OPMG2258 Final Exam Review Chapter
13 (GRADED A) Questions and Answers
(Verified Elaborations)
The development and management of supplier relationships to acquire goods
and services in a way that aids in achieving the immediate needs of the
business?
✓ Strategic Sourcing
Refers to how common the item is and, in a relative sense, how many
substitutes might be available?
✓ Specificity
Is used for purchasing items that are more complex or expensive and where
there may be a number of potential vendors?
✓ Request for Proposal (RFP)
Phenomenon of variability magnification as we move from the customer to the
producer in the supply chain?
✓ Bullwhip Effect
Inventory is replaced frequently, as part of an ongoing process to reduce
variability?
✓ Continuous Replenishment
A more complex process suitable for products that are strategically important?
✓ Sourcing
Is when a customer allows the supplier to manage the inventory policy of an
item or group of items for them?
✓ Vendor Manage Inventory
