DEPARTMENT OF INDUSTRIAL ENGINEERING AND OPERATIONS RESEARCH

COLLEGE OF ENGINEERING
UNIVERSITY OF THE PHILIPPINES DILIMAN

IE 158: Supply Chain Management for Service and Manufacturing

1st Semester AY 2021-2022

Quiz # 1

Part I: Multiple Choice. Select the letter of the best answer. (3 pts each; Total of 15 pts)

1) When designing your supply chain, whose needs should be considered the focal point of your
supply chain design?
a) Your customers
b) Your suppliers
c) Your employees
d) Your competitors

2) Suppliers are becoming increasingly important assets to companies because:

a) More is being outsourced to suppliers.
b) Companies increasingly rely on suppliers for technology innovation.
c) Early supplier involvement can speed up the time-to-market of new products.
d) All of the above.

3) A/An ____ is an open order, usually effective for one year, covering repeated purchases of an
item or family of items.
a) outstanding order
b) pending order
c) blanket purchase order
d) order acceptance

4) An organization should perform a strategic assessment before outsourcing in order to understand:

a) Potential risk.
b) Long term implications.
c) Strategic importance of the activity.
d) All of the above.

5) ____ is defined as the ability to meet current needs without hindering the ability to meet the needs
of future generations in terms of economic, environmental, and social challenges.
a) Sustainability
b) Social responsibility
c) Supply chain risk management
d) Standardization

Part II. Short Essay. Answer the following questions completely and concisely. (Total of 90 pts)

1) Describe Tier-1, Tier-2, and Tier-3 suppliers. (10 pts)

 2) Should unit price be used as the sole criterion for selecting suppliers? Why? What factors should
be considered while choosing suppliers? (15 pts)

3) What are the reasons to use a single supplier? Is this the most efficient way to purchase materials
in general? (15 pts)

4) Describe centralized and decentralized purchasing and their advantages. (15 pts)

5) What are the benefits of ISO certifications such as ISO 9000 and ISO 14000 to both a supplier
and a buyer? (15 pts)

6) Research on one recent piece of news/controversy related to ethical and/or sustainable

purchasing. Provide a brief background of the story/issue and provide your own insights in the
context of the topics that we have discussed so far. (20 pts)

Total: 105/100

Deadline of submission: Oct. 18, 2021 (Mon), 11:59 PM.

Filename convention: IE158_Quiz#1_LASTNAME
Please upload in the designated UVLe submission bin.

Academic Integrity Statement:

As a student of the University of the Philippines, I pledge to act ethically and uphold the value of honor
and excellence.

I understand that suspected misconduct on given assignments/examinations will be reported to the

appropriate office and if established, will result in disciplinary action in accordance with University rules,
policies and procedures. I may work with others only to the extent allowed by the Instructor(s).

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