Question 1

Which of the following is the MOST important reason for supply management to share company business plans with current and prospective suppliers?

Options :

A : To set the stage for supplier concessions and discounts

B : To remind suppliers how important supply management is to their success

C : To show suppliers the benefits of investing time and resources into the relationship

D : To prevent any problems or misunderstandings in the buyer/supplier relationship

Answer: C

Question 2

A machining company outsources its recycling program to a third party. The third party recycles the metals from the production area, but neglects to recycle the aluminum cans from the break room, as this stipulation was not included in the service-level agreement. This situation is MOST likely a result of the supply manager's failure to have an appropriate

Options :

A : scope of work

B : performance goal

C : warranty

D : conflict management plan

Answer: A

Question 3

According to the Law of Agency, a supply manager acting as an agent makes decisions and acts in whose interest(s)?

Options :

A : The interests of the profession

B : His/her personal interest

C : The interest of the organization that employs him/her

D : The interests of the supplier which overlap with those of the buyer

Answer: C

Question 4

A service provider has experienced diminished value and stagnant results within an important category. Which of the following is the BEST course of action the firm can take to improve the category strategy?

Options :

A : Open existing contracts and retender them

B : Network with suppliers and launch RFIs to look at alternative solutions

C : Conduct category rotation to bring a different viewpoint to the management of the category

D : Conduct an in-house survey with key stakeholders

Answer: C

Question 5

A supply manager for TUV, Inc. receives a call from an internal stakeholder complaining that for the past several months, one of TUV's longtime suppliers has been late with shipments, disrupting production. The Internal stakeholder has left several messages with the supplier, which have all gone unanswered. The supply manager listens to the stakeholder's concerns and states that these recent occurrences are atypical for this supplier. The supply manager offers to set up a call with the internal stakeholder and the supplier to discuss the situation and determine how the parties can move forward. Which of the following BEST describes the supply manager's role in this situation?

Options :

A : Negotiator

B : Mediator

C : Agent

D : Advocate

Answer: B

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