EFG, Inc., a research firm, buys an ultra-high efficiency filter from Supplier A, which is the only capable source for this component. Supplier A informs EFG that the filter will soon be discontinued. EFG's supply manager finds filters with similar-though not identical-characteristics from another source and brings a small sample in for testing. The initial results are acceptable. Given this situation, which of the following is the MOST appropriate next step for the supply manager to take?

• A.Seek additional suppliers for the product
• B.Quantify potential savings and report them to top management
• C.Build a collaborative relationship with the new source
• D.Review specifications and performance needs with stakeholders

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Which of the following is the FIRST step in the category management process?

• A.Conduct contract negotiations with strategic and/or preferred suppliers
• B.Develop a strategy to classify suppliers capable of providing material requirements
• C.Conduct market research to understand the supply market
• D.Build the team and project charter and develop a scope of work

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UVW, Inc. issues a Request for Quotation (RFQ) for urgently-needed safety equipment. The equipment must be installed immediately in order to keep the firm in compliance with safety regulations. UVW is contacted by a small, minority-owned company which asks for two more weeks to submit its quotation, as its technical expert is out sick. In this situation, which of the following is the MOST appropriate course of action for UVW to take?

• A.Extend the RFQ due date and notify all suppliers of the extension
• B.Accept other quotations as scheduled and set aside a portion of the award for the minority-owned supplier
• C.Inform the supplier that quotations must be received by the due date in order to be considered
• D.Return all quotations and issue a new RFQ

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A company purchases a high-value product In an industry known for slow turnover on receivables. This creates issues with cash flow and presents a special challenge to supply management. Given this situation, which of the following should this firm negotiate to BEST avoid difficulties in the buyer/supplier relationship?

• A.Deposit payments on order and balance at shipment
• B.Cash in advance purchase
• C.Extended NET terms
• D.Cash discounts for early payment

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A buyer for ABC, Inc. meets with a sales representative from XYZ Company to discuss the purchase of a product. The sales representative provides documentation to the buyer that the product will meet or exceed the specifications required by ABC. Based on thi information, the buyer places an order with XYZ.
However, upon inspection of the received product, the buyer learns that it does not meet ABC's specifications and cannot be used for the intended purpose. Which of the following is TRUE in this situation?

• A.ABC should sell the product to a third party and use the funds to procure items that meet the required specifications.
• B.ABC should return the goods for a full refund because the promise made by the seller created an express warranty.
• C.ABC can do nothing, as the salesperson's claim was an opinion and did not create a warranty.
• D.ABC's design team should change the specifications to allow the product to be used and avoid further delay.

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