1. What is a pain and gain share agreement?

                                        

1. When discussing LEAN and Six Sigma, is one philosophymore important than the other?

1. What are the two different types of purchasingorganizations? Name two advantages for each.

1. What is the profit-leverage effect? Why is it importantfor purchasing managers?

1. What is the purpose of bonds inprocurement?

1. What does a preferred supplier provide a company thatother suppliers may not?

1. What are the benefits of strategicalliances?

1. Give two reasons why a firm would make rather than buy.Give two reasons why a firm would buy rather thanmake.

1. How can the VOC be used to help a companyimprove?

1. How does ethical sourcing differ fromsustainability?

1. Why is it important to use multiple criteria indeveloping a supplier scorecard?

1. How can a firm combat the risks of bottleneckitems?

1. Why do companies use the supplier developmentprogram?

1. What is a potential sourcing strategy for functionalproducts? What is a potential sourcing strategy for innovativeproducts?

1. Give an example of a product for each of the followingmanufacturing strategies:

• MTS
• ATO
• MTO
• ETO

1. What is the main insight of total cost of ownership (TCO)?

1. What can cause and effect diagrams be used for?