Exam 2: The Purchasing Process

The buyer should assume that the purchasing cycle ends with the receipt of an ordered item or the selection of a supplier.

Which of the following is not an appropriate performance criterion to be used when evaluating suppliers?

A key characteristic of a/an _____ is a lack of processing by the supplier into a newly formed product.

The _____, which the supplier provides, details the contents of a shipment and contains the description and quantity of the items in a shipment.

Contract management should be used to trigger proactive sourcing events only after a contract expires.

_____ is the process of using unit and rate consumption levels to forecast and estimate future consumption in an internal functional customer and providing guidance and input on how to optimize usage and educating the user on the tradeoffs.

Suppliers are more often being paid through _____, which is the automatic transfer of payment from the buyer's bank account to the supplier's bank account.

The authority to review and challenge specifications (for products or for services) is within purchasing's span of control in managing demand, although internal stakeholders sometimes dispute this right.

The _____ helps protect the carrier against wrongful allegations that the carrier somehow damaged, lost, or otherwise tampered with a shipment.

All of the following are required elements in a purchase requisition except _____.

The purchasing cycle begins with the _____.

Almost all firms establish blanket purchase orders with their suppliers.

All of the following are conditions under which competitive bidding is effective except _____.

When a situation arises when an internal customer has a need that comes up suddenly, which is not planned for and for which there is no preexisting supplier identified to provide the product or service required, purchasing should use a/an _____ approach.

_____ is the process of collecting historical data by commodity, relative to demand from the lines of business, with the exception of personnel expenses, occupancy, and corporate spend.

_____ involves unbundling the price paid and understanding the total cost of ownership over the life cycle of a product or service to deliver a target cost and a unit rate to determine if it is priced competitively in the marketplace.

_____ is the end-to-end process of managing a supplier through the entire sourcing life cycle, which includes first identifying the abilities of a particular company with regard to performing a service for the internal customer, completing a sourcing event, negotiating a contract, executing an order, and determining payment.

Effective supply market intelligence involves all of the following except _____.

Enterprises are relying increasingly on external suppliers to provide only materials and products, not information technology, services, and design activities.

_____ is might be the best choice for standard items, where the requirements are well understood and there is common agreement between supply chain partners about what certain terms mean.