SCM 4350 Exam 2 UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
The SCM Seven-Step Sourcing Process - CORRECT ANSWER Spend Analysis
Supply Market Assessment
Total Cost Analysis
Supplier Identification/Assessment
Sourcing Strategy
Supplier Negotiation/Selection
Contract Management Evaluation
Difference between supply base optimization and supplier rationalization (2) - CORRECT
ANSWER There is no difference between them they mean the same thing.
What are the two risks for supplier rationalization? - CORRECT ANSWER Picking the
wrong supplier, Cutting supply base too deeply.
Maverick Spend - CORRECT ANSWER Spending outside of contracts. Spending in
not good ways.
Single Source - CORRECT ANSWER You choose to have 1 source out of the options
you do have.
Sole Source - CORRECT ANSWER Only source you have (only option you have).
The Make-or-Buy Decision (3) - CORRECT ANSWER Keep our factories (and
workers) operating at a high capacity.
Keep proprietary technology or intellectual property (IP) out of the open market.
, Higher quality
Shorter lead-times
More cost effective
Supplier Redundancy - CORRECT ANSWER Building suppliers and adding them to
strategy.
Refers to the ability to replace suppliers if the 1st thing isnt going as planned.
Back-up plan, protect against disruption risk.
Backup or alternative suppliers and the amount of time it takes for an organization to switch
between suppliers following a disruption.
Supplier Financial Ratios (4) - CORRECT ANSWER
Supplier Score carding - CORRECT ANSWER Evaluation of supplier's performance
using key performance indicators.
Used to determine performance trends, along with relative performance compared to other
suppliers. (Make comparative analysis).
Portfolio Matrix (5) - CORRECT ANSWER (Variables):
1) Value Potential (High and Low).
2) Supply Market Complexity or risk (High and Low).
Quadrants: Leverage, Critical, Bottleneck, and Routine
Standardization - CORRECT ANSWER redesign, trying to reduce the variety in bill of
materials.
QUESTIONS AND CORRECT ANSWERS
The SCM Seven-Step Sourcing Process - CORRECT ANSWER Spend Analysis
Supply Market Assessment
Total Cost Analysis
Supplier Identification/Assessment
Sourcing Strategy
Supplier Negotiation/Selection
Contract Management Evaluation
Difference between supply base optimization and supplier rationalization (2) - CORRECT
ANSWER There is no difference between them they mean the same thing.
What are the two risks for supplier rationalization? - CORRECT ANSWER Picking the
wrong supplier, Cutting supply base too deeply.
Maverick Spend - CORRECT ANSWER Spending outside of contracts. Spending in
not good ways.
Single Source - CORRECT ANSWER You choose to have 1 source out of the options
you do have.
Sole Source - CORRECT ANSWER Only source you have (only option you have).
The Make-or-Buy Decision (3) - CORRECT ANSWER Keep our factories (and
workers) operating at a high capacity.
Keep proprietary technology or intellectual property (IP) out of the open market.
, Higher quality
Shorter lead-times
More cost effective
Supplier Redundancy - CORRECT ANSWER Building suppliers and adding them to
strategy.
Refers to the ability to replace suppliers if the 1st thing isnt going as planned.
Back-up plan, protect against disruption risk.
Backup or alternative suppliers and the amount of time it takes for an organization to switch
between suppliers following a disruption.
Supplier Financial Ratios (4) - CORRECT ANSWER
Supplier Score carding - CORRECT ANSWER Evaluation of supplier's performance
using key performance indicators.
Used to determine performance trends, along with relative performance compared to other
suppliers. (Make comparative analysis).
Portfolio Matrix (5) - CORRECT ANSWER (Variables):
1) Value Potential (High and Low).
2) Supply Market Complexity or risk (High and Low).
Quadrants: Leverage, Critical, Bottleneck, and Routine
Standardization - CORRECT ANSWER redesign, trying to reduce the variety in bill of
materials.
