An operations manager wants to replace the existing fleet of aging vehicles owned by the company. The operations manager presents the supply manager with a list denoting the quantity, makes and models currently in operation:
Quantity
Brand A - 4X4 SUVs15
Brand B - Midsize Cars5
Brand C - Compact Cars45
Which of the following is the BEST course of action for the supply manager to take?
The chief procurement officer (CPO) for a large hospital system is planning to implement a new e-sourcing system. Satellite clinics and specialty centers will be authorized to process small orders through this system, rather than sending requests to the central supply management department, as has been done in the past. Which of the following actions by the CPO will MOST likely support a successful implementation of this system?
MNO, Inc. is a manufacturing operation that has recently expanded from domestic to global locations. MNO's supply management department is considering a plan to obtain raw materials from suppliers nearby each location. The organization currently handles its sourcing from headquarters, which provides coordination and support for all contracts. Which of the following strategies will likely be MOST useful to MNO's expansion efforts?
Which of the following is the BEST long-term strategy for creating top line revenue growth and increased sales for both an organization and its key suppliers?
A manufacturer develops a new product that will be more efficient and easier to use than previous versions. Prototypes are created, evaluated, and approved, and the company begins large scale
production.
Three months into production, costs rise beyond expectations, due to one of the raw materials not providing the economies of scale predicted by the design team. This results in a net loss at the
recommended price point. Which of the following actions should the design team have taken to prevent this situation?
A plumbing supplies company asks its supply manager to develop a category management plan for the coming year.
The supply manager conducts a spend analysis in order to identify and rank the most important categories. Which of the following should the supply manager use?
Development of which of the following would be MOST beneficial for supplier technologies and processes important to the buying organization?
A multi-divisional corporation seeks to leverage its overall spend by creating a consolidated supply base of preferred suppliers offering the most competitive costs and services. Though stakeholders Involved in the planning process seem to support leveraging efforts, the actual results have been disappointing, as the divisions continue to buy from past suppliers rather than from the preferred suppliers. In which of the following ways can supply management BEST improve the rate of buying through the preferred suppliers?
During negotiations with a supply manager from FGH Inc., a supplier states that if FGH buys the 200 gigabyte version of its software package at a price of $700, the supplier will include a never-before-sold malware license valued at $147. FGH needs both the malware and the software package. If the supply manager agrees to the offer, FGH may claim a
TESTED 22 Feb 2025
