Value
What is the main driving force behind global competition?
A. Supply chain
B. Value
C. Technology
What is Value
What is Price analysis?
A. Comparing supplier prices
B. Analyzing each individual cost element that adds up to the total cost?
C. Applying the price/cost equation across multiple processes.
what is A
When should Supply Chain get involved in new product development to maximize cost savings?
What is DESIGN?
(Quality + Technology + Service + Cycle Time)/Price =
A. Value
B. Price
C. Technology
What is Value?
What types of initiatives are required for effective cost reduction?
A. Internal initiatives
B. External initiatives
C. Both
What is both
What are examples of effective multi-partner or team-based cost-reduction approaches?
alue engineering: Redesigning products or processes to lower costs without reducing quality.
Kaizen events: Continuous improvement workshops that find small, ongoing efficiency gains.
Cross-enterprise projects: Cost-reduction initiatives that involve multiple companies.
Joint brainstorming: Shared idea generation between buyer and supplier.
Supplier suggestion programs: Inviting suppliers to propose improvements.
Supply chain redesign: Changing the structure or flow of the supply chain to reduce total costs.
How does the price of purchased goods impact a company's competitiveness?
A. Impacts perception of value
B. Quality rises
C. Technology
What is Impacts perception of value
What is the lifecycle of costs?
A. Initial cost target/Final Cost target/Continuous Improvement/ Contract baseline
B. Initial cost target/Final Cost target/Contract baseline/ Continuous improvement
What is B
A. To prevent monopoly
B. Small costs savings leads to better pricing, higher customer satisfaction, and stronger profitability
C. Faster delivery times
What is B
How does a structured cost-reduction approach benefit an organization?
A.It leads to lower total costs, improved efficiency, and sustainable competitive advantage across the supply chain.
B. It leads to higher total costs, bad efficiency, and unsustainable competitive advantage
What is leads to lower total costs, improved efficiency, and sustainable competitive advantage across the supply chain.
What does it mean to include both upstream and downstream suppliers in cost-reduction efforts?
A.Inputs (upstream)
B.Customers (Downstream)
C. Both
What is It means that cost savings should involve suppliers who provide inputs (upstream) and those who distribute products to customers (downstream) — ensuring efficiency throughout the entire supply chain.
Why must cost reduction be viewed from a total supply chain perspective?
A.Because most of the cost of goods sold occurs outside the organization due to outsourcing.
B.Because most of the cost of goods sold occurs inside of the organization.
What is most of the cost of goods sold occurs outside the organization due to outsourcing. To achieve meaningful savings, companies must work with all partners across the supply chain.