Exam 2: The Purchasing Process

Buyers use competitive bidding when price is a minor criterion and the required item (or service) has complex material specifications.

If a supplier's components are defective and causing problems for manufacturing, then purchasing must find ways to improve supplier quality.

_____ can cover such characteristics as the materials used, the manufacturing or service steps required, and even the physical dimensions of the product.

The _____ is used to identify user requirements, evaluate the user needs in a concise and accurate manner, identify suppliers who can meet user requirements, develop agreements with those suppliers, employ a mechanism to place the order with suppliers, ensure payment occurs promptly, validate that the need was effectively met, and drive continuous improvement.

All of the following are objectives of a world-class purchasing organization except _____.

Which of the following is false regarding concealed damage?

Purchasing can directly affect (positively or negatively) the long-term growth, revenue, and operating outcomes and plans of stakeholders and business units.

A _____ involves the physical checking of inventory to verify that system records match actual on-hand inventory levels.

When marketing wants to purchase an advertising campaign, the _____ should specify the work that is to be completed, when it is needed, and what type of service provider is required.

Buyers use material purchase releases to order items covered by blanket purchase orders.

_____ is a situation that occurs when sellers seek to "go around" purchasing and instead directly contact and attempt to sell directly to end users (stakeholders).

Which of the following is not one of the conditions under which face-to-face negotiation is effective?

Which of the following is not one of the objectives in supplier performance management?

The objectives of a world-class purchasing organization do not include evolving beyond the traditional goal of "getting the lowest price!"

If the requested item is complex or requires an untested or new production process, purchasing can include additional information or attachments on its RFQ to assist the supplier, which might include detailed blueprints, samples, or technical drawings.

In a _____, the supplier is reimbursed all of their actual costs plus some agreed on operational margin and overhead amount.

Which of the following is not one of the characteristics of a mature, well-developed supply strategy?

All of the following are benefits of electronically generating and transmitting purchasing-related documents except _____.

When purchasing works directly with internal stakeholders to anticipate future requirements, such as during new-product development, or with physician councils in a health care provider, purchasing is acting reactively.

When using negotiating a/an _____, it is necessary to include a/an _____ that allows a buyer to terminate the contract in the event of persistently poor quality, delivery problems, and so on.