LECTURE 6 - part 3

Question 1

Criteria to evaluate suppliers (4)

Answer 1

• Process and design capabilities
• Management capability
• Financial condition and cost structure
• Longer-term relationship potential

Question 2

weight-point evaluation system (definition)

Answer 2

an evaluation system to evaluate potential suppliers, track supplier’s performance over time, and rank current suppliers

Question 3

Subjective methods

Answer 3

used when companies evaluate suppliers through personal judgement

Question 4

Objective methods

Answer 4

Attempt to quantify the supplier’s performance

Question 5

Techniques and tools that can be used to evaluate suppliers (5)

Answer 5

• Spreadsheets
• Personal assessment
• Vendor rating
• Supplier audit
• Cost modeling

Question 6

Spreadsheets

Answer 6

used to systematically compare and asses quotations obtained from suppliers.

Question 7

Vendor rating

Answer 7

limited to quantitiative data, entails measuring the aspects of price, quality and delivery reliability per supplier

Question 8

Supplier audit

Answer 8

entails that the supplier is periodically visited by specialists from the customer. They investigate the production process and quality organization

Question 9

Cost modeling

Answer 9

specialist from the buying company estimate, based on the production technology, the cost of the product. This may lead to ‘‘should cost’’ discussion iwth the supplier