In should-cost modeling, the _____ provides a high level view of the supply chain, and then the suppliers primary cost elements are broken down into material, labor, overhead, transportation freight, inventory cost, maintenance costs, and others.

Question 65 options:

A) PPI B) value stream map C) target price D) product specification E) None of the above.

Question 66 (1 point)

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In TCO, _____ is the amount paid to the supplier for the product, service, or capital equipment.

Question 66 options:

A) acquisition cost B) usage cost C) end-of-life cost D) purchase price E) opportunity cost

Question 67 (1 point)

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All of the following are opportunities for supplier cost reductions except _____.

Question 67 options:

A) process capability B) plant utilization C) learning-curve effect D) ability to vote out the suppliers labor union E) management capability

Question 68 (1 point)

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_____ involves a detailed analysis of the supply base to ensure that only the most capable and highest performing suppliers are kept in the supply base after it is rationalized.

Question 68 options:

A) Supply base optimization B) Outsourcing C) Strategic sourcing D) Supply base reduction E) Supply base management

Question 69 (1 point)

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All of the following are advantages of a weighted-point supplier evaluation system except _____.

Question 69 options:

A) flexible system B) supplier ranking allowed C) moderate implementation costs D) total cost approach E) quantitative and qualitative factors combined into a single system

Question 70 (1 point)

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Which of the following is not one of the advantages of a rationalized and optimized supply base?

Question 70 options:

A) Longer lead-times. B) Use of full-service suppliers. C) Lower total product cost. D) Ability to pursue complex supply management strategies. E) Buying from world-class suppliers.

Question 71 (1 point)

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According to ISM, _____ is defined as the ability to meet current needs without hindering the ability to meet the needs of future generations in terms of economic, environmental, and social challenges.

Question 71 options:

A) Sustainability B) Scenario analysis C) Social responsibility D) Supply chain risk management E) Standardization

Question 72 (1 point)

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All of the following are elements of market risk in a supply base except _____.

Question 72 options:

A) the number of buyers competing for the same goods or source of supply B) increasingly shorter product life cycles C) regional political risk D) threat of emerging, often disruptive, technologies E) protecting and maintaining trade secrets and intellectual properties from misuse or misappropriation by suppliers, particularly those located overseas

Question 73 (1 point)

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All of the following are advantages of a categorical supplier evaluation system except _____.

Question 73 options:

A) easy to implement B) requires minimal data C) different personnel can contribute D) low-cost system E) greatest potential for long-range improvement

Question 74 (1 point)

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Which of the following is not a supplier-specific barrier to supplier development?

Question 74 options:

A) No immediate benefit to supplier development is evident in the buying organization. B) Lack of commitment on the part of suppliers management. C) Suppliers management agrees to improvements but fails to implement the proposals. D) Supplier lacks engineering resources to implement solutions. E) Supplier lacks employee skill base to implement solutions