Question 1

All of the following are categories of supply base risk except ____.

Accepted Answer

A)   political risk
B)   market risk
C)   sourcing risk
D)   financial risk
E)   employee hiring riskF) B) and E)
G) A) and E)

Question 2

Buyers can minimize supply disruption risk from a single suppler by selecting a supplier with multiple production facilities.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is not one of the advantages of a rationalized and optimized supply base?

Accepted Answer

A)   Longer lead-times.
B)   Use of full-service suppliers.
C)   Lower total product cost.
D)   Ability to pursue complex supply management strategies.
E)   Buying from world-class suppliers.F) B) and D)
G) C) and D)

Question 4

Direct involvement in a supplier's operations by buyer personnel is the most challenging part of any supplier development process.

Accepted Answer

A) True 
 B)False

Question 5

The remaining suppliers in a rationalized and optimized supply base are often smaller on average and seldom capable of offering a broader range of value-adding services.

Accepted Answer

A) True 
 B)False

Question 6

____ is the process of identifying how many and which suppliers a buyer will maintain.

Accepted Answer

A)   Supply base optimization
B)   Supply base rationalization
C)   Six Sigma
D)   Zero defects
E)   Strategic sourcingF) A) and C)
G) All of the above

Question 7

Which of the following is a disadvantage of a weighted-point supplier evaluation system?

Accepted Answer

A)   Tends to focus on unit price.
B)   Most complex so implementation costs are high.
C)   Most subjective.
D)   Least reliable.
E)   Cost accounting system required.F) B) and C)
G) None of the above

Question 8

Few international shipments of merchandise require insurance coverage.

Accepted Answer

A) True 
 B)False

Question 9

Buyers rarely rely on suppliers for cost-reduction assistance.

Accepted Answer

A) True 
 B)False

Question 10

According to ISM,____ is a framework of measurable corporate policies and procedures and resulting behavior designed to benefit the workplace and,by extension,the individual,the organization,and the community.

Accepted Answer

A)   supply chain risk management
B)   sustainability
C)   ISO 9000:2008
D)   social responsibility
E)   supplier developmentF) A) and B)
G) C) and E)

Question 11

All of the following are elements of market risk in a supply base except ____.

Accepted Answer

A)   the number of buyers competing for the same goods
B)   shorter product life cycles
C)   regional political risk
D)   threat of emerging technologies
E)   protecting and maintaining trade secrets and intellectual properties from misuse or misappropriationF) A) and D)
G) A) and E)

Question 12

Which of the following is not one of the typical uses of supplier measurement data?

Accepted Answer

A)   Support supply base rationalization and optimization.
B)   Determining a supplier's future purchase volume based on its past performance ratings) .
C)   Allows the buyer to identify those areas of supplier performance requiring improvement.
D)   Deciding where to locate supplier facilities.
E)   Making sourcing decisions.F) C) and E)
G) A) and B)

Question 13

Which of the following is not one of the management uses for the data derived from a comprehensive cost-base supplier evaluation system?

Accepted Answer

A)   Such a system provides the necessary information that allows a buyer to justify buying from a preferred supplier despite a higher unit price.
B)   The system allows a buyer to communicate the cost of specific nonperformance events to the originating supplier, which then helps identify improvement opportunities.
C)   Quantifying nonconformance costs can result in a chargeback to the offending supplier for unplanned costs.
D)   The system allows customized assignment of cost accounting codes depending on how much money is left in the annual budget.
E)   A buyer can use this data to identify longer-term sources of supply based on a supplier's total cost performance history.F) B) and D)
G) None of the above

Question 14

Regarding supply base risk,each sourcing decision is different and needs to be evaluated in its own right.

Accepted Answer

A) True 
 B)False

Question 15

The prime reason for hedging is to protect the buyer against major swings in the value of a future purchase.

Accepted Answer

A) True 
 B)False

Question 16

The supplier performance index never provides an incomplete or misleading assessment of supplier performance.

Accepted Answer

A) True 
 B)False

Question 17

The elimination of both marginal and small-purchase-volume suppliers is usually the first phase of the supply base rationalization process.

Accepted Answer

A) True 
 B)False

Question 18

____ involves an analysis of the supply base to ensure that only the most capable and highest performing suppliers are kept in the supply base after it is reduced.

Accepted Answer

A)   Supply base optimization
B)   Outsourcing
C)   Strategic sourcing
D)   Supply base reduction
E)   Supply base rationalizationF) B) and E)
G) D) and E)

Question 19

In overcoming the barriers to supplier development,which of the following is not one of the approaches typically used?

Accepted Answer

A)   Direct-involvement activities.
B)   Multiple sourcing.
C)   Incentives and rewards.
D)   Warnings and penalties.
E)   All of these choices are typical approaches.F) B) and C)
G) A) and C)

Question 20

Which of the following is not a typical qualitative service factor in a supplier performance measurement system?

Accepted Answer

A)   Problem resolution ability.
B)   Technical ability.
C)   Process capability.
D)   Ongoing progress reporting.
E)   Wavelength.F) A) and B)
G) A) and C)

Exam 9: Supplier Management and Development: Creating a World-Class Supply Base

The supplier performance index never provides an incomplete or misleading assessment of supplier performance.

Correct AnswerverifiedShow Answer

Regarding supply base risk,each sourcing decision is different and needs to be evaluated in its own right.

Correct AnswerverifiedShow Answer

The remaining suppliers in a rationalized and optimized supply base are often smaller on average and seldom capable of offering a broader range of value-adding services.

Correct AnswerverifiedShow Answer

The elimination of both marginal and small-purchase-volume suppliers is usually the first phase of the supply base rationalization process.

Correct AnswerverifiedShow Answer

In overcoming the barriers to supplier development,which of the following is not one of the approaches typically used?

Correct AnswerverifiedShow Answer

The prime reason for hedging is to protect the buyer against major swings in the value of a future purchase.

Correct AnswerverifiedShow Answer

All of the following are categories of supply base risk except ____.

Correct AnswerverifiedShow Answer

All of the following are elements of market risk in a supply base except ____.

Correct AnswerverifiedShow Answer

Which of the following is not one of the typical uses of supplier measurement data?

Correct AnswerverifiedShow Answer

Which of the following is not one of the advantages of a rationalized and optimized supply base?

Correct AnswerverifiedShow Answer

Few international shipments of merchandise require insurance coverage.

Correct AnswerverifiedShow Answer

Which of the following is a disadvantage of a weighted-point supplier evaluation system?

Correct AnswerverifiedShow Answer

Which of the following is not a typical qualitative service factor in a supplier performance measurement system?

Correct AnswerverifiedShow Answer

____ involves an analysis of the supply base to ensure that only the most capable and highest performing suppliers are kept in the supply base after it is reduced.

Correct AnswerverifiedShow Answer

Which of the following is not one of the management uses for the data derived from a comprehensive cost-base supplier evaluation system?

Correct AnswerverifiedShow Answer

According to ISM,____ is a framework of measurable corporate policies and procedures and resulting behavior designed to benefit the workplace and,by extension,the individual,the organization,and the community.

Correct AnswerverifiedShow Answer

Direct involvement in a supplier's operations by buyer personnel is the most challenging part of any supplier development process.

Correct AnswerverifiedShow Answer

____ is the process of identifying how many and which suppliers a buyer will maintain.

Correct AnswerverifiedShow Answer

Buyers rarely rely on suppliers for cost-reduction assistance.

Correct AnswerverifiedShow Answer

Buyers can minimize supply disruption risk from a single suppler by selecting a supplier with multiple production facilities.

Correct AnswerverifiedShow Answer

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