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2) The percentage of value of shipments that come from materials for the average manufacturer is:
A) greater than or equal to 40 and less than or equal to 49 percent.
B) greater than or equal to 50 and less than or equal to 59 percent.
C) greater than or equal to 60 and less than or equal to 69 percent.
D) greater than or equal to 70 percent.
Answer: B
Diff: 1
Reference: 7.1 Why Supply Management Is Critical
Keywords: material value, financial impact
AACSB: Application of Knowledge
LO: 7.9: Discuss some of the longer-term trends in supply management and why they are important.
1
Copyright © 2019 Pearson Education, Inc.
4) The analyst turned on his banker's lamp, adjusted his eye shade, and slowly pulled a legal pad from
his desk. His weathered hands punched the buttons on his desk calculator deliberately as he divided
earnings by total assets in order to calculate:
A) return on assets.
B) cost of goods sold.
C) merchandise inventory.
D) profit margin.
Answer: A
Diff: 2
Reference: 7.1 Why Supply Management Is Critical
Keywords: ROA, return on assets
AACSB: Analytical Thinking
LO: 7.9: Discuss some of the longer-term trends in supply management and why they are important.
5) Flingers Inc. reveals the following information in their annual report for FY 2018
2
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6) Flingers Inc. reveals the following information in their annual report for FY 2018
7) Flingers Inc. reveals the following information in their annual report for FY 2017
Every dollar Flingers saves in purchasing has the same impact as what amount of increased sales?
A) $10
B) $14
C) $17
D) $20
Answer: D
Diff: 3
Reference: 7.1 Why Supply Management Is Critical
Keywords: profit leverage effect
AACSB: Analytical Thinking
LO: 7.9: Discuss some of the longer-term trends in supply management and why they are important.
3
Copyright © 2019 Pearson Education, Inc.
8) Flingers Inc. reveals the following information in their annual report for FY 2017
Upper management plans to cut cost of goods sold by 5% for the coming year but retain the same sales.
What will Flingers' return on assets figure be for 2018
A) 26%
B) 29%
C) 33%
D) 38%
Answer: D
Diff: 2
Reference: 7.1 Why Supply Management Is Critical
Keywords: ROA, return on assets
AACSB: Analytical Thinking
LO: 7.9: Discuss some of the longer-term trends in supply management and why they are important.
9) Flingers Inc. reveals the following information in their annual report for FY 2017
Upper management plans to cut cost of goods sold by 5% for the coming year but retain the same sales.
What will Flingers' profit margin be for 2018
A) 5%
B) 7.5%
C) 9%
D) 11%
Answer: B
Diff: 2
Reference: 7.1 Why Supply Management Is Critical
Keywords: profit margin
AACSB: Analytical Thinking
LO: 7.9: Discuss some of the longer-term trends in supply management and why they are important.
4
Copyright © 2019 Pearson Education, Inc.
10) Flingers Inc. reveals the following information in their annual report for FY 2017
Upper management plans to cut cost of goods sold by 5% for the coming year but retain the same sales.
What will Flingers' profit leverage effect be for 2018
A) $13.33
B) $14.71
C) $17.50
D) $18.50
Answer: A
Diff: 3
Reference: 7.1 Why Supply Management Is Critical
Keywords: profit leverage effect
AACSB: Analytical Thinking
LO: 7.9: Discuss some of the longer-term trends in supply management and why they are important.
11) The phenomenon that a dollar in cost savings increases pretax profits by a dollar, while a dollar
increase in sales increases pretax profits only by the dollar multiplied by the pretax profit margin is
known as the:
A) profit margin.
B) return on assets.
C) saving to spending ratio.
D) profit leverage effect.
Answer: D
Diff: 2
Reference: 7.1 Why Supply Management Is Critical
Keywords: profit leverage effect
AACSB: Application of Knowledge
LO: 7.9: Discuss some of the longer-term trends in supply management and why they are important.
5
Copyright © 2019 Pearson Education, Inc.
12) Dusty is evaluating three bids to supply fence hardware for the 5 acres of pasture that need to be
fenced. Breezy submits a bid of $40 per unit with a defect rate of 2%; Lady's bid is $50 per unit with a
defect rate of 0.5%; and Spike's bid is $30 per unit with a defect rate of 5%. If a section of fence fails, it
costs an average of $500 in losses and herding costs to round up all of the capybaras. Dusty believes it
will take 1000 units to fence in this pasture configuration; what is the lowest total cost?
A) $47,500
B) $50,000
C) $52,500
D) $55,000
Answer: B
Diff: 3
Reference: 7.1 Why Supply Management Is Critical
Keywords: performance impact, failure cost
AACSB: Analytical Thinking
LO: 7.9: Discuss some of the longer-term trends in supply management and why they are important.
13) Dusty is evaluating three bids to supply fence hardware for the 5 acres of pasture that need to be
fenced. Breezy submits a bid of $40 per unit with a defect rate of 3%; Lady's bid is $50 per unit with a
defect rate of 0.5%; and Spike's bid is $30 per unit with a defect rate of 5%. If a section of fence fails, it
costs an average of $500 in losses and herding costs to round up all of the capybaras (giant rodents from
South America — their leather makes fine gloves). Dusty believes it will take 500 units to fence in this
pasture configuration; which supplier should win the business?
A) Spike
B) Breezy
C) Lady
D) no difference between Breezy and Spike
Answer: C
Diff: 3
Reference: 7.1 Why Supply Management Is Critical
Keywords: performance impact, failure cost
AACSB: Analytical Thinking
LO: 7.9: Discuss some of the longer-term trends in supply management and why they are important.
14) Dusty is evaluating two bids to supply fence hardware for the 5 acres of pasture that need to be
fenced. Breezy submits a bid of $40 per unit with a defect rate of 3%; Lady's bid is $50 per unit and their
product manager estimates the defect rate to be around 0.5%. If a section of fence fails, it costs an average
of $500 in losses and herding costs to round up all of the capybaras (giant rodents from South America —
their leather makes fine gloves). Dusty believes it will take 500 units to fence in this pasture configuration.
The product manager's uncertainty has Dusty concerned; what defect rate for Lady would make Dusty
indifferent between the two suppliers as far as total cost is concerned?
A) 1%
B) 0.5%
C) 0.33%
D) 0%
Answer: A
Diff: 3
Reference: 7.1 Why Supply Management Is Critical
Keywords: performance impact, failure cost
AACSB: Analytical Thinking
LO: 7.9: Discuss some of the longer-term trends in supply management and why they are important.
6
Copyright © 2019 Pearson Education, Inc.
15) Dusty is evaluating three bids to supply fence hardware for the 5 acres of pasture that need to be
fenced. Breezy submits a bid of $40 per unit, Lady's bid is $50 per unit, and Spike's bid is $30 per unit. If a
section of fence fails, it costs an average of $500 in losses and herding costs to round up all of the
capybaras (giant rodents from South America — their leather makes fine gloves). Dusty believes it will
take 500 units to fence in this pasture configuration. What defect rates for the three suppliers would make
Dusty indifferent among them from a total cost standpoint?
A) Breezy 5%, Spike 6%, Lady 2%
B) Breezy 3%, Spike 5%, Lady 1%
C) Breezy 1%, Spike 3%, Lady 2%
D) Breezy 2%, Spike 3%, Lady 4%
Answer: B
Diff: 3
Reference: 7.1 Why Supply Management Is Critical
Keywords: performance impact, failure cost
AACSB: Analytical Thinking
LO: 7.9: Discuss some of the longer-term trends in supply management and why they are important.
16) For the average manufacturer, over 50 percent of the value of shipments comes from materials.
Answer: TRUE
Diff: 1
Reference: 7.1 Why Supply Management Is Critical
Keywords: material value, financial impact
AACSB: Application of Knowledge
LO: 7.9: Discuss some of the longer-term trends in supply management and why they are important.
17) Company A spends $250 million purchasing materials and subassemblies that it processes and sells
for a total of $350 million. The cost of goods sold by Company A is $350 million.
Answer: FALSE
Diff: 1
Reference: 7.1 Why Supply Management Is Critical
Keywords: CGS, cost of goods sold
AACSB: Application of Knowledge
LO: 7.9: Discuss some of the longer-term trends in supply management and why they are important.
18) The ratio of earnings to sales for a given time period is a firm's profit margin.
Answer: TRUE
Diff: 1
Reference: 7.1 Why Supply Management Is Critical
Keywords: profit margin
AACSB: Application of Knowledge
LO: 7.9: Discuss some of the longer-term trends in supply management and why they are important.
7
Copyright © 2019 Pearson Education, Inc.
20) Flingers Inc. reveals the following information in their annual report for FY 2017
Diff: 3
Reference: 7.1 Why Supply Management Is Critical
Keywords: profit margin, return on assets, ROA, leverage effect
AACSB: Analytical Thinking
LO: 7.9: Discuss some of the longer-term trends in supply management and why they are important.
8
Copyright © 2019 Pearson Education, Inc.
21) Flingers Inc. reveals the following information in their annual report for FY 2017
They plan to aggressively pursue cost savings in the purchasing area for FY 2018 and expect to lower
their cost of goods sold by 8% while maintaining the same level of sales. Calculate Flingers' leverage
effect for 2017and their expected leverage effect for 2018. Compare the two results for your leverage effect
calculations and provide insight as their relative magnitude.
Answer: Leverage effect 2017 = = = $20.00
The leverage effect drops for 2017 to 2018 because Flingers is purchasing more economically, or at least
plans to, for 2018 They do not need as large an increase in sales to offset the dollar saved in purchasing
because their operations have become more efficient.
Diff: 3
Reference: 7.1 Why Supply Management Is Critical
Keywords: performance impact, failure cost
AACSB: Analytical Thinking
LO: 7.9: Discuss some of the longer-term trends in supply management and why they are important.
9
Copyright © 2019 Pearson Education, Inc.
22) Dusty is evaluating three bids to supply fence hardware for the 5 acres of pasture that need to be
fenced. Breezy submits a bid of $40 per unit with a defect rate of 2%; Lady's bid is $50 per unit with a
defect rate of 0.5%; and Spike's bid is $30 per unit with a defect rate of 5%. If a section of fence fails, it
costs an average of $500 in losses and herding costs to round up all of the capybaras, giant rodents native
to Brazil. Dusty believes it will take 1000 units to fence in this pasture configuration; what is the BEST
choice for supplier?
Answer: Total cost is a combination of the material cost plus anticipated losses. The table shows all costs
for each supplier, with Breezy's total cost of $50,000 being the lowest.
Diff: 3
Reference: 7.1 Why Supply Management Is Critical
Keywords: performance impact, failure cost
AACSB: Analytical Thinking
LO: 7.9: Discuss some of the longer-term trends in supply management and why they are important.
1) When compared with single sourcing, multiple sourcing has the advantage of:
A) spreading risk.
B) volume leveraging.
C) lower transportation costs.
D) reduced quality variability.
Answer: A
Diff: 1
Reference: 7.2 The Strategic Sourcing Process
Keywords: single sourcing, multiple sourcing, strategic sourcing process
AACSB: Application of Knowledge
LO: 7.1: Identify and describe the various steps of the strategic sourcing process.
2) Single sourcing is a better choice than multiple sourcing because of the following:
A) increased competition.
B) ensuring that a supplier will not become complacent.
C) spreading risk.
D) gaining access to the supplier's design and engineering capabilities.
Answer: D
Diff: 1
Reference: 7.2 The Strategic Sourcing Process
Keywords: single sourcing, multiple sourcing, strategic sourcing process
AACSB: Application of Knowledge
LO: 7.1: Identify and describe the various steps of the strategic sourcing process.
10
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3) A sourcing strategy in which two suppliers are used for the same purchased product or service is:
A) cross sourcing.
B) dual sourcing.
C) contingency sourcing.
D) multisourcing.
Answer: B
Diff: 1
Reference: 7.2 The Strategic Sourcing Process
Keywords: dual sourcing, strategic sourcing process
AACSB: Application of Knowledge
LO: 7.1: Identify and describe the various steps of the strategic sourcing process.
4) The purchasing team examined all of its purchasing patterns in order to identify any irregularities or
possible areas of cost savings. This refers to:
A) internal auditing.
B) purchase consolidation.
C) spend analysis.
D) cooking the books.
Answer: C
Diff: 2
Reference: 7.2 The Strategic Sourcing Process
Keywords: spend analysis, strategic sourcing process
AACSB: Application of Knowledge
LO: 7.2: Perform and interpret the results of a simple spend analysis.
11
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7) The primary goal of this quadrant is to ensure a continuous supply of products or services found in
the:
A) leverage quadrant.
B) bottleneck quadrant.
C) critical quadrant.
D) routine quadrant.
Answer: B
Diff: 2
Reference: 7.2 The Strategic Sourcing Process
Keywords: portfolio analysis, bottleneck quadrant
AACSB: Application of Knowledge
LO: 7.3: Use portfolio analysis to identify the appropriate sourcing strategy for a particular good or service.
8) Building relationships for key suppliers and preparing contingency plans in case of supply
interruptions is vital for products or services found in the:
A) leverage quadrant.
B) bottleneck quadrant.
C) critical quadrant.
D) routine quadrant.
Answer: C
Diff: 2
Reference: 7.2 The Strategic Sourcing Process
Keywords: portfolio analysis, critical quadrant
AACSB: Application of Knowledge
LO: 7.3: Use portfolio analysis to identify the appropriate sourcing strategy for a particular good or service.
9) A supplier that has previously demonstrated its performance capabilities through purchase contracts
may well receive:
A) maverick status.
B) a request for description.
C) preferred supplier status.
D) a request for proposal.
Answer: C
Diff: 1
Reference: 7.2 The Strategic Sourcing Process
Keywords: strategic sourcing process, preferred supplier
AACSB: Application of Knowledge
LO: 7.3: Use portfolio analysis to identify the appropriate sourcing strategy for a particular good or service.
12
Copyright © 2019 Pearson Education, Inc.
10) A company using portfolio analysis decides to streamline the purchasing process for a few items by
use of EDI and automated requisitions to the greatest extent possible. The quadrant that these items fall
in is most likely the:
A) bottleneck quadrant.
B) critical quadrant.
C) leverage quadrant.
D) routine quadrant.
Answer: D
Diff: 2
Reference: 7.2 The Strategic Sourcing Process
Keywords: portfolio analysis, routine quadrant, EDI, strategic sourcing process, electronic data interchange
AACSB: Information Technology
LO: 7.3: Use portfolio analysis to identify the appropriate sourcing strategy for a particular good or service.
11) Competitive bidding, active sourcing, and using industry standards are all actions that are
appropriate if the sourcing strategy is to:
A) form partnerships with suppliers.
B) maximize commercial advantage.
C) simplify the acquisition process.
D) ensure supply continuity.
Answer: B
Diff: 2
Reference: 7.2 The Strategic Sourcing Process
Keywords: portfolio analysis, leverage quadrant, commercial advantage, strategic sourcing process
AACSB: Application of Knowledge
LO: 7.3: Use portfolio analysis to identify the appropriate sourcing strategy for a particular good or service.
12) The use of supply chain partners to provide products or services is called:
A) outsourcing.
B) insourcing.
C) offloading.
D) partnering.
Answer: A
Diff: 1
Reference: 7.2 The Strategic Sourcing Process
Keywords: outsourcing, insourcing, strategic sourcing process
AACSB: Application of Knowledge
LO: 7.4 Describe the rationale for outsourcing and discuss when it is appropriate.
13
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14) Which of these is a direct cost associated with outsourcing?
A) direct material
B) direct labor
C) variable overhead
D) price from invoice
Answer: D
Diff: 2
Reference: 7.2 The Strategic Sourcing Process
Keywords: outsourcing, direct cost, strategic sourcing process
AACSB: Application of Knowledge
LO: 7.4 Describe the rationale for outsourcing and discuss when it is appropriate.
16) The deans' suite hoped to cut costs and decided to perform a total cost analysis on its vodka supplier.
Consumption was currently 6,000 bottles per semester and this was predicted to maintain that level for
the next few years. Their current source, Byron's, charged $9.50 per bottle and packed 288 bottles in a
crate. The cost to ship the crate was $15. Another potential source of vodkas was Pancho's, who charged
$9.00 per bottle but could ship only 100 bottles in a crate and at a higher price, $20. Assume that a partial
crate may be purchased. What is the total annual cost to supply vodka from their current supplier?
A) $54,000
B) $55,200
C) $57,000
D) $57,312
Answer: D
Diff: 2
Reference: 7.2 The Strategic Sourcing Process
Keywords: total cost, strategic sourcing process
AACSB: Analytical Thinking
LO: 7.5: Perform a simple total cost analysis.
14
Copyright © 2019 Pearson Education, Inc.
17) The deans' suite hoped to cut costs and decided to perform a total cost analysis on its vodka supplier.
Consumption was currently 6,000 bottles per semester and this was predicted to maintain that level for
the next few years. Their current source, Byron's, charged $9.50 per bottle and packed 288 bottles in a
crate. The cost to ship the crate was $15. Another potential source of vodkas was Pancho's, who charged
$9.00 per bottle but could ship only 100 bottles in a crate and at a higher price, $20. Assume that a partial
crate may be purchased. What is the total annual cost to supply vodka from Pancho's?
A) $54,000
B) $55,200
C) $57,000
D) $57,312
Answer: B
Diff: 2
Reference: 7.2 The Strategic Sourcing Process
Keywords: total cost, strategic sourcing process
AACSB: Analytical Thinking
LO: 7.5: Perform a simple total cost analysis.
18) The deans' suite hoped to cut costs and decided to perform a total cost analysis on its vodka supplier.
Consumption was currently 6,000 bottles per semester and this was predicted to maintain that level for
the next few years. Their current source, Byron's, charged $9.25 per bottle and packed 500 bottles in a
crate. The cost to ship the crate was $5. Another potential source of vodkas was Pancho's, who charged
$9.20 per bottle but could ship only 100 bottles in a crate. Assume that a partial crate may be purchased.
At what annual shipping price per crate from Pancho's would the college face equal total costs?
A) $7.00
B) $6.50
C) $6.00
D) $5.50
Answer: C
Diff: 2
Reference: 7.2 The Strategic Sourcing Process
Keywords: total cost, strategic sourcing process
AACSB: Analytical Thinking
LO: 7.5: Perform a simple total cost analysis.
15
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19) This table contains the performance criteria and scores (larger numbers are better) for four potential
suppliers to Kramerica Industries. Evaluate the data and identify the BEST source for Kramerica.
A) Company A
B) Company B
C) Company C
D) Company D
Answer: D
Diff: 2
Reference: 7.2 The Strategic Sourcing Process
Keywords: weighted-point evaluation, strategic sourcing process
AACSB: Analytical Thinking
LO: 7.6: Show how multicriteria decision models can be used to evaluate suppliers and interpret the results.
20) This table contains the performance criteria and scores (larger numbers are better) for four potential
suppliers to Los Pollos Hermanos. Evaluate the data and identify the BEST source for Los Pollos
Hermanos.
A) Company W
B) Company P
C) Company G
D) Company D
Answer: C
Diff: 2
Reference: 7.2 The Strategic Sourcing Process
Keywords: weighted-point evaluation, strategic sourcing process
AACSB: Analytical Thinking
LO: 7.6: Show how multicriteria decision models can be used to evaluate suppliers and interpret the results.
16
Copyright © 2019 Pearson Education, Inc.
21) This table contains a list of three companies that have been rated on four weighted performance
dimensions (larger numbers are better). Which of the following statements regarding this information is
BEST?
22) A description method used when a product or service is proprietary or when there is a perceived
advantage to using a particular supplier's product or services is:
A) description by market grade.
B) description by brand.
C) description by specification.
D) description by performance characteristics.
Answer: B
Diff: 1
Reference: 7.2 The Strategic Sourcing Process
Keywords: purchasing process, description by brand, strategic sourcing process
AACSB: Application of Knowledge
LO: 7.7: Understand when negotiations should be used and the purpose of contracts.
17
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24) The first step of the purchasing process is to select the supplier.
Answer: FALSE
Diff: 2
Reference: 7.2 The Strategic Sourcing Process
Keywords: assess opportunities, strategic sourcing process
AACSB: Application of Knowledge
LO: 7.1: Identify and describe the various steps of the strategic sourcing process.
25) Maverick spending is often promoted by top management as a way to improve the bottom line and
break out of a purchasing cycle.
Answer: FALSE
Diff: 2
Reference: 7.2 The Strategic Sourcing Process
Keywords: maverick spending, strategic sourcing process
AACSB: Application of Knowledge
LO: 7.1: Identify and describe the various steps of the strategic sourcing process.
26) A manufacturer seeking to reduce the variability of the quality of purchased products should use
multiple sourcing.
Answer: FALSE
Diff: 2
Reference: 7.2 The Strategic Sourcing Process
Keywords: single sourcing, multiple sourcing, strategic sourcing process
AACSB: Application of Knowledge
LO: 7.1: Identify and describe the various steps of the strategic sourcing process.
27) A manufacturer that wants to make sure that suppliers do not become complacent should use
multiple sourcing.
Answer: TRUE
Diff: 2
Reference: 7.2 The Strategic Sourcing Process
Keywords: single sourcing, multiple sourcing, strategic sourcing process
AACSB: Application of Knowledge
LO: 7.1: Identify and describe the various steps of the strategic sourcing process.
28) Cross sourcing is a strategy in which two suppliers are used for the same purchased product or
service.
Answer: FALSE
Diff: 1
Reference: 7.2 The Strategic Sourcing Process
Keywords: cross sourcing, dual sourcing, strategic sourcing process
AACSB: Application of Knowledge
LO: 7.1: Identify and describe the various steps of the strategic sourcing process.
29) Portfolio analysis begins with assignment to a quadrant before a sourcing strategy is formulated.
Answer: TRUE
Diff: 2
Reference: 7.2 The Strategic Sourcing Process
Keywords: portfolio analysis, quadrant, strategic sourcing process
AACSB: Application of Knowledge
LO: 7.3: Use portfolio analysis to identify the appropriate sourcing strategy for a particular good or service.
18
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30) A company that uses portfolio analysis would probably classify things like office supplies in the
Bottleneck quadrant.
Answer: FALSE
Diff: 1
Reference: 7.2 The Strategic Sourcing Process
Keywords: portfolio analysis, bottleneck quadrant, strategic sourcing process, routine quadrant
AACSB: Application of Knowledge
LO: 7.3: Use portfolio analysis to identify the appropriate sourcing strategy for a particular good or service.
31) Outsourcing can be risky because it decreases the firm's strategic flexibility.
Answer: FALSE
Diff: 2
Reference: 7.2 The Strategic Sourcing Process
Keywords: outsourcing, strategic flexibility, strategic sourcing process
AACSB: Application of Knowledge
LO: 7.4 Describe the rationale for outsourcing and discuss when it is appropriate.
32) Total cost analysis divides costs into direct (costs that are tied to the level of operations or supply
chain activities) and indirect (costs that are not tied to the level of operations or supply chain activity).
Answer: TRUE
Diff: 2
Reference: 7.2 The Strategic Sourcing Process
Keywords: direct cost, indirect cost, total cost, strategic sourcing process
AACSB: Application of Knowledge
LO: 7.5: Perform a simple total cost analysis.
33) The weighted-point evaluation system allows for a completely objective decision to be made.
Answer: FALSE
Diff: 2
Reference: 7.2 The Strategic Sourcing Process
Keywords: weighted-point evaluation, strategic sourcing process
AACSB: Application of Knowledge
LO: 7.6: Show how multicriteria decision models can be used to evaluate suppliers and interpret the results.
34) The request for quotation is a formal request for suppliers to deliver a product or service that includes
key terms and conditions, such as price, delivery, and quality requirements.
Answer: FALSE
Diff: 2
Reference: 7.2 The Strategic Sourcing Process
Keywords: RFQ, PO, request for quotation, purchase order, strategic sourcing process
AACSB: Application of Knowledge
LO: 7.7: Understand when negotiations should be used and the purpose of contracts.
35) In the description of the purchasing process, the product should be described only by brand or
specification.
Answer: FALSE
Diff: 1
Reference: 7.2 The Strategic Sourcing Process
Keywords: description activity, brand, specification, strategic sourcing process
AACSB: Application of Knowledge
LO: 7.7: Understand when negotiations should be used and the purpose of contracts.
19
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36) When a supplier does not exist, competitive bidding and negotiation are two methods commonly
used for final supplier selection.
Answer: TRUE
Diff: 2
Reference: 7.2 The Strategic Sourcing Process
Keywords: preferred supplier, competitive bidding, strategic sourcing process
AACSB: Application of Knowledge
LO: 7.7: Understand when negotiations should be used and the purpose of contracts.
37) In a cost-based contract, the stated price does not change, regardless of fluctuations in the general
overall economic conditions.
Answer: FALSE
Diff: 2
Reference: 7.2 The Strategic Sourcing Process
Keywords: fixed-based contract, strategic sourcing process, cost-based contracts
AACSB: Application of Knowledge
LO: 7.7: Understand when negotiations should be used and the purpose of contracts.
38) Use of EDI in the supply chain has led to shorter lead times and lower inventory.
Answer: TRUE
Diff: 2
Reference: 7.2 The Strategic Sourcing Process
Keywords: EDI, electronic data interchange, strategic sourcing process
AACSB: Information Technology
LO: 7.8: Describe the major steps of the procure-to-pay cycle.
39) A company that regularly outsources goods and services may have established close relationships
with their suppliers and therefore will allow these suppliers the first opportunity to bid for new business
needs. These suppliers are known as ________.
Answer: preferred suppliers
Diff: 2
Reference: 7.2 The Strategic Sourcing Process
Keywords: preferred supplier, strategic sourcing process
AACSB: Application of Knowledge
LO: 7.1: Identify and describe the various steps of the strategic sourcing process.
40) ________ are high-level, often strategic decisions regarding which products or services will be
provided internally and which will be provided by external supply chain members.
Answer: Make or buy decisions
Diff: 1
Reference: 7.2 The Strategic Sourcing Process
Keywords: make-or-buy decision, strategic sourcing process
AACSB: Application of Knowledge
LO: 7.1: Identify and describe the various steps of the strategic sourcing process.
20
Copyright © 2019 Pearson Education, Inc.
41) Use of a single supplier for a part or service in part of the business and another supplier with the same
capability for a different part or service in another area of the business is known as ________.
Answer: cross sourcing
Diff: 2
Reference: 7.2 The Strategic Sourcing Process
Keywords: cross sourcing, strategic sourcing process
AACSB: Application of Knowledge
LO: 7.1: Identify and describe the various steps of the strategic sourcing process.
42) Among the disadvantages of ________ are that different product attributes with varying qualities may
be produced which can actually result in reduced supplier loyalty over time.
Answer: multiple sourcing
Diff: 2
Reference: 7.2 The Strategic Sourcing Process
Keywords: multiple sourcing, strategic sourcing process
AACSB: Application of Knowledge
LO: 7.1: Identify and describe the various steps of the strategic sourcing process.
43) The purchasing team occasionally examined its spending patterns to identify irregularities as part of
a(n) ________.
Answer: spend analysis
Diff: 1
Reference: 7.2 The Strategic Sourcing Process
Keywords: spend analysis, strategic sourcing process
AACSB: Application of Knowledge
LO: 7.2: Perform and interpret the results of a simple spend analysis.
44) A company using portfolio analysis decides to form partnerships with suppliers; the products in
question probably fall in the ________ quadrant.
Answer: critical
Diff: 2
Reference: 7.2 The Strategic Sourcing Process
Keywords: portfolio analysis, critical quadrant, strategic sourcing process
AACSB: Application of Knowledge
LO: 7.3: Use portfolio analysis to identify the appropriate sourcing strategy for a particular good or service.
46) ________ is the name for a process requiring a company to identify and determine all of the major
costs associated with different sourcing possibilities.
Answer: Total cost analysis
Diff: 2
Reference: 7.2 The Strategic Sourcing Process
Keywords: sourcing, total cost analysis, strategic sourcing process
AACSB: Application of Knowledge
LO: 7.5: Perform a simple total cost analysis.
21
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47) ________ is a purchasing description method that focuses attention on the outcomes the customer
wants.
Answer: Description by performance characteristics
Diff: 2
Reference: 7.2 The Strategic Sourcing Process
Keywords: description by performance characteristics, strategic sourcing process
AACSB: Application of Knowledge
LO: 7.7: Understand when negotiations should be used and the purpose of contracts.
48) Perhaps the best way to describe standard items is to use ________ which is a description method that
is applicable when the requirements are well understood.
Answer: description by market grade or industry standard
Diff: 2
Reference: 7.2 The Strategic Sourcing Process
Keywords: description by market grade, industry standard, strategic sourcing process
AACSB: Application of Knowledge
LO: 7.7: Understand when negotiations should be used and the purpose of contracts.
49) Horace Smithfield, Esq., was insistent that he pay a flat rate of $10,000,000 and not a penny more to
transfer his inheritance through your checking account so he could move vast sums of cash out of his
country. Sure, he had fallen out of favor with the government and the economy in his country was in a
dire situation, but a deal was a deal and $10,000,000 was all he could afford to pay. This type of purchase
contract was to be a(n) ________ if you would kindly provide your account information.
Answer: fixed-price contract
Diff: 2
Reference: 7.2 The Strategic Sourcing Process
Keywords: fixed-price contract, strategic sourcing process
AACSB: Application of Knowledge
LO: 7.7: Understand when negotiations should be used and the purpose of contracts.
50) What are the four sourcing strategies, how do they work, and what are the advantages of each?
Answer: The main sourcing strategies are single, multiple, dual, and cross sourcing. In single sourcing,
the firm depends on a single company for all or nearly all of a product or service, but in multiple
sourcing, the firm shares its business across multiple suppliers. In between those ends of the spectrum is
dual sourcing, where two suppliers are used for the same purchased product or service, and cross
sourcing, where different business units in a single firm use different suppliers for similar parts.
Single sourcing has the advantages of volume leveraging, lower transportation costs, reduced quality
variability, and stronger relationships with suppliers. Multiple sourcing creates competition, spreads risk,
can help ensure that suppliers do not become complacent, may be required if the purchased volume is
too great for one supplier, and may be desired if the buyer wishes to meet obligations to support minority
suppliers. Dual sourcing accrues the same advantages as multiple sourcing as does cross sourcing.
Diff: 2
Reference: 7.2 The Strategic Sourcing Process
Keywords: multiple sourcing, single sourcing, cross sourcing, dual sourcing, strategic sourcing process
AACSB: Application of Knowledge
LO: 7.1: Identify and describe the various steps of the strategic sourcing process.
22
Copyright © 2019 Pearson Education, Inc.
51) What are the advantages and disadvantages of insourcing and outsourcing?
Answer: Insourcing gives a company a high degree of control over its operations and can also lower
costs but only if a company enjoys the business volume necessary to achieve economies of scale. On the
downside, insourcing can be risky because it decreases a firm's strategic flexibility. Making a product or
providing a service internally often requires a company to make long-term capacity commitments that
cannot be easily reversed. Outsourcing typically increases a firm's flexibility and access to state-of-the-art
products and processes. As markets or technologies change, many firms find changing supply chain
partners easier than changing internal processes. With outsourcing, less investment is required up front
in the resources needed to provide a product or service. The benefits of outsourcing can be significant. Of
course, outsourcing has risks. Suppliers might misstate their capabilities: Their process technology might
be obsolete, or their performance might not meet the buyer's expectations. In other cases, the supplier
might not have the capability to produce the product to the quality level required. Control and
coordination are also issues in outsourcing. Buying firms may need to create costly safeguards to regulate
the quality, availability, confidentiality, or performance of outsourced goods or services. Coordinating the
flow of materials across separate organizations can be a major challenge, especially when time zone
differences, language barriers, and even differences in information systems come into play. Companies
that outsource also risk losing key skills and technologies that are part of their core competencies.
Diff: 2
Reference: 7.2 The Strategic Sourcing Process
Keywords: multiple sourcing, strategic sourcing process, insourcing, outsourcing
AACSB: Application of Knowledge
LO: 7.1: Identify and describe the various steps of the strategic sourcing process.
52) Briefly describe the objective of spend analysis and the general requirements for accomplishing it.
Answer: Spend analysis is the application of quantitative techniques to purchasing data in an effort to
better understand spending patterns and identify opportunities for improvement. Spend analysis can be
used to answer a wide variety of questions. For example, management might want to know the categories
of products or services that make up the bulk of company spending, how much is being spent with
various suppliers, and how spending patterns vary across different locations. The primary requirement
for accomplishing the analysis is having the necessary data and a means for manipulating it. Because the
questions are varied, the analytical tools needed also vary widely. Some companies have software
systems used for operations that contain the ability to perform these analyses. Other companies may turn
to a spreadsheet package to perform the required analyses.
Diff: 2
Reference: 7.2 The Strategic Sourcing Process
Keywords: spend analysis
AACSB: Application of Knowledge
LO: 7.2: Perform and interpret the results of a simple spend analysis.
23
Copyright © 2019 Pearson Education, Inc.
53) What is sourcing portfolio analysis? Discuss the model and the strategies and tactics associated with
each quadrant.
Answer: In portfolio analysis, the products or services to be sourced are assigned to one of four strategic
quadrants, based on their relative complexity and/or risk impact to the firm and their value potential. In
general, the more money a company spends on a particular good or service, the higher its value potential.
Depending on what quadrant a product or service is assigned to, the buying firm can then identify the
most appropriate sourcing strategy, tactics, and actions.
The four quadrants are Routine, Leverage, Bottleneck, and Critical.
The "Routine" Quadrant - Products or services in the routine quadrant are readily available and represent
a relatively small portion of a firm's purchasing expenditures. Typical examples include office supplies
and cleaning services. The sourcing strategy therefore becomes one of simplifying the acquisition process,
thereby lowering the costs associated with purchasing items in this quadrant. Specific actions can include
automating the purchasing process, reducing the number of suppliers used, and using electronic data
interchange (EDI) or purchase cards to streamline payment.
The "Leverage" Quadrant - Products or services in the leverage quadrant tend to be standardized and
readily available, and they represent a significant portion of money spent. The sourcing strategy therefore
focuses on leveraging the firm's spending levels to get the most favorable terms possible.
The "Bottleneck" Quadrant - Bottleneck products or services have unique or complex requirements that
can be met only by a few potential suppliers. In this case, the primary goal of the sourcing strategy is to
not run out; in effect, the goal is to ensure supply continuity. This might involve carrying extra inventory
to protect against interruptions in supply or contracting with multiple vendors to reduce supply chain
risks.
The "Critical" Quadrant - Like bottleneck items, products or services in the critical quadrant have
complex or unique requirements coupled with a limited supply base. The primary difference is that these
items can represent a substantial level of expenditure for the sourcing firm. In cases such as this, the
sourcing firm will spend considerable time negotiating favorable deals and building partnerships with
suppliers, as well as preparing contingency plans in case of an interruption in supply.
Diff: 1
Reference: 7.2 The Strategic Sourcing Process
Keywords: strategic sourcing process, portfolio analysis, bottleneck quadrant, critical quadrant, leverage quadrant,
routine quadrant
AACSB: Application of Knowledge
LO: 7.3: Use portfolio analysis to identify the appropriate sourcing strategy for a particular good or service.
54) What is portfolio analysis and how is it accomplished? Provide an example of a purchased product or
service that would fall in each area for a university applying portfolio analysis.
Answer: In portfolio analysis, the products or services to be sourced are assigned to one of four strategic
quadrants, based on their relative complexity and/or risk impact to the firm and their value potential. In
general, the more money a company spends on a particular good or service, the higher its value potential.
Depending on what quadrant a product or service is assigned to, the buying firm can then identify the
most appropriate sourcing strategy, tactics, and actions. Examples will vary: Routine products could be
housekeeping services. Leverage products could be high expenditure commodity items. Bottleneck
products may be IT services and the critical quadrant may include adjunct faculty services for
professional programs.
Diff: 2
Reference: 7.2 The Strategic Sourcing Process
Keywords: portfolio analysis
AACSB: Application of Knowledge
LO: 7.3: Use portfolio analysis to identify the appropriate sourcing strategy for a particular good or service.
24
Copyright © 2019 Pearson Education, Inc.
55) Define outsourcing and discuss its advantages and disadvantages.
Answer: Outsourcing is the use of supply chain partners to provide products or services. The advantages
of outsourcing are a very low investment risk, improved cash flow, access to state-of-the-art products and
services, and high strategic flexibility. The disadvantages of outsourcing include the possibility of
choosing a bad supplier, loss of control over the process and core technologies, communication and
coordination challenges with the supplier, and an increased risk of supply chain disruptions and CSR
risks.
Diff: 1
Reference: 7.2 The Strategic Sourcing Process
Keywords: insourcing, outsourcing, strategic sourcing process
AACSB: Application of Knowledge
LO: 7.4 Describe the rationale for outsourcing and discuss when it is appropriate.
56) The deans' suite hoped to cut costs and decided to perform a total cost analysis on its tequila supplier.
Consumption was currently 10,000 bottles per semester and this was predicted to maintain that level for
the next few years. Their current source, Byron's, charged $15.50 per bottle and packed 300 bottles in a
crate. The cost to ship the crate was $15. Another potential source of tequilas was Pancho's, who charged
$14.75 per bottle but could ship only 100 bottles in a crate and at a higher price, $75. Assume that a partial
crate may be purchased. Conduct a total cost analysis and make a recommendation.
Answer: Byron has a product cost of $155,000 and shipping cost of $500 for a total cost of $155,500.
Pancho has a product cost of $147,500 and a shipping cost of $7,500 for a total cost of $155,000 and is
therefore the low-cost provider by $500.
Diff: 2
Reference: 7.2 The Strategic Sourcing Process
Keywords: total cost, strategic sourcing process
AACSB: Analytical Thinking
LO: 7.5: Perform a simple total cost analysis.
57) The deans' suite hoped to cut costs and decided to perform a total cost analysis on its tequila supplier.
Consumption was currently 10,000 bottles per semester and this was predicted to maintain that level for
the next few years. Their current source, Byron's, charged $15.50 per bottle and packed 300 bottles in a
crate. The cost to ship the crate was $15. Another potential source of tequilas was Pancho's, who charged
$14.75 per bottle but could ship only 100 bottles in a crate and at a higher price, $75. Assume that a partial
crate may be purchased. By how much does Byron need to lower its per bottle price to reduce their total
cost to that of Pancho?
Answer: Reducing the price by 5 cents per bottle, to $15.45 will make Byron's total cost equal to Pancho's.
Diff: 2
Reference: 7.2 The Strategic Sourcing Process
Keywords: total cost, strategic sourcing process
AACSB: Analytical Thinking
LO: 7.5: Perform a simple total cost analysis.
25
Copyright © 2019 Pearson Education, Inc.
58) This table contains the performance criteria and scores (larger numbers are better) for four potential
suppliers to Los Pollos Hermanos. Evaluate the data and identify the BEST source for Los Pollos
Hermanos.
Answer: Company G has the highest score, 4.1, and would be the supplier of choice
ScoreX =
26
Copyright © 2019 Pearson Education, Inc.
59) This table contains the performance criteria and scores (larger numbers are better) for four potential
suppliers to Satriale's Pork Store. Evaluate the data and identify the BEST source for Satriale's. Consider
the two runners-up to the best source and what points of negotiation might lead them to becoming the
optimal supplier.
Answer: Company P has the highest score, 3.8, and would be the supplier of choice
ScoreX =
Company S is two-tenths behind Company P, and has an abysmal innovation score to thank for this
position. If the innovation factor is based on new product or service lines, then Satriale's might request
that Company S consider exploring new products more aggressively. Company T is only three-tenths
behind Company P, and is slightly behind in the Innovation factor but far behind on the Stability factor.
An increase of 1 point in the stability score raises the overall score of Company T by two tenths, so
whatever Company T can do to become more stable should be considered. Satriale's might take a
partnership stance, perhaps increase the frequency of meetings in order to help Company T in the
stability arena. A single digit increase in Innovation raises a score by four tenths of a point, but Company
T has a high score already in this area. It might be easier to raise an extremely low score (Stability) than
squeeze another point higher in an area where they are already performing well.
Diff: 3
Reference: 7.2 The Strategic Sourcing Process
Keywords: weighted-point evaluation, strategic sourcing process
AACSB: Analytical Thinking
LO: 7.6: Show how multicriteria decision models can be used to evaluate suppliers and interpret the results.
27
Copyright © 2019 Pearson Education, Inc.
60) The entire plant needs a fresh coat of paint so you, as the operations manager, are charged with
securing a painting contract to accomplish this. You locate four painting contractors and ask them for
their performance on four criteria. Their responses, along with your minimum standards and the
importance you place on each criterion, is shown in the table. Note that strongly positive references are 9
or better on a ten-point scale and positive references are 7 up to 9 on a ten-point scale. Assign scores from
1 to 5 where 1 is terrible and 5 is excellent, for each contractor's performance on each criterion and
determine who should be awarded the contract. Write a brief explanation for all the 1s and 5s you assign.
Answer: Answers will vary. Contractor 3 cannot meet the paint time criterion, does not have 5 years of
experience, and is past the limit on cost. They should either be excluded from bidding or possibly
assigned a score of 1 in each of those categories. Contractor 2 is best in cost, time, and paint quality and is
tied for best in references and should probably be the highest overall score.
Diff: 2
Reference: 7.2 The Strategic Sourcing Process
Keywords: weighted-point evaluation, strategic sourcing process
AACSB: Analytical Thinking
LO: 7.6: Show how multicriteria decision models can be used to evaluate suppliers and interpret the results.
1) Terms and conditions for a purchased service that indicate what services will be performed and how
the service provider will be evaluated is called a:
A) request for quotation.
B) bid specification.
C) preferred supplier contract.
D) statement of work.
Answer: D
Diff: 2
Reference: 7.3 The Procure-to-Pay Cycle
Keywords: statement of work, strategic sourcing process
AACSB: Application of Knowledge
LO: 7.8: Describe the major steps of the procure-to-pay cycle.
28
Copyright © 2019 Pearson Education, Inc.
2) Money is automatically drawn from the buyer's account and deposited into the supplier's account in an
electronic funds transfer (EFT).
Answer: TRUE
Diff: 2
Reference: 7.3 The Procure-to-Pay Cycle
Keywords: electronic funds transfer, EFT, procure-to-pay cycle
AACSB: Information Technology
LO: 7.8: Describe the major steps of the procure-to-pay cycle.
3) Authorization to a supplier to deliver a product is done through a(n) ________, and released using the
form of technology known as ________.
Answer: purchase order (PO); electronic data interchange (EDI)
Diff: 3
Reference: 7.3 The Procure-to-Pay Cycle
Keywords: procure-to-pay process, purchase order (PO), electronic data interchange (EDI)
AACSB: Information Technology
LO: 7.8: Describe the major steps of the procure-to-pay cycle.
4) Business partners that transfer payments between banks using an information system are using
________.
Answer: electronic funds transfer (EFT)
Diff: 2
Reference: 7.3 The Procure-to-Pay Cycle
Keywords: electronic funds transfer, EFT, procure-to-pay cycle
AACSB: Information Technology
LO: 7.8: Describe the major steps of the procure-to-pay cycle.
29
Copyright © 2019 Pearson Education, Inc.
5) What takes place in each step in the procure-to-pay cycle and which step is most critical?
Answer: Answers may vary on which step is most critical.
In contrast to the strategic sourcing process, the procure-to-pay cycle is decidedly tactical in nature: It
involves day-to-day communications and transactions between the buyer and supplier, and it is
completed once the goods or services have been received, the supplier has been paid, and the information
has been recorded into the database.
The five main steps of the procure-to-pay cycle are:
• Ordering — The most common way the ordering step begins is through the release of a purchase order.
A purchase order is simply a document that authorizes a supplier to deliver a product or service and
often includes terms and conditions, such as price, delivery, and quality requirements.
• Follow-up and expediting — Someone (typically purchasing or materials personnel) must monitor the
status of open purchase orders.
• Receipt and inspection — When the order for a physical good arrives at the buyer's location, it is
received and inspected to ensure that the right quantity was shipped and that it was not damaged in
transit. If the product or service was provided on time, it will be entered into the company's purchasing
transaction system. Physical products delivered by suppliers then become part of the company's working
inventory.
• Settlement and payment — Once an item or a service is delivered, the buying firm will issue an
authorization for payment to the supplier. Payment is then made through the firm's accounts payable
department.
• Records maintenance — After a product or service has been delivered and the supplier paid, a record of
critical events associated with the purchase is entered into a supplier performance database.
Diff: 3
Reference: 7.3 The Procure-to-Pay Cycle
Keywords: procure to pay cycle
AACSB: Application of Knowledge
LO: 7.8: Describe the major steps of the procure-to-pay cycle.
1) A recent survey of executives at Global 1000 companies uncovered what single biggest threat?
A) the fear of a supply chain disruption
B) the fear of the unknown
C) the fear of improperly weighting performance dimensions
D) the fear of misclassifying direct and indirect costs
Answer: A
Diff: 2
Reference: 7.4 Trends in Supply Management
Keywords: supply chain disruptions
AACSB: Application of Knowledge
LO: 7.9: Discuss some of the longer-term trends in supply management and why they are important.
30
Copyright © 2019 Pearson Education, Inc.
2) Which of these factors is most likely to increase the risk of a missed shipment, communication
problem, or human error?
A) supply base alienation
B) global outsourcing
C) multicriteria decision models
D) electronic data interchange
Answer: B
Diff: 2
Reference: 7.4 Trends in Supply Management
Keywords: supply chain disruptions, global sourcing
AACSB: Application of Knowledge
LO: 7.9: Discuss some of the longer-term trends in supply management and why they are important.
3) A recent trend in supply management is a move towards a more sustainable supply chain.
Answer: TRUE
Diff: 2
Reference: 7.4 Trends in Supply Management
Keywords: sustainability
AACSB: Application of Knowledge
LO: 7.9: Discuss some of the longer-term trends in supply management and why they are important.
4) Top executives name ________ as a significant threat to their companies' revenue streams.
Answer: (supply chain) disruptions, disruptions
Diff: 2
Reference: 7.4 Trends in Supply Management
Keywords: supply chain disruptions
AACSB: Application of Knowledge
LO: 7.9: Discuss some of the longer-term trends in supply management and why they are important.
31
Copyright © 2019 Pearson Education, Inc.
5) Identify the major trends in supply management and their impact from a strategic perspective.
Answer: The trends in supply management identified in this section are sustainable supply and supply
chain disruptions. As more companies become conscious of the importance of being environmentally
friendly, environmental performance is becoming an important criterion in selecting suppliers.
Companies want to ensure that suppliers are in compliance with environmental regulations and that they
are well positioned to deal with changes in the regulatory environment. Similarly, companies are looking
for ways to reduce packaging, promote recycling, and use other strategies designed to reduce cost while
being good for the environment.
As supply chains become more extended and firms depend even more on outside companies to provide
critical goods and services, many firms are feeling the sting of disruptions to the supply chain. Causes of
supply chain disruptions vary from natural disasters to manmade, but in a recent survey of senior
executives at Global 1000 companies, the respondents identified supply chain disruptions as the single
biggest threat to their companies' revenue streams. The complexity associated with multiple links in the
supply chain increases the probability of disruptions.
From a strategic perspective, a company perceived as being "greener" than its competition may win
orders that it otherwise wouldn't. Streamlining and outsourcing (or offshoring) allow a company to
become more productive by having companies better-suited to produce the outsourced component or
service do just that. This carries with it the risk of supply chain disruption, which is deleterious to their
competitive position.
Diff: 2
Reference: 7.4 Trends in Supply Management
Keywords: sustainable supply, supply chain disruptions
AACSB: Application of Knowledge
LO: 7.9: Discuss some of the longer-term trends in supply management and why they are important.
32
Copyright © 2019 Pearson Education, Inc.
Another random document with
no related content on Scribd:
— Mitäkö? Ka, tiedäthän sinä, mitä minä haluan! Sieluja tietysti.
En suinkaan minä nyt rahan tai muun mullan perässä rupea
kuljeksimaan.
— Ei siitä mitään puhetta ollut, väitti nyt seppä, enkä minä sieluani
anna.
— Tartu kiinni!
*****
VII
— Kuinka voit luulla, että luoja korjaa sielusi, kun kerran sanot
aina petkutuksella eläneesi? Piru kai sinut korjaa eikä luoja?
Ja isäntä lisäsi:
— Ei, hyvä veli, tämä tällainen käy päinsä, puheli nyt Lusti
opettavaisesti Santtepekille. Kun olet kerran tuollainen taitoniekka,
että kädellä pyyhkäisemällä teet sokean näkeväksi, niin siitä
taidostahan vasta killinkejä heltiää. Parempaa elämisen keinoa ei voi
olla. Mitäpä siis muuta kuin sinä toimitat sairaiden parantamisen, ja
minä otan osalleni maksun kantamisen. Voit olla varma siitä, että
yhtä tunnollisesti ja perinpohjin kuin sinä tehtäväsi suoritat, minäkin
pidän huolen omastani. Näin me molemmat levitämme onnea ja
siunausta, emme ainoastaan koko maakuntaan, vaan vieläpä omaan
vatsaamme, joka muuten olisi aina tyhjä paitsi suu auki vastatuuleen
kuljettaessa.
Santtepekki ei sanonut mitään, vaan huokasi hiljaa itsekseen..
Mitä oli hänen tehtävä tälle omituiselle ihmislapselle, joka ei
näyttänyt horjahtavan erikoisluonteensa tasapainosta silloinkaan,
kun jumalallinen ihmetyö tapahtui hänen silmäinsä edessä?
Päinvastoin hän oli heti valmis käyttämään sitä tavalla, joka ei ollut
Jumalan tarkoitus, saadakseen itselleen rahaa ja lihallisia nautintoja.
Olisiko mitään keinoa, jolla saisi hänen sielunsa järkytetyksi ja
silmänsä avatuksi? Santtepekki tunsi, kuinka Jumalan aivoitukset
sotamies Lustin suhteen olivat hänelle tuntemattomat, ja huoaten
hän kaipasi Jeesuksen kaikkiviisasta läsnäoloa ja johtoa. Hän päätti
kääntyä rukouksella mestarinsa puoleen ja halusi siksi poistua
syrjemmäksi. Hän pyysi Lustia hetkisen odottamaan ja tämä
selittikin:
— Mikäpä siinä. Laihaa olikin tuon talon ruoka, niin että mielinpä
vähän maistaa näitä lampaanlihoja. Mene sinä vain, minne haluat;
minä teen tulen ja paistan rasvaiset paistit, etteivät lihat pääse
pilautumaan.
VIII
— Riitaako haastat?
- No, vanha toveri! Mitä siellä nurkassa yksin istuskelet ja olet niin
surullisen näköinen? Tule ja ota sinäkin, vanha mies, lämmin ryyppy,
niin rupeavat veresi hiukan vilkkaammin kiertelemään!
— Kas niin! Sehän oli oikein tukeva ryyppy! Jatka vain, niin kyllä
sinusta vielä mies tulee vanhanakin. Ja hän kaasi Santtepekin lasin
uudelleen täyteen. Kuta useammin lasin Santtepekki kallisti, sitä
ihmeellisemmäksi hän tunsi olonsa. Hänestä tuntui kuin olisi hän
aste asteelta laskeutunut yhä lähemmäksi inhimillisyyden vuolasta ja
haaleata virtaa, kunnes vihdoin painui siihen kokonaan ja lähti
uimaan rinnakkain miljoonien sielujen kanssa, rakkaassa
veljeydessä. Ja hänen sielussaan heräsi se suloisen kipeä, katkeran
tuskallinen, mutta samalla kaukaisesti hyvää tekevä ja sielua
avartava polte, jonka Jumala on ihmiselle kalliina aarteena
lahjoittanut ja jonka nimi on elävä, maahan asti nöyrtyvä, uskolla ja
avunhuudolla ylös pyrkivä synnintunto, sielujen ankara kevätmyrsky,
joka raivoaa katkoen puita ja oksia, sortaen maahan kaikki lahot
rakennukset, hälventäen valheen ja teeskentelyn sumut, mukanansa
lupaus ihanasta kevään ajasta, jolloin kyynelöivä maailma välkkyy
armon auringon loisteessa ja autuuden soitto täyttää sielun.
Santtepekki katsahti ympärilleen pimeään krouvin tupaan, jossa
savuavat kynttilät siellä täällä tuikuttivat, uneliaaseen, pöytänsä