OSCM 3001-CH. 10

All of the following are supply management goals EXCEPT:
Purchase at the lowest price.
Zanda Corp. has 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:
Examined total cost of ownership
If you are evaluating whether a supplier’s workforce is receiving fair wages, you are most likely doing a(n):
Assessment of sustainability
Outsourcing is often a good choice when:
A product is in the mature phase of the life cycle.
Qualitative factors that should be assessed when making an insourcing/outsourcing decision include all of the following EXCEPT:
The costs incurred at the start of the contract
Which of the following is NOT a benefit of outsourcing?
Lower supply management costs
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:
Spend analysis
Moderate- to high-risk purchases with low to moderate levels of spend are categorized as:
Benefits of single sourcing include all of the following EXCEPT:
Less supply risk
Which of the following is (are) advantages of full partnerships with suppliers, as compared to traditional adversarial relationships?
I only. I. They help reduce uncertainties for both buyer and supplier.
A relationship with a supplier that is characterized by lack of trust, little communication, and short-term transactions is called a(n):
Adversarial relationship
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?
Neither, they both have the same weighted score.
All of the following are true about supplier scorecards EXCEPT:
They reduce the need for incoming quality inspection.
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:
Supplier certification
Williams Inc. has acquired software to help manage interactions with its supply base. This suggests that Williams Inc. is involved in:
Supplier relationship management
Which of the following would NOT be a step in conducting a make/buy analysis?
Conduction a detailed internal audit of purchasing practices.
The process of understanding how a firm is spending its money and with which suppliers is called:
Spend analysis
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:
Multiple source
Which approach is likely to be used for leverage purchases?
Standardizing purchases
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:
Single source
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?
Local, close to its production plant when possible.
An online auction used for sourcing:
Can hurt supplier relationships.

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