SCM Chapter 9

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

• Supporting supply base rationalization and optimization

• Identifying those highly capable suppliers that may qualify for consideration of longer-term partnerships or designation as preferred suppliers

• Identifying those suppliers that are not performing at expected levels so that appropriate remedial or development actions can be taken

• Deciding where to locate supplier facilities.

All of the following are advantages of a categorical supplier evaluation system except _____.

• greatest potential for long-range improvement

• requires minimal data

• different personnel can contribute

• low-cost system

Which of the following is a disadvantage of a cost-based supplier evaluation system?​

• Most complex so implementation costs are high.

• Least reliable.

• Most subjective.

• Tends to focus on unit price.

The _____ supplier evaluation system seeks to identify and quantify the total cost of doing business with a given supplier, as the lowest purchase price may not always result in the lowest total cost for an item or service.​

• Six Sigma

• cost-based

• categorical

• weighted-point

In supplier measurement, the basic logic of the _____ is built around the calculation of a/an _____.​

• categorical system…supplier performance index (SPI)

• cost-based system…process capability index (CPI)

• cost-based system…supplier performance index (SPI)

• weighted-point system…Q adjustment factor

The supplier performance index (SPI) equals (_____ plus _____) divided by _____.​

• Total Purchases….Nonperformance Costs….Total Purchases

• Total Purchases….Appraisal Costs….External Failure Costs

• Nonperformance Costs….Total Purchases….Nonperformance Costs

• External Failure Costs….Internal Failure Costs….Total Purchases

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

• Supply base rationalization

• Six Sigma

• Zero defects

• Strategic sourcing

Which of the following is not one of the formal approaches to supply base rationalization?

• Twenty/eighty rule

• "Improve or else” approach

• Global sourcing

• Triage approach

The _____ identifies those 20 percent of suppliers receiving the bulk of purchase spend or that minority of suppliers that cause the most quality problems.

• "improve or else” approach

• twenty/eighty rule

• triage approach

• strategic sourcing approach

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

• Direct-involvement activities

• Single sourcing

• Incentives and rewards

• Warnings and penalties