Exam 2: The Purchasing Process

The way MRO items are typically dispersed throughout an organization makes monitoring MRO inventory relatively simple.

In drafting a purchase order, purchasing must include a large number of details regarding policies because it is a legally binding document.

The authority to review and challenge specifications (for products or for services) is within purchasing's span of control in managing demand, although internal stakeholders sometimes dispute this right.

While similar in concept, blanket purchase orders are typically used more often for _____ purchases.

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

_____ 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.

The dollar value of the items covered by procurement cards is relatively high.

All the following are expected growth areas in e-commerce except _____.

Which of the following is not one of the conditions under which negotiation is effective?

Buyers use material purchase releases to order items covered by blanket purchase orders.

_____ focuses attention on the outcomes the customer wants, not on the precise configuration of the product or service.

When creating a forecast for a needed product or service, internal customers may not always be able to express exactly what it is they will need at a future point in time.

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

A _____ involves the physical checking of inventory to verify that system records match actual on-hand inventory levels.

Most companies spend too much time and too many resources managing the ordering of goods and services, particularly lower-value items.

When purchasing works directly with internal stakeholders to anticipate future requirements, such as during new-product development, or with physician councils in a health care provider, purchasing is acting reactively.

All of the following are benefits of electronically generating and transmitting purchasing-related documents except _____.

Which of the following is not one of the characteristics of a mature, well-developed supply strategy?

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

Enterprises are relying increasingly on external suppliers to provide only materials and products, not information technology, services, and design activities.