Question 1

A company has the following financial information (in millions of $) : 
What is the percentage increase in earnings from a 5% savings in materials purchasing?

Accepted Answer

A)   5.0%
B)   14.3%
C)   12.63%
D)   19.0%E) B) and D)
F) A) and C)

Question 2

Which of the following would typically carry the most weight in supplier selection decisions?

Accepted Answer

A)   Quality and delivery.
B)   Technical capability.
C)   Price.
D)   Financial stability.E) None of the above
F) C) and D)

Question 3

Which of the following indicates an item to be a good candidate for outsourcing?

Accepted Answer

A)   The item is important to the company's competitive advantage.
B)   The item is a standard product also sold to many other companies.
C)   The item technologically advanced and will require close control.
D)   All of the above.E) A) and C)
F) A) and B)

Question 4

Spend analysis includes

Accepted Answer

A)   looking at what the company is buying, from whom, in what quantities, and at what price.
B)   looking at spend data by division or facility to isolate spending patterns.
C)   looking for opportunities to disperse purchasing activities to more areas within the organization.
D)   all of the above.E) B) and C)
F) All of the above

Question 5

Concerning outsourcing,which of the following is considered a qualitative cost (that is,a cost that is difficult to quantify) ?

Accepted Answer

A)   Costs of work stoppages and supply chain disruptions.
B)   Costs of drafting and negotiating contracts with suppliers.
C)   Inventory carrying costs.
D)   All of the above.E) A) and B)
F) B) and C)

Exam 17: Sourcing

A company has the following financial information (in millions of $) : What is the percentage increase in earnings from a 5% savings in materials purchasing?

Correct Answer
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Spend analysis includes

Correct Answer
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Which of the following would typically carry the most weight in supplier selection decisions?

Correct Answer
verified

Concerning outsourcing,which of the following is considered a qualitative cost (that is,a cost that is difficult to quantify) ?

Correct Answer
verified

Which of the following indicates an item to be a good candidate for outsourcing?

Correct Answer
verified

Exam 17: Sourcing

A company has the following financial information (in millions of $) : What is the percentage increase in earnings from a 5% savings in materials purchasing?

Correct AnswerverifiedShow Answer

Spend analysis includes

Correct AnswerverifiedShow Answer

Which of the following would typically carry the most weight in supplier selection decisions?

Correct AnswerverifiedShow Answer

Concerning outsourcing,which of the following is considered a qualitative cost (that is,a cost that is difficult to quantify) ?

Correct AnswerverifiedShow Answer

Which of the following indicates an item to be a good candidate for outsourcing?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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