Chapter 9 1st Supply Management and Development

What is a key benefit of supplier measurement?

• Support supply base optimization and rationalization efforts​

• Buying from world-class suppliers​

• Lower supply base administrative costs​

• Promoting competition among suppliers​

Which is the least reliable of supplier measurement system?

• Categorical System

• Cost-based system

• Weighted pointed system

• 80/20 rule

Which decisions are crucial for supplier measurement?

• What to measure​

• Supplier evaluation strategies

• Supplier segmentation

• Go along with business's goal, objectives

Which is the advantage of cost-based system?

• Moderate implementation costs​

• Low-cost system​

• Supplier ranking allowed​

• Total cost approach​

What are considered as qualitative factors?

• Quality performance​

• Cost reduction​

• Supplier new-product support​

• Ongoing progress reporting​

The primary objective of supplier management is to gain competitive competencies by improving supplier capabilities.

• True

• False

What are two aims of using measurement data?

• Daily report to top manager

• • Support supply base optimization and rationalization efforts​

• • Determine future purchase volume allocations​

• Save data for predicting future demand

What is the advantage of weighted point system?

• • Total cost approach​

• • Different personnel contribute​

• • Quantitative and qualitative factors combined into single system​

• • Objective supplier ranking​

What is the difficulty of cost based system?

• • Need to develop a set of decision rules​

• • Identifying and recording appropriate costs that result when supplier fails to perform as expected​

• • Most thorough and least subjective​

• • Often significant variance between subjective ratings​

What is not the formula of SPI index?