainability.
B. Higher total costs of ownership.
C. Problems with availability of resources.
D. Higher levels of spend analysis.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Apply
Difficulty: 3 Hard
Gradable: automatic
Learning Objective: 10-02 Define and describe each of the six supply management goals.
Topic: Supply Management's Impact on Firm and Supply Chain Performance
37. All of the following can increase supply chain risk except:
A. Using a supplier that is having financial difficulty.
B. Holding higher levels of inventory of critical materials.
C. A company in Canada using suppliers in Thailand.
D. Single sourcing.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Understand
Difficulty: 2 Medium
Gradable: automatic
Learning Objective: 10-02 Define and describe each of the six supply management goals.
Topic: Supply Management's Impact on Firm and Supply Chain Performance
38. The capability to resist and recover from supply chain disruptions is:
A. Supply chain risk.
B. Total cost of ownership.
C. Supply chain resilience.
D. Sustainability.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
Learning Objective: 10-02 Define and describe each of the six supply management goals.
Topic: Supply Management's Impact on Firm and Supply Chain Performance
39. Sustainability:
A. Focuses primarily on increasing environmental compliance.
B. Can lower a company’s total cost.
C. Does not include worker safety.
D. Focuses only on social issues.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
Learning Objective: 10-02 Define and describe each of the six supply management goals.
Topic: Supply Management's Impact on Firm and Supply Chain Performance
40. Outsourcing:
A. Should be used for an organization’s core activities.
B. Always uses suppliers from developing countries.
C. Can reduce a company’s capital requirements
D. Is only done for services.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
Learning Objective: 10-03 Analyze costs and make insourcing/outsourcing decisions.
Topic: Making an Insourcing/Outsourcing Decision
41. Outsourcing is least likely when:
A. The process is highly innovative.
B. Products are in the mature phase of the life cycle.
C. The production processes are standard.
D. The activity is not strategically important.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Understand
Difficulty: 2 Medium
Gradable: automatic
Learning Objective: 10-03 Analyze costs and make insourcing/outsourcing decisions.
Topic: Making an Insourcing/Outsourcing Decision
42. Which activity at a university is the least likely to be outsourced?
A. Operation of the bookstore.
B. Operation of the residence halls.
C. Classroom instruction.
D. Information technology support services.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Apply
Difficulty: 3 Hard
Gradable: automatic
Learning Objective: 10-03 Analyze costs and make insourcing/outsourcing decisions.
Topic: Making an Insourcing/Outsourcing Decision
43. Which activity is most likely to be outsourced by an automotive company such as Ford Motor Co.?
A. The concept design for future cars.
B. Final car assembly.
C. Design of the engine.
D. Production of tires.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Apply
Difficulty: 3 Hard
Gradable: automatic
Learning Objective: 10-03 Analyze costs and make insourcing/outsourcing decisions.
Topic: Making an Insourcing/Outsourcing Decision
44. Which of the following is not uncovered during an analysis of supply market intelligence?
A. The number of potential suppliers.
B. Which of the company’s current purchases are from which supplier.
C. The number of other buyers.
D. The potential level of supply chain risk.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
Learning Objective: 10-04 Describe the steps in supply category management.
Topic: Supply Category Management
45. Data on the supply market’s structure, price forecasts, and supply chain risk are assessed during a/an:
A. Spend analysis.
B. Insourcing/outsourcing decision.
C. Analysis of supply market intelligence.
D. Supplier certification process.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
Learning Objective: 10-04 Describe the steps in supply category management.
Topic: Supply Category Management
46. Stainless steel is an important raw material for an appliance company. Steel accounts for a high level of spend and is critical to customer satisfaction. Further, only three suppliers worldwide can produce steel to meet the company’s quality standards. Which is appropriate in this situation?
A. Using electronic catalogs for steel.
B. Finding substitute materials.
C. Using competition to select suppliers.
D. Building collaborative partnerships with suppliers.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Apply
Difficulty: 3 Hard
Gradable: automatic
Learning Objective: 10-05 Explain the steps in the sourcing process.
Topic: Examining the Sourcing Process
47. Floor cleaning supplies for an elementary school would be considered:
A. Leverage.
B. Noncritical.
C. Strategic.
D. Bottleneck.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Apply
Difficulty: 3 Hard
Gradable: automatic
Learning Objective: 10-05 Explain the steps in the sourcing process.
Topic: Examining the Sourcing Process
48. Determining the right number of suppliers that a company should use is:
A. Spend analysis.
B. Strategic sourcing.
C. Supply base optimization.
D. Supply chain resilience.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
Learning Objective: 10-05 Explain the steps in the sourcing process.
Topic: Examining the Sourcing Process
49. Local sourcing:
A. Reduces delivery costs.
B. Is called “nearshoring.”
C. Is used when cost is the primary objective.
D. Takes advantage of lower trade barriers from trade agreements.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
Learning Objective: 10-05 Explain the steps in the sourcing process.
Topic: Examining the Sourcing Process
50. The type and level of assessment of suppliers during the selection process:
A. Should be the same for all of a company’s purchases.
B. Is always done by cross-functional teams.
C. Depends upon factors such as the level of spend and type of relationship desired.
D. Is normally very extensive for noncritical purchases.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Understand
Difficulty: 2 Medium
Gradable: automatic
Learning Objective: 10-06 Describe how to assess and select suppliers.
Topic: Examining the Sourcing Process
51. The Smith Manufacturing Co. uses a weighted-point model to evaluate new suppliers. Based on its competitive priorities, quality performance is weighted 60 percent, delivery performance is 25 percent, and cost is 15 percent. On a five-point scale, a supplier is rated 4 on quality, 5 on delivery, and 5 on cost. What is its overall weighted score?
A. 14.
B. 4.4.
C. 4.
D. 5.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Analyze
Difficulty: 3 Hard
Gradable: automatic
Learning Objective: 10-06 Describe how to assess and select suppliers.
Topic: Examining the Sourcing Process
52. The Williams Manufacturing Co. uses a weighted-point model to evaluate new suppliers. Based on its competitive priorities, quality performance is weighted 40 percent, delivery performance is 30 percent, and cost is 30 percent. On a five-point scale, a supplier is rated 5 on quality, 3 on delivery, and 4 on cost. What is its overall weighted score?
A. 4.1.
B. 12.
C. 1.2.
D. 4.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Analyze
Difficulty: 3 Hard
Gradable: automatic
Learning Objective: 10-06 Describe how to assess and select suppliers.
Topic: Examining the Sourcing Process
53. The Rodriguez Manufacturing Co. uses a weighted-point model to evaluate new suppliers. Based on its competitive priorities, quality performance is weighted 50 percent, delivery performance is 20 percent, and cost is 30 percent. On a five-point scale, a supplier is rated 3 on quality, 2 on delivery, and 5 on cost. What is its overall weighted score?
A. 10.
B. 3.4.
C. 33.
D. 3.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Analyze
Difficulty: 3 Hard
Gradable: automatic
Learning Objective: 10-06 Describe how to assess and select suppliers.
Topic: Examining the Sourcing Process
54. Competitive bidding should be used when:
A. There is only one qualified supplier.
B. Product innovation is more important than price.
C. The spend is small.
D. Product specifications are known and clear.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Understand
Difficulty: 2 Medium
Gradable: automatic
Learning Objective: 10-06 Describe how to assess and select suppliers.
Topic: Examining the Sourcing Process
55. The most important stage in the negotiation process is:
A. Planning for the negotiation.
B. The face-to-face meeting.
C. When the contract is signed.
D. Forming the negotiating team.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
Learning Objective: 10-06 Describe how to assess and select suppliers.
Topic: Examining the Sourcing Process
56. A comprehensive system, facilitated by software, that manages the firm’s interactions with its supply base is:
A. Supplier certification.
B. Supplier scorecard.
C. Supplier relationship management.
D. Collaborative planning, forecasting, and replenishment.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
Learning Objective: 10-07 Understand ways to manage ongoing supplier relationships.
Topic: Examining the Sourcing Process
57. Many companies are automating the procure-to-pay process using:
A. Blockchain.
B. Robotic process automation (RPA).
C. IoT.
D. Collaborative planning, forecasting, and replenishment.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
Learning Objective: 10-07 Understand ways to manage ongoing supplier relationships.
Topic: Examining the Sourcing Process
Chapter 10 Test Bank - Static Summary
Category | # of Questions |
AACSB: Analytical Thinking | 19 |
AACSB: Reflective Thinking | 38 |
Accessibility: Keyboard Navigation | 57 |
Accessibility: Screen Reader Compatible | 57 |
Blooms: Analyze | 4 |
Blooms: Apply | 16 |
Blooms: Remember | 26 |
Blooms: Understand | 13 |
Difficulty: 1 Easy | 25 |
Difficulty: 2 Medium | 13 |
Difficulty: 3 Hard | 19 |
Gradable: automatic | 57 |
Learning Objective: 10-01 Define supply management and understand its impact on a firm s performance. | 3 |
Learning Objective: 10-02 Define and describe each of the six supply management goals. | 10 |
Learning Objective: 10-03 Analyze costs and make insourcing/outsourcing decisions. | 8 |
Learning Objective: 10-04 Describe the steps in supply category management. | 14 |
Learning Objective: 10-05 Explain the steps in the sourcing process. | 6 |
Learning Objective: 10-06 Describe how to assess and select suppliers. | 10 |
Learning Objective: 10-07 Understand ways to manage ongoing supplier relationships. | 6 |
Topic: Examining the Sourcing Process | 22 |
Topic: Making an Insourcing/Outsourcing Decision | 8 |
Topic: Supply Category Management | 14 |
Topic: Supply Management's Impact on Firm and Supply Chain Performance | 13 |
Document Information
Connected Book
Managing Operations Supply Chain 4e Complete Test Bank
By Morgan Swink