Question 1

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

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Question 2

Which e-commerce business model used in procurement and sourcing has a seller-operated service that consists of a number of electronic catalogs from suppliers within a market?
A) Sell-side system
B) Electronic marketplace
C) Buy-side systems
D) Online trading community
E) None of these answers

Accepted Answer

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Question 3

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

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Question 4

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

Accepted Answer

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Question 5

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

Accepted Answer

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Question 6

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 criteria are all related to desirable capabilities of a vendor, such as their attitude towards their customers, compatibility with the buyer's culture, availability of training aids and repair service, and the quality of their packaging. While financial considerations and reliability are also important factors in vendor selection, they are not specifically mentioned in this question.

Question 7

To help guide the strategic sourcing process, five core principles are recognized as key drivers to achieve the desired levels of value, which one is not one of those core principles?
A) Access the total value
B) Develop individual sourcing strategies
C) Evaluate internal requirements
D) Drive continuous savings

Accepted Answer

"Drive continuous savings" is not one of the core principles of strategic sourcing. The focus is on accessing total value, developing strategies, and evaluating requirements rather than solely on savings.

Question 8

There are four steps in the Managing Sourcing and Procurement Processes. Which of the following is not one of them?
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

Examine off shore and e-procurement suppliers is not a standard step in the Managing Sourcing and Procurement Processes. The other options are part of the typical steps involved.

Question 9

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

Accepted Answer

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Question 10

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

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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 represents the sum of all costs associated with making and delivering products to the point where they are needed. It includes not just purchase/acquisition costs but also transportation, handling, customs, tariffs, taxes, insurance, and other costs. Life cycle costs refer to the total cost of ownership over the entire life of a product, including acquisition, operation, maintenance, and disposal costs. Strategic sourcing costs refer to the costs associated with identifying and selecting suppliers and negotiating contracts.

Question 12

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 fall under the category of financial criteria, which is necessary for ensuring that the vendor is financially capable of delivering the product or service. Therefore, option B is the correct answer. Option A refers to the vendor's ability to meet the project requirements, option C relates to the quality of the product or service, and option D refers to the vendor's ability to deliver the product or service on time.

Question 13

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 digital platform where vendors can display their products or services, and buyers can browse and purchase them. It amalgamates catalogs from various vendors within a particular market and makes them available online. Therefore, option A) is the correct answer. Option B) Buy-side system refers to procurement software used by companies to manage their purchasing process. Option C) Sell-side system refers to software used by businesses to manage their sales process. Option D) On-line trading community is a platform where buyers and sellers can come together to exchange goods and services without the need for a physical storefront.

Question 14

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 goods or services. This category of criteria focuses on the vendor's ability to meet the buyer's needs in terms of volume, quality, and timeliness, as well as their ability to manage their workforce effectively and maintain consistent operations. Therefore, choice A (Capability) is the best answer. Quality (B) is another important consideration, but it often overlaps with capability. Reliability (C) and financial strength (D) are also important, but they are not directly related to the vendor's production capability or operating controls.

Question 15

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

Accepted Answer

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Question 16

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 based on the organization's objectives. This involves evaluating potential suppliers on various criteria such as quality, cost, delivery, and service. Appointing a sourcing committee from affected groups or verifying TQM/ISO certifications may be important, but they are not the most critical aspect of this step. Lowest prices may also be a consideration, but it should not be the sole determining factor in selecting a supplier.

Quiz 5: Sourcing Materials and Services

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.

Which e-commerce business model used in procurement and sourcing has a seller-operated service that consists of a number of electronic catalogs from suppliers within a market?

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.

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

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

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

To help guide the strategic sourcing process, five core principles are recognized as key drivers to achieve the desired levels of value, which one is not one of those core principles?

There are four steps in the Managing Sourcing and Procurement Processes. Which of the following is not one of them?

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

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.

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

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

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

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

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

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