True 5 product parts processes and product assembly

TRUE
5. Product parts, processes, and product assembly should all be designed by
the manufacturing firm to assure a single-minded approach that the
suppliers can follow. Supplier involvement in these design phases is
considered counterproductive.

6. Supplier alliances can result in better market penetration and also in making
new technologies or knowledge more accessible compared to companies that
do not partake in such alliances.
7. While a manufacturer may have substantial influence over its first tier
suppliers, their influence over second and third tier suppliers is typically
much higher.
8. Reverse auctions are often run by software that is bought or leased from third
party providers known as application service providers (ASP ’s). These ASPs
can then also provide technical support for a monthly fee.
9. Some strategic supplier agreements reward the highest performing suppliers
with a share of the cost reductions resulting from supplier improvements,
additional purchasing contracts, or contract extensions on existing contracts.
10. A 3PL is a software package that often involves three firms, a manufacturing
firm, a first tier supplier, and a second tier supplier, to communicate in real
time about all the purchasing activities that relate to all three companies.

Multiple Choice Questions
1. Which of the following would most likely be considered a functional product?
2. Which of the following is NOT a step suggested in the Supply Chain Sourcing
Strategy Framework?
A. Classify supplier items as either innovative or functional
B. Define the goals of the supply chain and check for consistency with products and firm
strategy
C. Identify and evaluate the capabilities of suppliers and then identify areas which could
be improved
D. Distribute free samples of all purchased products to the end-user for detailed
evaluation and feedback on supply chain development
3. Which of the following are considered outcomes of implementing a supplier
evaluation and selection criteria?