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OMGT TEST 2 3123 ECU Exam Questions with Correct Answers
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OMGT TEST 2 3123 ECU Exam Questions with Correct Answers
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OMGT TEST 2 3123 ECU ExamQuestions with Correct Answers
Supply Management Defined - Answer-Sourcing decisions and purchasing activities
(collectively Supply Management) serve to link a company with its upstream supply
chain partners
Supply Management is..... - Answer-...the broad set of activities carried out by
organizations to:
- analyze sourcing opportunities
- develop sourcing strategies
- select suppliers
- analyze and negotiate price and cost
- carry out all the activities required to procure goods and services
Why is Supply management is critical for global - Answer-to compete globally for
advances in information systems and changes in environment. "______-______"-ask
Kirchoff
Why is Supply management is critical financial impact for the average manufacturer
because - Answer-nearly 60% of the product value comes from material, on average
Over 60% of firms total COGS is controlled by - Answer-Purchasing
Supply management represents a major opportunity - Answer-to increase profitability
Pretax earnings increased - Answer-% increase = (COGS X %) / pretax earnings
Pretax profit old - Answer-= Pretax earnings / Sales (how much you make on every $1
of sales)
To increase profit through sales requires: - Answer-(COGS X %) / Pretax profit old = ##
increases ( from old Sales to (sales + ##)
Why Supply Management is critical for performance impact - Answer-Quality
Delivery
Technology
Responsiveness
Similar management goals
Problem solving
Study Performance impact chart chapter 7 slide 12 - Answer-
The Supply Management (SM) process - Answer-1. Assess Opportunities
, 2. Profile internally/ externally
3. Develop the Sourcing Strategy
4. Screen Suppliers and create selection criteria
5. Conduct Supplier Selection
-Negotiate
-Ordering *procure to pay cycle*
-Follow up and expediting *pay cycle*
-Receipt and inspection *pay cycle*
-settlement & payments *pay cycle*
-Records maintenance *pay cycle*
THE SM PROCESS :
Assess Opportunities, Profile internally / Externally, Develop the sourcing Strategy and
Screen Suppliers and create Selection Criteria - Answer-Typically, more strategic and
difficult to accomplish
THE SM PROCESS:
Ordering, Follow up and expediting, receipt and inspection, Settlement & Payments,
and Records maintenance - Answer-Typically, more tactical and easier to accomplish
1. Assess Opportunities - Answer-Spending analysis on the company bulk spending
and suppliers highest spending
1. Assess Opportunities firms purchasing needs - Answer-New Projects and Existing
Projects
2. Profile Internally / Externally - Sourcing decisions are high-level, often strategic
decisions: - Answer-Which product will use resources within the firm and products will
be provided by external supply chain?
2. Profile Internally / Externally have - Answer-Insourcing and Outsourcing
Insourcing - Answer-The use of resources within the firm
to provide products or services
Outsourcing - Answer-The use of supply chain partners
to provide products or services
The SM Process: Profile and Strategy Pros of Insourcing - Answer-High degree of
control, Ability to oversee the entire program, and economies of scale and / or scope
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