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Supply base reduction (volume consolidation)


A) has potential benefits for suppliers as well as for buyers.
B) involves early supplier involvement in product design.
C) puts the buyer at a negotiating disadvantage.
D) has little potential for savings for buyers.

E) A) and B)
F) B) and C)

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A

company has decided that it no longer needs to extensively count and inspect the products it receives from a particular supplier. This suggests that the company has begun:


A) volume consolidation
B) supplier operational integration
C) value management
D) analysis of total cost of ownership

E) B) and D)
F) A) and C)

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procurement, Total Cost of Ownership includes all of the following except:


A) field failures of purchased items
B) consideration of the impact of supplier quantity discounts
C) cost of order placement
D) In fact, total cost of ownership includes all of the above.

E) B) and C)
F) A) and D)

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D

Which of the following reflects does not reflect a strategic focus on procurement?


A) focus on total cost of ownership.
B) supply base reduction.
C) focus on purchase price.
D) win-win negotiation.

E) A) and D)
F) B) and D)

Correct Answer

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C

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