28 Jan What is the difference among

Question 1

The ____ strategy is based on determining the highest price that can be offered to the supply manager that will still be lower than the price offered by competitors.

penetration pricing model

market-share model

cash discount

revenue pricing model

competition pricing model

Question 2

Which of the following is not

an example of a question that should be asked when evaluating a supplier’s production scheduling and control systems?

Does the supplier use MRP to ensure the availability of required components?

What lead time does the supplier’s production scheduling and control system require?

What is the supplier’s on-time delivery performance history?

Does the supplier’s production scheduling system support a purchaser’s JIT requirements?

Does the supplier have CAD capability?

Question 3

A ____ has unique requirements or niche suppliers, yet are significant to the business.

critical commodity

bottleneck commodity

matrix commodity

routine commodity

leverage commodity

Question 4

____ = (Quality + Technology + Service + Cycle Time) ? Price.

Cost

Efficiency

Value

Total cost

Target cost

Question 5

Which of the following is an example of a strategic activity?

Manage transactions with suppliers.

Source items that are unique to the operating unit.

Implement companywide best practices.

Generate and forward material releases.

Provide supplier performance feedback.

Question 6

In the ____, pricing is based on the assumption that long-run profitability depends on the market share obtained by the supplier.

price volume model

market-share model

open market model

target pricing model

market skimming model

Question 7

All of the following are roadblocks between measurement and improved performance except

____.

information technology

too many metrics

debate over correct metrics

constantly changing metrics

old data

Question 8

Which of the following is not

an example of typical charge-back costs associated with supplier responsibility for defective material shipments?

Sales, general, and administrative costs.

Cost of material rework.

Repackaging costs for return shipment.

Return shipping costs.

Costs associated with lost or delayed production.

Question 9

In the ____, the supplier establishes a price that will provide a profit margin that is a predetermined percentage of the quoted price.

rate-of-return pricing model

margin pricing model

market-share model

competition pricing model

target costing model

Question 10

In a/an ____ market structure, price is solely a function of the forces of supply and demand.

monopolistic

oligopolistic

communistic

perfect competition

Price is never solely a function of supply and demand, regardless of market structure.

Question 11

Why should management periodically review its purchasing policies and procedures? What are the potential consequences if management does not review policies and procedures? How often do you think it should go through a minor or major set of rewrites?

Question 12

Discuss a situation in which a purchaser might select a supplier that is having financial difficulties.

Question 13

What is the difference among a fixed cost, a semivariable cost, and a variable cost?

Question 14

Describe the various classifications of the cost of quality.

Question 15

How long do you believe it takes a company to move from a Stage 1 phase to a Stage 4 phase of supply management strategy development? In providing your response, consider all of the changes that must take place.