Part : True-False

Mark the statement as true(T) or false(F).

1. Strategic sourcing aims to manage procurement priorities, of which there are several unique aspects.For instance, strategic sourcing mainly focusesattention on the improvement of purchasing practices in existing business processes.

( )

2. Strategic sourcing process focuses more on supply chain impacts of procurement and purchasing decisions, and often works cross-functionally within the business firm. Accordingly, achieving goals of strategic sourcing is common responsibilities shared by managers within the firm.

( )

3. Strategic level in sourcing refers to the purchasing strategy under the guidance of the premise, relates to product, process, quality and specific supplier selection decisions, the decisions span for 3-5 years, which made by enterprise top management team.

( )

4. In the models of strategic sourcing, the operationincluding negotiation with suppliers, can be all controlled by the division, while the headquarter just provides guidance and supervision.

( )

5. If each department in a firm was to make purchasing decisions according to their respective demands, the purchasing cost would be often lowerthan the one of coordinated purchasing.

( )

Part : Multiple Choice

There may not be only ONE correct choice for each question.

6. According to Kraljic Portfolio Purchasing Model, if your firm can easily find many suppliers for the critical materials of the major products, which type is the item more like? And which purchasing strategy should you adopt?

( )

a. non-critical; Search for new suppliers

b. Leverage; Volume insurance, Vendor control

c. Leverage; Tendering, Target pricing

d. non-critical; Bundle purchases

7. Which of the followings belong to the advantages of applying Electronic Procurement?

( )

a. Lower operating costs through reducing paperwork and sourcing time, and improving control over inventory.

b. Improve efficiency of procurement by lowering cycle times, etc.

c. Improve communications due to the lack of face-to-face contact between the buyer and seller

d. Lower the costs of raw materials by finding more new supply sources

8. Several types of E-commerce Business Models have emerged with the growing application of information technology. Among them, which of the following model tends to be maintained by technology service providers, and provide marketplace where manybuyers and sellers could trade with each other?

( )

a. Sell-side system like Wal-Mart.

b. Buy-side system.

c. Electronic marketplace such as Amazon and JD.

d. Online trading community.

Part I: Short Answer

No more than 120 words

9. There are two cases in this chapter, the one is Honda Jialings Strategic Sourcing, and the other is COSMOPlat of Haier. Please answer the following two questions:

1) Whats the unique aspect of Honda Jialingssupplier management, in comparison with the normal competitors?

2) There was no mask production line in Shanxi province before. How did COSMOPlat support it during the COVID-19 pandemic? Why can COSMOPlat do that?