SCM 371 Study Guide - Midterm Guide: Safety Stock, Nearshoring, Real-Time Bidding
12 Dec 2016
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Scm371 exam 2 study guide: selecting and evaluating suppliers. Overall objective is to reduce sourcing risk and maximize value to buyer. Can involve intensive effort and major commitment or resources: recognize the need for supplier selection and evaluation. Reducing size of supply base: identify key sourcing requirements. May be determined by internal and external customers (supplier quality, cost, and delivery performance) Vary widely from item to item: identify potential supply sources. How well existing suppliers can satisfy cost, quality, or other strategic variables. Technical complexity of purchase requirement: determine sourcing strategy. The environment changes (market conditions, user preferences, and corporate objectives) Key decisions: limit suppliers in selection pool, evaluate supplier risk. Operational risk management: evaluation of supplier performance. For prior or existing suppliers: evaluation of supplier-provided information. Labor intensive: define goal, construct the decision hierarchy (criteria, sub0criteria, alternatives) Select supplier and reach agreement: the analytical hierarchy process (ahp)
