Week 2 quiz.docx. Outsourcing of services is: (Points : 1) unrealistic because of the difficulty in measuring and evaluating the performance of service providers. realistic if the internal users and the buyer can carefully define service requirements and quality expectations. declining in popularity because of buyers’ dissatisfaction with most third party service providers. realistic because of the ease in measuring and evaluating performance of service providers. realistic because it is relatively easy to define service requirements and measure the quality of a service provider.
2. Some of the reasons an organization may decide to make rather than buy are: greater supply assurance, stringent quality requirements, and very small quantity requirements. (Points : 1)
3. The terms and conditions included in a purchase order vary depending on the nature of the purchase and may relate to price, quality, and service. (Points : 1)
4. A maverick buyer is a talented member of the supply department whose creativity and innovations have saved the organization large sums of money. (Points : 1)
5. It is relatively difficult to develop a global database to consolidate volumes and sourcing strategy because common technical standards and government regulations do not exist across countries. (Points : 1)
6. Poor internal compliance with supply processes may indicate that internal customers do not trust the supply process or the suppliers to live up to promises. (Points : 1)
7. Efficient and effective supply processes are needed because of: (Points : 1)
the need for an audit trail. the large volume of items and dollar value. severe consequences of poor performance. the potential contribution to organizational objectives. all of the above.
8. Outsourcing: (Points : 1)
is often chosen as a way for the organization to reduce or control operating costs, improve company focus, and gain access to world-class capabilities. is a low risk venture because the firm can always revert back to performing the function in-house at low cost. occurs primarily in large manufacturing firms in the private sector, but is rarely practiced in public purchasing. usually results in increased hiring to attain expertise that the organization does not already possess. decisions are based on financial factors that most organizations can easily access through their accounting system.
9. Growth in outsourcing in the logistics area can be attributed to growing deregulation of transportation companies. (Points : 1)
10. A reverse auction is an online, real time, increasing price auction between multiple pre-qualified suppliers and a buying organization. (Points : 1)