CORE Exam Dumps : Supply Management Core Exam

Insourcing the manufacture of a major product, motivated by public relations considerations, is most likely aimed at improving community ties. By bringing production in-house, the company can create local jobs, invest in the local economy, and demonstrate a commitment to the community. This can enhance the company's reputation, foster goodwill, and potentially lead to stronger community support and loyalty.

References:

"Insourcing: Bringing Discrete Manufacturing Back to America" by Lisa Shuler.

Harvard Business Review articles on corporate social responsibility (CSR).

Studies on community impact of local manufacturing from the Economic Policy Institute (EPI).

Supplier B's terms of 4%/5, Net 30 are more advantageous. This means a 4% discount is available if the invoice is paid within 5 days, whereas Supplier A offers a 2% discount for payment within 15 days. Paying early (5 days) to get a 4% discount is more beneficial in terms of cost savings compared to a 2% discount for paying within 15 days. The greater discount percentage within a shorter period represents better cash flow management and cost savings.

References:

Financial Terms in Procurement

Cash Flow Management Techniques in Supply Chain

To ensure Supplier Y improves its KPI scores, the supply manager should require the supplier to submit a detailed written plan outlining specific steps and strategies for improvement. This plan should include measurable targets and timelines for each KPI. By closely monitoring the supplier's progress against this plan, the supply manager can ensure accountability and provide support where needed, fostering a continuous improvement culture.

References

Supplier Evaluation and Performance Excellence: A Guide to Meaningful Metrics and Successful Results by Sherry Gordon

"Key Performance Indicators (KPIs) in Supply Chain Management" - Supply Chain Council