Test 1

Question 0

Internal information flows to purchasing

Answer 0

Sales forecasting
Inventory control
Production
Quality control 
Accounting

Question 1

Key challenges of corporate supply chains

Answer 1

Greater dependence on suppliers for design and production capabilities
Evolving information systems
Trend to single sourcing w reliance on fewer key suppliers and strategic relationships
Increased global competition
Development of new product technologies

Question 2

External information flows to purchasing

Answer 2

General market conditions
Transportation rates
New product information
Prices and discounts
Sources of supply

Question 3

Porters 5 forces

Answer 3

Power of suppliers
Power of buyers
Threat of new entrants 
Threat of substitutes 
Market rivalry

Question 4

Internal information flows from purchasing

Answer 4

Budget commitments
Contracts
Cost, price, adjustments
Competitive conditions
Economic conditions
Orders placed
Product and price info
Source product and price info
Product, availability, lead time, price and quality

Question 5

Potential benefits of information systems technology

Answer 5

Coat reduction and efficiency gains
Data accessibility
Data accuracy
Dedicate resources to strategic uses
Monetary control
Speedier communication
Systems integration

Question 6

What is MRP and MRP II

Answer 6

Materials requirement planning

Manufacturing resource planning

Question 7

Bi

Answer 7

Business intelligence

Question 8

Bpm

Answer 8

Business process management

Question 9

CRP

Answer 9

Capacity requirements planning

Question 10

IMP

Answer 10

Inventory management planning

Question 11

MPS

Answer 11

Master production scheduling

Question 12

PDM

Answer 12

Product data management

Question 13

SRM

Answer 13

Supplier relationship management

Question 14

What makes services different

Answer 14

Intangible
Perishable
Heterogeneous -high level of customization
Customer participation in production process
Simultaneous production and consumption
Difficult to measure quality

Question 15

Examples of types of service purchases

Answer 15

Construction
Consultants
Insurance
Transportation
Travel

Question 16

Specify, standardize, simplify

Answer 16

….

Question 17

Simple specifications

Answer 17

Performance
Function and fit
Brand names
Samples
Market grades
Qualified products

Question 18

Complex specifications

Answer 18

Method and material
Commercial standards
Engineering drawings
Design specifications

Question 19

Example of a simple specification

Answer 19

12 ounce plastic bottle of Heinz tomato ketchup

Question 20

Complex specification

Answer 20

Actual recipe is given …Ingredients and production procedures

Question 21

Meaning of cost

Answer 21

To stay in business in the long run, a firm must cover total including overhead and receive a profit

Question 22

A fair price is

Answer 22

Lowest price that ensures a continuous supply of the proper quality and quantity where and when needed by the customer

Question 23

7 step methodology guides sourcing teams through selected sourcing group

Answer 23

Profile of sourcing group
Sourcing strategy for sourcing group
Supplier portfolio generation
Selection of implementation path
Competitive supplier selection
Operational integration with suppliers
Continuous benchmarking of supply market

Question 24

Supplier selection steps

Answer 24

• Receive and verify responses from suppliers
• Create a Database of ERP responses across suppliers
• use the RFP database to conduct price analysis
• conduct non price comparisons to help supplier selection
• draw conclusions based on RFP responses to select preferred suppliers

Question 25

Why is esourcing used

Answer 25

Reduce cost
Standardize sourcing process
Expand scope of reach for market pricing and capable suppliers
Increase efficiency to accelerate supplier selection
Aggregate single repository of all relevant info and doc.

Question 26

Why wouldn’t one use esourcing

Answer 26

Security
Reluctance to change
Cost