SCMN 2150 Test 2 Auburn University Questions & Answers 2023/2024

SCMN 2150 Test 2 Auburn University Questions & Answers 2023/2024 The purchase of merchandise at the optimum total cost, at the right time, in the right quantity - ANSProcurement A company process that continuously re-evaluates and improves upon the companies procurement process - ANS-Strategic Sourcing The identification use and management of the resources a company needs to meet its goals - ANSSupply management What is the goal of the procurement process? - ANS-higher quality lower cost better service MRO - ANS-Maintenance Repair Operations TCO - ANS-Total Cost of Ownership What are the 5 steps in the procurement cycle? - ANS-1. Identify needs 2. Evaluate suppliers 3. Select supplier 4. Order 5. Evaluate order and supplier Moving internal activities to someone else - ANS-outsourcing What are the reasons to choose to buy a product rather than make it? - ANS-Price - It might be cheaper to just buy it Capacity - Company might not have the room to make it Skills - Company lacks internal skill to make the product Inventory/fixed costs - You don't have to pay fixed manufacturing costs or costs that come with increased inventory Core Competencies - it gives the company the chance to focus on what they are actually good at What are the reasons to choose to make a product rather than just buying it? - ANS-Cost - it might be cheaper to make it Competition - one step ahead of the competition Leverage External skills - there may be a lack of skills outside of the company so the best option is to make it Internal skills - if a company is good at making it or has the skill to then it makes sense What are the risks of outsourcing? - ANS--insufficient supply -poor quality -long supply lead time KPI - ANS-Key Performance Indicators What are the 3 supplier performance metrics that companies use to score suppliers? - ANS-Fill Rate Defective Rate On Time Delivery The process by which inputs are processed into outputs - A CONTINUES...