This set of Total Quality Management Multiple Choice Questions & Answers (MCQs) focuses on “ Supplier Selection – 1”.
1. Two suppliers A and B deliver the same raw materials for production company Z. The price offered by supplier A is less compared to the price offered by supplier B. Which supplier should the company choose?
a) Supplier A
b) Supplier B
c) Supplier A & Supplier B
d) Depends on other factors like quality
View Answer
Explanation: Two suppliers A and B cannot be solely compared on the basis of price. If quality of raw material supplied by supplier A is poor, then the company may even choose supplier B.
2. Two suppliers A and B deliver the same raw materials for production company Z. The price offered by supplier A is less compared to the price offered by supplier B. The quality of both the raw materials is the same. Which supplier should the company choose considering other factors remaining the same for both of them?
a) Supplier A
b) Supplier B
c) Supplier A & Supplier B
d) None of them
View Answer
Explanation: When both the suppliers offer raw materials of the same quality, the production company will choose supplier A as it is offering less price. This, though, is valid only when other factors are considered the same for both the suppliers.
3. Which of the following is not the primary factor on which the supplier is selected by an organization?
a) Cost
b) Quality
c) Delivery reliability
d) Language barrier
View Answer
Explanation: Cost, quality, and delivery are the important primary factors on which the supplier is selected by an organization. Language barrier is not a primary factor but can influence the choice of supplier selection.
4. Additionally, the supplier selection criteria include factors such as management compatibility, goal congruence, and strategic decision of the supplier firm.
a) True
b) False
View Answer
Explanation: Cost, quality, and delivery are the important primary factors on which the supplier is selected by an organization. Additionally, supplier selection criteria include factors such as management compatibility, goal congruence, and strategic decision of the supplier firm.
5. Survey stage, enquiry stage, negotiation and selection stage, and experience stage are the four stages in supplier selection and evaluation.
a) True
b) False
View Answer
Explanation: Survey stage, enquiry stage, negotiation and selection stage, and experience stage are the four stages in supplier selection and evaluation. Identifying the right supplier is important for an organization’s progress.
6. ________ suggested the ten conditions for selection and evaluation of suppliers.
a) Ishikawa
b) Taguchi
c) Juran
d) Deming
View Answer
Explanation: Ishikawa suggested the ten conditions for selection and evaluation of suppliers. Proper supplier selection and evaluation is vital for an organization’s progress.
7. The supplier selection and evaluation stage in which the supplier list is drawn up on the basis of raw information from catalogues, advertisements, and brochures is known as ______
a) Survey stage
b) Enquiry stage
c) Negotiation and selection stage
d) Experience stage
View Answer
Explanation: The supplier selection and evaluation stage in which the supplier list is drawn up on the basis of raw information from catalogues, advertisements, and brochures is known as survey stage. The other stages are enquiry stage, negotiation and selection stage, and experience stage.
8. In which of the following stages of supplier selection and evaluation, vendor’s present customers are enquired about the performance and promptness in delivery of the vendor?
a) Survey stage
b) Enquiry stage
c) Negotiation and selection stage
d) Experience stage
View Answer
Explanation: During enquiry stage of supplier selection and evaluation, vendor’s present customers are enquired about the performance and promptness in delivery of the vendor. This is done before finalizing the vendor.
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