APPROVED QUESTIONS AND CORRECT DETAILED ANSWERS
WITH RATIONALES (CORRECT VERIFIED SOLUTIONS)
CURRENTLY UPDATED VERSION 2026 EDITION |GUARANTE
Benefits of business clusters and trade agreements
-geographic considerations of interconnected companies and
institutions. Expanding boundaries of trade.
Performance measures of SCM
-Cost measures
-Quality measures
-Time/Delivery/Responsiveness measures
-Technology/Innovation measures
-E-transaction measures
Cost measures
-Cost changes increase or decrease in cost resulting from change
in strategy or practice.
Quality measures
-defects in (ppm) customer found defects, filed failure rates. Costs of
nonconformance (all costs associated with supplier defects).
Time/Delivery/Responsiveness measures
-time to market targets, on time delivery/responsiveness due
dates and lead time reductions, responsiveness to schedule, mix or
design changes.
,Technology/innovation measures
-supplier access to new technology, first production outputs of
new
technology, use of industry standards to reduce cost and
improve quality and design feedback.
E-transaction measures
-absolute number of suppliers, percentage of suppliers, dollar
value of orders, percentage of orders, meeting customer
requirements
Trends in ethical sustainable sourcing
-biofuels
-green warehouses
-transportation
Sustainability
-the ability to meet the current needs of the supply chain without
hindering the ability to meet future needs in terms of economic,
environmental & social challenges.
CSR(company social responsibility)
-is the practice of business ethics that a company has a duty to
be socially responsible towards the environment.
Vendor managed inventory
-streamlined approach to inventory management and order
fulfillment. Involves collaboration between suppliers and their
customers. The manufacturer is responsible for maintaining the
distributors inventory levels. (Wal-Mart)
, Benchmarking
-research collection for benchmarking in an industry to see how
your pricing stands. It is an assessment process which measures
the performance of an organization's supply chain by taking
into
consideration quantity, value, time.
RFQ
-buyer identifies suppliers and issues a RFQ for routine items or
RFP for more demanding products.
PO
-is the buyer's offer and becomes a binding contract when
accepted by supplier.
Materials Requisition/Purchase Requisition
-stating product, quantity, and delivery date. May originate as a
planned order release from the MRP system.
Centralized purchasing
-concentrated volume, leveraging purchase volume, avoid
duplication, specialization, lower transportation costs, no
competition within units, common supply base.
Decentralized purchasing
-better knowledge of requirements, local sourcing, less
bureaucracy.