Sample questions 1.Which of the following are considered outcomes of implementing a supplier evaluation and selection criteria? a.

Allows firm to screen out poor performing suppliers in its present supplier base. b. Allows firm to screen out undesirable suppliers that they may be considering for future purchases. c. Allows firm and its suppliers to develop a better corporate relationship d. All of these 2. An outsourcing program can result in all of the following positive outcomes, except: a. Reducing staffing levels b. Decreased need for supplier management c. Cost reduction d. Gains in manufacturing flexibility

3. According to the textbook, collaborative relationships place a relatively lower importance rating on which of the following competitive priorities: a. Speed of Delivery b. Cost c. Product Quality d. Frequency of deliveries

4. Benchmarking is:

a. A system of performance metrics that seeks to motivate suppliers to perform better. b. A practice where companies attempt to learn and apply the best practices of other companies. c. A system of marking defective inbound inventory so it can quickly be identified for return to the supplier. d. A program where suppliers compete for contracts, but those companies who are outbid are provided advice for winning future contracts

5. The management of the firm's external resources through identification and selection of suppliers, management of supplier relationships, and monitoring and rewarding supplier performance in an effort to support the long-term goals of the organization is called: a. Buyer-supplier integration b. Acceptance sampling c. Procurement rationalization d. Strategic sourcing

6. Hard-bargaining sourcing departments focused on decreasing purchasing spend may experience which of the following from their suppliers? a. Lower levels of quality from their suppliers b. Lower levels of service from their suppliers c. Deteriorating buyer-supplier relationships d. All of these

7. Which of the following is the most accurate definition of a reverse auction?

a. An auction where buyers attempt to outbid each other for the services of a supplier b. An auction where suppliers continuously attempt to guess the amount a buyer has established as the "buy price" c. An auction where a number of suppliers try to underbid their competition in hopes of gaining a buyer's contract d. An auction where competing buyers continuously bid lower and competing suppliers bid higher until 1 buyer and 1 supplier agree upon an acceptable price for both parties

8. What is the difference between purchasing and strategic sourcing? 9. What is the supply base rationalization and what are its advantages and disadvantages? 10. Define the term sustainable procurement. 11. What is the role of sourcing in value engineering and what benefits does this give to the firm? 12. Describe the differences between supplier management and alliance development? 13. Would a firm ever want to outsource a core product? Why? 14. Describe the differences between vendor managed inventories and co-managed inventories. 15. Why are second and third-tier suppliers important to focal firm? 16. What is a 3PL provider? What advantaged could a 3PL provider give to a small firm? A large firm?

ANSWERS:

1. D 2. B 3. B 4. B

5. D 6. D 7. C