Strategic Sourcing
Midterm Exam
Course Introduction
Strategic Sourcing explores the processes and methodologies organizations use to identify, evaluate, and engage suppliers to achieve long-term value and competitive advantage. The course covers the development of sourcing strategies aligned with business objectives, supplier selection and relationship management, total cost of ownership, risk assessment, and ethical considerations in procurement. Students learn how to analyze supply markets, negotiate contracts, implement sourcing initiatives, and leverage technology and data analytics to optimize procurement decisions. Practical case studies and industry examples are used to illustrate the impact of strategic sourcing on organizational performance and supply chain sustainability.
Recommended Textbook
Purchasing and Supply Chain Management 6th Edition by Robert M. Monczka
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20 Chapters
1518 Verified Questions
1518 Flashcards
Source URL: https://quizplus.com/study-set/1154 Page 2
Chapter 1: Introduction to Purchasing and Supply Chain Management
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46 Verified Questions
46 Flashcards
Source URL: https://quizplus.com/quiz/22659
Sample Questions
Q1) The key to the success of any company is the quality of its employees.
A)True
B)False Answer: True
Q2) Which of the following is an example of a purchased direct item for a manufacturing firm?
A) Parts and components.
B) Travel.
C) Office and janitorial supplies.
D) Advertising and media.
E) Personal computers.
Answer: A
Q3) The development of strategic purchasing practices can only help a company maintain its competitive position in a rapidly changing business environment.
A)True
B)False
Answer: False
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Page 3
Chapter 2: The Purchasing Process
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79 Verified Questions
79 Flashcards
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Sample Questions
Q1) Capital equipment purchasing involves buying assets intended for use less than one year.
A)True
B)False
Answer: False
Q2) _____ is might be the best choice for standard items, where the requirements are well understood and there is common agreement between supply chain partners about what certain terms mean.
A) Description by market grade
B) Description by brand
C) Description by performance characteristics
D) Use of prototypes
E) Description by specification
Answer: A
Q3) Contract management should be used to trigger proactive sourcing events only after a contract expires.
A)True
B)False
Answer: False
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Page 4
Chapter 3: Purchasing Policy and Procedures
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28 Verified Questions
28 Flashcards
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Sample Questions
Q1) Which of the following is not a disadvantage of written and implied policies?
A) Personnel only follow policies to ingratiate themselves with executive management.
B) Employees may view policies as a substitute for effective management.
C) Policies are not a set of how-to instructions designed to provide specific answers for every business decision.
D) Policy development can restrict innovation and flexibility.
E) Policies are often difficult to communicate throughout large organizations.
Answer: A
Q2) A _____ is an operating instruction detailing functional duties or tasks.
A) policy
B) procedure
C) work rule
D) guideline
E) policy manual
Answer: B
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Chapter 4: Supply Management Integration for Competitive Advantage
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67 Verified Questions
67 Flashcards
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Sample Questions
Q1) Suppliers are never an invaluable source of ideas for process improvement.
A)True
B)False
Q2) If given the opportunity, suppliers seldom have a major impact on the overall timing and success of a new product.
A)True
B)False
Q3) _____ is defined as the process by which two or more parties adopt a high level of purposeful cooperation to maintain a trading relationship over time to achieve specific goals.
A) Supply base management
B) Collaboration
C) KPI
D) Supply integration
E) SRM
Q4) Because the links between operations and supply management have been so close, it is not unusual for supply management to report directly to operations.
A)True
B)False
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Chapter 5: Purchasing and Supply Management Organization
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73 Verified Questions
73 Flashcards
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Sample Questions
Q1) The mission of a decentralized purchasing structure is to facilitate the consolidation of similar buying requirements and standardize buying processes at the various facilities.
A)True
B)False
Q2) The ability to respond quickly to user and customer requirements has always been a major justification for centralized purchasing authority.
A)True
B)False
Q3) Progressive organizations recognize that a need for expeditors indicates that suppliers are performing as required, or that suppliers are receiving realistic or stable material release schedules.
A)True
B)False
Q4) The preparation and transfer of material releases to suppliers is part of the operational support process.
A)True
B)False
Page 7
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Chapter 6: Category Strategy Development
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80 Verified Questions
80 Flashcards
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Sample Questions
Q1) Which of the following is not one of the questions to be addressed when conducting a spend analysis?
A) What did the business spend its money on over the past year?
B) Did the business receive the right amount of products and services given what it paid for them?
C) What suppliers received the majority of the business, and did they charge an accurate price across all the divisions in comparison to the requirements in the POs, contracts, nad statements of work?
D) What was the on-time delivery performance for each supplier?
E) Which divisions of the business spent their money on products and services that were correctly budgeted for?
Q2) Only recently have senior executives begun to realize the increased risk attributed to the higher probability of product and service flow disruptions in global sourcing networks.
A)True
B)False
Q3) The strategic sourcing process ends when a contract is signed with a supplier.
A)True
B)False
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Page 8
Chapter 7: Supplier Evaluation and Selection
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78 Verified Questions
78 Flashcards
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Sample Questions
Q1) _____ are more responsive to the buying firm's changing needs and can economically make frequent smaller deliveries.
A) Local suppliers
B) International suppliers
C) Global suppliers
D) National suppliers
E) There is no relationship with the location of the supplier and customer responsiveness.
Q2) Using existing suppliers, because it is easier and quicker, is always the best long-term approach.
A)True
B)False
Q3) _____ is a program that distributors market to manage their customers' inventory for them.
A) Just-in-time
B) Supplier managed inventory
C) Self-managed inventory
D) Countertrade
E) Preferred supplier inventory
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Chapter 8: Supplier Quality Management
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94 Verified Questions
94 Flashcards
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Sample Questions
Q1) There is a minimal gap between real leadership and what we traditionally think of as management or supervision.
A)True
B)False
Q2) Slogans, signs, and posters are highly effective in changing worker behavior because they assume that most, if not all, quality problems are due to human behavior.
A)True
B)False
Q3) In many respects, the cost of quality should actually be considered as the cost of "poor quality."
A)True
B)False
Q4) Suppliers that earn ISO 9000:2008 registration typically demonstrate lower levels of quality than those suppliers that are not registered.
A)True
B)False
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Page 10
Chapter 9: Supplier Management and Development:
Creating a World-Class Supply Base
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84 Verified Questions
84 Flashcards
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Sample Questions
Q1) Short-term purchase contracts that award small volumes of business to multiple suppliers decrease production costs and provide incentive for individual supplier investments in process improvement.
A)True
B)False
Q2) If a/an _____ currency is utilized, the _____ bears the currency risk and is likely to build in additional contingency costs to cover its unknown risk.
A) supplier's supplier
B) buyer's supplier
C) buyer's buyer
D) supplier's buyer
E) Regardless of the currency chosen, both parties share the currency risk equally.
Q3) Suppliers are sometimes not willing to accept outside help in the form of supplier development, either because they are too proud to accept help or because they do not see the value in improving quality or delivery performance.
A)True
B)False
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Page 11
Chapter 10: Worldwide Sourcing
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87 Verified Questions
87 Flashcards
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Sample Questions
Q1) _____ mean(s) that no duties or quota charges will be placed on goods that are reexported from the FTZ.
A) Inverted tariff
B) Duty deferral
C) EXW
D) Duty exemption
E) Streamlined customs procedures
Q2) _____ is a process that involves the straight exchange of goods for goods with no exchange of currency.
A) Counterpurchase
B) Offset
C) Barter
D) Buy-back
E) Switch trading
Q3) In some societies, such as Thailand and Indonesia, saying "yes" is merely being polite and does not necessarily mean that they agree with what you are saying.
A)True
B)False
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12
Chapter 11: Strategic Cost Management
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83 Verified Questions
83 Flashcards
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Sample Questions
Q1) In _____, a purchaser may have to use internal engineering estimates about what it costs to produce an item, rely on historical experience and judgment to estimate costs, or review public financial documents to identify key cost data about the seller.
A) reverse price analysis
B) TCO analysis
C) penetration pricing
D) using the PPI
E) competition pricing
Q2) Purchasers impact price at the time they set the specifications for the product or service.
A)True
B)False
Q3) The price paid for purchased products and services has no direct impact on the end customer's perception of value provided by the organization.
A)True
B)False
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Page 13
Chapter 12: Purchasing and Supply Chain Analysis: Tools and Techniques
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67 Verified Questions
67 Flashcards
Source URL: https://quizplus.com/quiz/22670
Sample Questions
Q1) _____ is a tool that reduces processes to their component parts or activities and helps identify and then eliminate non-value-added activities (waste) or delays within a process.
A) Process mapping
B) TCO
C) PERT/CPM
D) QDA
E) Productivity analysis
Q2) In a PERT network, a/an _____ is the latest point in time an activity can begin without delaying the entire project.
A) late start
B) late finish
C) early start
D) early finish
E) on time finish
Q3) By identifying unnecessary steps and resources, value stream mapping streamlines processes for greater efficiency.
A)True
B)False
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Chapter 13: Negotiation and Conflict Management
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98 Verified Questions
98 Flashcards
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Sample Questions
Q1) All of the following are effective e-negotiating practices except _____.
A) use a blended negotiation, starting with an initial face-to-face meeting or a telephone call to build essential rapport with the other party
B) establish common ground and interests to build mutual trust
C) use "emoticons" to counter the lack of nonverbal awareness
D) forward e-mail negotiations to the other party's immediate superior for verification
E) proofread the entire message, including addressees, before sending the e-mail out
Q2) According to Karrass, research indicates that e-mail-based negotiations typically take less time to complete than those conducted face-to-face.
A)True
B)False
Q3) Good negotiators know that reaching agreement is the end of the negotiation process.
A)True
B)False
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15
Chapter 14: Contract Management
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109 Verified Questions
109 Flashcards
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Sample Questions
Q1) [A/An] _____ is an intervention between conflicting parties to promote reconciliation, settlement, or compromise.
A) mediation
B) arbitration
C) litigation
D) mini trial
E) rent-a-judge
Q2) The _____ clause in a contract describes how an issue will be addressed if a portion of the agreement is void or unenforceable, and which court of law will resolve the difference.
A) force majeure
B) severability
C) notices
D) intellectual property
E) supply and delivery
Q3) Perhaps the most important clause of a consulting contract to the consultant is the assurance of payment.
A)True
B)False
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Page 16
Chapter 15: Purchasing Law and Ethics
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107 Verified Questions
107 Flashcards
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Sample Questions
Q1) _____ can be defined as failure of one of the parties to live up to the terms and conditions of the contract.
A) Cancellation for default
B) Cancellation for convenience of the seller
C) Cancellation for convenience of the purchaser
D) Cancellation by mutual assent
E) None of the above.
Q2) [The] _____ refers to the supplier's guarantee that the goods being exchanged do not illegally violate another party's patent protection.
A) Warranty of title
B) Express warranty
C) Warranty of infringement
D) Implied warranty of fitness for use
E) Implied warranty of merchantability
Q3) Contracts between two or more parties do not allow the shifting of risk between the entities and do not constitute the foundation and fabric for every type of supply chain relationship.
A)True
B)False
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Page 17
Chapter 16: Lean Supply Chain Management
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73 Verified Questions
73 Flashcards
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Sample Questions
Q1) _____ inventory includes completed items or products that are available for shipment or future customer orders.
A) WIP
B) Finished-goods
C) MRO
D) Pipeline/in-transit
E) Raw materials and semifinished items
Q2) _____ means that inventory moves through the supply chain continuously with minimal queueing or non-value-adding activity being performed.
A) Pull
B) WIP
C) MRO
D) Flow
E) Push
Q3) Very few organizations use distributors to provide at least some portion of their inventory requirements, particularly maintenance, repair, and operating supplies.
A)True
B)False
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Chapter 17: Purchasing Services
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98 Verified Questions
98 Flashcards
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Sample Questions
Q1) A/An _____ is a manufacturer or distributor that controls and manages its own transportation equipment, whether owned or leased.
A) common carrier
B) private carrier
C) contract carrier
D) intermodal carrier
E) exempt carrier
Q2) Although mode selection is usually not an issue for international ocean shipments, as in all strategic supplier selection decisions, carrier selection is still paramount.
A)True
B)False
Q3) Whenever a supplier ships FOB destination, the buyer often loses the ability to track or control its inbound transportation expenses which also artificially increases the value of the buyer's inventory.
A)True
B)False
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Chapter 18: Supply Chain Information Systems and Electronic Sourcing
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69 Verified Questions
69 Flashcards
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Sample Questions
Q1) A/An _____ is typically organized around specific e-sourcing suite modules that interact with different elements of the purchasing database, elements of the ERP system, and integration of data obtained through external EDI or web-based communications with suppliers or customers.
A) EDI system
B) SRM system
C) third-party marketplace
D) sell-side system
E) buy-side system
Q2) Price should be a very important element of the reverse auction process but not the only one.
A)True
B)False
Q3) Today, software solutions are aimed at collaboration among supply chain partners through point of sale systems, RFID, and other information-sharing systems.
A)True
B)False
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Page 20
Chapter 19: Performance Measurement and Evaluation
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62 Flashcards
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Sample Questions
Q1) The problem with measuring behavior is that there is no guarantee the behavior will lead to desired results.
A)True
B)False
Q2) _____ refers to the relationship between planned and actual sacrifices made to realize a previously agreed-upon goal.
A) Strategic benchmarking
B) Effectiveness
C) Efficiency
D) Operational benchmarking
E) None of the above.
Q3) Performance measurement systems receiving their data from automated or computerized systems are generally more susceptible to data manipulation.
A)True
B)False
Q4) A performance objective must reflect the realities of the firm's competitive environment.
A)True
B)False
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Chapter 20: Purchasing and Supply Strategy Trends
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Sample Questions
Q1) Category strategies will become less complex, requiring only internal and functional executive engagement, including review and approval.
A)True
B)False
Q2) Overall, future purchasing and supply mission and goals will be narrower and less aligned with the strategic objectives of the firm.
A)True
B)False
Q3) Strategic working relationships between buyers and suppliers will not have to change for increased value creation.
A)True
B)False
Q4) The overall purpose of a purchase category strategy is to maximize value to the buyer, but not the supplier, by leveraging only internal company, and not external supplier, resources and capabilities.
A)True
B)False
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