Supply Chain Mngt.

Which term encompasses the strategic process of vendor selection, negotiation, and managing supplier relationships, rather than just the transactional activity of buying?

• Logistics

• Procurement

• Sourcing

• Purchasing

Which step immediately precedes 'Evaluate and select the supplier'?

• Acknowledge need for sourcing

• Determine methodology to assess

• Shortlist suppliers

• Identify sources

Inventory management aims to maintain a suitable operating inventory plus what other critical type of inventory to satisfy greater-than-expected demand?

• Contingency stock

• Safety inventory

• Buffer stock

• Surplus stock

Which factor for determining inventory levels would necessitate more regular delivery and keeping fewer of each commodity on hand than might otherwise be desired?

• Item Perishability

• Operating Calendar

• Storage Capacity

• Stock Outage Risk

The main purpose of the supplier selection process is to minimize buying risks while simultaneously achieving what other primary goal?

• Lowering the unit price

• Maximizing value for the customer

• Ensuring short-term commitment

• Accelerating delivery lead time

Which forecasting technique is most suitable for products with steady demand and attempts to eliminate unpredictability by smoothing the data curve, often resulting in a lag behind a trend?

• Naïve

• Exponential Smoothing

• Multiple Regressions

• Moving Average

In supplier selection, the focus should be on what comprehensive measure rather than just the unit price?

• Total Landed Cost

• Total Acquisition Cost

• Total Cost of Ownership

• Total Variable Cost

Which purchasing objective is described as the challenge of ensuring a steady supply without overspending on inventory?

• Maintain Adequate Supply

• Maintain Quality

• Minimize Investment

• Maintain Competitive Position

What is the risk associated with a manager having a propensity to overfill a small storage capacity?

• Increased logistics costs

• Increased spoilage and robbery

• Decreased stock-out risk

• Reduced per-unit costs

Which stage of supplier evaluation involves assessing a supplier’s capability before a contract is awarded?

• Supplier performance evaluation

• Supplier pre-qualification

• Supplier scorecard rating

• Supplier contract negotiation