Procurement Final Exam - Study Guide
QUESTIONS AND VERIFIED CORRECT
ANSWERS GRADED A+ LATEST 100%
GUARANTEED PASS
-LEVEL 2 - Traditional criteria: quality, quantity, delivery, price and service
-LEVEL 3 - Additional criteria: financial, risk, environmental impact, regulatory compliance,
innovation, social and political factors
(Level 1 = "Special ones" - Critical to your success (Kraljic Model)
Level 2 = Every day criteria.
Level 3 = Everything else).
12: Level 1 Strategic Criteria: Supply Risks and Spend Categories: - CORRECT ANSWER-For better
example go to slide 7.
12: Level 2 and 3 Traditional Criteria: Evaluation of Potential Supply Sources:
PRODUCTION PROCESS AND TECHNICAL CAPABILITY: - CORRECT ANSWER--Previous experience
and accomplishments.
-Completed projects (talk to past customers).
,-Utilization of quality processes and systems.
-Engineering, design and technical strengths.
-Capacity and flexibility to meet demand (lead time).
-Employee qualifications and capabilities.
-ISO 9000 / ISO 14000 certifications.
-Availability and quality of technical support.
-Evaluation of samples obtained from supplier.
-Visit to supplier's facility by cross-functional team.
12: Level 2 and 3 Traditional Criteria: Evaluation of Potential Supply Sources:
MANAGEMENT PERFORMANCE AND FINANCIAL STABILITY: - CORRECT ANSWER--Mission, goals,
planning, corporate culture, values.
-Organization structure and decision-making.
-Customer focused / quality focused
-Management controls, information systems, policies and procedures, e-commerce capability
, -Qualifications and background of key managers
-Financial condition (ex. annual reports, D&B's)
-Financial ratios (ex. liquidity, profitability, debt and activity)
12: Supplier Selection Decision Comes Down to Answering Two Questions: - CORRECT ANSWER-
1) Is this supplier capable of supplying our internal client's requirements in the way expected for
either the short and/or long term?
2) Is this supplier motivated to supply our internal client's requirements in the way expected for
either the short and/or long term?
12: Level 3 - 10 Potential Supplier Evaluation Criteria (R. Monczka): - CORRECT ANSWER-1.
Management Capability
2. Employee Capabilities
3. Cost Structure
4. TQM - Systems and Philosophy
5. Process and Technology Capability
6. Sustainability and Environmental Compliance
QUESTIONS AND VERIFIED CORRECT
ANSWERS GRADED A+ LATEST 100%
GUARANTEED PASS
-LEVEL 2 - Traditional criteria: quality, quantity, delivery, price and service
-LEVEL 3 - Additional criteria: financial, risk, environmental impact, regulatory compliance,
innovation, social and political factors
(Level 1 = "Special ones" - Critical to your success (Kraljic Model)
Level 2 = Every day criteria.
Level 3 = Everything else).
12: Level 1 Strategic Criteria: Supply Risks and Spend Categories: - CORRECT ANSWER-For better
example go to slide 7.
12: Level 2 and 3 Traditional Criteria: Evaluation of Potential Supply Sources:
PRODUCTION PROCESS AND TECHNICAL CAPABILITY: - CORRECT ANSWER--Previous experience
and accomplishments.
-Completed projects (talk to past customers).
,-Utilization of quality processes and systems.
-Engineering, design and technical strengths.
-Capacity and flexibility to meet demand (lead time).
-Employee qualifications and capabilities.
-ISO 9000 / ISO 14000 certifications.
-Availability and quality of technical support.
-Evaluation of samples obtained from supplier.
-Visit to supplier's facility by cross-functional team.
12: Level 2 and 3 Traditional Criteria: Evaluation of Potential Supply Sources:
MANAGEMENT PERFORMANCE AND FINANCIAL STABILITY: - CORRECT ANSWER--Mission, goals,
planning, corporate culture, values.
-Organization structure and decision-making.
-Customer focused / quality focused
-Management controls, information systems, policies and procedures, e-commerce capability
, -Qualifications and background of key managers
-Financial condition (ex. annual reports, D&B's)
-Financial ratios (ex. liquidity, profitability, debt and activity)
12: Supplier Selection Decision Comes Down to Answering Two Questions: - CORRECT ANSWER-
1) Is this supplier capable of supplying our internal client's requirements in the way expected for
either the short and/or long term?
2) Is this supplier motivated to supply our internal client's requirements in the way expected for
either the short and/or long term?
12: Level 3 - 10 Potential Supplier Evaluation Criteria (R. Monczka): - CORRECT ANSWER-1.
Management Capability
2. Employee Capabilities
3. Cost Structure
4. TQM - Systems and Philosophy
5. Process and Technology Capability
6. Sustainability and Environmental Compliance
