Chapter 9 Final

Chapter 9 Final - TEST BANK Sourcing and Supply Chain...

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TEST BANK Sourcing and Supply Chain Management – 4th edition Handfield, Monczka, Giunipero, and Patterson Chapter 9 True or False 1. Supplier performance that is good enough today will suffice in the marketplace of tomorrow. a. True b. False (p. 308) 2. Central to the design of all supplier measurement systems is the decision about what to measure and how to weigh various performance categories. a. True (p. 309) b. False 3. A buyer should delay reporting a supplier’s poor performance until the next annual performance review. a. True b. False (p. 310) 4. The categorical approach to supplier evaluation is commonly used by smaller organizations because it is both easy and relatively inexpensive to implement. a. True (p. 311) b. False 5. Weighted-point supplier evaluation systems are very inflexible. a. True b. False (p. 312) 6. The cost-based supplier evaluation system is the most thorough and least subjective. a. True (p. 313) b. False 7. Considering the cost-based supplier evaluation system, the actual cost per nonconformance event may be difficult to estimate or calculate, as the traditional cost accounting system is not designed to identify and capture such data. a. True (p. 314) b. False This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher.
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8. Supply base rationalization and optimization often involves eliminating those suppliers who are unwilling or incapable of achieving supply management performance objectives, either currently or expected in the future. a. True (p. 316) b. False 9. A single source cannot deliver cost and quality improvements over the life of a contract even if a buyer manages that supplier appropriately. a. True b. False (p. 319) 10. A smaller supplier with limited capacity may need to eliminate some existing customers in order to meet the increased requirements of its larger customer. a. True (p. 319) b. False 11. A single source supplier may hold the buyer hostage by unduly raising prices or becoming too complacent, particularly when there are higher switching costs. a. True (p. 319) b. False 12. Buyers can minimize supply disruption risk from a single suppler by selecting supplier with multiple production facilities. a. True (p. 320) b. False 13. Buyers cannot move too aggressively when reducing the supply base. a. True b. False (p. 320) 14. There is only one approach to supply base rationalization and optimization. a. True b. False (p. 322) 15. A large supplier base means the duplication of a wide range of supply management activities, adding to acquisition cost without a corresponding increase in value-added. a.
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This note was uploaded on 04/21/2011 for the course MGT 01 taught by Professor Gad during the Spring '11 term at Tanta University.

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Chapter 9 Final - TEST BANK Sourcing and Supply Chain...

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