1.Supply Management contributes which of the following to the organization? ( X — put a mark on lines in front of phrases that apply)
Increase sales with materials received timely
_ Production remains efficient and effective
_ Create a job for a supply management specialist
__ Increases profit margin
2.The Supply Management Process is defined in five steps — put a number 1 through 5 in the lines to show the sequence they occur.
Identify the best supplier
Manage the business relationship Creation of an enforceable agreement Identify item(s) or service(s) required Negotiate a fair and reasonable price
3.The author recommends centralized authority for the supply (material acquisition) management of an organization/company. (Circle Answer/change color of letters/shade background to reflect your answer)
TRUE or FALSE
4.Power plays an important role in business relationships (particularly the business owner): which of the following statement(s) is correct?
Captive Buyer: buyer is held hostage by a supplier free to switch to another customer
Captive Supplier: makes investments in order to secure a portion of the buyer’s
business, with no assurance of sufficient business to recoup the investment
5.In the development of a new product a prudent Business Owner (Material Acquisition Manager) would need to development alternatives when deciding to make a product. (Circle/Highlight all of the correct answers)
- Customer acceptability
- Geographic location
- Ability to be produced
- Component availability
Curiosity: Which of the last answers do you feel most important when making the choice to produce or not? Why?