A sourcing strategy in which two suppliers are used for the same purchased product or service is:

Question 1A sourcing strategy in which two suppliers are used for the same purchased product or service is:

  multisourcing.

  contingency sourcing.

  dual sourcing.

  cross sourcing.

 Question 2Portfolio analysis begins with assignment to a quadrant before a sourcing strategy is formulated.

  True

  False

 Question 3Qualitative forecasts are used when there is plenty of relevant data.

  True

  False

 Question 4For the average manufacturer, over 50 percent of the value of shipments comes from materials.

  True

  False

 Question 5The analyst turned on his banker’s lamp, adjusted his eye shade, and slowly pulled a legal pad from his desk. His weathered hands punched the buttons on his desk calculator deliberately as he divided earnings by total assets in order to calculate:

  profit margin.

  merchandise inventory.

  cost of goods sold.

  return on assets.

 Question 6Single sourcing is a better choice than multiple sourcing from the perspective of:

  access to the supplier’s design and engineering capabilities.

  spreading risk.

  ensuring that a supplier will not become complacent.

  increased competition.

 Question 7A firm’s demand data from the last two quarter is displayed in the table. Use a three period weighted moving average with Wt=0.7, Wt-1=0.2, and Wt-2=0.1 to forecast demand for July.

Month                  Demand

January                                154

February              148

March                   214

April                       180

May                       225

June                      246

  180.4

  158.8

  195.6

  235.2

 Question 8The ratio of earnings to sales for a given time period is a firm’s profit margin.

  True

  False

 Question 9The Delphi method, panel consensus forecasting, and market surveys are all qualitative methods, but only market surveys do not use experts.

  True

  False

 Question 10The use of supply chain partners to provide products or services is called:

  partnering.

  offloading.

  insourcing.

  outsourcing.