1. Delivering Customer Value (CV) can best be expressed for simplicity as follows

CV = Perceptions of Management/ Total Cost of Management (TCO)

CV = Perceptions of Benefits/ Total Cost of Ownership (TCO)

CV = Perceptions of Shareholders/ Current Stock Price

CV = Total Cost of Ownership (TCO)

2. All of the following are major steps in the strategic sourcing process except?

Assessing the Supply Market

JIT Program management

Implementation and Integration of the Agreement

Supplier Performance measurement and Improvement

3. Which of the following statements is not true regarding contract types?

For firm fixed price contracts, the buyer risk is low and the supplier risk is high.

For cost plus incentive fee contracts , the buyer risk is medium and the supplier risk is medium .

For cost sharing contracts the buyer risk is high and the supplier risk is low.

For time and material contracts the buyer risk is low and the supplier risk is high .