POM 10

All of the following are supply management goals EXCEPT:
Purchase at the lowest price
Zanda Corp. had outsourced its production to a company located in Asia. Recently it decided to continue to outsource but bring the production back to a company located in the U. S. This decision was likely made after Zanda:
Examined total cost of ownership
Outsourcing is often a good choice when:
A product is in the mature phase of the life cycle.
Which one of the following would NOT be a step in conducting a make/buy analysis?
Conducting a detailed internal audit of purchasing practices
The process of understanding how a firm is spending its money and with which suppliers is called:
Spend analysis
Aspen Corporation has discovered that it uses 10 different suppliers for a particular type of item, has bought 20 different models of that item, and total expenditures last year for the item was $100,000. Aspen most likely is conducting:
Spend analysis
Jones Company has identified an item for which the supply risk is high and the value of the purchase to the firm is low. A recommended sourcing strategy for Jones is to:
Multiple source
Benefits of single sourcing include all of the following EXCEPT
Less supply risk
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.
I only
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
A strategically important part.
A relationship with a supplier that is characterized by distrust, little communication, and short-term transactions is called:
Adversarial relationship
Advanced Manufacturing Company is evaluating 2 suppliers for a component sourcing. After much internal discussion, AMC’s management has determined that the critical factors in choosing suppliers are: quality, delivery, price, and service. Further, management has rated the importance of these factors as .4, .3, .2 and .1 respectively. On a scale of 1 to 5, Supplier A is rated at 5, 3, 3 and 3 respectively. Supplier B’s ratings are 4, 4, 3 and 4. Which supplier has the best weighted score?
Neither, they both have the same weighted score

Supplier A’s score = .4(5) + .3(3) + .2(3) + .1(3) = 3.8
Supplier B’s score = .4(4) + .3(4) + .2(3) + .1(4) = 3.8

Preparing an RFQ or RFP is an important step in:
Competitive bidding
A company has decided that it no longer needs to extensively count and inspect the products it receives from a particular supplier. This suggests that the purchasing company has begun:
Supplier certification
Johnson Inc. has acquired software to help manage interactions with its supply base. This suggests that Johnson Inc. is involved in:
Supplier relationship management