Exam 5: Purchasing and Supply Management Organization

Which of the following is an example of an operational activity?

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

In organizations where new product development occurs at the divisional or business unit level, a centralized purchasing structure can support new product development at earlier stages.

Which of the following is not one of the factors to be considered when implementing an organization's supply structure?​

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.

The trend today is to move away from a horizontal focus, where work and information are managed across groups and between organizations, toward a vertical focus, where work and information are managed up and down within functional groups.

_____ is the organized study of an item's function as it relates to value and cost.

_____ is the process of personally or electronically contacting suppliers to determine the status of past-due or near-past-due shipments.

The mission of a decentralized purchasing structure is to facilitate the consolidation of similar buying requirements and standardize buying processes at the various facilities.

Supply management is a progressive approach to managing the supply base that relies primarily on a traditional arm's-length or adversarial approach with sellers.

A/An _____ organizational structure combines a centralized approach for purchased items common to several business units and a decentralized approach to unique requirements.

Participation on a team may present a personal risk and create conflict once members realize that supporting a team takes time away from activities that are recognized and rewarded.

If the CPO at corporate headquarters has the authority for the majority of the organization's purchases, then the organization maintains a decentralized authority structure.

Progressive organizations recognize that a need for expeditors indicates that suppliers are performing as required, or that suppliers are receiving realistic or stable material release schedules.

Which of the following is not a common organizational mechanism to enable center-led organization design?​

If the organization's strategy is to be responsive to individual customers in different markets, then a more centralized approach is likely.

The _____ function monitors the day-to-day management of purchased and in-process inventory at each using location.

When a key commodity is purchased by many major business units, use of [a] _____ is beneficial.

Purchasing is becoming more of a tactical function and less of a strategic function.

Separation of supply management duties into strategic and tactical job assignments means that tactical responsibilities are more important.