Exam #2: BUAD 331 Question And
Answers
Sourcing & purchasing - CORRECT ANSWER-tend to connote the more tactical
aspects of the field
1. identifying he requirements
2. locations
3. identity of specific companies and providers - CORRECT ANSWER-Sourcing
includes processes involved in...that may be used for inputs required to create value.
Purchasing - CORRECT ANSWER-The process used to actually make a buy from a
source
Commodity - CORRECT ANSWER-The inputs (materials, sub-assembled components,
equipment, and services) which are required to create value
Sourcing - CORRECT ANSWER-The processes involved in identifying the
requirements, locations, and identity of specific companies and providers that may be
used to acquire various inputs required to create value
Purchasing/ Supply Chain - CORRECT ANSWER-The strategic approaches and
processes used to secure needed inputs into the organization to create relevant value
1. one another
2. downstream customers and customer networks
3. upstream suppliers and supply networks - CORRECT ANSWER-Procurement,
manufacturing and service operations, and logistics in a focal organization should be
aligned with...
1. raw materials
2. sub-components
3. finished good components
4. original equipment, etc. - CORRECT ANSWER-Materials supply networks involves
inputs related to...
(1) business unit
(2 )corporate strategies
, (3) down to the more tactical commodities - CORRECT ANSWER-A KEY IN ALIGNING
THE SUPPLY CHAIN IS to ensure that the overall procurement strategy is aligned up
through the
Procurement strategy - CORRECT ANSWER-allows the business to achieve its overall
goal, whether that's cost, or a differentiated product or service focus, or some blend of
the two, in such a way that it is supported by the supply inputs into the organization.
goals and activities of other supply chain functions in terms of desired (1) cost and (2)
quality characteristics - CORRECT ANSWER-Procurement strategy should complement
the...
the overall procurement strategy - CORRECT ANSWER-A strategy for each commodity
category emerges from...
MUST SUPPORT - CORRECT ANSWER-the procurement and associated commodity
strategies _______ _______ the
overall corporate and business unit goals.
1. an ability to differentiate tactics based upon the characteristics of the given product
2. product category being procured - CORRECT ANSWER-Within the procurement
strategy - there must be ________ or _____.
Lee Iacocca years at Chrysler in 1980's - CORRECT ANSWER-A famous story from the
___________ will help illuminate the need for a strategic sourcing process
1. Market Analysis
2. Spend Analysis
3. Portfolio Analysis
4. Contract Negotiation and Supplier
5. Supplier Relationship Management - CORRECT ANSWER-Strategic Process Steps
Market Analysis - CORRECT ANSWER--to better understand the supply and demand
trends in the various markets in which the
organization must buy, the relative strength of competitors, the volumes purchased by
the company in various categories, etc.
-objective is to provide a holistic perspective for the procurement organization and a
sense of the Strengths, Weaknesses, Opportunities and threats in each market
environment
Spend Analysis - CORRECT ANSWER--ensure each is contributing appropriately to the
financial goals of the firm.
-For most firms, the cost of direct materials purchased for further sale to customers
ranges from 50 to 70%.
1. Non-critical commodity
Answers
Sourcing & purchasing - CORRECT ANSWER-tend to connote the more tactical
aspects of the field
1. identifying he requirements
2. locations
3. identity of specific companies and providers - CORRECT ANSWER-Sourcing
includes processes involved in...that may be used for inputs required to create value.
Purchasing - CORRECT ANSWER-The process used to actually make a buy from a
source
Commodity - CORRECT ANSWER-The inputs (materials, sub-assembled components,
equipment, and services) which are required to create value
Sourcing - CORRECT ANSWER-The processes involved in identifying the
requirements, locations, and identity of specific companies and providers that may be
used to acquire various inputs required to create value
Purchasing/ Supply Chain - CORRECT ANSWER-The strategic approaches and
processes used to secure needed inputs into the organization to create relevant value
1. one another
2. downstream customers and customer networks
3. upstream suppliers and supply networks - CORRECT ANSWER-Procurement,
manufacturing and service operations, and logistics in a focal organization should be
aligned with...
1. raw materials
2. sub-components
3. finished good components
4. original equipment, etc. - CORRECT ANSWER-Materials supply networks involves
inputs related to...
(1) business unit
(2 )corporate strategies
, (3) down to the more tactical commodities - CORRECT ANSWER-A KEY IN ALIGNING
THE SUPPLY CHAIN IS to ensure that the overall procurement strategy is aligned up
through the
Procurement strategy - CORRECT ANSWER-allows the business to achieve its overall
goal, whether that's cost, or a differentiated product or service focus, or some blend of
the two, in such a way that it is supported by the supply inputs into the organization.
goals and activities of other supply chain functions in terms of desired (1) cost and (2)
quality characteristics - CORRECT ANSWER-Procurement strategy should complement
the...
the overall procurement strategy - CORRECT ANSWER-A strategy for each commodity
category emerges from...
MUST SUPPORT - CORRECT ANSWER-the procurement and associated commodity
strategies _______ _______ the
overall corporate and business unit goals.
1. an ability to differentiate tactics based upon the characteristics of the given product
2. product category being procured - CORRECT ANSWER-Within the procurement
strategy - there must be ________ or _____.
Lee Iacocca years at Chrysler in 1980's - CORRECT ANSWER-A famous story from the
___________ will help illuminate the need for a strategic sourcing process
1. Market Analysis
2. Spend Analysis
3. Portfolio Analysis
4. Contract Negotiation and Supplier
5. Supplier Relationship Management - CORRECT ANSWER-Strategic Process Steps
Market Analysis - CORRECT ANSWER--to better understand the supply and demand
trends in the various markets in which the
organization must buy, the relative strength of competitors, the volumes purchased by
the company in various categories, etc.
-objective is to provide a holistic perspective for the procurement organization and a
sense of the Strengths, Weaknesses, Opportunities and threats in each market
environment
Spend Analysis - CORRECT ANSWER--ensure each is contributing appropriately to the
financial goals of the firm.
-For most firms, the cost of direct materials purchased for further sale to customers
ranges from 50 to 70%.
1. Non-critical commodity
