SCM Chapter 9 2nd Supply Development

Which one is not a formal approach to​ Supply Base Rationalization?​

• Triage Approach

• 80/20 rule

• Competencies Staircase

• Score card

What are common risks in supplier rationalization?

• More qualified suppliers

• Supply disruption​

• Absence of Competition

• Less competition

What is a benefit of diversifying suppliers?

• Greater flexibility

• Reduce cost

• Higher costs

• Increased risk

Which metric indicates supplier reliability?

• Location

• Brand reputation

• Delivery times

• Price only

Benchmarking and Pareto analysis could be used in which step of supply development?

• Monitor Status of Projects and Modify Strategies as Appropriate​

• Define Key Metrics and​Cost-Sharing Mechanisms​​

• Identify Opportunities and​ Probability for Improvement​

• Identify Critical Suppliers​

Should every organization do supply development?

• True

• False

What is essential for a supply base requirement?

• Lower cost

• Vision and commitment

• Immediate benefits

• High turnover

How many steps do you execute in the process of supplier development?

• 7

• 8

• 9

• 10

" We do not have responsibility to train the suppliers and do their job. " This statement refers to which barrier?

• Importance of purchased item does not justify development efforts​​

• Supplier lacks engineering resources to implement solutions​

• Supplier lacks required information systems​​

• No immediate benefit to supplier development is evident to buyer​

Which one is not an advantage of supplier rationalization and optimalization?

• Lower Total Product Cost​

• • Buying from world-class suppliers​

• • Reduction of supply base risk​

• • Overaggressive supply reduction​