Question 1

The SRM includes those processes that are focused on the interaction between _____ and the ______that are upstream in the supply chain.&#10;A)Enterprise; suppliers&#10;B)Consumer; producer&#10;C)Technology; labor&#10;D)Software; hardware&#10;

Accepted Answer

The SRM includes those processes focused on the interaction between the enterprise and the suppliers that are upstream in the supply chain. There is a very natural fit between SRM processes and the ISCM processes, as integrating supplier constraints is crucial when creating internal plans.

Question 2

Based on the APICS definition of SRM, a firm will implement this philosophy with:&#10;A)All Tier 1-type suppliers.&#10;B)A selected group of suppliers.&#10;C)All suppliers.&#10;D)A few suppliers who are deemed indispensable.&#10;

Accepted Answer

Supplier relationship management (SRM) is the organized, enterprise-wide assessment of suppliers' assets and capabilities with respect to the overall business strategy. This philosophy aims to engage a select group of suppliers and plan and execute of all interactions with these suppliers in a synchronized fashion across the relationship life cycle in order to increase the value realized through those interactions.

Question 3

Technology has played a vital role in SRM, but plays no role in which of the following?&#10;A)Systems showing the current status of operations.&#10;B)Suppliers communicating with customers in real time.&#10;C)Automating transactional processes&#10;D)Security enhancements&#10;

Accepted Answer

The benefit of technology in SRM is to provide a more comprehensive and objective picture of supplier performance which can be used to make better sourcing decisions, as well as to identify and address systemic supplier performance problems. However, it does not play a role in security enhancements.

Question 4

The goal of ___________ is to improve the _______ of products through ideas such as the joint selection of components, the ease of manufacturability, etc.&#10;A)Logistics; shipment&#10;B)Marketing; campaigns&#10;C)Design collaboration; design&#10;D)Design collaboration; advertisement&#10;

Accepted Answer

The goal of design collaboration is to improve the design of products through ideas such as the joint selection of components, the ease of manufacturability, etc. These also include activities like sharing of engineering change orders between the manufacturer and their suppliers. More than 80% of the product cost is determined at the design stage.

Question 5

The source process qualifies suppliers and does not help in which of the following?&#10;A)Supplier selection.&#10;B)Contract management.&#10;C)Supplier assessment.&#10;D)Supplier promotion.&#10;

Accepted Answer

The source process qualifies suppliers and helps in supplier selection, contract management, and supplier assessment. However, it does not help in supplier promotion. Because the source process analyzes the amount an enterprise spends with each supplier, it often reveals valuable trends or the areas for improvement.

Question 6

In the source process, suppliers are evaluated along several key criteria including _________.&#10;A)Lead Time&#10;B)Reliability&#10;C)Quality and price&#10;D)All of the above.&#10;

Accepted Answer

In the source process, suppliers are evaluated along several key criteria including lead time, reliability, quality and price. This assessment helps firms to improve supplier performance and aids them in supplier selection.

Question 7

What does RFQ stand for?&#10;A)Request for Quality&#10;B)Role of Quality&#10;C)Request of Quote&#10;D)Request for Quantity&#10;

Accepted Answer

Negotiations with suppliers involving many steps start with a Request for Quote (RFQ), a type of bidding solicitation in which a company or organization asks outside vendors to provide a cost quote for the completion of a particular project or program.

Question 8

What best describes the goal of the SRM process of &#34;Negotiate&#34;?&#10;A)To negotiate an effective contract.&#10;B)To make deals for future contracts.&#10;C)To close a specific order.&#10;D)None of the above.&#10;

Accepted Answer

The goal of the SRM process of "Negotiate" is to negotiate an effective contract that specifies price and delivery parameters for a supplier in a way that best matches the enterprise's needs.

Question 9

The &#34;Buy&#34; process executes the actual ___________ of material from _________.&#10;A)Producers; suppliers.&#10;B)Procurement; suppliers.&#10;C)Procurement; consumers.&#10;D)Manufacturer; logistics.&#10;

Accepted Answer

The "Buy" process executes the actual procurement of material from suppliers. This includes the creation, management, and approval of purchase orders.

Question 10

What best describes the objective of &#34;supply collaboration&#34;?&#10;A)To ensure a common plan across the supply chain.&#10;B)To ensure a common shipment through suppliers.&#10;C)To negotiate logistics and shipment costs.&#10;D)None of these.&#10;

Accepted Answer

Once an agreement is established between the enterprise and the supplier, supply chain performance can be improved by collaborating on production plans forecasts, and inventory levels. The objective of collaboration is to ensure a common plan across the supply chain.

Deck 13: Supplier Relationship Management