1. Manufacturers employ the strategy of "few suppliers" for the following reasons EXCEPT ____________.
It offers an opportunity to create economies of scale.
It offers an opportunity to exert price pressure.
It's an opportunity to develop close collaboration.
It's an opportunity to mitigate supply chain disruption risks.
2. When a restaurant owner purchases the farm where he buys his produce, he is engaging in _______________.
outsourcing.
vertical integration.
buyback.
off shoring.
strategic sourcing.
3. A decision making tool that is useful when selecting among alternative suppliers is _______________.
Break-even Analysis.
Relationship Mapping.
Cost-benefit Analysis.
Center of Gravity Model.
Weighted Factor Rating Model.
4. In price negotiations, Integrative Negotiations imply that _______________.
there is a winner and a loser.
there are no similarities between the parties negotiating.
information is kept to oneself.
each party wants to understand the other's position.
5. A blanket purchase order is used for ________________.
multiple deliveries over a period of time.
an order covering one large purchase order.
service agreements.
an order that you are allowed to return.