Exam 2: The Purchasing Process

____ focuses attention on the outcomes the customer wants,not on the precise configuration of the product or service.

In a ____,when inventory is depleted to a given level,the system notifies the material control department or the buyer to issue a request to a supplier for inventory replenishment.

The way that MRO items are typically dispersed throughout an organization makes monitoring MRO inventory relatively simple.

One of the most important objectives of the purchasing function involves the selection,development,and maintenance of supply and is sometimes described as ____.

The responsibility for concealed damage is often simple and easy to detect.

____ is appropriate where the requirements are well understood and there is common agreement between supply chain partners about what certain terms mean.

Organizations are constantly looking for people who have developed the skills necessary to deal with the narrow variety of tasks faced by purchasing.

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

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

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

____ is a situation that occurs when sellers contact and attempt to sell directly to end users (purchasing's internal customers).

The purchasing cycle begins with the ____.

Which of the following is not an advantage of online ordering systems?

The ____ purchase category includes such items are petroleum,coal,lumber,and metals such as copper and zinc.

Almost all firms establish blanket purchase orders with their suppliers.

The objectives of a world-class purchasing organization do not need to move far beyond the traditional belief that purchasing's primary role is to obtain goods and services in response to internal needs.

The authority to review material specifications (and for services,a statement of work)is within purchasing's span of control,although internal stakeholders sometimes dispute this right.

For routine,off-the-shelf items,the purchase requisition may contain all the information that purchasing requires.

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

When purchasing works directly with internal customers to anticipate future requirements,such as during new product development or physician councils in a health care setting,purchasing is being reactive.