20 scoring the performance of suppliers in terms of

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20) Scoring the performance of suppliers in terms of replenishment lead time thus allows the firm to evaluate the impact each supplier has on D) the cost of holding safety inventory. 21) The selection of suppliers, design of supplier contracts, product design collaboration, procurement of material, and evaluation of supplier performance are a part of B) sourcing. 22) Price has traditionally been the only dimension that suppliers have been compared on during the process of C) supplier scoring and assessment . 23) The goal of procurement is C) to enable orders to be placed and delivered on schedule at the lowest possible overall cost. 24) The role of sourcing planning and analysis is A) to analyze spending across various suppliers and component categories to identify
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opportunities for decreasing the total cost. 25) Consider the factors influencing total cost and supplier performance. Which of the following is the LEAST quantifiable factor? C) Support 26) Sourcing a product overseas may have D) lower product cost but will generally incur a higher inbound transportation cost. 27) Quantity discounts lower the unit cost B) but tend to increase the required batch size and as a result the cycle inventory. 28) Good design collaboration for manufacturability and supply chain can A) reduce product cost. 29) The viability of suppliers is especially important for suppliers who B) provide mission-critical products that would be difficult to replace. 30) Supplier performance should be compared based on B) its impact on total cost. 31) Single sourcing for a product is used to A) guarantee the supplier sufficient business when the supplier has to make a significant buyer- specific investment. 32) To create a win-win negotiation, the two parties must B) identify more than one issue to negotiate. 33) The difference between the values of the buyer and seller is referred to as the C) bargaining surplus. 34) A contract that allows a retailer to return unsold inventory up to a specified amount, at an agreed upon price is a A) buyback or returns contract. 35) A contract where the buyer pays a minimal amount for each unit purchased from the supplier but shares a fraction of the revenue for each unit sold is a B) revenue-sharing contract. 36) A contract that allows the buyer to modify the order (within limits agreed to by the supplier) as demand visibility increases closer to the point of sale is a C) quantity flexibility contract. 37) A contract that decreases overall costs but leads to higher lot sizes and thus higher levels of inventory in the supply chain is a D) quantity discount contract.
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38) A contract that is used to induce performance improvement from a supplier along dimensions, such as lead time, where the benefit of improvement accrues primarily to the buyer, whereas the effort for improvement comes primarily from the supplier is a D) shared savings contract.
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