Exam 2: Purchasing Management

Under which conditions would you most likely utilize a centralized purchasing system? List two advantages that would be gained by utilizing a centralized purchasing system. Under which conditions would you most likely utilize a decentralized purchasing system? List two advantages that would be gained by utilizing a decentralized purchasing system.

A form of purchasing that is placed directly to the supplier and suitable when firms use the same components to make standard goods over a relatively long period of time is referred to as:

While most public procurement is focused on goals similar to those of purchasing departments in the private sector,U.S.federal government purchases must comply with the:

Industrial supply chain member buyers purchase their merchandise in volume to take advantage of quantity discounts,transportation economy,and storage efficiency,and then they create value through services like consolidating merchandise or break bulking.

If the break-even point in a typical make-buy scenario is 10,000 units and 15,000 units are required,than the firm should choose to make.

The acquisition of services is also known as contracting.

When calculating Return on Investment,current assets include:

Benefits derived from implementing e-procurement systems include all of the following EXCEPT:

Which of the following illustrates Forward Vertical Integration?

On occasion,firms assist suppliers,new or old,to improve their processing capabilities,product or service quality,delivery effectiveness,and cost performance by providing the required technical and financial assistance.This is referred to as:

The goal of a proper purchasing system is to ensure the efficient transmission of information from the users to the purchasing personnel,and ultimately,to the suppliers.

Which of the following statements is FALSE?