Exam 5: Purchasing and Supply Management Organization

If purchasing authority for the majority of purchase expenditures is at the business unit, divisional, or site level, then a firm has a more _____ structure.

_____ involves a systematic monitoring of the supply environment to assure a continual economic supply of goods and services.

Regional buying groups are most advantageous where geographic concentration exists within a company.

All of the following are factors affecting purchasing's position in the organizational hierarchy except _____.

Strategic responsibilities lack the immediacy of tactical duties and, as a result, are often ignored.

Today's version of decentralized purchasing should emphasize support, integration, and coordination of different tasks that are common across a business rather than strict control over all the activities within the purchasing process.

If purchases are very different across business units, a firm may opt to decentralize purchasing.