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| Section | Objectives |
|---|---|
| Procurement and Sourcing | - Supplier selection and evaluation - Contracting and purchasing basics |
| Supply Management Fundamentals | - Value creation and supply chain role - Introduction to supply management concepts |
| Operations and Demand Planning | - Production and operations alignment - Demand forecasting fundamentals |
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NEW QUESTION # 288
A service provider has experienced diminished value and stagnant results within an important category. Which of the following is the BEST course of action the firm can take to improve the category strategy?
Answer: B
Explanation:
* Diminished Value: Recognizing that the current category strategy is not yielding desired results.
* Exploring Alternatives: Networking with suppliers and launching Requests for Information (RFIs) allows the firm to explore new solutions and innovations that could improve the category.
* Engagement with Market: This approach opens up opportunities to engage with the supplier market, potentially identifying new or better ways to meet needs and enhance value.
References
* Gattorna, J. (2015). Dynamic Supply Chains: Delivering Value Through People. Pearson.
* Lysons, K., & Farrington, B. (2016). Procurement and Supply Chain Management. Pearson.
NEW QUESTION # 289
An oil & gas exploration company has employed its current offshore vessels for over ten years. The firm is seeking to bring its fleet up-to-date. The firm knows what results it requires, but with the changes that have occurred over the last decade, it is not sure what combination of vessel types and quantities will deliver the most efficient operations for its needs. Given this situation, which of the following will be MOST appropriate for this firm to issue?
Answer: D
Explanation:
* Company's Situation: The oil & gas exploration company needs to update its fleet of offshore vessels but is unsure about the best combination of vessel types and quantities.
* RFP Purpose: An RFP is used when the buyer knows the results it requires but needs detailed proposals from suppliers to determine the best solution.
* Comprehensive Proposals: RFPs allow suppliers to propose various solutions, including different combinations of vessel types and quantities, and explain how their proposals will meet the company's needs.
* Evaluating Solutions: The RFP process provides the company with the information needed to evaluate the most efficient and effective options for updating its fleet.
* Conclusion: Issuing an RFP is most appropriate to obtain detailed and varied proposals that will help the company make an informed decision.
References
* CIPS. (n.d.). The Use of Requests for Proposals (RFPs) in Procurement.
* ISM. (n.d.). Best Practices for RFP Development and Evaluation.
NEW QUESTION # 290
A company buys a machine for $175,000. The machine will be depreciated on straight-line basis over a 10-year period with salvage value of $25,000. The company expects the machine to generate after-tax net cash inflows of $30,000 in each of the 10 years. At the end of the 10 years, the machine is expected to be sold for $25,000. The discount rate is eight percent.
What is the net present value?
Answer: A
NEW QUESTION # 291
A city planner believes that as people's income rises, they are less likely to travel to work using public transportation or carpools. To see whether this belief is substantiated, the city planner gathers data from the 50 U.S. states on mean household income (in thousands of dollars) as well as the percent of people who take public transportation or carpool to work. The results for this regression are given below.
Which of the following Excel formulas would correctly forecast the dependent variable for a state with a mean household income of $37,000?
Answer: A
NEW QUESTION # 292
A supplier's willingness to deal with rejected materials, fill surges in orders, and provide technical support will be MOST affected by which of the following?
Answer: B
Explanation:
A supplier's willingness to deal with rejected materials, fill surges in orders, and provide technical support is most influenced by maintaining good supplier relationships.
* Creating teaming agreements with suppliers: This can formalize collaboration but does not inherently foster goodwill and responsiveness.
* Negotiating inclusive terms and conditions: Important, but it sets the framework rather than influencing day-to-day willingness and responsiveness.
* Maintaining good supplier relationships: This builds trust, encourages cooperation, and ensures that the supplier is willing to go beyond the contractual terms to support the buying organization.
* Including such conditions in the statement of work: Ensures these terms are contractually agreed but may not impact the supplier's willingness as much as a strong relationship would.
Therefore, maintaining good supplier relationships will most affect the supplier's willingness to address these issues.
References:
* Supplier relationship management strategies.
* Institute for Supply Management (ISM) guidelines on supplier collaboration.
NEW QUESTION # 293
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