Supply Management

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The author recommends centralized authority for the supply management of an organization

 

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)

  1. Customer acceptability
  2. Suitability
  3. Geographic location
  4. Ability to be produced
  5. Component availability

 

Curiosity: Which of the last answers do you feel most important when making the choice to produce or not? Why?
 
 

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