BUAD 331 Exam 2 - Questions and

BUAD 331 Exam 2 - Questions and Answers (100% Correct) Sourcing is the inputs (or things we buy), including materials, sub-assembled components, equipment, and services, that are required to create value.

• True
• False - ANSWER-B. False

Which of the following is NOT an area in which successful supply managers need expertise?

• Technologies
• Customers
• Suppliers
• Processes
• Resources - ANSWER-B. Customers

When purchasing and supply management works well within an organization, the company acquires the best resources from around the world, which allows its to compete on cost, quality, and innovation.

• True
• False - ANSWER-A. True

The following items for an automobile manufacturer would fit in the Supply Commodity category titled "Indirect Materials Office Supply Product category".(images of a pen, whiteout, stapler, water bottle, and pencil)

• True
• False - ANSWER-A. True

Which of the following is the most important right of purchasing?

• Delivery to the RIGHT place
• The RIGHT price
• The RIGHT supplier
• The RIGHT time
• The RIGHT material - ANSWER-C. The RIGHT supplier

One of the most challenging aspects of purchasing is to ensure an uninterrupted flow of supply. Which of the following might "interrupt" that flow?

• Natural disasters
• Supplier quality issues
• Logistics interruptions
• Financial issues
• All of the above - ANSWER-E. All of the above 1 / 2

A dollar saved in material costs goes directly to an increase in revenue for the organization.

• True
• False - ANSWER-B. False

You are working as a Procurement Manager for a Fortune 500 company and are in charge of buying a new make and model of work computers for the entire company headquarters. You know it will be an expensive purchase, but have many options to choose from so you can make the computer manufacturers bid against each other to get the best price. Which type of commodity are these computers?

• Noncritical Commodity
• Strategic Commodity
• Leverage Commodity
• Bottleneck Commodity - ANSWER-C. Leverage Commodity

Purchasing has become a strategic contributor to organizational value by contributing to both the top and bottom line of the business.

• True
• False - ANSWER-A. True

The choice of suppliers is important to ensure an uninterrupted flow of supply and avoid some of the problems inherent in complex supply chains.

• True
• False - ANSWER-A. True

Supplier portfolio analysis was introduced by Michael Porter.

• True
• False - ANSWER-B. False

An item with high market complexity and low importance to the organization should be

classified as:

• Non-critical
• Leverage
• Strategic
• Bottleneck
• None of the above - ANSWER-D. Bottleneck

What supplier management tool is the standard to continuously track a supplier's performance and financial health and ensure that key goals are being met?

• Partnerships
• Six Sigma Projects
• Negotiations
• Scorecards
• Sourcing Projects - ANSWER-D. Scorecards
• / 2