Quiz 7: Supplier Management

Which is the first step in the supplier management process? A)Identify needs B)Select supplier C)Develop supplier D)Provide feedback

Which is the last step in the supplier management process? A)Identify needs B)Select supplier C)Develop supplier D)Provide feedback

What kind of supplier relationship is recommended when the item is a critical item and supply risk is high? A)Transactional B)Arm's-length C)Collaborative D)One time

What kind of supplier relationship is recommended when the item is a non-critical item and the importance of technology is low? A)Transactional B)Long-term C)Strategic D)Collaborative

The first step in the supplier management process is to select the supplier.

When precision in the final product is not important,the supply manager is most likely to use simple specifications in the procurement of the product.

When it is important that all items of the product being procured are precisely the same,the supply manager is most likely to use simple specifications in the procurement of the product.

A complex specification for the product being procured is called the scope of work.

A transactional relationship with the supplier is usually recommended for the procurement of a critical item.

A collaborative relationship with the supplier is usually recommended for the procurement of an item for which the supply risk is high.

Switching costs are usually high in collaborative supplier relationships.

The first step in the supplier management process is to ________.

Documentation that tells buyers what to buy and the suppliers what is required of them is known as ________.

A description that details the exact quantities of all purchased raw materials and the precise manner in which an item should be made is known as ________.

A specification for services is known as ________.

The kind of supplier relationship that is usually recommended when the item is a critical item and supply risk is high is a ________ relationship.

The kind of supplier relationship that is usually recommended when the item is a non-critical item and the importance of technology is low is a ________ relationship.

The type of relationship in which the buyer and supplier remain independent,with little integration of business processes is known as a(n)________ relationship.

The type of relationship in which the buyer and supplier work together sharing information,knowledge and expertise integrating their business processes is known as a ________ relationship.

The table below contains a list of four companies that have been rated (on a 1 to 5 scale)on three weighted performance factors.What is the score for Phoenix? A)2.5 B)3.4 C)3.9 D)4.1

The table below contains a list of four companies that have been rated (on a 1 to 5 scale with 1 being low and 5 being high)on three weighted performance factors.Which of the following statements regarding this information is best? A)Phoenix is superior to American. B)American is superior to Excelsior. C)Mega is superior to Phoenix. D)Excelsior is superior to Mega.

The document which contains the specifications of what is needed and details the information that must be submitted by a supplier is known as A)request for quotation. B)bid specification. C)preferred supplier contractor. D)statement of work.

A survey administered to suppliers to determine fit with purchaser needs is known as A)request for quotation. B)request for proposal. C)preferred supplier contractor. D)supplier self-assessment.

Being aware of cultural nuances should occur during which step of the negotiation process? A)Preparation B)Face-to-face discussions C)Debriefing D)None of the above

Self-assessment to provide accurate and timely feedback to the negotiating team should occur during which step of the negotiation process? A)Preparation B)Face-to-face discussions C)Debriefing D)None of the above

The document which contains the specifications of what is needed and details the information that must be submitted by a supplier is known as supplier self-assessment.

A request for proposal (RFP)is used when the firm knows exactly what they need,whereas a request for quote (RFQ)is used when the firm is open to the materials and technology to meet their need.

Analyzing the relative bargaining positions on parties involved in the negotiation occurs during the debriefing step of the negotiation process.

The multi-criteria decision making method often used for supplier evaluation and selection is known as ________.

The document which contains the specifications of what is needed and details the information that must be submitted by a supplier is known as ________.

A survey administered to suppliers to determine fit with purchaser needs is known as ________.

A meeting that the negotiation team holds soon after the negotiation with the supplier in order to provide accurate and timely feedback is known as the ________.

Discuss the role/purpose of a request for quote (RFQ)or a request for proposal (RFP)in the procurement process.

Discuss the concept of win-win negotiations in supplier selection.

Many firms are focused on helping their suppliers become more socially and environmentally sustainable through compliance to a A)price and delivery plan. B)supplier code of conduct. C)transactional relationship. D)negotiation plan.

Apple outlines its high standards for creating safer working conditions,treating workers fairly,and using environmentally responsible practices through its A)price and delivery plan. B)supplier code of conduct. C)transactional relationship. D)negotiation plan.

The Apple Supplier Code of Conduct outlines its A)high standards for creating safer working conditions. B)requirement for treating workers fairly. C)emphasis on using environmentally responsible practices. D)All of the above E)Only A and B above

Which of the following suppliers is not a prime candidate to be chosen as part of the supplier development process? A)Provides a large volume of products B)Is a source of competitive advantage C)Perfectly meets the firm's current needs in terms of quality,delivery and capacity D)Provides products that are critical

Which of the following functional personnel are typical members of a supplier development team? A)Engineering B)Operations C)Quality D)All of the above E)Only B and C above

The first step in the supplier development process is to identify opportunities for development.

Cross-functional teams are an integral part of the supplier development process.

The supplier development process is the sole responsibility of mid-level management.

Engineering personnel are typically included as members of a cross-functional supplier development team.

Defining key metrics and cost-sharing mechanisms occurs after opportunities for development have been identified as part of the supplier development process.

Identifying key projects to work on occurs before the critical supplier is identified for the supplier development process.

Many firms are focused on helping their suppliers become more socially and environmentally sustainable through compliance to a supplier ________ .

Apple outlines its high standards for creating safer working conditions,treating workers fairly,and using environmentally responsible practices through its ________.

The process of helping a supplier improve performance in areas such as cost,delivery,and quality is known as ________.

The first step in the supplier development process is to ________.

The final step in the supplier development process is to ________.

Use the information below to answer the following question(s). An automotive manufacturer procures an important engine part.The tool that the manufacturer uses to monitor the part supplier is a supplier scorecard.With respect to part quality,two primary performance metrics monitored are parts per million (PPM)defects and percent PPM improvement.The following measures are used for the scoring criteria: Data collected on the supplied part over the present quarter indicated 15 defects with 325,000 parts received.The PPM defect rate in the prior quarter was 73. -What is the PPM defect rate for this quarter? A)15 B)30 C)46 D)75

Use the information below to answer the following question(s). An automotive manufacturer procures an important engine part.The tool that the manufacturer uses to monitor the part supplier is a supplier scorecard.With respect to part quality,two primary performance metrics monitored are parts per million (PPM)defects and percent PPM improvement.The following measures are used for the scoring criteria: Data collected on the supplied part over the present quarter indicated 15 defects with 325,000 parts received.The PPM defect rate in the prior quarter was 73. -What are the scorecard points received by this supplier for the PPM defect rate in this quarter? A)0 B)10 C)20 D)30

Use the information below to answer the following question(s). An automotive manufacturer procures an important engine part.The tool that the manufacturer uses to monitor the part supplier is a supplier scorecard.With respect to part quality,two primary performance metrics monitored are parts per million (PPM)defects and percent PPM improvement.The following measures are used for the scoring criteria: Data collected on the supplied part over the present quarter indicated 15 defects with 325,000 parts received.The PPM defect rate in the prior quarter was 73. -What is the percent improvement in the defect rate this quarter compared to the prior quarter? A)37% B)15% C)25% D)59%

Use the information below to answer the following question(s). An automotive manufacturer procures an important engine part.The tool that the manufacturer uses to monitor the part supplier is a supplier scorecard.With respect to part quality,two primary performance metrics monitored are parts per million (PPM)defects and percent PPM improvement.The following measures are used for the scoring criteria: Data collected on the supplied part over the present quarter indicated 15 defects with 325,000 parts received.The PPM defect rate in the prior quarter was 73. -What are the scorecard points received by this supplier for the percentage PPM improvement in this quarter? A)0 B)5 C)10 D)15

Use the information below to answer the following question(s). A computer manufacturer procures memory chips from its key supplier.The tool that the manufacturer uses to monitor the part supplier is a supplier scorecard.With respect to delivery performance,the primary performance metric monitored is the percentage of orders delivered complete and on-time.The manufacturer also monitors the supplier's service performance and measures the invoice accuracy rate (% of invoices that are accurate).The following measures are used for the scoring criteria: Data collected on the supplied orders over the present quarter indicated that 350 orders were delivered and out of these 10 orders were incomplete,5 orders were late and another 15 orders were incomplete and late.Also out the 350 invoices for the shipments delivered,there were errors on 50 invoices. -What is the delivery performance-i.e. ,percentage of order delivered complete and on-time for this quarter? A)95% B)91.5% C)83.2% D)75%

Use the information below to answer the following question(s). A computer manufacturer procures memory chips from its key supplier.The tool that the manufacturer uses to monitor the part supplier is a supplier scorecard.With respect to delivery performance,the primary performance metric monitored is the percentage of orders delivered complete and on-time.The manufacturer also monitors the supplier's service performance and measures the invoice accuracy rate (% of invoices that are accurate).The following measures are used for the scoring criteria: Data collected on the supplied orders over the present quarter indicated that 350 orders were delivered and out of these 10 orders were incomplete,5 orders were late and another 15 orders were incomplete and late.Also out the 350 invoices for the shipments delivered,there were errors on 50 invoices. -What are the scorecard points received by this supplier for the delivery performance in this quarter? A)0 B)10 C)20 D)25

Use the information below to answer the following question(s). A computer manufacturer procures memory chips from its key supplier.The tool that the manufacturer uses to monitor the part supplier is a supplier scorecard.With respect to delivery performance,the primary performance metric monitored is the percentage of orders delivered complete and on-time.The manufacturer also monitors the supplier's service performance and measures the invoice accuracy rate (% of invoices that are accurate).The following measures are used for the scoring criteria: Data collected on the supplied orders over the present quarter indicated that 350 orders were delivered and out of these 10 orders were incomplete,5 orders were late and another 15 orders were incomplete and late.Also out the 350 invoices for the shipments delivered,there were errors on 50 invoices. -What is the service performance-i.e. ,percentage of invoices that are accurate for this quarter? A)55% B)78% C)86% D)92%

Use the information below to answer the following question(s). A computer manufacturer procures memory chips from its key supplier.The tool that the manufacturer uses to monitor the part supplier is a supplier scorecard.With respect to delivery performance,the primary performance metric monitored is the percentage of orders delivered complete and on-time.The manufacturer also monitors the supplier's service performance and measures the invoice accuracy rate (% of invoices that are accurate).The following measures are used for the scoring criteria: Data collected on the supplied orders over the present quarter indicated that 350 orders were delivered and out of these 10 orders were incomplete,5 orders were late and another 15 orders were incomplete and late.Also out the 350 invoices for the shipments delivered,there were errors on 50 invoices. -What are the scorecard points received by this supplier for the service performance in this quarter? A)0 B)3 C)7 D)10

The first step in the process of designing and implementing a supplier scorecard is to develop the performance measures.

The final step in the process of designing and implementing a supplier scorecard is to educate the supplier on performance measures and implications.

A supplier scorecard is used for price negotiations with the supplier.

The first step in the process of designing and implementing a supplier scorecard is to ________.

The final step in the process of designing and implementing a supplier scorecard is to ________.

Discuss the process of designing and implementing a supplier scorecard.