BUAD 331 Exam 2 (Knowledge Checks Graded A+)

office supplies for an automobile manufacturer would fit in the supply and commodity category titled "Indirect Materials Office Supply Product category" (t/f) correct answers true you are in charge of buying a new make and model of work computers for the entire company HQ. you know it will be expensive, but have many options to choose from so you can make computer manufacturers bid against each other. Why type of commodity are the computers? correct answers leverage commodity sourcing is the inputs (or things we buy), including materials, sub-assembled components, equipment, and services, that are required to create value (t/f) correct answers false what is not an area in which successful supply managers need expertise? correct answers customers when purchasing and supply management works well within an organization, the company acquires the best resources from around the world, which allows it to compete on cost, quality, and innovation (t/f) correct answers true what is the most important right of purchasing? correct answers the right supplier one of the most challenging aspects of purchasing is to ensure an uninterrupted flow of supply. what might interrupt that flow? correct answers - natural disasters - supplier quality issues - logistics interruptions - financial issues a dollar saved in material costs goes directly to an increase in revenue for the organization (t/f) correct answers false purchasing has become a strategic contributor to organizational value by contributing to both the top and bottom line of the business (t/f) correct answers true the choice of suppliers is important to ensure an uninterrupted flow of supply and avoid some of the problems inherent in complex supply chains (t/f) correct answers true what supplier management tool is the standard to continuously track a supplier's performance and financial health and ensure that key goals are being met? correct answers scorecards the key to effective procurement is __________ of suppliers and __________ management correct answers segmentation, strategically appropriate which of the Krajlic's Portfolio Matrix items is highly complex in the supply market and has a high importance of purchasing? correct answers strategic items