Global Sourcing and Materials Management

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What was the primary focus of company managers in the past?

Boundary spanners and JIT concepts

Internal issues of their companies (correct)

Maximizing profits from short-term agreements

Suppliers, customers, and distributors

What is a major factor contributing to the increased use of worldwide sourcing?

Ineffective worldwide communication systems

Limited access to global markets

Relatively low-cost transportation and movement of materials (correct)

Higher transportation costs

How were suppliers often viewed by purchasing agents in the past?

As external boundary spanners

As reliable business partners

As JIT experts

As adversaries in business (correct)

How has the Internet impacted global sourcing?

It has made it easier for buyers to search out new sources of supply Signup and view all the answers

What was the role of boundary spanners in an organization?

To deal with external entities Signup and view all the answers

What is a key characteristic that customers expect in the products and services they buy?

A fair price Signup and view all the answers

What sparked the first major change in the perspective of company managers?

The explosive growth in JIT concepts Signup and view all the answers

What was the primary goal of a purchasing agent in the past?

To negotiate the best financial and delivery conditions Signup and view all the answers

What is the primary goal of companies in terms of quality in today's competitive market?

To exceed customers' high expectations Signup and view all the answers

What type of agreements were often negotiated between companies and suppliers in the past?

Short-term contracts Signup and view all the answers

What are the factors that customers consider when evaluating a supplier?

Price, quality, delivery, and other characteristics Signup and view all the answers

What is the term for the minimum requirements that a supplier must meet to be considered a viable competitor?

Order qualifiers Signup and view all the answers

What is the primary advantage of the strategy shown in Figure 2.10?

Reduced costs associated with excess capacity Signup and view all the answers

What is a reason why a firm may choose to manufacture an item internally?

To maintain quality levels Signup and view all the answers

When deciding whether to manufacture or buy an item, what is an important consideration?

The firm's area of expertise Signup and view all the answers

What is a potential disadvantage of subcontracting?

Higher item costs Signup and view all the answers

Why might a firm choose to buy from a supplier?

To access special expertise in design and manufacture Signup and view all the answers

What is the purpose of evaluating the costs of different strategies?

To identify the most cost-effective strategy Signup and view all the answers