Asked by George Greer on Jun 01, 2024
Verified
Which of the following are performance measures used by firms to assess their own performance in relation to suppliers?
i. Percentage of orders processed by electronic means
ii. Number of expedited orders
iii. Response time to customer queries
iv. Reduction in the number of suppliers
A) i, ii and iii
B) ii, iii and iv
C) i, ii and iv
D) All of the given answers
Performance Measures
Metrics used to assess the efficiency, effectiveness, and performance of an organization's activities or employees.
Expedited Orders
Special orders that are processed and shipped faster than standard orders.
Electronic Means
Methods or processes that utilize digital technology or electronic equipment to accomplish various tasks or functions.
- Recognize the importance of and methods for performing supplier performance measurements.
Verified Answer
MO
Maleah OlveraJun 05, 2024
Final Answer :
C
Explanation :
i. Percentage of orders processed by electronic means - This performance measure would help the firm to understand how much it is relying on traditional paper-based processes vs digital processes to interact with suppliers.
ii. Number of expedited orders - This measure would help the firm to understand how many times it had to expedite orders due to poor supplier performance.
iii. Reduction in the number of suppliers - This measure would help the firm to understand how many suppliers were performing poorly and had to be replaced.
Therefore, options i, ii, and iv are the correct options for performance measures used by firms to assess their own performance in relation to suppliers. Option iii is related to customer queries, so it is not directly relevant.
ii. Number of expedited orders - This measure would help the firm to understand how many times it had to expedite orders due to poor supplier performance.
iii. Reduction in the number of suppliers - This measure would help the firm to understand how many suppliers were performing poorly and had to be replaced.
Therefore, options i, ii, and iv are the correct options for performance measures used by firms to assess their own performance in relation to suppliers. Option iii is related to customer queries, so it is not directly relevant.
Learning Objectives
- Recognize the importance of and methods for performing supplier performance measurements.
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