Exam 2: The Purchasing Process

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

All the following are expected growth areas in e-commerce except ____.

In drafting a purchase order,purchasing must take great care when wording such an agreement because it is a legally binding document.

Most companies spend too much time and too many resources managing the ordering of goods and services,particularly lower-value items.

Historically,most organizations have paid minimal attention to MRO items.

Material discrepancies usually result from incorrect quantity shipments.

____ is the end-to-end process of managing a supplier through the entire sourcing life cycle.

For standard items,the negotiation process is an efficient method to purchase relatively straightforward requirements.

Capital equipment purchasing involves buying assets intended for use less than one year.

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

____ is the process of using rate and unit 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.

It is common and preferred practice for suppliers to arrange shipment to a purchaser and simply include the transportation cost as part of the purchase cost.

Transportation carriers use a/an ____ to record the quantity of goods delivered to a facility.

In a practice known as ____,internal users may try to negotiate contracts themselves.

Buyers use competitive bidding when price is a dominant criteria and the required item (or service)has straightforward material specifications.

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

____ is used when a product or service is proprietary or when there is a perceived advantage to using a particular supplier's products or services.

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

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

Managing the purchase of a semifinished component is not a critical purchasing responsibility because components rarely affect product quality and cost.