Question

Hello,

1-Single sourcing is a strategy used by some organizations. Which of the following is not a benefit of single sourcing?

a. Volume consolidation b. Strategic versus transactional relationship c. Synergies between multiple suppliers benefit the buyer d. Market competition between suppliers drives down price e. Neither C nor D are benefits of single sourcing f. All of the above are benefits

2-As a purchasing professional, one of the toughest dilemmas you will face in the next 5-10 years is “how much weight should you place on CSR issues when picking suppliers.

True or False

3-Which of the following is a poor match between buyer and supplier for all types of buys?

a. Nuisance b. Exploitable c. Development d. Core e. Both A & B f. None of the above

4-Two keys to success in routine buys are having the right controls and keeping it simple and straightforward.

True or False

5-How can you increase your attractiveness as a customer—i.e., become a customer of choice?

a. Increase the amount you spend b. Increase the amount of service you ask for c. Increase the demands on the supplier d. Call the supplier more frequently to talk e. None of the above

6-The Strategic Profit Model was developed by which company?

a. Eastman Kodak b. DuPont Chemical c. Ford Motor Company d. Wal-Mart e. General Electric

Thank you,

Answer 1

1. e. Neither C nor D are benefits of single sourcing. Whereas the remaining two are benefits of single sourcing.

2. True that as a purchasing professional, one of the toughest dilemmas you will face in the next 5-10 years is “how much weight should you place on CSR issues when picking suppliers.

3. e. Both A & B i.e nuisance, and exploitable are poor matches between buyer and supplier for all types of buys. Whereas the remaining two are good matches in this context.

4. True that two keys to success in routine buys are having the right controls and keeping it simple and straightforward.

5. a. Increase the amount you spend is the way you can increase your attractiveness as a customer—i.e., become a customer of choice. Whereas the remaining ones can’t be appropriate in this context.

6. b. DuPont Chemical is the company that developed the Strategic Profit Model. That is why the Strategic Profit Model is also known as the DuPont Equation.

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