SCMN 3730 EXAM 1 WITH CORRECT
ACTUAL QUESTIONS AND CORRECTLY
WELL DEFINED ANSWERS LATEST 2024 –
2025 ALREADY GRADED A+
What is meant by supply integration?
involves professionally managing suppliers & developing close working
relationships with different internal groups
What is meant by collaboration?
process by which two or more parties adopt a high level of purposeful
cooperation to maintain trading relationship over time
What are the characteristics of a collaborative buyer-seller relationship?
- one or limited number of suppliers for each purchase item/family of items
- win-win approach to reward sharing
- joint efforts to improve supplier performance
- joint efforts to resolve disputes
- open exchange of information
- credible commitment to work together during difficult times
,- commitment to high quality, defect-free, & manufacturable products that
suppliers process is capable of producing
What is the average percentage of purchases to sales in the manufacturing
sector?
55%
Explain the relationship between outsourcing & core competencies
- availability of low-cost alternatives has led to shifts toward outsourcing &
offshoring activities
- must now evaluate the economics of re-shoring & near-shoring
What are the 4 pillars of purchasing & supply chain management?
- human resources
- organizational design
- information technology
- measurement
Definition of supply management
involves proactively managing the two-way movement & coordination of goods,
services, information & funds from raw material through end user
Why is purchasing important?
,- increasing value & savings
- building relationships & driving innovation
- improving quality & reputation
- reducing time-to-market
- managing supplier risk
- generating economic impact
- contributing to competitive advantage
What is maverick buying?
when failing to respond to the needs of internal customers will diminish the
confidence these users have in purchasing, so they then try to negotiate contracts
themselves
What are the steps in the purchasing cycle?
1. purchase order creation
2. budget check & RFP
3. vendor qualification & selection
4. negotiation & PO dispatch
5. delivery & quality check
6. purchase order matching & closure
, What are the features of the new model of progressive purchasing?
1. closer relationships
2. performing due diligence on suppliers before awarding long-term contracts
3. conducting worldwide searches for best sources of supply
4. inviting key suppliers to participate in produce & process development
What is meant by direct materials?
items provided by suppliers & used directly during production or service delivery
ex: raw materials, components, & sub assemblies
What is meant by indirect materials & services?
the sum of all purchased goods & services that are not a direct, identifiable part
of products or services delivered to the customer
What are the circumstances when a spot buy would be appropriate?
when buyers prefer a purchase order for initial purchases or a one-time purchase
What does it take to become a preferred supplier?
- receive the first opportunity for new business
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