GSCM 201 Actual Exam Questions & Correct Answers |100%
verified.
Supplier Relationship Management (SRM) - Correct: SRM involves taking care of the most important
suppliers. It also includes the overall management and strategic decision making that goes into a company's
purchasing strategy.
Types of Supplier Relationship - Correct: Transactional/Arms-Length
Collaborative/Strategic Alliance
Kraljic's Matrix - Correct: Supplier management scale that goes from profit impact (low to high) and
supply risk (low to high)
Leverage Items - Correct: Low supply risk, high profit impact
Exploitation of full purchasing power, targeted pricing strategies/negotiations, abundant supply
Strategic Items - Correct: High supply risk, high profit impact
Development of long-term relationships, collaboration and innovation, natural scarcity
Non-Critical Items - Correct: Low supply risk, low profit impact
Product standardization, process efficiency (automated purchasing like catalogues, e-tendering), abundant
supply
Bottleneck Items - Correct: High supply risk, low profit impact
Low control of suppliers, innovation and product substitution and replacement, production-based scarcity
SRM Steps - Correct: Supplier segmentation, supplier strategy development, supplier strategy execution
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,Supplier Segmentation - Correct: Map suppliers against profitability and risk exposure
Supplier Strategy Development - Correct: Distribute internal resources and plans to meet business needs
Supply Strategy Phases - Correct: Classification, market analysis, strategic positioning, action plans
Phase One: Classification - Correct: Strategic, bottleneck, non-critical, leverage
Phase Two: Market Analysis - Correct: Assess supplier strength as well as company strength, assess
things like availability of product in terms of both quality and quantity
Phase Three: Strategic Positioning - Correct: Identify areas of opportunity or vulnerability, assess supply
risks, and derive basic strategies by placing items from phase one into the purchasing portfolio matrix
Phase Four: Action Plans - Correct: Company explores scenarios and lays out plans for securing long-
term supply and for exploiting short-term opportunities
Service Supply Chains - Correct: Customer input > action > service output
Direct Interaction - Correct: Person-to-person interaction in a service supply chain
Surrogate Interaction - Correct: Acting on another entity's resources (car in carwash) in a service supply
chain
Independent Processing - Correct: Entity is acting on resources owned and controlled by that same
entity in a service supply chain. (Provider installs purchased car wash equipment himself, enabling innovation
enables the customer)
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, What Gives Better Economies of Scale? - Correct: Positioning steps toward provider's process domain
gives better economies of scale
What Gives Better Opportunity for Customization? - Correct: Positioning toward customer's process
domain gives greater opportunity for customization
Components of Operations - Correct: Inputs, transformation process, outputs
Transformation Processes - Correct: Part of manufacturing where raw materials are converted into
finished products using machinery, processes, and labor resources
Transformed resources, transforming resources
Transformed Resources - Correct: Those that are transformed in some way by the operation to produce
the goods or services that are its outputs
Transforming Resources - Correct: Those that are used to perform the transformation process. Staff or
facilities
Inputs - Correct: Aren't just physical materials. Can be things like information or customers
Important Aspect of Operations Management - Correct: Minimizing the environmental impact of waste
over the entire life cycle of their products, up to the point of final disposal
Different Types of Transformation - Correct: Manufacture, transport, supply, service
Manufacture Transformation - Correct: The physical creation of products (like cars)
Transport Transformation - Correct: The movement of materials or customers (like a taxi service)
3|Page
verified.
Supplier Relationship Management (SRM) - Correct: SRM involves taking care of the most important
suppliers. It also includes the overall management and strategic decision making that goes into a company's
purchasing strategy.
Types of Supplier Relationship - Correct: Transactional/Arms-Length
Collaborative/Strategic Alliance
Kraljic's Matrix - Correct: Supplier management scale that goes from profit impact (low to high) and
supply risk (low to high)
Leverage Items - Correct: Low supply risk, high profit impact
Exploitation of full purchasing power, targeted pricing strategies/negotiations, abundant supply
Strategic Items - Correct: High supply risk, high profit impact
Development of long-term relationships, collaboration and innovation, natural scarcity
Non-Critical Items - Correct: Low supply risk, low profit impact
Product standardization, process efficiency (automated purchasing like catalogues, e-tendering), abundant
supply
Bottleneck Items - Correct: High supply risk, low profit impact
Low control of suppliers, innovation and product substitution and replacement, production-based scarcity
SRM Steps - Correct: Supplier segmentation, supplier strategy development, supplier strategy execution
1|Page
,Supplier Segmentation - Correct: Map suppliers against profitability and risk exposure
Supplier Strategy Development - Correct: Distribute internal resources and plans to meet business needs
Supply Strategy Phases - Correct: Classification, market analysis, strategic positioning, action plans
Phase One: Classification - Correct: Strategic, bottleneck, non-critical, leverage
Phase Two: Market Analysis - Correct: Assess supplier strength as well as company strength, assess
things like availability of product in terms of both quality and quantity
Phase Three: Strategic Positioning - Correct: Identify areas of opportunity or vulnerability, assess supply
risks, and derive basic strategies by placing items from phase one into the purchasing portfolio matrix
Phase Four: Action Plans - Correct: Company explores scenarios and lays out plans for securing long-
term supply and for exploiting short-term opportunities
Service Supply Chains - Correct: Customer input > action > service output
Direct Interaction - Correct: Person-to-person interaction in a service supply chain
Surrogate Interaction - Correct: Acting on another entity's resources (car in carwash) in a service supply
chain
Independent Processing - Correct: Entity is acting on resources owned and controlled by that same
entity in a service supply chain. (Provider installs purchased car wash equipment himself, enabling innovation
enables the customer)
2|Page
, What Gives Better Economies of Scale? - Correct: Positioning steps toward provider's process domain
gives better economies of scale
What Gives Better Opportunity for Customization? - Correct: Positioning toward customer's process
domain gives greater opportunity for customization
Components of Operations - Correct: Inputs, transformation process, outputs
Transformation Processes - Correct: Part of manufacturing where raw materials are converted into
finished products using machinery, processes, and labor resources
Transformed resources, transforming resources
Transformed Resources - Correct: Those that are transformed in some way by the operation to produce
the goods or services that are its outputs
Transforming Resources - Correct: Those that are used to perform the transformation process. Staff or
facilities
Inputs - Correct: Aren't just physical materials. Can be things like information or customers
Important Aspect of Operations Management - Correct: Minimizing the environmental impact of waste
over the entire life cycle of their products, up to the point of final disposal
Different Types of Transformation - Correct: Manufacture, transport, supply, service
Manufacture Transformation - Correct: The physical creation of products (like cars)
Transport Transformation - Correct: The movement of materials or customers (like a taxi service)
3|Page
