Question 1

_____ can be defined as how supply chain members communicate and collaborate regarding sources of risk, utilizing risk management tools to mitigate and minimize risk and uncertainty across the supply chain.

Accepted Answer

The given definition matches with the concept of Supply Chain Risk Management (SCRM), which involves identifying, assessing, and prioritizing risks, and implementing measures to manage and mitigate those risks across the entire supply chain. PERT/CPM is a project management tool, scenario analysis is a method of forecasting and planning, and hedging is a financial risk management strategy.

Question 2

In supplier measurement, the basic logic of the _____ is built around the calculation of a/an _____.

Accepted Answer

The basic logic of a cost-based system is built around the calculation of a supplier performance index (SPI), which measures the performance of a supplier based on factors such as delivery, quality, and cost.

Question 3

_____ allows a buying organization to react more quickly when risk events occur by already having previously prepared plans and proposed responses in place in advance of the actual event.

Accepted Answer

Scenario analysis is a technique that involves creating hypothetical situations and examining how an organization would respond to them. By using scenario analysis, a buying organization can develop plans and proposed responses in advance of potential risk events, which allows for quicker and more effective reactions when those events occur.

Question 4

All of the following are mechanisms of a fraud control system except _____.

Accepted Answer

Ensuring that purchasing personnel never work alone or remotely is not a mechanism of a fraud control system mentioned in the given options. The other options - clear separation of powers, ongoing and routine computer monitoring, comprehensive set of policies, and routine audits - are all mechanisms of a fraud control system.

Question 5

All of the following are elements of market risk in a supply base except _____.

Accepted Answer

The answer of All of the following are elements of...

Question 6

The supplier performance index (SPI) equals (_____ plus _____) divided by _____.

Accepted Answer

The Supplier Performance Index (SPI) is calculated by adding Total Purchases and Nonperformance Costs, then dividing by Total Purchases.

Question 7

_____ in a supply base consists of such factors as: country stability, regional stability, party and governmental stability, levels of corruption, differences in contract law and intellectual property rights, elections, military actions, civil disturbances, terrorism, trade balance issues, trade wars, and duties and tariffs.

Accepted Answer

Political risk refers to the potential impact of political and governmental factors on the supply base, including stability, corruption levels, contract and intellectual property law differences, elections, military and civil disturbances, terrorism, trade balance issues, trade wars, and duties and tariffs.

Question 8

Which of the following is a disadvantage of a cost-based supplier evaluation system?​

Accepted Answer

The answer of Which of the following is a disadvantage...

Question 9

The _____ supplier evaluation system seeks to quantify the total cost of doing business with a given supplier, as the lowest purchase price may not always result in the lowest total cost for an item or service.

Accepted Answer

The cost-based supplier evaluation system focuses on quantifying the total cost of doing business with a supplier, considering factors beyond just the purchase price to ensure that the overall cost is minimized. This approach recognizes that the lowest purchase price does not always lead to the lowest total cost.

Question 10

According to ISM, _____ is a framework of measurable corporate policies and procedures and resulting behavior designed to benefit the workplace and, by extension, the individual, the organization, and the community.

Accepted Answer

The definition given is a clear description of social responsibility, which is the framework of policies and behaviors designed to benefit the workplace, individuals, organizations, and communities. The other options are not relevant to the definition given.

Question 11

Which of the following is a disadvantage of a categorical supplier evaluation system?

Accepted Answer

The answer of Which of the following is a disadvantage...

Question 12

_____ is the process of identifying how many and which suppliers a buyer will maintain.

Accepted Answer

Supply base rationalization is the process of evaluating and reducing the number of suppliers that a buyer maintains in order to improve efficiency and reduce costs. It involves analyzing supplier performance, capabilities, and strategic fit, and then consolidating suppliers where possible. Supply base optimization refers to the ongoing management of the remaining suppliers to improve their performance and drive innovation. Six Sigma and Zero Defects are quality management methodologies, while strategic sourcing is a broader process of identifying the best suppliers and negotiating contracts to meet the needs of the organization.

Question 13

Which of the following is not a supplier-specific barrier to supplier development?

Accepted Answer

Supplier-specific barriers to supplier development are obstacles that directly relate to the supplier's internal operations or capabilities, such as lack of commitment by supplier's management (B), poor implementation of improvements (C), lack of skilled engineering resources (D), and insufficient employee skill levels (E). Option A, no immediate benefit to supplier development is evident in the buying organization, is not a supplier-specific barrier because it pertains to the buying organization's perspective rather than the supplier's internal challenges.

Question 14

The _____ identifies those 20 percent of suppliers receiving the bulk of purchase spend or that minority of suppliers that causes the most quality problems.

Accepted Answer

The "twenty/eighty rule," also known as the Pareto Principle, is used to identify the 20 percent of suppliers that receive the bulk of purchase spend or cause the majority of quality problems, suggesting that a small percentage of causes or efforts often lead to a large percentage of the results or problems.

Question 15

Which of the following is a disadvantage of a weighted-point supplier evaluation system?

Accepted Answer

Tends to focus on unit price, which may not be the most important factor in supplier selection.

Question 16

All of the following are general categories of supply base risk except _____.

Accepted Answer

Employee hiring risk is not a general category of supply base risk. The other options, political risk, market risk, sourcing risk, and financial risk are all common categories of supply base risk.

Question 17

The _____ requires suppliers to successfully navigate a successive series of performance milestones in order to remain in the supply base.

Accepted Answer

The competency staircase approach requires suppliers to meet a series of performance milestones to continue to be part of the supply base. This approach ensures that suppliers continually improve their performance and meet the organization's changing needs.

Question 18

In overcoming the barriers to supplier development, which of the following is not one of the approaches typically used?

Accepted Answer

Single sourcing is not an approach typically used to overcome barriers to supplier development. In fact, it may further exacerbate issues related to lack of competition and limited supplier options. The other approaches listed, such as direct involvement activities, incentives and rewards, warnings and penalties, and hands-on activities, are commonly used to improve supplier development and address barriers such as lack of resources or resistance to change.

Question 19

Which of the following is not a typical supplier development activity?

Accepted Answer

Raising prices paid for purchased goods and services is not a typical supplier development activity as it goes against the goal of improving supplier performance while reducing costs. The other options listed are all typical supplier development activities, such as providing incentives, promoting competition, direct involvement, and providing necessary resources like capital.

Question 20

_____ involves a detailed analysis of the supply base to ensure that only the most capable and highest performing suppliers are kept in the supply base after it is rationalized.

Accepted Answer

Supply base optimization involves analyzing the supplier base and selecting the most capable and high-performing suppliers for inclusion in the final supply base. This process ensures that the company has a reliable, efficient, and cost-effective supply chain that can meet its needs in the long term. The focus is on developing a strategic partnership and collaboration with the suppliers for mutual benefit. This process typically follows strategic sourcing and involves ongoing monitoring and measurement of supplier performance to identify gaps and areas for improvement.

Quiz 9: Supplier Management and Development: Creating a World-Class Supply Base

_____ can be defined as how supply chain members communicate and collaborate regarding sources of risk, utilizing risk management tools to mitigate and minimize risk and uncertainty across the supply chain.

In supplier measurement, the basic logic of the _ is built around the calculation of a/an _.

_____ allows a buying organization to react more quickly when risk events occur by already having previously prepared plans and proposed responses in place in advance of the actual event.

All of the following are mechanisms of a fraud control system except _____.

All of the following are elements of market risk in a supply base except _____.

The supplier performance index (SPI) equals (___ plus _) divided by ___.

Which of the following is a disadvantage of a cost-based supplier evaluation system?

The _____ supplier evaluation system seeks to quantify the total cost of doing business with a given supplier, as the lowest purchase price may not always result in the lowest total cost for an item or service.

According to ISM, _____ is a framework of measurable corporate policies and procedures and resulting behavior designed to benefit the workplace and, by extension, the individual, the organization, and the community.

Which of the following is a disadvantage of a categorical supplier evaluation system?

_____ is the process of identifying how many and which suppliers a buyer will maintain.

Which of the following is not a supplier-specific barrier to supplier development?

The _____ identifies those 20 percent of suppliers receiving the bulk of purchase spend or that minority of suppliers that causes the most quality problems.

Which of the following is a disadvantage of a weighted-point supplier evaluation system?

All of the following are general categories of supply base risk except _____.

The _____ requires suppliers to successfully navigate a successive series of performance milestones in order to remain in the supply base.

In overcoming the barriers to supplier development, which of the following is not one of the approaches typically used?

Which of the following is not a typical supplier development activity?

_____ involves a detailed analysis of the supply base to ensure that only the most capable and highest performing suppliers are kept in the supply base after it is rationalized.

Quiz 9: Supplier Management and Development: Creating a World-Class Supply Base

_____ can be defined as how supply chain members communicate and collaborate regarding sources of risk, utilizing risk management tools to mitigate and minimize risk and uncertainty across the supply chain.

In supplier measurement, the basic logic of the _____ is built around the calculation of a/an _____.

_____ allows a buying organization to react more quickly when risk events occur by already having previously prepared plans and proposed responses in place in advance of the actual event.

All of the following are mechanisms of a fraud control system except _____.

All of the following are elements of market risk in a supply base except _____.

The supplier performance index (SPI) equals (_____ plus _____) divided by _____.

Which of the following is a disadvantage of a cost-based supplier evaluation system?​

The _____ supplier evaluation system seeks to quantify the total cost of doing business with a given supplier, as the lowest purchase price may not always result in the lowest total cost for an item or service.

According to ISM, _____ is a framework of measurable corporate policies and procedures and resulting behavior designed to benefit the workplace and, by extension, the individual, the organization, and the community.

Which of the following is a disadvantage of a categorical supplier evaluation system?

_____ is the process of identifying how many and which suppliers a buyer will maintain.

Which of the following is not a supplier-specific barrier to supplier development?

The _____ identifies those 20 percent of suppliers receiving the bulk of purchase spend or that minority of suppliers that causes the most quality problems.

Which of the following is a disadvantage of a weighted-point supplier evaluation system?

All of the following are general categories of supply base risk except _____.

The _____ requires suppliers to successfully navigate a successive series of performance milestones in order to remain in the supply base.

In overcoming the barriers to supplier development, which of the following is not one of the approaches typically used?

Which of the following is not a typical supplier development activity?

_____ involves a detailed analysis of the supply base to ensure that only the most capable and highest performing suppliers are kept in the supply base after it is rationalized.

In supplier measurement, the basic logic of the _ is built around the calculation of a/an _.

The supplier performance index (SPI) equals (___ plus _) divided by ___.

Which of the following is a disadvantage of a cost-based supplier evaluation system?