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| Section | Objectives |
|---|---|
| Topic 1: Procurement and Sourcing | - Supplier selection and evaluation - Contracting and purchasing basics |
| Topic 2: Supply Management Fundamentals | - Value creation and supply chain role - Introduction to supply management concepts |
| Topic 3: Operations and Demand Planning | - Demand forecasting fundamentals - Production and operations alignment |
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NEW QUESTION # 19
For several years, an environmental services company has contracted on a single-source basis with a supplier that offers highly specialized testing procedures. The supplier's performance is excellent, but it has Instituted frequent rate increases. The company's supply manager is under pressure to reduce costs wherever possible, but developing other sources will be time-consuming. Given this situation, which of the following actions should the supply manager take FIRST?
Answer: A
Explanation:
* Current Situation: The supplier has instituted frequent rate increases, and developing other sources will be time-consuming.
* Should Cost Analysis: This involves estimating the supplier's production costs to understand whether the price increases are justified.
* Data-Driven Negotiation: Armed with this analysis, the supply manager can enter negotiations with factual data to challenge the rate increases or seek cost reductions.
* Informed Decisions: Should cost analysis provides a detailed understanding of the cost structure, enabling better-informed procurement decisions and potential savings.
References
* ISM. (n.d.). Should Cost Analysis in Procurement.
* CIPS. (n.d.). Cost Analysis Techniques in Supply Management.
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NEW QUESTION # 20
PQR, Inc. is a globally certified manufacturer and repair shop of aircraft parts. PQR's costs to produce these parts are as follows:
MethodCost per part
Manufacture internallyS 11,000
Purchase from outside manufacturer$ 10,000
Acquire resale parts and repair internally$ 9,000
Purchase refurbished parts from non-certified repair shop with its extended warranty$ 8,000 The firm's CEO directs supply management to provide wing flap inventory at the lowest cost to the company, while still meeting the goal of multinational market expansion. Which of the following courses of action BEST meets the CEO's directive?
Answer: B
NEW QUESTION # 21
Using the histogram below, how many companies have market capitalizations of more than $248 billion and up to and including $260 billion?
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Answer: B
Explanation:
Topic 2, Economics for Managers
NEW QUESTION # 22
A firm buys a particular product that has low business impact and low supply market complexity. How would this product be categorized using the Kraljic classification model?
Answer: B
NEW QUESTION # 23
When developing a sourcing strategy, which of the following is the BEST source of data on the spend profile of a category?
Answer: A
Explanation:
* Spend Profile Analysis: This involves examining how much money is being spent, on what, and with whom.
* Internal Database: The company's internal database will have historical data on past expenditures, contracts, purchase orders, and supplier performance.
* Comprehensive Data: This data is likely to be accurate, detailed, and tailored to the company's specific context.
* Internal Stakeholders: While they can provide insights, their information may not be as comprehensive
* or reliable as the data from an internal database.
* External Sources: External sources like sales representatives or the internet may not have access to all necessary internal details. References
* CIPS (Chartered Institute of Procurement & Supply) guidelines on spend analysis.
NEW QUESTION # 24
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