Exam 2: The Purchasing Process

_____ is a process associated with defining the contract, defining roles and responsibilities of both parties, and advising when to modify and ensure appropriate escalation.

A _____ details any shipping or receiving discrepancies noted by the receiving department.

In a _____, when inventory is depleted to a given level, the system notifies the materials control department (or the buyer in some organizations) to issue a request to a supplier for inventory replenishment.

Capital equipment purchasing involves buying assets intended for use less than one year.

Transportation carriers use a/an _____ to record the quantity of goods delivered to a facility.

Managing the purchase of semifinished components is not a critical purchasing responsibility because components rarely affect product quality and cost.

The process that buyers use to select suppliers does not vary widely depending on the required item and the relationship that a buyer has with its suppliers.

Failing to respond to the needs of internal customers will diminish the confidence these users have in purchasing, and they may try to negotiate contracts themselves (a practice known as _____).

One of the most important objectives of the purchasing function is the selection, development, and maintenance of suppliers, a process that is sometimes described as _____.

Which of the following is not one of the common ways that internal customers should communicate their needs to purchasing?

_____ is used when a product or service is proprietary or when there is a perceived advantage to using a particular supplier's products or services.

Responsibility for concealed damage is often simple and easy to detect.

Purchasing's right to evaluate and select suppliers means that sales representatives are not allowed to talk with non-purchasing personnel.

The _____ purchase category includes such items are petroleum, coal, lumber, and metals such as copper and zinc.

_____ include anything that does not go directly into an organization's product.

For routine, off-the-shelf items, the purchase requisition may contain all the information that purchasing requires.

_____ is the process of developing insights into stakeholder requirements, comparing these to external industry intelligence, supply base capabilities and operational risks, and developing a strategy to align internal requirements with external supply market conditions.

A/An _____ has demonstrated its performance capabilities through previous purchase contracts and therefore receives preference during the supplier selection process.

It is a common and preferred current practice for suppliers to arrange shipment to a purchaser and simply include the transportation cost as part of the purchase cost.

Material discrepancies usually result from incorrect quantity shipments.