Exam (elaborations)
OMGT TEST 2 3123 ECU Exam Questions with Correct Answers
- Course
- Institution
OMGT TEST 2 3123 ECU Exam Questions with Correct Answers
[Show more]
Content preview
OMGT TEST 2 3123 ECU ExamQuestions with Correct Answers
Supply Management Defined - Answer-Sourcing decisions and purchasing activities
(collectively Supply Management) serve to link a company with its upstream supply
chain partners
Supply Management is..... - Answer-...the broad set of activities carried out by
organizations to:
- analyze sourcing opportunities
- develop sourcing strategies
- select suppliers
- analyze and negotiate price and cost
- carry out all the activities required to procure goods and services
Why is Supply management is critical for global - Answer-to compete globally for
advances in information systems and changes in environment. "______-______"-ask
Kirchoff
Why is Supply management is critical financial impact for the average manufacturer
because - Answer-nearly 60% of the product value comes from material, on average
Over 60% of firms total COGS is controlled by - Answer-Purchasing
Supply management represents a major opportunity - Answer-to increase profitability
Pretax earnings increased - Answer-% increase = (COGS X %) / pretax earnings
Pretax profit old - Answer-= Pretax earnings / Sales (how much you make on every $1
of sales)
To increase profit through sales requires: - Answer-(COGS X %) / Pretax profit old = ##
increases ( from old Sales to (sales + ##)
Why Supply Management is critical for performance impact - Answer-Quality
Delivery
Technology
Responsiveness
Similar management goals
Problem solving
Study Performance impact chart chapter 7 slide 12 - Answer-
The Supply Management (SM) process - Answer-1. Assess Opportunities
, 2. Profile internally/ externally
3. Develop the Sourcing Strategy
4. Screen Suppliers and create selection criteria
5. Conduct Supplier Selection
-Negotiate
-Ordering *procure to pay cycle*
-Follow up and expediting *pay cycle*
-Receipt and inspection *pay cycle*
-settlement & payments *pay cycle*
-Records maintenance *pay cycle*
THE SM PROCESS :
Assess Opportunities, Profile internally / Externally, Develop the sourcing Strategy and
Screen Suppliers and create Selection Criteria - Answer-Typically, more strategic and
difficult to accomplish
THE SM PROCESS:
Ordering, Follow up and expediting, receipt and inspection, Settlement & Payments,
and Records maintenance - Answer-Typically, more tactical and easier to accomplish
1. Assess Opportunities - Answer-Spending analysis on the company bulk spending
and suppliers highest spending
1. Assess Opportunities firms purchasing needs - Answer-New Projects and Existing
Projects
2. Profile Internally / Externally - Sourcing decisions are high-level, often strategic
decisions: - Answer-Which product will use resources within the firm and products will
be provided by external supply chain?
2. Profile Internally / Externally have - Answer-Insourcing and Outsourcing
Insourcing - Answer-The use of resources within the firm
to provide products or services
Outsourcing - Answer-The use of supply chain partners
to provide products or services
The SM Process: Profile and Strategy Pros of Insourcing - Answer-High degree of
control, Ability to oversee the entire program, and economies of scale and / or scope
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller lectknancy. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $15.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
77858 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now