Question 1
A key benefit of an ITX is: A. reduced supplier risk
B. reduced cost compared to other exchanges C. increased product differentiation
D. collaboration
Question 2
A proactive reason for SRM is that organizations learn from each other. This is best described as:
A. building organizational skills B. strengthening operations
C. increasing organizational expertise D. developing common training
Question 3
A short term alliance between independent organizations in a potentially long term relationship is a:
A. virtual organization B. strategic partnership C. tactical joint venture D. deliberate enterprise
Question 4
A successful business alliance that involves an alliance partner that is also a competitors in a different field requires:
A. multifaceted relationship management B. closed business systems
C. controlled communication D. legal agreements
Question 5
All of the following activities are typically part of the full implementation stage of developing a supplier alliance EXCEPT:
A. supplier identification B. problem solving meetings C. alliance pulse checks D. regular business processes
Question 6
All of the following are core electronic business system functions EXCEPT: A. procurement history
B. accounting
C. performance measurement D. product search
Question 7
All of the following SRM functions can be outsourced EXCEPT: A. customer service accountability
B. sourcing
C. contract deployment D. compliance management
Question 8
An auction characterized by dynamic pricing based on buyer and seller offers is a:
A. Dutch auction B. forward auction C. reverse auction
Question 9
An auction with multiple buyers and one seller for one item is a: A. reverse auction
B. Dutch auction C. forward auction
D. demand management auction
Question 10
An early step in building a success alliance that promotes mutual profitability is:
A. establishing ground rules
B. appointing a dedicated alliance manager C. negotiating a win/win deal
D. initiating collaboration
Question 11
An exchange that connects buyers and sellers within an industry is a: A. horizontal trade exchange
B. hybrid trade exchange C. independent trade exchange D. vertical trade exchange
Question 12
Based on the APICS definition of SRM, a firm will implement this philosophy with:
A. all tier 1 type suppliers B. a selected group of suppliers C. all suppliers
Question 13
Commodities are MOST likely to be traded in a: A. horizontal trade exchange
B. vertical trade exchange C. private trade exchange D. hybrid trade exchange
Question 14
Each of the following is an example of a strategic alliance, EXCEPT: A. supplier-managed inventory
B. distributor integration C. 3PLs
D. trade organization
Question 15
If a sourcing relationship has the potential to jeopardize attaining business objectives, it is best for the purchasing company to:
A. find alternative suppliers
B. decrease the dependency on that particular supplier C. develop a closer relationship with that supplier D. increase the stock ordered to counteract uncertainty
Question 16
Intense collaboration and trust should be reserved for: A. all partners in the supply chain
B. only a select few suppliers C. highest volume partners D. highest value add partners
Question 17
Private trade exchanges are often created by: A. a consortium of small, similar businesses B. market-dominant companies
C. an independent service provider D. trade organizations
Question 18
SRM allows for increased visibility in the supply chain. This additional information is least likely used for:
A. contingency planning B. lessening bullwhip effect C. negotiating pricing
D. faster response to problems
Question 19
Strategic alliances between organizations can most help improve operations by:
A. eliminating redundant job positions B. increasing cross-training of personnel C. lowering system costs
D. increasing the shared information
Question 20
Strategic growth is available through alliances for: A. companies looking for new opportunities B. small companies that are facing closure C. medium companies facing market stagnation
Question 21
Technology has played all of the following roles in SRM, EXCEPT: A. Systems can show current status of operations
B. Suppliers can communicated with customers in real time C. Transactional processes can be automated
D. Security enhancements now effectively segregate enterprise business processes
Question 22
The goal of SRM is:
A. the evolution of the entire supply chain
B. achieving more with a fewer number of suppliers C. to focus less efficient suppliers towards business goals D. mutual profitability and meeting marketplace needs
Question 23
The least common reason for the need to commitment to change in a supplier relationship is:
A. shorter product life B. high cost of inventory C. large profit margins
D. fast changing environment
Question 24
The role of promoting relationships between partners and building joint initiatives belongs to the:
A. relationship manager B. alliance manager C. partnership manager D. liaison manager
Question 25
Traditional purchasing focuses on purchase price. Strategic sourcing focuses on:
A. landed cost
B. purchase price and delivery cost C. true cost
D. total cost
Question 26
What is the first step in certifying a supplier? A. select suppliers
B. evaluate alternative suppliers
C. define requirements, process and roles D. conduct measurements
Question 27
What is the first step to successful alliances? A. select proper partners
B. establish ground rules C. align internally
D. appoint a dedicated alliance manager
Question 28
When building successful alliances, after business processes are
established to routinely determine the health and performance of the alliance, it is important for the alliance to:
A. prepare of change so the alliance can make the necessary adaptations in the
B. determine additional participants that need to be included in the alliance
C. plan for changes in the supplier environment D. prepare for shorter product life cycles
Question 29
When establishing successful supplier relationships, typically it is valuable to perform what prior to a full implementation?
A. supplier qualification assessment B. risk assessment
C. alliance pulse check D. pilot program
Question 30
When selection proper partners, which is not a specific characteristic that should be evaluated? A. operating style B. business practices C. historical performance D. corporate culture
Question 31
Which is most true about strategic alliances?
A. Alliances that dominate the marketplace will intensify competition. B. Company core competencies evolve through alliances.
C. Alliances can decrease economic effect of competition.
D. Companies with certain types of supply situations may be better off forgoing alliances.
Question 32
Which is not a clear benefit of SRM technologies? A. reduced number of sub par materials supplied B. reduced cycle time on sourcing products C. ease of standardizing purchasing decisions D. ease of selecting suppliers
Question 33
Which is not a specific source of data for supplier rating systems? A. conformation rates
B. time line performance
C. amount of conditionally accepted materials D. number of quality investigations
Question 34
Which is not part of the suite of SRM services? A. supplier search
B. accounting C. financing/billing D. strategic sourcing
Question 35
Which of the following steps in building a successful alliance entails developing the business processes for how the participants will work together?
A. establish ground rules B. encourage collaboration C. align internally
D. conduct pulse checks
Question 36
Workflow management in the context of internet-enabled SRM toolsets falls under:
A. SRM processing B. SRM services
C. SRM technology and external interfaces D. EBS backbone