A supply manager for JKL, Inc. finds a potential new supplier for an item included In a finished product. Quality and service are comparable to those of the current supplier, and the new supplier's cost per unit is $.03 lower than that of the current supplier. Making the transition to the new supplier will require changes to operations costing approximately $12,000. How many units would JKL need to buy in order to justify changing suppliers?
A supply management department is looking to standardize purchases across the entire organization and leverage spend with fewer suppliers. Which of the following will be MOST useful for determining historical baseline costs?
XYZ, Inc. currently has a transactional relationship with suppliers, but would like to work strategically with them. The firm wants to initially focus attention on the most critical suppliers. To do this, they should FIRST reach out to
Items of low value and complexity are typically categorized as which of the following
TUV Inc., a small manufacturing firm, hopes to rebuild its customer base and return to profitability after a period of losing market share. Negotiations with a key supplier will be an important factor in this turnaround if target costs and pricing can be worked out.
Given this situation, which of the following would create the MOST challenging constraints In negotiations?
What is the landed cost per unit for the following item?
Item cost$.76
Packaging for shipment$.02
Shipping from Indonesia$.14
Duty$.03
Customs clearance$.10
Storage at buyer’s warehouse$.09
Shipment from warehouse to plant$.06
With which group of suppliers is It MOST important to conduct regular performance reviews?
A supply manager is developing a request for proposal (RFP) for travel agency services. The firm’s travel manager has a short list of requirements that have served the company well in the past. However, the vice president (VP) of sales wants frequent fliers from the sales team to be given special status. The travel manager is concerned these additional requirements will limit competition and result in a less favorable deal. In which of the following ways can the supply manager BEST resolve 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?
A supply management office for a county government has been authorized to select a contractor to design, build and operate a new bridge. In the past, the county has experienced four major problems when hiring contractors:
1)Contractors dropping out of the bidding process due to lack of resources or ability to perform the scope of the work
2)A limited number of competitive bids that are able to achieve the value supply management desires
3)Underperformance of contractors after the award
4)The perception that the contractors are not operating effectively
In order to prevent these problems, which of the following should supply management do FIRST?
