Deck 13: Sourcing Materials and Services

Question 1

Vendors may offer varying levels of discounts.

Answer 1

True

Question 2

There is little risk in e-Sourcing and e-Procurement.

Answer 2

False

Question 3

Strategic sourcing as a process is far more broad and comprehensive than procurement.Overall,the process starts with the formation of a

A) committee.
B) a list of vendors.
C) a decision as whether to make or buy.
D) a list of criticals.

Answer 3

A

Question 4

The most important factor in vendor selection is usually financial health.

Question 5

Traditional basic input costs and direct transaction costs are the same except for the level of the transaction where each is applied.

Question 6

Strategic sourcing is almost the same as procurement.

Question 7

e-Sourcing and e-Procurement are the same.

Question 8

In the Item Procurement Importance Matrix,what describes high risk,high value?

A) Generics
B) Commodities
C) Criticals
D) Distinctives

Question 9

The first step in managing sourcing and procurement is to determine the type pf purchase.

Question 10

When a firm makes a "make" decision,when analyzing whether to "make or buy",the firm may still have to purchase some types of inputs from outside suppliers.

Question 11

There are seven steps in the Strategic Sourcing Methodology.

Question 12

Procurement and materials management are related activities in supply chain management.

Question 13

In the Item Procurement Importance Matrix,what describes high risk,low value?

A) Generics
B) Commodities
C) Criticals
D) Distinctives

Question 14

Landed costs are independent of FOB terms.

Question 15

Some firms are moving towards reducing the number of suppliers as they seek to obtain greater concessions from vendors.

Question 16

Which is not a form of purchasing?

A) purchasing
B) procurement
C) process improvement
D) sourcing

Question 17

In the Item Procurement Importance Matrix,what item is described as low risk,low value?

A) Generics
B) Commodities
C) Criticals
D) Distinctives

Question 18

There are several classifications of purchased items.Which of the following is NOT one of those?

A) commodity
B) generics
C) collaborative
D) critical

Question 19

In the Assess Supply Market step,the firm

A) determines which are the least cost vendors.
B) decides which vendors are located closet to the firm's plant to insure timely delivery.
C) identifies all possible suppliers that might be able to satisfy the user's needs.
D) determines which vendors can supply more than one class of product.

Question 20

Distinctives is another name for specialized commodities.

Question 21

Managing the sourcing and procurement process can be difficult for a multitude of reasons.However,a four-step approach can be used and adapted to a firm's particular needs.Name the four steps and discuss them.

Question 22

For the buyer,the total procurement price is more than just the basic purchase price.There are four other elements to consider.Name these elements,and discuss the primary considerations of each.

Question 23

Name several criteria that are important in vendor selection.Which one is the most important?

Question 24

What vendor selection criteria is described by production capability,labor relations,and operating controls?

A) capability
B) quality
C) reliability
D) financial

Question 25

What is an amalgam of catalogs from vendors available via the Internet within a market called?

A) electronic marketplace
B) buy-side system
C) sell-side system
D) on-line trading community

Question 26

Define and discuss the four basic types of e-commerce business models used in procurement and sourcing.

Question 27

Total procurement price includes

A) product price.
B) product price and transaction costs.
C) product price and transportation costs.
D) product price,transaction costs,and transportation costs.

Question 28

Discuss the advantages and disadvantages of e-commence.Is it the same as e-procurement?

Question 29

There are three definitions to aid understanding of some of the similarities,differences,and linkages between purchasing,procurement,and strategic sourcing.Define them,and discuss the differences between the three.

Question 30

____ exist for basic raw materials such as grain,oil,and sugar.

A) price lists
B) commodity markets
C) negotiations
D) price quotes

Question 31

Companies with 10,000 purchase transactions or more per year should consider

A) strategic sourcing solutions.
B) transactional procurement solutions.
C) business-to-business transactions.
D) e-procurement.

Question 32

In the Execute Sourcing Strategy step,the most important thing is to

A) appoint the sourcing committee members from the affected groups.
B) choose a supplier or suppliers,depending on the objectives of the sourcing decision.
C) verify which vendors are either TQM or ISO 9000.
D) determine which vendors have the lowest prices.

Question 33

Which of the following is NOT a source of price?

A) negotiation
B) price quotation
C) price lists
D) wholesale price index

Question 34

There are seven steps in the Strategic Sourcing Methodology.Name at least five,and choose two to discuss in more detail.

Question 35

What vendor selection criteria are described by price and financial stability?

A) capability
B) financial
C) quality
D) reliability

Question 36

What vendor selection criteria are described by vendor attitude,tracing aids,packaging,vendor location,and repair service?

A) quality
B) financial
C) reliability
D) desirable qualities

Question 37

There are four types of items and services that are purchased with varying degrees of importance.Name all four,and choose two to discuss in terms of risk and value.

Question 38

There are four steps in the Managing Sourcing and Procurement Processes.Which does not belong?

A) Determine the type of purchase
B) Determine the necessary levels of investment
C) Evaluate the effectiveness of the strategic sourcing process
D) Examine off shore and e-procurement suppliers

Question 39

What are at least three types of certifications and registrations,what do they signify,and why are they important?