BUAD 331 Exam Questions and Answers Verified
Solutions Latest Update
Question 1.
The choice of suppliers is important to ensure an uninterrupted flow of supply and
avoid some of the
problems inherent in complex supply chains.
A. True
B. False
Correct Answer: A. True
Question 2.
Supplier portfolio analysis was introduced by Michael Porter.
A. True
B. False
Correct Answer: B. False
Question 3.
An item with high market complexity and low importance to the organization should
be classified as:
A. Non-critical
B. Leverage
C. Strategic
D. Bottleneck
E. None of the above
Correct Answer: D. Bottleneck
Question 4.
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?
A. Partnerships
B. Six Sigma Projects
C. Negotiations
D. Scorecards
E. Sourcing Projects
Correct Answer: D. Scorecards
Question 5.
The key to effective procurement strategy is ______ of suppliers and ___________
management.
A. Comparison, aligned
B. Segmentation, strategically appropriate
C. Strengthening, customer-focused
D. Disconnection, dishonest
, Correct Answer: B. Segmentation, strategically appropriate
Question 6.
Which of the Krajlic's Portfolio Matrix items is highly complex in the supply market
and has a high
importance of purchasing?
A. Leverage Items
B. Strategic Items
C. Mosaic Items
D. Pertinent Items
E. Expendable Items
Correct Answer: B. Strategic Items
Question 7.
How can purchasing add value to an organization?
A. By ensuring an uninterrupted flow of materials or services
B. By reducing the total cost of products
C. By collaborating with other areas such as logistics on supplier location
decisions.
D. By increasing revenue through supplier innovation and new product launch
E. All of the above (and MORE) are ways that purchasing can contribute to
organizational success.
Correct Answer: E. All of the above (and MORE) are ways that purchasing can
contribute to organizational success.
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?
A. Reverse auction
B. Use P-cards and on-line catalogs
Question 8.
C. Set up a long term contract
D. Buying consortium, group together multiple buyers
E. Switch suppliers
Correct Answer: D. Buying consortium, group together multiple buyers
Question 9.
When are supplier evaluation and selection decisions initiated?
A. In response to requests from internal customers
B. During the design and building of new facilities
C. During new product development
D. During routine market testing
E. All of the above
Correct Answer: E. All of the above
Solutions Latest Update
Question 1.
The choice of suppliers is important to ensure an uninterrupted flow of supply and
avoid some of the
problems inherent in complex supply chains.
A. True
B. False
Correct Answer: A. True
Question 2.
Supplier portfolio analysis was introduced by Michael Porter.
A. True
B. False
Correct Answer: B. False
Question 3.
An item with high market complexity and low importance to the organization should
be classified as:
A. Non-critical
B. Leverage
C. Strategic
D. Bottleneck
E. None of the above
Correct Answer: D. Bottleneck
Question 4.
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?
A. Partnerships
B. Six Sigma Projects
C. Negotiations
D. Scorecards
E. Sourcing Projects
Correct Answer: D. Scorecards
Question 5.
The key to effective procurement strategy is ______ of suppliers and ___________
management.
A. Comparison, aligned
B. Segmentation, strategically appropriate
C. Strengthening, customer-focused
D. Disconnection, dishonest
, Correct Answer: B. Segmentation, strategically appropriate
Question 6.
Which of the Krajlic's Portfolio Matrix items is highly complex in the supply market
and has a high
importance of purchasing?
A. Leverage Items
B. Strategic Items
C. Mosaic Items
D. Pertinent Items
E. Expendable Items
Correct Answer: B. Strategic Items
Question 7.
How can purchasing add value to an organization?
A. By ensuring an uninterrupted flow of materials or services
B. By reducing the total cost of products
C. By collaborating with other areas such as logistics on supplier location
decisions.
D. By increasing revenue through supplier innovation and new product launch
E. All of the above (and MORE) are ways that purchasing can contribute to
organizational success.
Correct Answer: E. All of the above (and MORE) are ways that purchasing can
contribute to organizational success.
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?
A. Reverse auction
B. Use P-cards and on-line catalogs
Question 8.
C. Set up a long term contract
D. Buying consortium, group together multiple buyers
E. Switch suppliers
Correct Answer: D. Buying consortium, group together multiple buyers
Question 9.
When are supplier evaluation and selection decisions initiated?
A. In response to requests from internal customers
B. During the design and building of new facilities
C. During new product development
D. During routine market testing
E. All of the above
Correct Answer: E. All of the above
