CORE Exam Dumps : Supply Management Core Exam

Identify Root Cause: Determine that raw materials are the cause of the quality issues.

Request Supplier Samples: Requiring suppliers to submit samples allows the firm to pinpoint whether the issue lies with the raw materials being provided.

Evaluate Samples: Testing these samples against standards ensures that only compliant materials are accepted.

Address Non-compliance: If any samples do not meet standards, work with suppliers to improve quality or find new suppliers if necessary.

References

Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2016). Purchasing and Supply Chain Management. Cengage Learning.

Lysons, K., & Farrington, B. (2016). Procurement and Supply Chain Management. Pearson.

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).

To facilitate supplier innovation, the supply manager should focus on strategies that encourage and recognize innovative efforts:

Locating new suppliers that lead their industry is useful but may not leverage existing relationships.

Recognizing current suppliers for innovative performance encourages ongoing innovation by rewarding and highlighting successful efforts.

Leveraging innovations from one supplier to improve all other suppliers can be effective but depends on the willingness of suppliers to share innovations.

Awarding contracts only to the most innovative companies could limit the pool of potential suppliers and may not be practical.

Recognizing current suppliers for innovative performance is likely the most effective strategy. It motivates suppliers to continuously improve and innovate by providing them with acknowledgment and potential rewards.

References:

CIPS (Chartered Institute of Procurement & Supply) literature on supplier innovation.

Institute for Supply Management (ISM) best practices for fostering supplier innovation.