MKT 367 Chapter 12

4.0 (5 reviews)

Get a hint

If the decision has been made that a new requirement cannot be made in-house and no existing supplier is adequate, then:

a. one option exists: search the marketplace for an untried/unknown, new supplier.
b. two options exists: search the marketplace for a new supplier, convince an
existing supplier to develop the capability.
c. three options exists: search the marketplace for a new supplier, convince an
existing supplier to develop the capability, or engage in reverse marketing.
d. three options exists: search the marketplace for a new supplier, convince an
existing supplier to develop the capability, or inform the internal user the item
cannot be purchased.
e. three options exists: search the marketplace for a new supplier, engage in reverse
marketing, or redesign/respecify the requirement so that it is procurable.

Click the card to flip 👆

1 / 20

Terms in this set (20)

e. three options exists: search the marketplace for a new supplier, engage in reverse
marketing, or redesign/respecify the requirement so that it is procurable.

Distributors, wholesalers, and retailers:

a. typically cannot deliver at a lower cost than the manufacturer.
b. typically carry a very limited supply in an effort to keep inventory costs low.
c. may provide valuable services and a better price than the manufacturer.
d. have an indefensible value proposition in the typical modern supply chain.
e. never add enough value to a buyer to make it worth doing business with them.

d. have an indefensible value proposition in the typical modern supply chain.

The supplier selection decision:

a. should be based on quantifiable factors such as price and delivery, and ignore social and political issues.
b. can be seen as a decision making process undertaken in an environment of certainty.
c. is based on a uniform set of weighted criteria that can be applied to every purchase.
d. can be depicted by a decision tree identifying options, evaluation criteria, and probabilities of success and failure.
e. should always be preceded by a formal supplier evaluation and rating.

d. can be depicted by a decision tree identifying options, evaluation criteria, and probabilities of success and failure.

The ability to extend the advantages of local sourcing to offshore suppliers is primarily due to:

a. better educated supply managers making supply decisions.
b. transformations in communications and transportation.
c. greater openness to global trade on the part of economically developing countries.
d. end customer pressure to do business globally.
e. greater diversity in legal frameworks around the world.

b. transformations in communications and transportation.

Which of the following statements supports multiple sourcing:

a. an ongoing long-term contract exists with a preferred supplier.
b. concerns exist about supplier capacity for future volume.
c. supply is plentiful and supply assurance is important.
d. there is a patent involved.
e. the order is small.

b. concerns exist about supplier capacity for future volume.