MKT 367 Ch.12 Quiz

Ch.12 Supplier Selection Quiz

Which of the following statements supports single sourcing?

The use of just-in-time production, stockless buying, or systems contracting

Traditional supplier evaluation criteria are…

quality, quantity, delivery, price, and service (plus sustainability)

Reverse marketing…

is encouraged by the rapid rate of technological change, growth in international trade, and the need to extract competitive advantage from supply chains

Assessment of a potential supplier’s financial situation…

may yield substantial opportunities for negotiating favorable terms for both buying and selling organizations

Supply management’s role in environmental sustainability is…

expanding because suppliers can influence the ability to achieve the goal of zero environmental impact

To avoid risk, a buyer can…

hedge in a commodities market, require bid or performance bonds, and decide not to do business in certain countries

A supplier’s references…

may be useful if they are of similar size and objectives as the buyer’s organization

Sustainability is…

the combination of environmental and social performance

Decision trees…

may be useful in making effective supplier selection decisions if probabilities of success and failure are assessed for each option

Small suppliers…

can often provide the greatest responsiveness and flexibility