Exam 2: Purchasing Management

The ACME Cell Phone Company has developed a new series of phones that it plans to bring to the market in the next 18 months.Management is considering whether to produce the product in-house or to contract out the purchasing and manufacturing of their new cell phones. Provide FOUR conditions that would favor outsourcing and FOUR conditions that would favor making the cell phones in-house. Also,which internal parties and external parties must procurement consult with in order to make an informed decision?

The term Supply Management is used to describe responsibilities above and beyond those of traditional purchasing.

The term Supply Management is used to describe responsibilities above and beyond those of traditional purchasing.What are three of these key activities and why are they considered important to Supply Management?

If the break-even point in a typical make-buy scenario is 24,000 units and 8,000 units are required,than the firm should choose to make.

Which type of requisition is used for materials and standard parts that are requested on a recurring basis?

There is a clear line between purchasing activities and the supply management function.

A pre-printed order form for purchasing materials and standard parts that are requested on a recurring basis is referred to as:

NAFTA and the WTO are trade organizations seeking to reduce tariff and non-tariff barriers among its member countries.

Inventory Turnover can be calculated by:

According to the Annual Survey of Manufacturers,the cost of materials exceeds the value added to the materials during manufacturing.

According to the textbook,the Las Vegas division of Harrah's Entertainment utilizes which of the following purchasing structures?

The possibility of events like strikes,assembly line breakdowns,and natural disasters are all reasons a company should favor using a single supplier.

Your firm needs to purchase office supplies.What method do you choose to use for this small dollar value purchase? Justify your answer.

The WTO is a trade organization seeking to establish trade barriers that will protect member countries by excluding nations that pose an economic threat.

The Uniform Commercial Code governs the purchase and sale of goods in the US except in the state of:

Use what you understand about the outsourcing decision (Make vs.Buy)to answer this question.List and explain three reasons a person might decide to buy a meal at a restaurant rather than making a meal at home.

The primary goals of purchasing include all EXCEPT:

Answer the questions that follow,based on the diagram provided below a.What are the fixed costs for the make decision? b.What is the breakeven quantity for the two options illustrated? c.At Q = 500,would you choose the make or buy option? Why? d.At Q = 100,what will be the total cost associated with the best decision at this quantity?

Which of the following would be a good reason to outsource (buy)versus making?

If a distribution company that focused on warehousing and distribution of grocery items decided to purchase a chain of grocery stores,the distribution company would be exemplifying: