Question 1

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

Accepted Answer

The answer of For the buyer, the total procurement price...

Question 2

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.

Accepted Answer

The most important thing in the Execute Sourcing Strategy step is to choose a supplier or suppliers that align with the objectives of the sourcing decision. While having a sourcing committee and considering quality certifications may be important factors, they are not the most important. The ultimate goal of this step is to select a supplier that can provide the best value for the organization.

Question 3

What is an amalgam of catalogs from vendors within a market that is available via the Internet called?
A) electronic marketplace
B) buy-side system
C) sell-side system
D) on-line trading community

Accepted Answer

An electronic marketplace is a platform that brings together various vendors and their catalogs in one place, making it easier for buyers to compare prices, features, and specifications. This platform is accessible via the Internet, enabling buyers to browse, select, and purchase products or services quickly and conveniently. A buy-side system is a procurement system that helps companies manage their purchasing processes and negotiate with suppliers. A sell-side system is an e-commerce platform that allows businesses to sell their products or services online. An on-line trading community is a virtual community where buyers and sellers can meet, exchange information, and negotiate deals.

Question 4

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.

Accepted Answer

The answer of There are three definitions to aid understanding...

Question 5

__________ exist for basic raw materials such as grain, oil, and sugar.
A) price lists
B) commodity markets
C) negotiations
D) price quotes

Accepted Answer

Commodity markets exist for basic raw materials such as grain, oil, and sugar. They are platforms for buying and selling commodities, with prices determined by supply and demand. Price lists and price quotes are just lists of prices, while negotiations involve direct communication between buyers and sellers to reach an agreement on price and other terms.

Question 6

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

Accepted Answer

Options A, B and C are all steps involved in the managing sourcing and procurement processes. However, Option D, "examine off shore and e-procurement suppliers" is not a step in the process. It may be a part of the strategic sourcing process, but it is not a separate step in managing sourcing and procurement.

Question 7

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

Accepted Answer

The answer of There are seven steps in the Strategic...

Question 8

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) collaboration tools.

Accepted Answer

The answer of Companies with 10,000 purchase transactions or more...

Question 9

What vendor selection criteria are described by vendor attitude, cultural compatibility, training aids, packaging, and repair service?
A) quality
B) financial considerations
C) reliability
D) desirable capabilities

Accepted Answer

These vendor selection criteria (vendor attitude, cultural compatibility, training aids, packaging, and repair service) are all related to the capabilities that a vendor can offer beyond simply providing a product or service. These criteria are not directly related to the quality, financial considerations, or reliability of a vendor, but rather to their ability to work effectively with the buyer and support their needs. Therefore, the best choice is D, desirable capabilities.

Question 10

Discuss the features of transactional procurement systems.

Accepted Answer

The answer of Discuss the features of transactional procurement systems....

Question 11

The concept that represents the sum of all costs associated with making and delivering products to the point where they are needed is called
A) purchase/acquisition cost
B) strategic sourcing costs
C) life cycle costs
D) total landed cost

Accepted Answer

Total landed cost includes all costs associated with making and delivering products, including transportation, taxes, duties, and other fees. It also takes into account the cost of storing the products until they are needed, giving a more accurate representation of the true cost of the product.

Question 12

Which of the following is NOT a source of price?
A) negotiations
B) price quotations
C) price lists
D) wholesale price index

Accepted Answer

Wholesale price index is a measure of general price levels in a specific industry, region or country, and not a direct source of price. A, B and C are all sources of price, as negotiations, price quotations and price lists can directly impact the price of a product or service.

Question 13

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

Accepted Answer

The answer of What are at least three types of...

Question 14

What vendor selection criteria are described by price and financial stability?
A) capability
B) financial
C) quality
D) reliability

Accepted Answer

Price and financial stability are both factors related to the vendor's financial health and resources. Therefore, the best choice for the given question is B - financial.

Question 15

What vendor selection criteria are described by production capability, labor relations, and operating controls?
A) capability
B) quality
C) reliability
D) financial

Accepted Answer

Production capability, labor relations, and operating controls are all factors related to a vendor's capability to produce and deliver products or services. Quality, reliability, and financial criteria are also important, but they are not specifically mentioned in this question.

Question 16

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

Accepted Answer

The answer of Define and discuss the four basic types...

Question 17

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

Accepted Answer

The answer of Name several criteria that are important in...

Question 18

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.

Accepted Answer

The answer of Managing the sourcing and procurement process can...

Question 19

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

Accepted Answer

The answer of There are four types of products and...

Quiz 13: Sourcing Materials and Services

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

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

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

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.

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

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

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

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

What vendor selection criteria are described by vendor attitude, cultural compatibility, training aids, packaging, and repair service?

Discuss the features of transactional procurement systems.

The concept that represents the sum of all costs associated with making and delivering products to the point where they are needed is called

Which of the following is NOT a source of price?

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

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

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

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

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

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.

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