Chap 4 SCM301m
Chap 4 SCM301m
1. All of the following are examples of entry qualifiers that suppliers must
possess before they proceed to the next phase of the evaluation and selection
process except _____.
a. appropriate sales and marketing activities
b. financial strength
c. proven manufacturing or service capability
d. capable and supportive management
e. adequate facilities
2. Which of the following is not an example of questions that should be asked
when evaluating a supplier’s management capability?
a. Has management committed the supplier to TQM and
continuous improvement?
b. Is management customer focused?
c. What is the willingness of employees to contribute to improved
operations?
d. Does management put a priority on supply chain management?
e. What is the history of labor/management relations?
3. A/An _____ involves sending a preliminary survey to suppliers.
c. purchase order
d. order release
4. Which of the following is not a method used to further evaluate and select suppliers once
the initial evaluation has taken place?
b. Supplier visits.
c. Use of preferred suppliers.
d. Trade journals.
5. In a firm fixed price contract, if market prices _____ the stated contract price because of outside
factors such as competition, changes in technology, or raw material prices, the _____ assumes the risk
or financial loss.
a. rise above….purchaser
b. stay the same….seller
c. stay the same….purchaser
d. fall below….purchaser
e. None of the above.
6. The _____ the term of the purchase agreement, the _____ firm fixed-price contracts will
be acceptable to the supplier.
a. shorter….less likely
b. longer….more likely
c. longer….less likely
7. A _____ program is the formal process of verifying, usually through an intensive cross-functional on-
site audit, that a supplier’s processes and methods actually produce consistent and conforming quality.
a. supplier selection and evaluation program
b. supplier certification/audit checklist
c. Six Sigma
d. process capability
e. zero defects
8. _____ is the process of identifying potential negative events, assessing the likelihood of their
occurrence, heading off these events before they occur or reducing the probability that they will occur,
and making contingency plans to mitigate the consequences if they do occur.
a. Supplier selection
b. Supplier evaluation
c. Supplier categorization
d. Global sourcing
e. Risk management
9. Which of the following is false regarding the risks of unethical behavior by a purchaser?
c. buyer who performs an unethical act runs the risk that the act is also illegal.
d. Sellers quickly become aware of buyers who are open to offers “on the side.”
e. A buyer who makes purchase decisions based on factors other than legitimate
business criteria risks the reputation of the entire firm.
b. Exaggerating problems.
11.