Exam 2: Purchasing Management

Which of the following illustrates Forward Vertical Integration?

Blank check purchase orders,Corporate purchasing cards,Petty cash,and Open-end purchase orders are all possible alternatives to dealing with small value purchases such as those for office supplies.

The Total Cost of Ownership Concept does NOT include quantitative factors.

Reasons for buying items instead of making them can include cost advantage,insufficient capacity,lack of expertise,and quality.

Which of the following is NOT a potential challenge for global sourcing?:

The purchase order is NOTa legally binding contract until it is accepted by the supplier.

Use what you understand about the outsourcing decision (Make vs.Buy)to answer this question.List and explain three reasons a person might decide to buy a meal at a restaurant rather than making a meal at home.

If the break-even point in a typical make-buy scenario is 24,000 units and 8,000 units are required by the firm,then the firm should choose to make the units.

The Uniform Commercial Code governs the purchase and sale of goods in the US except in the state of:

Which of the following is an advantage of a centralized purchasing department?:

Which of the following is NOT a form of countertrade?

While most public procurement is focused on goals similar to those of purchasing departments in the private sector,U.S.federal government purchases must comply with the:

The goal of a good purchasing system is to ensure efficient information transitions between the materials users,the purchasing personnel,and the suppliers.

When calculating Return on Investment,current assets include:

The term Supply Management is used to describe responsibilities above and beyond those of traditional purchasing.What are three of these key activities and why are they considered important to Supply Management?

Global sourcing has become commonplace.Many companies now consider expanding their supply base to include foreign suppliers.List three reasons why companies choose to source globally.

When using the Total Cost of Ownership concept,explain how a supplier with a higher unit price and higher tooling cost can end up being more cost effective than another supplier with a lower unit price and tooling cost.

On occasion,firms assist suppliers,new or old,to improve their processing capabilities,product or service quality,delivery effectiveness,and cost performance by providing the required technical and financial assistance.This is referred to as:

Which of the following is a reason for favoring single sourcing?

The primary goals of purchasing include all EXCEPT: