Question 1

Supplier audits tend to have the developmental component that is found in supplier development programs.

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Question 2

Sole-source filters that are used in many companies rely on internal validation of quality programs.

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Question 3

What is electronic data interchange?

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Question 4

Supplier evaluation is a supplier development activity.

Accepted Answer

Supplier evaluation is a process of assessing the performance and capabilities of a supplier to determine their suitability for a business's needs. The purpose of the evaluation is to identify areas of improvement in supplier performance and initiate supplier development activities to enhance their capabilities. Therefore, supplier evaluation is a supplier development activity.

Question 5

Customers help suppliers to increase setup times in an effort to reduce lead times.

Accepted Answer

Customers typically push suppliers to decrease setup times in order to reduce lead times, not increase them. Decreasing setup times can make the production process more efficient and reduce the overall time from order to delivery.

Question 6

Differentiate between single sourcing and dual sourcing.

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Question 7

Key projects are identified when there is an agreement about how the supplier needs to improve and where.

Accepted Answer

Key projects are identified when there is an agreement between the client and supplier about areas that need improvement.

Question 8

Dual sourcing reduces the exposure of having a single supplier.

Accepted Answer

Dual sourcing means having two suppliers for a particular product or service. This helps to reduce the risk of disruption in the supply chain if one supplier faces any issues such as bankruptcy or production problems. As a result, having two suppliers reduces the exposure of relying on a single supplier.

Question 9

Electronic Data Interchange is a system that aids customer and supplier communication by linking together supplier and customer information systems.

Accepted Answer

Electronic Data Interchange (EDI) is a system that facilitates the exchange of business documents such as purchase orders and invoices between trading partners by linking their information systems. It improves communication and eliminates the need for paper-based transactions.

Question 10

Customer relationship management is defined as a systems-based approach to performance improvement that leverages opportunities created by upstream and downstream linkages with suppliers and customers.

Accepted Answer

Customer relationship management (CRM) is defined as a technology-based approach to managing a company's interactions with current and potential customers, focusing on building and maintaining long-term relationships.

Question 11

List the capabilities of supplier relationship management systems in SAS ERP systems.

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Question 12

The first step for supplier development is to identify critical suppliers.

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Question 13

State the seven steps for supplier development.

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Question 14

Performing lengthy inspections of suppliers that involve long-term visits and evaluations are called supplier certification programs.

Accepted Answer

Supplier certification programs involve extensive inspections and evaluations of suppliers that may also require long-term visits in order to assess and certify their capabilities and performance.

Question 15

What are some of the potential drawbacks of single sourcing?

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Question 16

Supplier segmentation is a tool used by many firms to differentiate and discriminate between suppliers.

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Question 17

Describe the concept of supplier evaluation.

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Question 18

Supplier awards are only issued based upon the Baldrige criteria.

Accepted Answer

Supplier awards can be based on various criteria, not just the Baldrige criteria.

Question 19

Vendor-managed inventory results in the supplier being responsible for managing inventories and keeping inventory costs low.

Accepted Answer

Vendor-managed inventory (VMI) is a supply chain strategy in which the supplier is responsible for managing the inventory levels at the customer's location, with the goal of reducing inventory costs and improving supply chain efficiency. Therefore, the statement is true.

Question 20

Supplier relationship management systems have the capability to ensure contract compliance and reduce maverick spending.

Accepted Answer

Supplier relationship management systems can help to enforce contracts and prevent unauthorized purchases, thus reducing the occurrence of maverick spending.

Quiz 9: Managing Supplier Quality in the Supply Chain