Chapter 12

Question 1

Approved Supplier

Answer 1

Simply a supplier from whom the organization’s personnel may buy.

Question 2

Preferred Supplier

Answer 2

One who the purchasing department strongly encourages above all other options. • Usually selected after a thorough comparison of many suppliers in the market.

Question 3

Certified Supplier

Answer 3

A supplier becomes certified after a thorough and formal technical audit. • The supplier’s work is nearly defect free and its quality systems are integrated with the buying organization to the point where inspection of goods at the buyer’s plant is not necessary

Question 4

Barred supplier

Answer 4

who the organization chooses not to do business with. • These suppliers have displayed unacceptably poor performance in the past such as: chronically late deliveries, high costs, a large number of quality problems, or terrible service

Question 5

Supplier Selection Criteria

Answer 5

Manufacturing capability, Technical Ability. Financial Stability, Service Level, Commitment to sustainability, Location