Exam 12: The Purchasing Process

Digital signatures allow the vendor to determine that the sender of the message has the authority to send it and thus prevents an unauthorized purchase.

In many organizations ______________________________ do the actual buying.

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.

______________________________ tags identify an instance of an item,not just an item type (e.g. ,this box of Huggies,not any box of Huggies).

In selecting a vendor,a buyer may need to obtain competitive bids by means of a document called a purchase order.

Reorder point (ROP)analysis reorders inventory when the item reaches a certain inventory level that was determined in advance based on the item's purchase rate.

Below is a narrative describing the "Receive goods and services" portion (bubble 3.0)of the purchasing process described in Chapter 12. Narrative Description The vendor packing slip,which accompanies the purchased inventory from the vendor and identifies the shipment,triggers the receiving process.As indicated by bubble 3.1 of the figure,goods arriving at the receiving department are inspected and counted,and these data are matched against the vendor packing slip and the "PO receiving notification" (i.e. ,the blind copy of the PO).Nonconforming goods are denoted by the reject stub out of process 3.1.Notation of rejected goods is added to the vendor service record in the vendor master data.After the count and condition of the goods has been obtained,process 3.1 completes the receiving report by noting the quantity received.Once annotated with the quantity received,the PO receiving notification becomes a receiving report,which is the document used to record merchandise receipts. Process 3.2 compares the receiving report data to the information stored in the PO master data-a process that often is automatically completed by the information system.Bubble 3.2 also reflects the following activities: Required: From the DFD (TB Figure 12.5)and the narrative description above,explode bubble 3.0 into a lower-level diagram showing the details of that process.

In a purchasing process,the receiving report may be accessed by all of the following except:

Inventory personnel use the vendor master data to select an appropriate vendor.

Which type of supply chain collaboration methods includes collaborative processes across the supply chain using a set of processes and technology models?

Which of the following is a potential problem with supply chain management initiatives?

Assume that one of the process bubbles in the Purchasing Process - Level 0 Diagram is called "order goods and services." The data flow between "order goods and services" and the "vendor" is called a:

Notification that a PO has been prepared and sent to the vendor is sent to the original requester,to ______________________________,and to ______________________________.

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 ______________________________ effect.

As used in the purchasing process chapter,the term "goods and services" refers to raw materials,merchandise,supplies,fixed assets,or intangible assets only.

______________________________ means that before a receipt can be accepted and recorded,the receipt data should be compared with the PO master data to determine that an approved PO,prepared by someone other than receiving personnel,is on file.

The typical purchasing process would capture and record data related to the day-to-day operations of all of the following except:

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 ______________________________.

The purchasing manager is evaluated by his/her supervisors based on purchasing inventory at the lowest price.Consequently,the purchasing manager knowingly orders materials only based on price.This has resulted in the purchase of inferior quality materials.This improved the purchasing manager's performance evaluation,but had a negative impact on production due to an increase in scrapped materials.This situation is an example of a failure of:

With continuous replenishment (CRP)a vendor obtains a buyer's current sales,demand,and inventory data in real time and replenishes the buyer's inventory.