Deck 13: Supplier Evaluation and Supplier Relationships

Question 1

When evaluating suppliers,the most judgment is usually required when measuring performance for:

A)quality.
B)quantity.
C)delivery.
D)cost.
E)service.

Answer 1

E

Question 2

An example of a semiformal supplier evaluation tool is:

A)conversations with others in the organization about how a supplier is doing.
B)measuring parts per million defects.
C)cost reduction reports.
D)an annual discussion between top executives in the buying organization and those of the supplier.
E)rating on-time delivery performance as poor,fair,good or excellent.

Answer 2

D

Question 3

As the buyer-supplier network grows in size and complexity,the need to have a more informal system for evaluating current sources also increases.

Answer 3

False

Question 4

Strategic alliances:

A)ensure access to raw materials deemed critical to national security.
B)are only possible when there is no intellectual property or technology involved.
C)do not require any contribution from top management.
D)are informal buyer-supplier relationships.
E)support the idea that supplier relationships contribute to organizational success.

Question 5

A buyer-supplier relationship is formed around leverage items in portfolio analysis to attain the desired levels of quality,quantity,delivery,price,and service at the lowest total cost of ownership.This is called:

A)a strategic alliance.
B)an operational partnership.
C)co-location.
D)a multi-tiered partnership.
E)a preferred partnership.

Question 6

Early supply and supplier involvement (ESI)pulls the buyer into the relationship management stage and pulls the supplier into need recognition and description.

Question 7

If the buyer perceives a buyer-supplier relationship is in the undesirable region on the purchaser-supplier satisfaction matrix,and problems persist,the buyer is most likely to:

A)refuse to pay bills.
B)refuse to accept shipments.
C)share information to find a mutual solution.
D)refuse to pay bills and refuse to accept shipments.
E)refuse to pay bills,refuse to accept shipments and share information to find a mutual solution.

Question 8

One of the main concerns about buyer-supplier partnerships is:

A)if cooperative relationships will get better results than competition.
B)if internal users will go along with the idea.
C)if the relationship will violate antitrust laws.
D)if it is possible to partner with offshore suppliers.
E)if there will be any long-term benefits.

Question 9

Reverse marketing is:

A)an aggressive,purchaser-initiated,approach to finding and developing world-class suppliers.
B)discouraged by the rapid rate of technological change and growth in international trade.
C)when the buying organization decides to stop making something and identifies a supplier from its existing supply base.
D)an aggressive,marketing-initiated,approach to finding and developing world-class suppliers.
E)most appropriate when the product is fairly standard and available from multiple local suppliers.

Question 10

Supply chain management is:

A)externally focused from supply management to suppliers.
B)externally focused from supply management to suppliers,and from suppliers to their suppliers.
C)internally focused to align with other functions and externally focused upstream through the supplier network and downstream through the customer network.
D)internally focused from supply management to internal users/customers.
E)internally focused from supply management to senior management.

Question 11

Research on the "dark side of buyer-supplier relationships" has identified the following potential problem(s)with overcommitting to supplier partnerships in the long-term:

A)loss of objectivity.
B)ineffective decision making.
C)costly investments.
D)loss of objectivity and ineffective decision making.
E)loss of objectivity,ineffective decision making and costly investments.

Question 12

Buyer-supplier partnerships:

A)reflect the trend toward horizontal integration.
B)are designed to maximize efficiency in buyer-supplier operations.
C)improve buyer-supplier communication at the expense of internal relationships.
D)result in significant quality improvements and total cost increases.
E)result in early supplier and supply involvement in design and description.

Question 13

A goal of supply chain management is to:

A)gain competitive advantage by acquiring confidential information from chain members.
B)drive down prices through competitive online bidding.
C)reduce uncertainty and risks between and among members of the supply chain.
D)push inventory as far down the supply chain as possible.
E)increase competition by increasing the number of suppliers in the supply chain.

Question 14

Monitoring changes in market trends and technologies can help protect purchasers from the "dark side of buyer-supplier relationships."

Question 15

There may be legitimate reasons for not single sourcing or forming buyer-supplier partnerships even in a progressive purchasing and supply management organization.

Question 16

Trends in supply management include:

A)switching suppliers frequently through online auctions to get price discounts.
B)limiting the number of suppliers and focusing on results from key suppliers.
C)increasing the number of suppliers and developing closer relationships.
D)negotiating shorter term contracts with fewer suppliers to increase leverage.
E)greater concentration of the supplier selection decision in procurement.

Question 17

Taking negative measures to shift the satisfaction level in the buyer-seller relationship may achieve long-term objectives,but may negatively affect the relationship in the short-term.

Question 18

If the supplier perceives a buyer-supplier relationship is in the desirable region on the purchaser-supplier satisfaction matrix,but there are problems,the supplier is most likely to:

A)insist on unreasonable length of contract.
B)refuse to send shipments as promised.
C)be willing and able to make rapid price,delivery,and quality adjustments in response to requests from the purchaser.
D)insist on unreasonable length of contract and refusal to send shipments as promised.
E)insist on unreasonable length of contract,refusal to send shipments as promised and willingness and ability to make rapid price,delivery,and quality adjustments in response to requests from the purchaser.

Question 19

On the purchasing-supplier satisfaction model,if the perceptions of buyer and supplier fall along the "fairness or stability" diagonal line,this means:

A)one party is satisfied and one party is dissatisfied.
B)one party is better off in the relationship than the other party.
C)both parties are satisfied with the relationship.
D)both parties are at least equally well-off.
E)both parties are unsatisfied with the relationship.

Question 20

The supplier evaluation process that includes: (1)factors or criteria for evaluation, (2)the importance of each factor,and (3)a system for rating each supplier on each factor,is called a(n):

A)weighted point evaluation.
B)executive roundtable evaluation.
C)categorical evaluation.
D)qualitative evaluation.
E)informal evaluation.

Question 21

Unilateral price increase without notice is an example of "crunch" or a negative tool for the supplier to shift position on the buyer-supplier satisfaction matrix.

Question 22

Buyer-supplier relationships fall somewhere on a continuum from competitive to cooperative to collaborative.

Question 23

Evaluation and rating systems that assign values such as excellent,very good,good,fair and poor to performance are known as objective rating systems.

Question 24

Supply management and demand management are critical to effectively managing supply chains.

Question 25

Purchasers integrate systems or processes with preferred suppliers to avoid unnecessary duplication and speed up transactions.

Question 26

Refusal to accept shipments is an example of a positive,or "stroking" technique,used to shift position on the buyer-supplier satisfaction matrix.

Question 27

Strategic supply management is founded on the conviction that a significant competitive edge can be gained from the suppliers because an organization has developed and its supply systems and supplier relationships.

Question 28

Supplier goodwill cannot be quantified or measured so it is the supply manager's best estimate as to how much supplier goodwill has been generated.

Question 29

The typical process for developing a weighted point evaluation system is to: (1)meet with the supplier to identify the factors or criteria for evaluation, (2)ask the supplier to determine the importance of each factor,and (3)negotiate a system for rating the supplier on each factor.

Question 30

Early supplier involvement extends to an organization's first tier suppliers and may continue to subsequent tiers of suppliers for high value requirements.