Exam 2: The Purchasing Process

_____ is the process of using unit and rate consumption levels to forecast and estimate future consumption in an internal functional customer and providing guidance and input on how to optimize usage and educating the user on the tradeoffs.

All of the following are required elements in a purchase requisition except _____.

_____ is a situation that occurs when sellers seek to "go around" purchasing and instead directly contact and attempt to sell directly to end users (stakeholders).

If a supplier's components are defective and causing problems for manufacturing, then purchasing must find ways to improve supplier quality.

In a _____, the price stated in the agreement does not change, regardless of fluctuations in general overall economic conditions, industry competition, levels of supply, market prices, or other environmental changes.

The _____ helps protect the carrier against wrongful allegations that the carrier somehow damaged, lost, or otherwise tampered with a shipment.

Which of the following is Falseregarding concealed damage?

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.

A/An _____ is an open order, usually effective for one year, covering repeated purchases of an item or family of items.

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

Effective supply market intelligence involves all of the following except _____.

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

Which of the following is not a feature that separates capital equipment purchases from other purchases?

The _____ is used to identify user requirements, evaluate the user needs effectively and efficiently, identify suppliers who can meet that need, develop agreements with those suppliers, develop the ordering mechanism, ensure payment occurs promptly, ascertain that the need was effectively met, and drive continuous improvement.

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

The objectives of a world-class purchasing organization do not need to evolve beyond the traditional mantra of ensuring we "get a good price!"

Material discrepancies usually result from incorrect quantity shipments.

Organizations are constantly looking for people who have developed the skills necessary to deal with the narrow variety of tasks faced by purchasing.

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

Which of the following is not an appropriate performance criterion to be used when evaluating suppliers?