BUAD 331 Module 7 fully solved

BUAD 331 Module 7 How can purchasing add value to an organization? - correct answer All of the above (and MORE) are ways that purchasing can contribute to organizational success. - By ensuring an uninterrupted flow of materials or services - By reducing the total cost of products - By collaborating with other areas such as logistics on supplier location decisions. - By increasing revenue through supplier innovation and new product launch Both objective and subjective measures are used to measure the performance of suppliers. Which of the following is NOT true regarding objective and subjective measures? - correct answer An example of a subjective measure is supplier on-time delivery When are supplier evaluation and selection decisions initiated? - correct answer All of the above - In response to requests from internal customers - During the design and building of new facilities - During new product development - During routine market testing When thinking about price reductions what can purchasing do to achieve significant price or cost savings and maintain the appropriate supplier relationship when buying leverage items? - correct answer Supply base reduction On Kraljic's matrix the quadrant of "bottleneck" is the most challenging for purchasing managers to deal with? In fact it is recommended that you think of ways to shift these items to other quadrants of the matrix. What is one purchasing tactic that might allow you to do that? - correct answer Buying consortium, group together multiple buyers Top line contributions by the purchasing function include which of the following? - correct answer Involvement in new product development