Managing supply risk from the suppliers’ side.

1. Do organizations know how to evaluate their suppliers? Do they use the
right data? Is there a consistent approach by different departments within
an organization? The case study on pp. 248-249 shows that evaluating
suppliers is itself a risk. Table 13.1 shows characteristics of an effective
supply measurement system. Choose up to three of these characteristics
that you would prioritize as the most important and provide reasons why.
Use of real life examples is helpful, if you can obtain them.
2. The total cost of a project may not always be simple to measure or
evaluate as we have direct and indirect costs, as well as hidden costs and
opportunity costs. Please explain the value of the total landed cost model,
including your comments on Figure 13.1 on p. 256

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