This set of Total Quality Management Multiple Choice Questions & Answers focuses on “Supplier Selection – 2”.
1. In which of the following stage in supplier selection and evaluation, standard enquiry forms are sent to the vendors, asking them to present their detailed information?
a) Survey stage
b) Enquiry stage
c) Negotiation and selection stage
d) Experience stage
View Answer
Explanation: During enquiry stage, standard enquiry forms are sent to the vendors, asking them to present their detailed information. This is done before finalizing the vendor.
2. In ________detailed analysis of the vendor is made after raw information is acquired from the survey stage.
a) Survey stage
b) Enquiry stage
c) Negotiation and selection stage
d) Experience stage
View Answer
Explanation: During enquiry stage, detailed analysis of the vendor is made after raw information is acquired from the survey stage. Standard enquiry forms are sent to the vendors. At the same time the vendor’s present customers are asked about the vendor’s performance and promptness in delivery.
3. Which of the following factors are considered during direct negotiations with the vendors in the negotiation and selection stage of supplier selection and evaluation?
a) Payment terms only
b) Quality control procedures only
c) Supply procedures only
d) Payment terms, quality control procedures, and supply procedures
View Answer
Explanation: Payment terms, quality control procedures, and supply procedures are the important factors that are considered during direct negotiations with the vendors in the negotiation and selection stage of supplier selection and evaluation. Consequently, a final list of approved vendors is drawn up.
4. In which stage of supplier selection and criteria, performance of the supplier is evaluated based on quality and promptness in delivery?
a) Survey stage
b) Enquiry stage
c) Negotiation and selection stage
d) Experience stage
View Answer
Explanation: During experience stage, performance of the supplier is evaluated based on quality and promptness in delivery. The other stages of supplier selection and criteria are survey stage, enquiry stage, and negotiation and selection stage.
5. Frequent rejections upset the production schedule.
a) True
b) False
View Answer
Explanation: Frequent rejections upset the production schedule. Such vendors should be dropped from the list of available vendors because it may incur to heavy losses in the buyer’s company.
6. Late deliveries may cause stoppages in production.
a) True
b) False
View Answer
Explanation: Late deliveries may cause stoppages in production. Due to this large inventories have to be kept in stock. Both these cases are not desirable and therefore such vendors’ performance must be questioned.
7. Which of the following is not a part of the history card?
a) Date of supply of materials
b) Inspection
c) Procedure adopted
d) No.of fans in vendor’s office
View Answer
Explanation: Date of supply of materials, inspection, and procedure adopted are some of the important parameters mentioned in a history card of a supplier. All these parameters help in reviewing the performance of the suppliers.
8. Which of the following is incorrect with respect to Ishikawa’s ten conditions for selection and evaluation of suppliers?
a) The supplier should have a stable management system
b) The supplier should not breach the corporate secrets
c) The supplier should not have a track record of customer satisfaction and organization credibility
d) The supplier should have an effective quality system
View Answer
Explanation: According to Ishikawa’s ten conditions for selection and evaluation of suppliers, the supplier should have a stable management system, the supplier should not breach the corporate secrets, and the supplier should have an effective quality system. In addition to this, the supplier should have a track record of customer satisfaction and organization credibility.
Sanfoundry Global Education & Learning Series – Total Quality Management.
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