BUAD 331 Exam 3 Questions & Answers(RATED A+)

Ted is approached by a diving goods supplier who tells him that he can reduce his purchasing price by half with ensured quality due to his lower cost structure resulting from his manufacturing locations in China. Should Ted accept the supplier's offer and why? a.) Yes, cutting the purchase cost by half can provide Ted's products great competitive price in the market. b.) Yes, ensured quality can reduce product defects and hence increase customer satisfaction. c.) It depends on the tradeoffs and the impact on total cost of ownership. d.) No, purchasing from supplier in China will cause higher level of inventory. e.) No, purchasing from supplier in China will increase the lead time. - ANSWERc Global SCM is difficult to plan and execute. One reason is that people are extremely different across cultures. Suppose that you area purchasing manager at Ted's Wicked Die Shop and visit China to meet one supplier. In the meeting, you ask a Chinese supplier to supply some components from July 2013 at a certain price. If a Chinese supplier says "YES", what does it mean? a.) We accept the offer. b.) We can produce those components. c.) We can meet the requirement. d.) We can negotiate. - ANSWERd At its core, a supply chain risk profile asses the_______________ and the_______________. a.) Impact of disturbances in the supply chain; the ways a firm can mitigate those disturbances b.) Five risk factors; relationship of those factors to customer demand c.) Probability of a risk occurring; the impact of that risk if it occurs d.) Vulnerability of a specific node in the supply chain; the drivers of risk for that node - ANSWERc Which of the following is NOT an issue that impacts global supply chain decisions for US firms? a.) Cultural differences between international partners. b.) Inadequate transportation infrastructure in trading countries. c.) Passage of new US domestic transportation spending legislation. d.) Substantial geographic distances between trading partners. - ANSWERc Which of the following is NOT a sound reason for a company to expand globally? a.) To decrease labor rates by manufacturing in lower cost countries. b.) To decrease complexity by selling to emerging markets.