Question 1

Table 14.1
Alison's Accessories is a high volume worldwide fashion house with outlets in 65 countries. Kalil, the supply chain manager is conducting her usual thorough analysis of her final four candidates for supplier and has developed the following tables of pertinent costs and other shipping metrics. Regardless of supplier, Alison's Accessories will operate 220 days per year and has forecast annual demand of 250,000 units. Kalil has obtained quotes for three different shipment sizes (Freight Costs table). All costs are in US Dollars.
Unit costs
  
Freight Costs
  
Other Costs
 
-Use Table 14.1 to answer the question. Kalil believes in buying in bulk, regardless of who the supplier is. Which supplier would result in the lowest total cost using this criterion?

Accepted Answer

Using the bulk purchase of 25,000 units, the total cost for each supplier can be calculated:
- Supplier A: (11*25000) + (725*10) = $282,750
- Supplier B: (12*25000) + (625*10) = $310,625
- Supplier C: (10.75*25000) + (575*10) = $278,750
- Supplier D: (11.25*25000) + (600*10) = $292,500

Therefore, Supplier C has the lowest total cost for bulk purchase.

Question 2

Table 14.1
Alison's Accessories is a high volume worldwide fashion house with outlets in 65 countries. Kalil, the supply chain manager is conducting her usual thorough analysis of her final four candidates for supplier and has developed the following tables of pertinent costs and other shipping metrics. Regardless of supplier, Alison's Accessories will operate 220 days per year and has forecast annual demand of 250,000 units. Kalil has obtained quotes for three different shipment sizes (Freight Costs table). All costs are in US Dollars.
Unit costs
  
Freight Costs
  
Other Costs
 
-Use Table 14.1 to answer the question. Kalil has a sorority sister that works at Supplier A and would like to help her out by awarding the supply contract. Which shipping volume should she choose in order to rig the bid and give her sister's company the contract?

Accepted Answer

The answer of Table 14.1
Alison's Accessories is a high volume...

Question 3

Suppliers can gain power from a number of sources in the buyer / supplier relationship. When a buyer has access to knowledge, information and skills desired by the supplier, this is called a(n) ________ source of power.

Accepted Answer

When a buyer has access to knowledge, information and skills desired by the supplier, this is called an expert source of power. The supplier may depend on the buyer's expertise to deliver high-quality goods or services, or to improve their own operations. This can give the buyer leverage in negotiations and the ability to influence the supplier's decisions. Reward, referent, and coercive sources of power are not relevant to this scenario.

Question 4

Which one of the following statements is True about a cooperative orientation in supplier relationships?

Accepted Answer

A cooperative orientation in supplier relationships requires few suppliers for each item or service. This allows for better communication, collaboration, and trust between the supplier and the buyer, leading to better outcomes for both parties. While competitive bidding may be more common in Western cultures, a cooperative orientation can still be implemented effectively. The statement that it always benefits the supplier is not true, as both parties can benefit from a cooperative relationship. The statement about purchasing all parts from the same supplier is not necessarily true, although it can be a strategy in some cases.

Question 5

Table 14.1
Alison's Accessories is a high volume worldwide fashion house with outlets in 65 countries. Kalil, the supply chain manager is conducting her usual thorough analysis of her final four candidates for supplier and has developed the following tables of pertinent costs and other shipping metrics. Regardless of supplier, Alison's Accessories will operate 220 days per year and has forecast annual demand of 250,000 units. Kalil has obtained quotes for three different shipment sizes (Freight Costs table). All costs are in US Dollars.
Unit costs
  
Freight Costs
  
Other Costs
 
-Use Table 14.1 to answer the question. Kalil believes that Alison's would benefit most from medium sized shipments of accessories from their chosen supplier. Which supplier would result in the lowest total cost using this criterion?

Accepted Answer

Supplier A has the lowest total cost for medium sized shipments.

Question 6

Table 14.1
Alison's Accessories is a high volume worldwide fashion house with outlets in 65 countries. Kalil, the supply chain manager is conducting her usual thorough analysis of her final four candidates for supplier and has developed the following tables of pertinent costs and other shipping metrics. Regardless of supplier, Alison's Accessories will operate 220 days per year and has forecast annual demand of 250,000 units. Kalil has obtained quotes for three different shipment sizes (Freight Costs table). All costs are in US Dollars.
Unit costs
  
Freight Costs
  
Other Costs
 
-Use Table 14.1 to answer the question. As shipping volume increases from 15,000 to 25,000 to 50,000, which supplier experiences the smallest percentage increase in inventory cost?

Accepted Answer

The answer of Table 14.1
Alison's Accessories is a high volume...

Question 7

Approaches to e-purchasing include all of the following except:

Accepted Answer

The question asks for the exception, and RFID is not an approach to e-purchasing. Catalog hubs, exchanges, and EDI are all methods of e-purchasing.

Question 8

Use the following to answer the questions below.
The Steele Bike Company has completed a total cost analysis for two suppliers of bicycle frames to support their business. They also consider on-time speed, top quality and customization in their selection process. Each criterion is given a weight (total = 100 points), and each supplier is scored on each criterion (1 = poor, 10 = excellent). The data are shown in the following table.
 
-Refer to the instruction above. Using the preference matrix approach for selecting suppliers, what is Acme's total weighted score?

Accepted Answer

Acme's total weighted score is 570. This is calculated by multiplying the weight of each criterion by the supplier's score for that criterion, and then summing the results.

Question 9

Table 14.1
Alison's Accessories is a high volume worldwide fashion house with outlets in 65 countries. Kalil, the supply chain manager is conducting her usual thorough analysis of her final four candidates for supplier and has developed the following tables of pertinent costs and other shipping metrics. Regardless of supplier, Alison's Accessories will operate 220 days per year and has forecast annual demand of 250,000 units. Kalil has obtained quotes for three different shipment sizes (Freight Costs table). All costs are in US Dollars.
Unit costs
  
Freight Costs
  
Other Costs
 
-Use Table 14.1 to answer the question. Kalil has a brother-in-law that works for Supplier B and as she will soon be an aunt for the first time, she'd like to choose a shipping volume that awards Supplier B with the contract with Alison Accessories. What shipping volume should she choose?

Accepted Answer

The answer of Table 14.1
Alison's Accessories is a high volume...

Question 10

Examples of radio frequency identification (RFID) could include all of the following except:

Accepted Answer

Tracking the status of engineering changes during development of a new product line is not a typical use case for RFID. The other options listed are common applications for RFID technology.

Question 11

One of the benefits of a cooperative orientation in supplier relationships is:

Accepted Answer

A cooperative orientation in supplier relationships involves mutual sharing of information and open communication. This allows the buyer to suggest ways to improve the supplier's operations and vice versa, leading to a better understanding of each other's needs and goals, and ultimately improving the overall relationship. B, C, and D are not necessarily benefits of a cooperative orientation.

Question 12

Use the following to answer the questions below.
The Steele Bike Company has completed a total cost analysis for two suppliers of bicycle frames to support their business. They also consider on-time speed, top quality and customization in their selection process. Each criterion is given a weight (total = 100 points), and each supplier is scored on each criterion (1 = poor, 10 = excellent). The data are shown in the following table.
 
-Refer to the instruction above. Using the preference matrix (total weighted score) approach for selecting suppliers, which supplier should Steele select?

Accepted Answer

The answer of Use the following to answer the questions...

Question 13

The practice of selecting suppliers and giving them significant responsibility for the design of certain components or systems of the product is called:

Accepted Answer

The practice of selecting suppliers and giving them significant responsibility for the design of certain components or systems of the product is called presourcing. This helps to ensure that the components or systems are designed to meet the required specifications and that the suppliers have the necessary expertise to produce them efficiently.

Question 14

The practice whereby a manufacturer has inventories of materials on consignment from its suppliers falls under the scope of:

Accepted Answer

The practice described in the question where a manufacturer has inventories of materials on consignment from its suppliers is commonly known as vendor-managed inventory (VMI). In VMI, the supplier is responsible for managing the inventory of the manufacturer, including replenishing the stock when necessary. This helps the manufacturer to achieve cost savings and increase efficiency by reducing the need for inventory tracking and control. Thus, option D, i.e., vendor-managed inventory is the correct choice.

Question 15

Use the following to answer the questions below.
The Steele Bike Company has completed a total cost analysis for two suppliers of bicycle frames to support their business. They also consider on-time speed, top quality and customization in their selection process. Each criterion is given a weight (total = 100 points), and each supplier is scored on each criterion (1 = poor, 10 = excellent). The data are shown in the following table.
 
-Refer to the instruction above. Using the preference matrix approach for selecting suppliers, what is State's total weighted score?

Accepted Answer

The total weighted score for State using the preference matrix approach is calculated by multiplying each criterion's weight by State's score on that criterion and then summing these products. Without the specific scores and weights, we can't perform the calculation here, but the correct answer is provided as 590.

Question 16

________ is the management of the acquisition process, which includes deciding which suppliers to use, negotiating contracts, and deciding whether to buy locally.

Accepted Answer

The answer of ________ is the management of the acquisition...

Question 17

Suppliers can gain power from a number of sources in the buyer / supplier relationship. When a supplier values identification with a buyer, this is called a(n) ________ source of power.

Accepted Answer

The described source of power, where a supplier values identification with a buyer, is known as referent power. Expert power comes from the supplier's knowledge or expertise in a certain area, reward power is based on the supplier's ability to offer incentives or benefits, and legal power refers to a supplier's ability to use legal means to exert power over a buyer.

Question 18

Which one of the following statements correctly represents a benefit of centralized buying?

Accepted Answer

Centralized buying allows for the consolidation of purchasing power, which can result in discounts and better pricing from suppliers, ultimately leading to cost savings for the organization.

Question 19

Suppliers can gain power from a number of sources in the buyer / supplier relationship. When a buyer can threaten to cancel future business unless the supplier adheres to the buyer's demands, this is called a ________ source of power.

Accepted Answer

The described situation is an example of coercive power, where the buyer is using threats and punishment to force the supplier to comply with their demands. Legal power refers to the ability to enforce contracts and agreements through legal means, reward power involves offering incentives for compliance, and referent power is based on the positive relationship and respect between the parties. None of these describe the situation given in the question.

Question 20

A systematic effort to reduce the cost or improve the performance of services or products is known as:

Accepted Answer

Value analysis is a systematic effort to analyze the components and functions of a product or service in order to determine the most cost-effective means of achieving performance requirements. It aims to reduce costs while maintaining or improving performance. Presourcing, cooperative orientation, and supplier certification are not directly related to cost reduction or performance improvement.

Quiz 14: Supply Chain Integration

Suppliers can gain power from a number of sources in the buyer / supplier relationship. When a buyer has access to knowledge, information and skills desired by the supplier, this is called a(n) ________ source of power.

Which one of the following statements is True about a cooperative orientation in supplier relationships?

Approaches to e-purchasing include all of the following except:

Examples of radio frequency identification (RFID) could include all of the following except:

One of the benefits of a cooperative orientation in supplier relationships is:

The practice of selecting suppliers and giving them significant responsibility for the design of certain components or systems of the product is called:

The practice whereby a manufacturer has inventories of materials on consignment from its suppliers falls under the scope of:

________ is the management of the acquisition process, which includes deciding which suppliers to use, negotiating contracts, and deciding whether to buy locally.

Suppliers can gain power from a number of sources in the buyer / supplier relationship. When a supplier values identification with a buyer, this is called a(n) ________ source of power.

Which one of the following statements correctly represents a benefit of centralized buying?

Suppliers can gain power from a number of sources in the buyer / supplier relationship. When a buyer can threaten to cancel future business unless the supplier adheres to the buyer's demands, this is called a ________ source of power.

A systematic effort to reduce the cost or improve the performance of services or products is known as: