Question 1

originates with the department or person who will be the ultimate user:

Accepted Answer

A)  A purchase requisition 
B)  A purchase order 
C)  Vendor selection 
D)  any of the above 
A)  A purchase requisition 
B)  A purchase order 
C)  Vendor selection 
D)  any of the above A

Question 2

Which of the following statements is true?

Accepted Answer

A)  in contract buying, price and delivery are negotiated each time an order is released. 
B)  contract buying assures suppliers they have a given amount of business and commits them to allocating that amount of their capacity to the customer 
C)  contract buying is useful for short term purchases 
D)  EDI does not eliminate much of the paper work associated with buying 
A)  in contract buying, price and delivery are negotiated each time an order is released. 
B)  contract buying assures suppliers they have a given amount of business and commits them to allocating that amount of their capacity to the customer 
C)  contract buying is useful for short term purchases 
D)  EDI does not eliminate much of the paper work associated with buying B

Question 3

The fluctuation in the supply upstream in a supply chain generated by a small change in demand downstream in the supply chain is known as:

Accepted Answer

A)  Forecast error 
B)  Bullwhip effect 
C)  Break-even point 
D)  Demand variation 
A)  Forecast error 
B)  Bullwhip effect 
C)  Break-even point 
D)  Demand variation B

Question 4

In comparing prices, which of the following factors should be considered?

Accepted Answer

A)  base price 
B)  shipping point 
C)  installation and tooling costs 
D)  all the above should be considered 
A)  base price 
B)  shipping point 
C)  installation and tooling costs 
D)  all the above should be considered

Question 5

Which of the following refers to a means of replenishing inventory through a supplier's review and responsibility to maintain targeted inventory levels?

Accepted Answer

A)  Safety stock 
B)  Vendor-managed inventory 
C)  Environmentally-responsible purchasing 
D)  Enterprise resource planning 
A)  Safety stock 
B)  Vendor-managed inventory 
C)  Environmentally-responsible purchasing 
D)  Enterprise resource planning

Question 6

The replacement of internal capacity and production with that of a supplier's is known as:

Accepted Answer

A)  Capacity buying 
B)  Outpartnering 
C)  Outsourcing 
D)  Capacity cushioning 
A)  Capacity buying 
B)  Outpartnering 
C)  Outsourcing 
D)  Capacity cushioning

Question 7

Long-term supplier partnerships are supported by which of the following types of sourcing:

Accepted Answer

A)  Sole 
B)  Multiple 
C)  Single 
D)  Buyer/planner 
A)  Sole 
B)  Multiple 
C)  Single 
D)  Buyer/planner

Question 8

Which of the following is NOT a factor to consider when selecting a supplier?

Accepted Answer

A)  technical ability 
B)  manufacturing capability 
C)  reliability 
D)  price 
E)  size of organization 
A)  technical ability 
B)  manufacturing capability 
C)  reliability 
D)  price 
E)  size of organization

Question 9

Which of the following is NOT a step in the purchasing cycle?

Accepted Answer

A)  receipt and analysis of purchase requisition 
B)  selection of vendor 
C)  make up the specification for the product 
D)  issue a purchase order 
E)  receive and accept the goods. 
A)  receipt and analysis of purchase requisition 
B)  selection of vendor 
C)  make up the specification for the product 
D)  issue a purchase order 
E)  receive and accept the goods.

Question 10

Which of the following is (are) a qualification(s) of a good supplier?

Accepted Answer

A)  has adequate plant and facilities 
B)  has a sound financial position 
C)  has reasonable prices 
D)  all the above are qualifications of a good supplier 
A)  has adequate plant and facilities 
B)  has a sound financial position 
C)  has reasonable prices 
D)  all the above are qualifications of a good supplier

Question 11

Special items will generally be purchased on the basis of a quotation. The purchasing agent will select on the basis of:

Accepted Answer

A)  the lowest price 
B)  the most reliable bidder 
C)  the preference of the department that will use the item 
D)  consideration of all the above 
A)  the lowest price 
B)  the most reliable bidder 
C)  the preference of the department that will use the item 
D)  consideration of all the above

Question 12

Which of the following will help a purchasing officer select potential sources of supply?

Accepted Answer

A)  trade journals 
B)  purchasing department's own records 
C)  advertising 
D)  all the above 
A)  trade journals 
B)  purchasing department's own records 
C)  advertising 
D)  all the above

Question 13

In which of the following situations would a company probably specify by brand?

Accepted Answer

A)  when buying small quantities 
B)  when the item to be bought is patented 
C)  when the item to be bought is made to an industry standard 
D)  a and b above 
E)  b and c above. 
A)  when buying small quantities 
B)  when the item to be bought is patented 
C)  when the item to be bought is made to an industry standard 
D)  a and b above 
E)  b and c above.

Question 14

is concerned with the end use of the item and what it is expected to do:

Accepted Answer

A)  Quantity required 
B)  Functional specification 
C)  Production department 
D)  all of the above 
A)  Quantity required 
B)  Functional specification 
C)  Production department 
D)  all of the above

Question 15

Functional specifications set out:

Accepted Answer

A)  how the product is to work 
B)  the purpose for which the product is required 
C)  all those aspects or characteristics of a product that are determined by its final use 
D)  none of the above. 
A)  how the product is to work 
B)  the purpose for which the product is required 
C)  all those aspects or characteristics of a product that are determined by its final use 
D)  none of the above.

Question 16

When using the ranking method of evaluating suppliers:

Accepted Answer

A)  each supplier is ranked for overall suitability 
B)  important factors are selected and assigned a "weight" 
C)  suppliers are rated against each factor 
D)  weight and rating of each supplier is multiplied for each factor and the total taken as the ranking of the supplier 
E)  all the above are used. 
A)  each supplier is ranked for overall suitability 
B)  important factors are selected and assigned a "weight" 
C)  suppliers are rated against each factor 
D)  weight and rating of each supplier is multiplied for each factor and the total taken as the ranking of the supplier 
E)  all the above are used.

Question 17

Which of the following is a function of supplier scheduling and follow-up?

Accepted Answer

A)  selecting suppliers 
B)  establishing specifications 
C)  taking corrective action on issues 
D)  price determination 
E)  negotiation. 
A)  selecting suppliers 
B)  establishing specifications 
C)  taking corrective action on issues 
D)  price determination 
E)  negotiation.

Question 18

Intranet stands for...

Accepted Answer

A)  a net that includes all who are connected to it. 
B)  an external net that can be used by all people 
C)  an internal net normally used within the boundaries of the company 
D)  an net shared by two or more companies 
A)  a net that includes all who are connected to it. 
B)  an external net that can be used by all people 
C)  an internal net normally used within the boundaries of the company 
D)  an net shared by two or more companies

Question 19

Which of the following terms is an inquiry sent to multiple suppliers to receive information?

Accepted Answer

A)  Purchase requisition 
B)  Material authorization 
C)  Purchase order 
D)  Request for quote 
A)  Purchase requisition 
B)  Material authorization 
C)  Purchase order 
D)  Request for quote

Question 20

Which of the following applies to standard products?

Accepted Answer

A)  their prices are comparatively stable 
B)  they are readily available 
C)  they are purchased ONLY after firm quotations 
D)  only a and b above apply 
E)  all of the above apply. 
A)  their prices are comparatively stable 
B)  they are readily available 
C)  they are purchased ONLY after firm quotations 
D)  only a and b above apply 
E)  all of the above apply.

originates with the department or person who will be the ultimate user:

Which of the following statements is true?

The fluctuation in the supply upstream in a supply chain generated by a small change in demand downstream in the supply chain is known as:

In comparing prices, which of the following factors should be considered?

Which of the following refers to a means of replenishing inventory through a supplier's review and responsibility to maintain targeted inventory levels?

The replacement of internal capacity and production with that of a supplier's is known as:

Long-term supplier partnerships are supported by which of the following types of sourcing:

Which of the following is NOT a factor to consider when selecting a supplier?

Which of the following is NOT a step in the purchasing cycle?

Which of the following is (are) a qualification(s) of a good supplier?

Special items will generally be purchased on the basis of a quotation. The purchasing agent will select on the basis of:

Which of the following will help a purchasing officer select potential sources of supply?

In which of the following situations would a company probably specify by brand?

is concerned with the end use of the item and what it is expected to do:

Functional specifications set out:

When using the ranking method of evaluating suppliers:

Which of the following is a function of supplier scheduling and follow-up?

Intranet stands for...

Which of the following terms is an inquiry sent to multiple suppliers to receive information?

Which of the following applies to standard products?

Introduction to Materials Management

Production Planning System

Master Scheduling

Material Requirements Planning

Capacity Management

Production Activity Control

Forecasting

Inventory Fundamentals

Order Quantities

Independent Demand Ordering Systems

Physical Inventory and Warehouse Management

Physical Distribution

Products and Processes

Lean Production

Total Quality Management

Filters

Exam 7: Purchasing

originates with the department or person who will be the ultimate user:

Which of the following statements is true?

The fluctuation in the supply upstream in a supply chain generated by a small change in demand downstream in the supply chain is known as:

In comparing prices, which of the following factors should be considered?

Which of the following refers to a means of replenishing inventory through a supplier's review and responsibility to maintain targeted inventory levels?

The replacement of internal capacity and production with that of a supplier's is known as:

Long-term supplier partnerships are supported by which of the following types of sourcing:

Which of the following is NOT a factor to consider when selecting a supplier?

Which of the following is NOT a step in the purchasing cycle?

Which of the following is (are) a qualification(s) of a good supplier?

Special items will generally be purchased on the basis of a quotation. The purchasing agent will select on the basis of:

Which of the following will help a purchasing officer select potential sources of supply?

In which of the following situations would a company probably specify by brand?

is concerned with the end use of the item and what it is expected to do:

Functional specifications set out:

When using the ranking method of evaluating suppliers:

Which of the following is a function of supplier scheduling and follow-up?

Intranet stands for...

Which of the following terms is an inquiry sent to multiple suppliers to receive information?

Which of the following applies to standard products?

Introduction to Materials Management

Production Planning System

Master Scheduling

Material Requirements Planning

Capacity Management

Production Activity Control

Forecasting

Inventory Fundamentals

Order Quantities

Independent Demand Ordering Systems

Physical Inventory and Warehouse Management

Physical Distribution

Products and Processes

Lean Production

Total Quality Management

Filters