Question 1

Relationships with strategic suppliers need to be closely managed. One way to keep up on supplier relationships is for a __________ organization is to compile ___________ for each strategic __________.

Accepted Answer

The answer of Relationships with strategic suppliers need to be...

Question 2

In addition to the strategic _________ profiles, the buying firm should clearly establish expectations for the strategic _________ and discuss future product and _______ development plans; this is typically done with an annual review period.

Accepted Answer

The sentence discusses the relationship between a buying firm and its suppliers, focusing on strategic profiles and development plans, which aligns with the roles of suppliers.

Question 3

performance review is a set of expectations and measurements for controlling long-term relationships with existing strategic suppliers.

Accepted Answer

This statement is correct. Performance reviews are an important part of supplier management and involve evaluating a supplier's performance against set expectations and measurements. This helps to control and improve long-term relationships with strategic suppliers.

Question 4

Much debate has taken place concerning the number of suppliers a firm should use.One side of the debate is the _____________ side. This involves the use of two or more suppliers.The other side of the debate is the ____________ policy, in which only one supplier is used to supply a particular part.

Accepted Answer

The multiple-sources side of the debate is generally considered to be the better choice, as it offers several advantages over the single-source policy. These advantages include increased competition, reduced risk of supply chain disruptions, and the potential for cost savings through negotiation and bargaining. Using multiple suppliers also allows for greater flexibility and adaptability in the face of changing market conditions and customer demand.

Question 5

The main arguments for __________ sourcing are competition and assured supply.

Accepted Answer

Multiple sourcing involves using several suppliers to ensure competition and a reliable supply chain.

Question 6

The advantages of multiple sourcing can be viewed as the disadvantages of single sourcing and vice versa. The best scenario would be one that can obtain the advantages of both.This might be done by applying significant pressure to single-source suppliers or by providing significant certainty to suppliers in a multiple-sourcing environment.This may be accomplished through the use of contract length. Short-term contracts regardless of single or multiple suppliers can be used as a source of punishment. In some instances, long-term contracts can be viewed as a reward.

Accepted Answer

The statement accurately describes the advantages and disadvantages of both single and multiple sourcing, and suggests that a desirable scenario would involve obtaining the benefits of both approaches. It also proposes the use of contract length as a means of incentivizing suppliers in either environment.

Question 7

_______________ and ______________ are necessary in order to keep costs down and create trust with strategic suppliers.

Accepted Answer

The answer of _______________ and ______________ are necessary in order...

Question 8

The ____________ method's major disadvantage is its dependence on the judgment of its users. The system is largely dependent on the memories of personnel to explain what "unsatisfactory" or "good" means. With this method, there is no concrete supporting data.

Accepted Answer

The categorical method of performance evaluation relies heavily on the subjective judgment of evaluators, making it dependent on their personal interpretations of performance levels such as "unsatisfactory" or "good," without the support of objective data.

Question 9

The buying firm should have various review categories that are used in order to fully assess their strategic suppliers. Quantity is a very important review category. Customer service should be expected to be good and timely.

Accepted Answer

The correct review category should be "quality" instead of "quantity" when assessing strategic suppliers. Quality, along with customer service, is crucial for evaluating supplier performance.

Question 10

The most important attributes (of customer service) should be:
high quality and
on-time delivery.

Accepted Answer

High quality and on-time delivery are crucial aspects of customer service as they contribute to customer satisfaction and ultimately, business success.

Question 11

________ approach can be used that is known as ____________. With this method, the supplier base is expanded without increasing the actual number of suppliers.

Accepted Answer

The hybrid/cross-sourcing approach allows for the expansion of the supplier base without increasing the number of suppliers by combining different sourcing strategies or elements, thus optimizing supply chain efficiency and flexibility.

Question 12

"Grade" methods are those that are based on a score or grade given to the supplier by the buyer for some attribute. The most common attributes are ______________________.

Accepted Answer

Quality, price, and delivery are the most common attributes that are graded by the buyer to evaluate the supplier's performance. The supplier's quality of goods or services, their price competitiveness, and their delivery performance are critical factors in determining their overall grade or score. Other attributes such as reliability, terms, and effectiveness may also be considered, but they are not as common as the three attributes mentioned in option C. Therefore, C is the best choice.

Question 13

Single sourcing advocates may want to address the following issues regarding long-term impacts of single sourcing. In the long-run, if everyone reduces their supplier base, there will be fewer suppliers to deal with and overall competition will decrease as there are fewer suppliers. A supplier consolidation will give suppliers less power in the long run.

Accepted Answer

Supplier consolidation can actually give remaining suppliers more power in the long run, as they become fewer in number and potentially more integral to the purchasing companies, possibly leading to less competition and higher prices.

Question 14

.The ___________ method evaluates supplier performance by using standard cost analysis.

Accepted Answer

The cost-ratio method evaluates supplier performance by analyzing the costs associated with the supplier, using standard cost analysis to determine efficiency and effectiveness.

Question 15

Supplier ______________ are very useful tools to evaluate the quality capabilities of a supplier.

Accepted Answer

Certification programs are specifically designed to evaluate the quality capabilities of a supplier. Suppliers who undergo certification programs are assessed against a set of standards and benchmarks, which helps evaluate their quality capabilities objectively. While negotiations, evaluations, bargaining programs, and review programs may offer useful insights into a supplier's quality capabilities, they are not as comprehensive as certification programs. Therefore, A) certification programs are the best choice in this context.

Question 16

___________ of the process by the supply manager/purchasing department makes certain that there is only one source of strategic ____________ for the entire firm. This method also ensures that the purchasing department is knowledgeable about all strategic _________ and aware of how they are rated by each function.

Accepted Answer

Ownership of the process by the supply manager/purchasing department ensures there is a single source of strategic supplier profiles for the firm, making the department knowledgeable about all strategic suppliers and their evaluations.

Question 17

The certification criteria can be changed and updated as recertification may be required. Thus, the "hurdle" can be lowered until there are a few suppliers left. In combination with certification are the price and productivity hurdles. OEMs can add these criteria to make it easier to be a "select" supplier.

Accepted Answer

The answer of The certification criteria can be changed and...

Question 18

very strategic supplier also should have formal environmental, health, operational, and safety programs. In addition, they should put forth the effort to reduce, reuse, and recycle when possible. These categories, as well as others, should be used in the development of the questionnaire for each supplier.

Accepted Answer

A strategic supplier should have formal environmental, health, operational, and safety programs, and should also make an effort to reduce, reuse, and recycle when possible. Therefore, the questionnaire for each supplier should include these categories, among others.

Question 19

The second group of methods used to reduce the number of suppliers a firm uses is what the textbook refers to as the _________ methods.

Accepted Answer

The textbook refers to the second group of methods as "hurdle" methods, which are designed to create obstacles or requirements that potential suppliers must meet before being considered by the firm. This helps to reduce the number of suppliers that a firm has to evaluate and select from. The other choices (A, C, D, and E) are not mentioned in the passage and are therefore incorrect.

Question 20

The __________ method is probably the most commonly used evaluation method.

Accepted Answer

The answer of The __________ method is probably the most...

Quiz 8: Supplier Selection and Evaluation

Relationships with strategic suppliers need to be closely managed. One way to keep up on supplier relationships is for a ____ organization is to compile _ for each strategic ______.

In addition to the strategic _____ profiles, the buying firm should clearly establish expectations for the strategic _ and discuss future product and ___ development plans; this is typically done with an annual review period.

performance review is a set of expectations and measurements for controlling long-term relationships with existing strategic suppliers.

Much debate has taken place concerning the number of suppliers a firm should use.One side of the debate is the _ side. This involves the use of two or more suppliers.The other side of the debate is the policy, in which only one supplier is used to supply a particular part.

The main arguments for __________ sourcing are competition and assured supply.

_ and are necessary in order to keep costs down and create trust with strategic suppliers.