$1.$ In the SCOR Model, purchasing is represented by:

a$.$ Plan

b$.$ Make

c$.$ Deliver

d$.$ Source

$2.$ A $$routine$$ buy on the strategic sourcing matrix has which of the following characteristics?

a$.$ High potential price volatility

b$.$ High risk

c$.$ Unique, value$-$added suppliers

d$.$ Straightforward competitive markets

$3.$ A leverage buy is one where there is:

a$.$ You spend enough money to generate supplier competition for your business

b$.$ Unique, value added suppliers

c$.$ You want to have the maximum number of suppliers possible in order to get competition

d$.$ High risk

$4.$ Category importance is determined by:

a$.$ Finance

b$.$ How much impact a particular category has on firm performance

c$.$ Doing a supplier risk assessment

d$.$ Only the amount of money spent on a category

$5.$ Which of the following are stages $($in order$)$ in the strategic sourcing process?

a$.$ Plan, source, make, deliver, return

b$.$ Analyze procure, source, pay

c$.$ Plan, analyze, source, make pay

d$.$ Analyze, source, bid$/$negotiate contract, procure, reconcile and pay

e$.$ Plan, source, bid$/$negotiate$,$ procure, pay

$6.$ The most likely area that you will have lengthy supplier negotiations in purchasing is:

a$.$ Leverage items, because you spend a great deal of money

b$.$ Routine items, because the contracts are very long in durations

c$.$ Strategic items, because their strategic nature

d$.$ All of the above

$7.$ The degree of supplier integration may vary, from $$ to $$ at the extremes.

a$.$ Sharing forecast information, insourced warehousing

b$.$ Supplier managed inventory, supplier manufacturing

c$.$ Collaborative forecasting, supplier integrated manufacturing

d$.$ Trading employees, trading management

e$.$ These are all extreme.

$8.$ Early supplier involvement involves:

a$.$ Inviting suppliers to share their ideas for improving mature products

b$.$ Inviting suppliers to share their ideas for improving new products during the design process

c$.$ Inviting supplier bids very early so you can determine whether products will be viable

d$.$ None of the above

$9.$ A sensitivity analysis as part of a supplier selection model is a good approach to understand:

a$.$ How current model data is

b$.$ What will happen if some of your key assumptions change

c$.$ The impact of a supplier price increase on your final costs

d$.$ All of the above

$10.$ When comparing costs for the outsourcing decision, compare $$ for the best results.

a$.$ Price vs internal cost to make

b$.$ Landed costs vs cost to make including freight

c$.$ Cost to make less fixed costs remaining after outsourcing vs price

d$.$ Cost to make less fixed costs remaining after outsourcing vs TCO