Question 1

Which type of requisition is used for materials and standard parts that are requested on a recurring basis?

Accepted Answer

A) Open requisition 
B) Blanket requisition 
C) Traveling requisition 
D) Recyclable requisition (Cyc-Rec) 
A) Open requisition 
B) Blanket requisition 
C) Traveling requisition 
D) Recyclable requisition (Cyc-Rec)

Question 2

A form of purchasing that is placed directly to the supplier and suitable when firms use the same components to make standard goods over a relatively long period of time is referred to as:

Accepted Answer

A) Material Requisition 
B) Purchase Requisition 
C) Planned Order Release 
D) Traveling Requisition 
A) Material Requisition 
B) Purchase Requisition 
C) Planned Order Release 
D) Traveling Requisition

Question 3

The term Supply Management is used to describe responsibilities above and beyond those of traditional purchasing.

Accepted Answer

A) True 
 B)False

Question 4

Decentralized purchasing is the practice where individual,local purchasing departments throughout a single corporation make their own,individual purchasing decisions to fulfill their individual local needs.

Accepted Answer

A) True 
 B)False

Question 5

Purchasing can be broadly classified into two categories: merchants and industrial buyers.

Accepted Answer

A) True 
 B)False

Question 6

As firms seek to improve the products they offer to the market,companies are seeking help from their suppliers in new product design and development through:

Accepted Answer

A) Supplier certification programs 
B) Manufacturer certification programs 
C) Early supplier involvement 
D) Total Cost of Ownership initiatives 
A) Supplier certification programs 
B) Manufacturer certification programs 
C) Early supplier involvement 
D) Total Cost of Ownership initiatives

Question 7

The ACME Cell Phone Company has developed a new series of phones that it plans to bring to the market in the next 18 months.Management is considering whether to produce the product in-house or to contract out the purchasing and manufacturing of their new cell phones.​Provide FOUR conditions that would favor outsourcing and FOUR conditions that would favor making the cell phones in-house.​​

Accepted Answer

Conditions that favor outsourcing:
a.If

Question 8

When a material is not available in the warehouse and there is no current supplier for the item,the buyer must identify a pool of suppliers and issue a:

Accepted Answer

A) Request for Quotation 
B) Purchase Order 
C) Contract for Sale 
D) Sales Order 
A) Request for Quotation 
B) Purchase Order 
C) Contract for Sale 
D) Sales Order

Question 9

Benefits derived from implementing e-procurement systems include all of the following EXCEPT:

Accepted Answer

A) Allows buyers to submit bids and suppliers to respond to those bids in real time 
B) Increases the accuracy in communication between buyers and suppliers 
C) Creates numerous additional job opportunities in the purchasing department 
D) Tracking bids and transactions is easier and faster 
A) Allows buyers to submit bids and suppliers to respond to those bids in real time 
B) Increases the accuracy in communication between buyers and suppliers 
C) Creates numerous additional job opportunities in the purchasing department 
D) Tracking bids and transactions is easier and faster

Question 10

Answer the questions that follow,based on the diagram provided below   
a.What are the fixed costs for the make decision?
b.What is the breakeven quantity for the two options illustrated?
c.At Q = 500, would you choose the make or buy option? Why?
d.At Q = 100, what will be the total cost associated with the best decision at this quantity?

Accepted Answer

a.What are the fixed costs for the make

Question 11

The possibility of events like strikes,assembly line breakdowns,and natural disasters are all reasons a company should favor using a single supplier.

Accepted Answer

A) True 
 B)False

Question 12

Procurement credit cards can be used for small purchases excluding meals,lodging,and travel expenses.

Accepted Answer

A) True 
 B)False

Which type of requisition is used for materials and standard parts that are requested on a recurring basis?

A form of purchasing that is placed directly to the supplier and suitable when firms use the same components to make standard goods over a relatively long period of time is referred to as:

The term Supply Management is used to describe responsibilities above and beyond those of traditional purchasing.

Decentralized purchasing is the practice where individual,local purchasing departments throughout a single corporation make their own,individual purchasing decisions to fulfill their individual local needs.

Purchasing can be broadly classified into two categories: merchants and industrial buyers.

As firms seek to improve the products they offer to the market,companies are seeking help from their suppliers in new product design and development through:

When a material is not available in the warehouse and there is no current supplier for the item,the buyer must identify a pool of suppliers and issue a:

Benefits derived from implementing e-procurement systems include all of the following EXCEPT:

The possibility of events like strikes,assembly line breakdowns,and natural disasters are all reasons a company should favor using a single supplier.

Procurement credit cards can be used for small purchases excluding meals,lodging,and travel expenses.

Introduction to Supply Chain Management

Creating and Managing Supplier Relationship

Ethical and Sustainable Sourcing

Demand Forecasting

Resource Planning Systems

Inventory Management

Process Management - Lean and Six Sigma in the Supply Chain

Domestic Usand Global Logistics

Customer Relationship Management

Global Location Decisions

Service Response Logistics

Supply Chain Process Integration

Performance Measurement Along the Supply Chain

Filters

Exam 2: Purchasing Management

Which type of requisition is used for materials and standard parts that are requested on a recurring basis?

A form of purchasing that is placed directly to the supplier and suitable when firms use the same components to make standard goods over a relatively long period of time is referred to as:

The term Supply Management is used to describe responsibilities above and beyond those of traditional purchasing.

Decentralized purchasing is the practice where individual,local purchasing departments throughout a single corporation make their own,individual purchasing decisions to fulfill their individual local needs.

Purchasing can be broadly classified into two categories: merchants and industrial buyers.

As firms seek to improve the products they offer to the market,companies are seeking help from their suppliers in new product design and development through:

When a material is not available in the warehouse and there is no current supplier for the item,the buyer must identify a pool of suppliers and issue a:

Benefits derived from implementing e-procurement systems include all of the following EXCEPT:

The possibility of events like strikes,assembly line breakdowns,and natural disasters are all reasons a company should favor using a single supplier.

Procurement credit cards can be used for small purchases excluding meals,lodging,and travel expenses.

Introduction to Supply Chain Management

Creating and Managing Supplier Relationship

Ethical and Sustainable Sourcing

Demand Forecasting

Resource Planning Systems

Inventory Management

Process Management - Lean and Six Sigma in the Supply Chain

Domestic Usand Global Logistics

Customer Relationship Management

Global Location Decisions

Service Response Logistics

Supply Chain Process Integration

Performance Measurement Along the Supply Chain

Filters