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Viewing page 4 out of 10 pages

Viewing questions 31-40 out of questions

Questions # 31:

A supply manager Is planning for negotiations with a sole-source supplier of an essential part. The buying firm is already one of the supplier's top customers, and will need even larger quantities of the part to expand its product line in the near future. The supply manager learns that the supplier may experience some financial risks over the coming year, and that the supplier is anxious to solidify its relationships with major customers to mitigate that risk. Which of the following Is the BEST way for the supply manager to gain a deeper understanding of the supplier's position?

Options:

Perform a SWOT analysis

Perform a Porter's Five Forces analysis

Determine the supplier's bottom line position

Determine the buying firm's bottom line position

Questions # 32:

Which of the following is the simplest form of supplier evaluation?

Options:

Benchmarking

Categorical

Weighted point

Scorecard

Questions # 33:

RST Bus Corporation contracts with Supplier X to buy 5,000 gallons of diesel fuel per month over the course of a year. After the first delivery is used in RST's fleet of tour buses, several of the buses stall on the highway. An inspection by RST's mechanics determines that the damage was caused by contaminated fuel. RST's supply manager notifies Supplier X that no further deliveries will be accepted, and that the supplier is expected to pay the cost of the repairs to the buses. In response, Supplier X cites its contract clause disclaiming warranties and liability, and its e-mail acceptance of RST's purchase order, including a statement that Supplier X's terms and conditions were applicable and available upon request. Supplier X contends that RST must accept all scheduled deliveries.

In this situation, which of the following is the BEST course of action for RST's supply manager to take?

Options:

Contact RST's legal counsel, communicate the facts, and ask for their assistance in negotiating a solution to the problem

Bill Supplier X for repairs to the buses, no longer accept deliveries, and find a new supplier of diesel fuel

Refer the matter to the Department of Transportation for review and possible regulatory action against Supplier X

Absorb the cost of repairs, accept all of the diesel fuel, and contract with a refinery to reprocess the contaminated fuel at Supplier X's expense

Questions # 34:

A firm issues an RFQ for specialty electronics to be used within a new product line. Internal needs are assessed and specifications are prepared by engineering. The bid is sent to five current suppliers, all of whom are familiar with the firm's supply chain. However, only two of these suppliers respond, and their quotes are much higher than expected. Which of the following is the MOST likely explanation for what occurred?

Options:

The internal needs were not adequately addressed.

The specifications were too narrow.

The suppliers were not qualified.

The specifications were too broad.

Questions # 35:

A manufacturing company with plants and suppliers in numerous locations wants to cut its travel budget for the next year by 20%. Which of the following is MOST likely to help reduce travel costs?

Options:

Expanding use of video conferencing as an alternative to travel

Obtaining discounts from preferred providers of travel services

Lowering the allowable per diem

Sending an individual rather than a team when conducting site visits

Questions # 36:

A supplier of software critical to PQR Inc.'s scheduling system plans to discontinue supporting the version PQR uses in order to concentrate its resources on a newer version. The current software works well for PQR, and upgrading It would be costly for them in both money and time. The supply manager for PQR assembles a negotiating team with representatives from user departments to discuss the situation with the supplier and try to reach a mutually satisfactory agreement.

Soon after the start of negotiations, the supplier states that 90 days is the longest they can guarantee support for the current software. PQR’s production manager responds by saying, "Fine, we will take any extension at this point." But PQR's IT director shouts, "We can't do that! It will take at least six months to replace the software, even if we could afford to do so."

Given this situation, which of the following is the BEST course of action for the supply manager to take?

Options:

Ask the production manager and IT manager to calm down, and move on to another issue

Ignore the outburst and continue with the negotiations as if it had not occurred

Call a recess and meet with the team to recommit to agreed-upon roles and a unified strategy

Use the outburst as an opportunity for all parties to address their concerns

Questions # 37:

A supply manager for an electronics manufacturer is asked to source packaging for the company's new printed circuit board. The specifications recommend 0.50 mm tolerances, with a projected breakage ratio of 0.50%, at a cost of $1.00 each. The supply manager finds an alternative source that is specified at 0.60 mm tolerances, with a projected breakage ratio of 0.75%, at a cost of $0.80 each. If the cost of the new circuit board is $120 per unit, which packaging should the supply manager recommend and why?

Options:

The 0.50 mm packaging, as It is the most cost effective.

The 0.50 mm packaging, as the supply manager's primary responsibility is honoring internal stakeholder requests.

The 0.60 mm packaging, as it is the most cost effective.

The 0.60 mm packaging, as it is only $0.80 each, while the 0.50 mm packaging is $1.00 each.

Questions # 38:

A multinational company is in the market to purchase widgets. The firm's standard payment terms are net 80. While negotiating terms and conditions, a supplier offers to provide a 2% discount on the purchase price of the widgets if they are paid within 35 days. This is an example of which of the following?

Options:

Profit repatriation

Dynamic discounting

Fixed discounting

Supplier financing

Questions # 39:

A supply manager submits a request to fill several new positions, along with a proposal for an increased training budget. The new positions are approved, but training funds are cut rather than

expanded for the coming year. The supply manager believes that training will be essential for supply management's ability to support organizational strategy. Given this situation, which of the

following actions by the supply manager is MOST likely to be effective?

Options:

Fill fewer positions than approved, and use the remaining budget for training

Attempt to fill the new positions with skilled candidates who will not require extensive training

Have the staff complete the training early in the year

Develop examples of how training will help employees focus on organizational objectives

Questions # 40:

A supplier manufactures toys of proprietary design for its customers. Since the company's customers are industry rivals, the supplier has mutual non-disclosure agreements with each of them. One of these customers has developed a new toy and put it out to bid. Before awarding the contract, the customer's procurement team conducts a site visit to the supplier's factory. During the tour, the supplier asks the procurement team to turn off and put away any cell phones that have cameras. Which of the following BEST describes why the supplier made this request?