Question 1

An online auction used for sourcing:

Accepted Answer

A)  Typically drives prices up as suppliers compete against each other.
B)  Is used in situations similar to negotiation.
C)  Can hurt supplier relationships.
D)  Can only consider price.E) A) and B)
F) A) and C)

Question 2

Sustainability:

Accepted Answer

A)  Focuses primarily on increasing environmental compliance.
B)  Can lower a company's total cost.
C)  Does not include worker safety.
D)  Focuses only on social issues.E) B) and C)
F) B) and D)

Question 3

Which of the following is (are)  advantages of full partnerships with suppliers, as compared to traditional adversarial relationships? 
I.They help reduce uncertainties for both buyer and supplier.
II.The full partnership is easier to establish and maintain than other relationships, so more suppliers can be dealt with.
III.The full partnership assures the lowest material price.

Accepted Answer

A)  I only
B)  II only
C)  III only
D)  I and II only
E)  II and III onlyF) A) and B)
G) A) and C)

Question 4

A relationship with a supplier that is characterized by high levels of distrust, little communication, and short-term transactions is called a(n) :

Accepted Answer

A)  Adversarial relationship.
B)  Arms-length relationship.
C)  Acceptance of mutual goals.
D)  Full partnership.E) A) and D)
F) None of the above

Question 5

Outsourcing is least likely when:

Accepted Answer

A)  The process in highly innovative.
B)  Products are in the mature phase of the lifecycle.
C)  The production processes are standard.
D)  The activity Is not strategically important.E) A) and D)
F) All of the above

Question 6

Which of the following would NOT be a step in conducting an insourcing/outsourcing analysis?

Accepted Answer

A)  Assessing quantitative costs of outsourcing
B)  Evaluating new suppliers who could make the SKU
C)  Assessing the relationship of the product to the firm's core competencies
D)  Conducting a detailed internal audit of purchasing practicesE) B) and D)
F) A) and B)

Question 7

Which activity is most likely to be outsourced by an automotive company such as Ford Motor Co.?

Accepted Answer

A)  The concept design for future cars.
B)  Final car assembly.
C)  Design of the engine.
D)  Production of tires.E) B) and C)
F) A) and C)

Question 8

Zanda Corp.is considering trying to develop a full partnership with a particular supplier.This suggests that the item Zanda buys from the supplier is:

Accepted Answer

A)  A noncritical part.
B)  A "bottleneck" item.
C)  A strategically important part.
D)  An item appropriate for a "leverage" strategy.E) A) and B)
F) A) and C)

Question 9

A primary reason for using global suppliers is to:

Accepted Answer

A)  Improve sustainability.
B)  Reduce transportation costs.
C)  Take advantage of free trade agreements such as NAFTA.
D)  Work with the same suppliers in many different regions of the world.E) All of the above
F) B) and D)

Question 10

The capability to resist and recover from supply chain disruptions is:

Accepted Answer

A)  Supply chain risk.
B)  Total cost of ownership.
C)  Supply chain resilience.
D)  Sustainability.E) A) and B)
F) A) and C)

Question 11

Gathering data on the supply market's structure, price forecasts, and supply chain risk are assessed during a/an:

Accepted Answer

A)  Spend analysis.
B)  Insourcing/outsourcing decision.
C)  Market analysis.
D)  Supplier certification process.E) A) and B)
F) All of the above

Question 12

All of the following are supply management goals EXCEPT:

Accepted Answer

A)  Ensure timely availability of resources.
B)  Purchase at the lowest price.
C)  Enhance quality.
D)  Assess technology and innovation.E) C) and D)
F) B) and D)

Question 13

Moderate- to high-risk purchases with low to moderate levels of spend are categorized as:

Accepted Answer

A)  Noncritical.
B)  Leverage.
C)  Bottleneck.
D)  Strategic.E) All of the above
F) B) and C)

Question 14

Which approach is likely to be used for leverage purchases?

Accepted Answer

A)  Purchasing cards
B)  Vendor-managed inventory
C)  Using executive champions
D)  Standardizing purchasesE) C) and D)
F) B) and C)

Question 15

Negotiation is typically used when:

Accepted Answer

A)  Price is the most important factor.
B)  There are many equally qualified suppliers who are willing to compete.
C)  Early supplier involvement is needed in new product development.
D)  There are standard product specifications that are clear and complete.E) A) and C)
F) All of the above

Question 16

All of the following are true about supplier scorecards EXCEPT:

Accepted Answer

A)  They reduce the need for incoming quality inspection.
B)  They are used to provide performance feedback to suppliers.
C)  They are often used to categorize suppliers based on an overall score.
D)  They are used to measure supplier performance based on key performance indicators.E) A) and C)
F) B) and C)

Question 17

Local sourcing:

Accepted Answer

A)  Reduces delivery costs.
B)  Is called "nearshoring".
C)  Is used when cost is the primary objective.
D)  Takes advantage of lower trade barriers from trade agreements.E) All of the above
F) B) and C)

Question 18

Gathering data on the supply market's structure, price forecasts, and supply chain risk are assessed during a/an:

Accepted Answer

A)  Spend analysis.
B)  Insourcing/outsourcing decision.
C)  Market analysis.
D)  Supplier certification process.E) A) and D)
F) B) and C)

Question 19

Determining the right number of supplier that a company should use is:

Accepted Answer

A)  Spend analysis.
B)  Strategic sourcing.
C)  Supply base optimization.
D)  Supply chain resilience.E) None of the above
F) A) and B)

Question 20

Squeaky Klean, a small consumer products company, purchases custom-designed plastic bottles for its cleaning products that are made at a single plant in Cleveland, Ohio.To make these bottles, specialized tooling must be purchased at a high cost and installed at a supplier's plant.Its sourcing strategy for bottles should be to:

Accepted Answer

A)  Use three or more suppliers.
B)  Dual source.
C)  Single source.
D)  Insource bottle production.E) B) and C)
F) A) and D)

Exam 9: Customer Service Management

Gathering data on the supply market's structure, price forecasts, and supply chain risk are assessed during a/an:

Correct Answer
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Which approach is likely to be used for leverage purchases?

Correct Answer
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Correct Answer
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Outsourcing is least likely when:

Correct Answer
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A relationship with a supplier that is characterized by high levels of distrust, little communication, and short-term transactions is called a(n) :

Correct Answer
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Correct Answer
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The capability to resist and recover from supply chain disruptions is:

Correct Answer
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All of the following are supply management goals EXCEPT:

Correct Answer
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A primary reason for using global suppliers is to:

Correct Answer
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Gathering data on the supply market's structure, price forecasts, and supply chain risk are assessed during a/an:

Correct Answer
verified

Zanda Corp.is considering trying to develop a full partnership with a particular supplier.This suggests that the item Zanda buys from the supplier is:

Correct Answer
verified

An online auction used for sourcing:

Correct Answer
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Local sourcing:

Correct Answer
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Which of the following would NOT be a step in conducting an insourcing/outsourcing analysis?

Correct Answer
verified

Which activity is most likely to be outsourced by an automotive company such as Ford Motor Co.?

Correct Answer
verified

Negotiation is typically used when:

Correct Answer
verified

Determining the right number of supplier that a company should use is:

Correct Answer
verified

Moderate- to high-risk purchases with low to moderate levels of spend are categorized as:

Correct Answer
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Sustainability:

Correct Answer
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All of the following are true about supplier scorecards EXCEPT:

Correct Answer
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Exam 9: Customer Service Management

Gathering data on the supply market's structure, price forecasts, and supply chain risk are assessed during a/an:

Correct AnswerverifiedShow Answer

Which approach is likely to be used for leverage purchases?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Outsourcing is least likely when:

Correct AnswerverifiedShow Answer

A relationship with a supplier that is characterized by high levels of distrust, little communication, and short-term transactions is called a(n) :

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The capability to resist and recover from supply chain disruptions is:

Correct AnswerverifiedShow Answer

All of the following are supply management goals EXCEPT:

Correct AnswerverifiedShow Answer

A primary reason for using global suppliers is to:

Correct AnswerverifiedShow Answer

Gathering data on the supply market's structure, price forecasts, and supply chain risk are assessed during a/an:

Correct AnswerverifiedShow Answer

Zanda Corp.is considering trying to develop a full partnership with a particular supplier.This suggests that the item Zanda buys from the supplier is:

Correct AnswerverifiedShow Answer

An online auction used for sourcing:

Correct AnswerverifiedShow Answer

Local sourcing:

Correct AnswerverifiedShow Answer

Which of the following would NOT be a step in conducting an insourcing/outsourcing analysis?

Correct AnswerverifiedShow Answer

Which activity is most likely to be outsourced by an automotive company such as Ford Motor Co.?

Correct AnswerverifiedShow Answer

Negotiation is typically used when:

Correct AnswerverifiedShow Answer

Determining the right number of supplier that a company should use is:

Correct AnswerverifiedShow Answer

Moderate- to high-risk purchases with low to moderate levels of spend are categorized as:

Correct AnswerverifiedShow Answer

Sustainability:

Correct AnswerverifiedShow Answer

All of the following are true about supplier scorecards EXCEPT:

Correct AnswerverifiedShow Answer

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