Question: 1. All of the following are supply management goals EXCEPT:

1. Ensure timely availability of resources.

2. B. Purchase at the lowest price.

3. C. Enhance quality.

4. D. Assess technology and innovation.

5. Answer: B. Purchase at the lowest price.

6. Question:

7. Answer: C. Examined total cost of ownership

8. Question:

9. Answer: D. Conducting a detailed internal audit of purchasing practices

10. Question: 4. Outsourcing is often a good choice when:

12. A. There are only a few suppliers.

13. B. A product is in the mature phase of the life cycle.

14. C. Technology is new.

15. D. The product is critical to a firm’s competitiveness.

16. Answer: B. A product is in the mature phase of the life cycle.

17. Question: 5. Which of the following is NOT a benefit of outsourcing?

19. A. Greater flexibility to change product specifications

20. B. Better access to market information

21. C. Lower supply management costs

22. D. Less capital needed for investment

23. Answer: C. Lower supply management costs

24. Question: 6. The process of understanding how a firm is spending its money and with which suppliers is called:

26. A. Strategic sourcing.

27. B. Make or buy analysis.

28. C. Market analysis.

29. D. Spend analysis.

30. Answer: D. Spend analysis.

31. Question:

32. Answer: B. Spend analysis.

33. Question: 8. Jones Company has identified an item for which the supply risk is high and the value of the purchase to the firm is low. A recommended sourcing strategy for Jones is to:

35. A. Multiple source.

36. B. Increase efficiencies.

37. C. Build partnerships.

38. D. Consolidate purchases.

39. Answer: A. Multiple source.

40. Question: 9. Benefits of single sourcing include all of the following EXCEPT:

42. A. Quantity discounts.

43. B. More consistent quality.

44. C. Better supplier relationships.

45. D. Less supply risk.

46. Answer: D. Less supply risk.

47. Question:

48. Answer: C. Single source.