Exam 12: The Purchasing Process

In an entity-relationship (E-R) diagram for the purchasing process, you would expect that the word generate would appear in the diamond showing the relationship between:

The inventory master data contains a record of each vendor that is approved for use by the organization.

With ______________________________ a vendor obtains a buyer's current sales, demand, and inventory data in real time and replenishes the buyer's inventory.

A retailer could misread a demand signal doubling its normal order, and the wholesaler could respond and also double its order resulting in four times the retail order. This is an example of the bullwhip effect.

The vendor packing slip triggers which process?

The connections from the suppliers of merchandise and raw materials through to an organization's customers, including the flow of information, materials, and services, are its ______________________________.

Which of the following techniques has the reorder point based on each inventory item's sales rate?

Documents requiring approval, such as a purchase requisition, may be routed for electronic approval using ______________________________ software.

Which type of supply chain collaboration methods includes the vendor obtaining the buyer's current sales, demand, and inventory data in real time and replenishing the buyer's inventory?

The ______________________________ is the primary key for the relational table for inventory.

Which of the following is least likely to report directly to the vice president of logistics?

A receiving report is to goods what a(n) ____ is to services.

As used in the text, the term services specifically refers to:

The ______________________________ is the primary key for relational table for vendors.

The purchasing supervisor is responsible for receiving incoming goods, signing the bill of lading presented by the carrier, reporting the receipt of goods, and making prompt transfer of goods to the appropriate warehouse or department.

Below is a narrative of the "Order goods and services" portion (bubble 2.0) of the purchasing process described in Chapter 12. Narrative Description The first process involves vendor selection (bubble 2.1). A buyer generally consults the vendor master data to identify potential suppliers that have been approved for use by the organization and then evaluates each prospective vendor for a particular purchase. After the vendor has been selected, the buyer prepares a purchase order (PO). Process bubble 2.2 of depicts the process of preparing a PO. The "purchase order" data flowing out of process 2.2 is sent to the vendor. At the same time, the inventory master data is updated to reflect the goods on order. A record of the purchase is stored on the PO master data, and PO information is distributed to several departments, including the requesting department, the inventory management process, accounts payable process, and receiving. Required: From the DFD (TB Figure 12.3) and the narrative description above, explode bubble 2.0 into a lower-level diagram showing the details of that process.

After the ______________________________ has been selected, the ______________________________ prepares a purchase order.

Whereas a receiving report normally indicates that goods have been received, some organizations use an acceptance report to acknowledge formally the satisfactory completion of a service contract.

When data on the inventory record indicate a need to replenish the stock, the inventory system prepares a(n) ______________________________.

Purchasing personnel use the ______________________________ data to identify potential suppliers that have been approved for use by the organization.