Supply Chain Test and Answers

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Question 1 (Objective 4c) - A company using a weighted-criteria evaluation system has established these 3 categories and the appropriate weight in parentheses: Quality(0.40), Delivery(0.10), Cost(0.50). The scores for each category are shown below. Based on this, which company appears to be your top supplier? a) Company A: Quality(85), Delivery(60), Cost(90) b) Company B: Quality(90), Delivery(90), Cost(80) c) Company C: Quality(85), Delivery(85), Cost(85) d) All companies scored the same. Question 2 (Objective 3f) – You are using the break-even analysis to decide whether to make or buy a small metal part used in your product. The variable costs are $10 to buy and $5 to make. The fixed costs are $2000 to buy and $22,000 to make. Therefore, you should: a) Buy the part if volumes are expected to be greater than 4000 b) Buy the part if volumes are expected to be greater than 3000 c) Make the part if volumes are expected to be greater than 4000 d) Make the part if volumes are expected to be greater than 3000 Question 3 (Objective 3a) - The goals of a purchasing organization include: a) Reducing total cost b) Ensuring raw materials are on hand when they are needed c) Reducing price only d) All the above e) A and B only Question 4 (Objective 3b) - A buyer received a materials requisition for a new part. What should the buyer do next? a) Send out a request for quote to potential suppliers. b) Issue a purchase order to the chosen supplier. c) Write up a contract for the purchase of this part and pay the invoice. d) Receive the part. Question 5 (Objective 4b, 4f) – Reverse auctions: I) Are a poor way to build long term supplier relationships. II) Are used primarily for the purchase of Bottleneck Commodities. III) Help drive quality improvements. IV) Are a useful tool for buying non-critical and leveraged

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