Question 1

Supplier site visits are relatively inexpensive and require minimal buyer time in travel and information collection.

Accepted Answer

A) True 
 B)False

Question 2

Most purchasers fail to perform at least a cursory financial analysis of prospective suppliers.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is not a commonly accepted source of information regarding potential supply sources?

Accepted Answer

A)  Trade journals.
B)  Sales representatives.
C)  Television advertising.
D)  Informational databases.
E)  Internet searches and social media.F) A) and E)
G) A) and C)

Question 4

Databases allow the purchaser to quickly identify suppliers potentially qualified to support a requirement and may contain information on current products, the supplier's future technology roadmap, process capability ratios, and past performance.

Accepted Answer

A) True 
 B)False  True

Question 5

Which of the following key financial ratios is calculated as Sales/Total assets?

Accepted Answer

A)  Fixed asset turnover.
B)  Total asset turnover.
C)  Current ratio.
D)  Return on assets.
E)  Interest coverage.F) A) and B)
G) None of the above B

Question 6

Although _____ provides optimum leverage and power over the supplier, _____ provides improved assurance of supply.

Accepted Answer

A)  multiple sourcing….single sourcing
B)  single sourcing….multiple sourcing
C)  sole sourcing….single sourcing
D)  multiple sourcing….sole sourcing
E)  There is no difference in the number of suppliers for these benefits.F) None of the above
G) All of the above

Question 7

A _____ is responsible for understanding in depth entire families or groups of purchased goods and services.

Accepted Answer

A)  third party
B)  general buyer
C)  preferred supplier
D)  long-term buyer-supplier relationship
E)  commodity teamF) A) and C)
G) B) and C)

Question 8

A _____ is one that consistently satisfies the performance and service standards defined by the buyer and responds to unexpected changes.

Accepted Answer

A)  certified supplier
B)  sole source supplier
C)  partnered supplier
D)  preferred supplier
E)  disqualified supplier.F) C) and E)
G) B) and C)

Question 9

Most purchase contracts address areas that are similar.

Accepted Answer

A) True 
 B)False

Question 10

Sustainable carbon footprint reductions should be measured at product suppliers but not at service suppliers.

Accepted Answer

A) True 
 B)False

Question 11

Few purchasers expect potential suppliers to have adopted quality systems based on ISO 9000 criteria.

Accepted Answer

A) True 
 B)False

Question 12

Traditionally, purchasing from competitors would limit information sharing between the parties.

Accepted Answer

A) True 
 B)False

Question 13

A buying firm frequently wants the seller to become more dependent on its business.

Accepted Answer

A) True 
 B)False

Question 14

Trade shows are seldom an ineffective way to gain exposure to a large number of suppliers at one time.

Accepted Answer

A) True 
 B)False

Question 15

All of the following are examples of commonly used environmental performance criteria except _____.

Accepted Answer

A)  disclosure of any environmental infractions
B)  attainment of ISO 9000 certification
C)  existence of formal hazardous and toxic waste reduction programs
D)  programs to control or eliminate ozone-depleting substances
E)  attainment of ISO 14000 certificationF) D) and E)
G) None of the above

Question 16

_____ is defined as the continual monitoring of the strength of suppliers' financial condition to ensure their ability to meet the purchaser's performance requirements for products or services.

Accepted Answer

A)  Operational risk management
B)  Sole sourcing
C)  Financial risk management
D)  Multiple sourcing
E)  None of these answers.F) A) and B)
G) C) and D)

Question 17

All of the following are examples of entry qualifiers that suppliers must possess before they proceed to the next phase of the evaluation and selection process except _____.

Accepted Answer

A)  appropriate sales and marketing activities
B)  financial strength
C)  proven manufacturing or service capability
D)  capable and supportive management
E)  adequate facilitiesF) A) and B)
G) C) and D)

Question 18

Certain suppliers who may present the lowest cost seldom present greater risks.

Accepted Answer

A) True 
 B)False  False

Question 19

Purchasers often perform a first cut or preliminary evaluation of potential suppliers to narrow the list before conducting an in-depth formal evaluation.

Accepted Answer

A) True 
 B)False

Question 20

_____ focuses on the continued ability of the supplier's human, intellectual, and physical capital to meet the buying firm's requirements with respect to quality and delivery.

Accepted Answer

A)  Operational risk management
B)  Global sourcing
C)  Logistics risk management
D)  Total quality management
E)  Financial risk managementF) C) and D)
G) B) and D)

Exam 7: Supplier Evaluation and Selection

Supplier site visits are relatively inexpensive and require minimal buyer time in travel and information collection.

Correct AnswerverifiedShow Answer

Most purchasers fail to perform at least a cursory financial analysis of prospective suppliers.

Correct AnswerverifiedShow Answer

Which of the following is not a commonly accepted source of information regarding potential supply sources?

Correct AnswerverifiedShow Answer

Databases allow the purchaser to quickly identify suppliers potentially qualified to support a requirement and may contain information on current products, the supplier's future technology roadmap, process capability ratios, and past performance.

Correct AnswerverifiedTrue

Which of the following key financial ratios is calculated as Sales/Total assets?

Correct AnswerverifiedB

Although _____ provides optimum leverage and power over the supplier, _____ provides improved assurance of supply.

Correct AnswerverifiedShow Answer

A _____ is responsible for understanding in depth entire families or groups of purchased goods and services.

Correct AnswerverifiedShow Answer

A _____ is one that consistently satisfies the performance and service standards defined by the buyer and responds to unexpected changes.

Correct AnswerverifiedShow Answer

Most purchase contracts address areas that are similar.

Correct AnswerverifiedShow Answer

Sustainable carbon footprint reductions should be measured at product suppliers but not at service suppliers.

Correct AnswerverifiedShow Answer

Few purchasers expect potential suppliers to have adopted quality systems based on ISO 9000 criteria.

Correct AnswerverifiedShow Answer

Traditionally, purchasing from competitors would limit information sharing between the parties.

Correct AnswerverifiedShow Answer

A buying firm frequently wants the seller to become more dependent on its business.

Correct AnswerverifiedShow Answer

Trade shows are seldom an ineffective way to gain exposure to a large number of suppliers at one time.

Correct AnswerverifiedShow Answer

All of the following are examples of commonly used environmental performance criteria except _____.

Correct AnswerverifiedShow Answer

_____ is defined as the continual monitoring of the strength of suppliers' financial condition to ensure their ability to meet the purchaser's performance requirements for products or services.

Correct AnswerverifiedShow Answer

All of the following are examples of entry qualifiers that suppliers must possess before they proceed to the next phase of the evaluation and selection process except _____.

Correct AnswerverifiedShow Answer

Certain suppliers who may present the lowest cost seldom present greater risks.

Correct AnswerverifiedFalse

Purchasers often perform a first cut or preliminary evaluation of potential suppliers to narrow the list before conducting an in-depth formal evaluation.

Correct AnswerverifiedShow Answer

_____ focuses on the continued ability of the supplier's human, intellectual, and physical capital to meet the buying firm's requirements with respect to quality and delivery.

Correct AnswerverifiedShow Answer

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True

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B

Although _ provides optimum leverage and power over the supplier, _ provides improved assurance of supply.

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False

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