12 Questions
What is the main purpose of a make or buy analysis for a firm?
To compare the costs of producing a product internally versus buying it externally
What motivates a company to switch suppliers according to the text?
Poor supplier performance
What is the primary advantage of single sourcing over multi-sourcing?
Encouragement of close supplier relationships
Which attribute is NOT typically considered during supplier selection according to the text?
Employee satisfaction
In the context of processes, what do strategic processes primarily involve?
Business decisions and deployment of strategies
What is the main focus of the Theory of Constraints mentioned in the text?
Enhancing throughput by targeting bottlenecks
What is the THIRD 'right' in the seven rights of purchasing?
The right service
Which type of strategic sourcing mix involves high volume, complex items?
Strategic
Which of the following is NOT a factor that defines complexity in sourcing?
Supplier Relationship
When making something in-house initially, the costs are higher due to what?
Equipment and other inputs
What is the relationship between collaborative forecasting and supplier integrated manufacturing in terms of level of integration?
Collaborative forecasting has a low level of integration, while supplier integrated manufacturing has a high level of integration.
What is the 'profit leverage effect' in purchasing?
It is easier to save a dollar than spend a dollar, and every dollar saved goes towards the bottom line.
Test your knowledge on sourcing, procurement, the seven rights of purchasing, factors defining complexity, and strategic sourcing mix. Explore concepts related to obtaining the right materials, managing suppliers, and optimizing resources.
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