Exam 5: Purchasing and Supply Management Organization

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

_____ refers to the process of assessing and selecting the structure and formal system of communication, division of labor, coordination, control, authority, and responsibility required to achieve organizational goals and objectives, including supply management objectives.

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

In rapidly changing industries or those where purchased goods and services comprise a _____ portion of product or service costs, management usually recognizes the need to place purchasing in a _____ position in the organizational hierarchy.

The ability to respond quickly to user and customer requirements has always been a major justification for centralized purchasing authority.

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

Purchasing never analyzes whether a new or existing purchase requirement should be internally or externally sourced.

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

The challenge today for location of authority is to know which activities, processes, and tasks to control or coordinate centrally and which to assign to operating units.

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

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

Many recognition and reward systems today encourage members not to participate on teams.

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.

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.

Regarding the continuum of complete centralization and complete decentralization of purchasing authority, few organizations lie at these polar extremes, and most organizations lie somewhere toward one end or the other. ​

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

If each division or unit is responsible for developing its own e-purchasing system or data gathering and part-numbering system, the result will be a compatible purchasing system.

The _____ group includes the activities supporting the day-to-day operations of the purchasing or materials function.

[A] _____ is comprised of group of buyers who purchase similar items at various facilities.

A consortium is a voluntary group where buyers are in the same industry and conduct business with many of the same suppliers.