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SCM Group #1 Flashcards | StudBud
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SCM Group #1
SCM Group #1
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Questions
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Answers
1
In MCA, why might a 1–100 scale be better than a 1–5 scale for scoring suppliers?
It requires less math
It takes less time
It eliminates bias
It allows for more precise scoring differences
2
Which model gives a full lifecycle view of supplier cost impact?
Total Landed Cost (TLC)
Total Cost of Ownership (TCO)
Just-in-Time Model
Net Present Value (NPV)
3
Which tool is commonly used to simplify and reduce transaction costs for routine purchases?
Negotiation matrix
Procurement card (p-card)
Cross-functional team
Reverse auction
4
The two sides of the supplier relationship continuum are transactional relationship and complex partnerships?
True
False
5
Which quadrant in the Strategic Sourcing Matrix is high importance and high complexity?
Bottleneck
Strategic
Routine
Leverage
6
What is the main purpose of using Multi-Criteria Analysis in supplier selection?
To eliminate underperforming suppliers
To evaluate different supplier options fairly and thoroughly
To simplify ordering processes
To compare prices only
7
Which of the following is NOT typically a reason to choose multi-sourcing?
Increase price competition
Avoid over-dependence on one supplier
Reduce freight costs through consolidation
Encourage supplier innovation
8
What is the biggest challenge when using total cost models like TCO?
Reducing transportation time
Finding enough suppliers
Negotiating purchase prices
Estimating future costs accurately
9
What are the 4 key areas to master in purchasing?
Resources, Suppliers, Processes, Technology
Production, Branding, Transport, Legal
Materials, Design, Management, Budget
Finance, Logistics, Marketing, HR
10
What are the “7 Rights” of purchasing?
Budget, Quantity, Supplier, Labor, Freight, Cost, Time
Value, Brand, Region, Lead Time, Source, Scope, Cost
Material, Quantity, Service, Place, Time, Supplier, Total Cost
Product, Shelf Life, Quality, Place, Safety, Price, Quantity
11
What is a key reason for managing sourcing strategically?
To outsource all business functions
To ensure cost-effective, reliable supply
To create new products faster
To reduce marketing spend
12
What is not one of the six components of the buyer/supplier integration continuum?
Final plan execution
Collaborative forecasting
ESI in NPS
Insourced warehousing
13
What are the four components of Honda’s BP process?
Plan, evaluate, complete, act
Begin, plan, check, do
Plan, do, check, act
Plan, analyze, do, act
14
What does the 'weight' in MCA represent?
The cost of each supplier
The number of suppliers in the pool
The importance assigned to each criterion
The number of units being ordered
15
What is the purpose of conducting a sensitivity analysis after using MCA?
To compare only delivery times
To eliminate all low-scoring suppliers
To test how changes in weights or scores affect the decision
To double-check prices
16
What caused a ripple effect in the example with Pilsner Urquell?
Bad branding
Tourism ban in Prague
Delayed bottling due to a strike in Germany
Aluminum shortage in Asia
17
What is not one of the two supplier development strategies?
Improve process capabilities
Increase supply options
Promote supplier marketing
18
What type of purchase makes up around 80% of total buy volume but typically involves low cost and low risk?
Critical buys
Routine buys
Leverage buys
Strategic buys
19
What is not one of the benefits of ESI?
Better overall design & quality
Increased consumer retention
Increased product manufacturability
Reduced overall development time
20
What is purchasing also known as?
Risk mitigation
Product sourcing
Distribution management
Strategic sourcing or procurement
21
Which of the following is NOT one of the five steps in Multi-Criteria Analysis?
Calculate supplier delivery times
Evaluate options
Decide on criteria
Define scoring system
22
What is not one of the six steps of the strategic sourcing process?
Analyze
Source
Leverage
Procure
23
What is the Convergence Effect in purchasing risk?
When supply chains operate perfectly
When multiple issues happen at once and compound each other
When one supplier gains too much power
When too many items are ordered at once
24
Why are Czech Saaz hops considered a bottleneck item?
They have limited suppliers and are critical to taste
They’re cheap and easy to find
They have low demand
They’re only used for coffee
25
In the Prague example, what sourcing type is “unpasteurized tank beer for Lokál”?
Strategic
Leverage
Bottleneck
Routine
26
Which strategy is most appropriate for high-spend, high-risk buys requiring deep collaboration?
Competitive bidding by end-users
Strategic selection with cross-functional teams
Use of web catalogues
P-card-based selection
27
What is a major advantage of a single-sourcing strategy?
Ensures competition among suppliers
Encourages closer relationships and volume pricing
Minimizes delivery delays
Eliminates the need for supplier evaluation
28
What does Total Landed Cost (TLC) include?
Ownership and disposal costs
Purchase price + delivery & logistics costs
Purchase price only
Only domestic shipping costs
29
What percent of COGS is typically made up of purchased goods?
80–100%
20–40%
50–80%
10–30%
