Exam 5: Purchasing and Supply Management Organization

Center-led organizations have the same total authority that purely centralized units do.

When a commodity is purchased by many major business units, use of [a] _____ is beneficial.

Purchasing is becoming more of a tactical function and less of a strategic function.

Perhaps the least important factor contributing to purchasing's position in the organizational hierarchy is history.

The _____ task involves identifying company spend and matching to the best potential suppliers, negotiating with selected suppliers, and finally managing the contract.

Decentralized purchasing personnel should gain a greater understanding and appreciation of local operating requirements.

The _____ group is responsible for developing the policies and procedures that purchasing personnel follow, administering and maintaining the purchasing information system and database, determining required staffing levels, developing department plans, organizing training and seminars for buyers, and developing measurement systems to evaluate purchasing performance.

The actual expediting process frequently provides new value within the purchasing process.

Increasingly, purchasing is becoming more involved with expediting and inventory control.

Spend analysis involves using systems software to identify items purchased in common among divisions or business units.

Which of the following is an example of a strategic activity?​

The trend today is to move away from a horizontal focus, where work and information are managed across groups and between organizations, toward a vertical focus, where work and information are managed up and down within functional groups.

The objective of value analysis is to enhance value by reducing the cost of a good or service without sacrificing quality, enhancing functionality without increasing cost, or providing greater functionality to the user above and beyond any increase in cost.

The mission of a decentralized purchasing structure is to facilitate the consolidation of similar buying requirements and standardize buying processes at the various facilities.

In general, the lower purchasing is in the corporate structure, the greater the role it plays in supporting organizational objectives.

All of the following are advantages of decentralized purchasing except _____.

Separation of supply management duties into strategic and tactical job assignments means that tactical responsibilities are more important.

Which of the following is not a common organizational mechanism to enable center-led organization design?

Detailed short- and long-term purchasing plans are required for items subject to technological, economic, or political change.

By definition, _____ is a broad term describing the purchase of raw materials, components, finished goods, or services from suppliers, some of whom can be another operating unit within the organization.