Question

1. Three major challenges facing supply executives when setting supply strategies and objectives are:

Multiple Choice

• (1) How can we simultaneously provide uninterrupted supply and minimize inventory? (2) How can we improve quality while reducing our supply base? and, (3) How can we increase our involvement in outsourcing decisions?

• (1) What is the effective interpretation of corporate objectives and supply objectives? (2) What is the appropriate action plan or strategy to achieve the desired objectives? and, (3) How can supply issues be identified and integrated into organizational objectives and strategies?

• (1) Should we have a centralized or decentralized purchasing structure? (2) Should we hire managers trained in supply management or in technical fields? and, (3) Should we outsource any or all of the purchasing function?

• (1) Should we pre-certify suppliers? (2) Should we allow internal users to purchase certain categories of purchases? and, (3) Should we increase or decrease the number of suppliers in our supply base?

• (1) How many suppliers should we do business with? (2) Which suppliers should we select? and, (3) What type of relationship should we have with these suppliers?

2. A strategy is:

Multiple Choice

• an action plan to maximize rewards in the current period in return for big risks.

• a procedure for allocating resources among functions in the organization.

• an action plan to achieve specific long-term goals and objectives.

• an action plan to achieve specific operational and tactical goals.

• a vision of the future of an organization.

3. The question: “How can supply and the supply chain contribute effectively to organizational objectives and strategy?” is a key question in:

Multiple Choice

• supplier relationship management.

• strategic sourcing.

• supplier network management.

• supply chain management.

• strategic supply management.

4. When a supply-related risk exists, the supply management team should:

Multiple Choice

• identify and classify risks, assess possible impact, develop a mitigation strategy, inform the chief supply officer, await instructions, and implement the directive.

• seek input from other functional areas, compile the ideas, and submit them to senior management.

• review the existing risk mitigation plan, suggest revisions, and await instructions.

• confer with relevant parties, provide requested data, and implement senior management’s mitigation strategy.

5. Linking current and future needs with current and future markets is the primary focus of:

Multiple Choice

• internal users of purchased goods and services.

• each individual buyer.

• an effective supply strategy.

• an effective marketing strategy.

• an effective organizational strategy.

6. Strategies designed to make available the knowledge and capabilities of supply chain members to others in the buying organization are called:

Multiple Choice

• environmental-change strategies.

• assurance-of-supply strategies.

• risk-management strategies.

• cost-reduction strategies.

• supply-chain-support strategies.

7. Supply strategies that are designed to exploit market opportunities and organizational strengths to give the buying organization an advantage in the marketplace are known as:

Multiple Choice

• risk-management strategies.

• competitive-edge strategies.

• assurance-of-supply strategies.

• cost-reduction strategies.

• supply chain support strategies.

Answer 1

1.

There are following three challenges supply executives are facing while setting supply strategies and objectives.

i. How to effectively interpret corporate and supply objectives,

ii. How to select appropriate action plans to achieve these objectives, and

iii. How to integrate the supply info into organizational strategies and objectives.

2.

A strategy is defined as an action plan that is employed to achieve specified long-term goals and objectives of an organization. It involves a macro view and visionary thinking.

3.

'How supply and supply chain can contribute to organizational strategies and objectives effectively' is the main question in strategic supply management. Strategic supply management has three levels which are strategic, tactical, and operational levels.

4.

When a supply-related risk exists, the supply management team takes the following three actions;

i. It identifies and classifies risk,

ii. It accesses the possible impact of the risk

iii. It develops a mitigation strategy to cope up with the risk.