Exam 7: Purchasing Procedures, E-Purchasing, and Systems Contracting

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Top management support has long been recognized as one of the _______ important ingredients necessary for the ___________ of any organizational change, and the same holds true for the ____________ of an EDI system.

(Multiple Choice)
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The negotiated agreement between buyers and sellers includes the following terms: the type of material, ________________, stocking policy, and delivery requirements.

(Multiple Choice)
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Indirect purchasing can be divided into two categories:

(Multiple Choice)
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The world of _________________ commerce has become essential to the purchases of ORM and MRO items.

(Multiple Choice)
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usinesses that use reverse auctions, or e-auctions, have given testimonials of savings of more than ____ percent.

(Multiple Choice)
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In most cases, the best place to apply electronic procurement is in circumstances where ___________________ and ___________________, especially when developing new products or technologies.

(Multiple Choice)
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The textbook discusses the significant difference between buying and purchasing. In general the purchasing process refers to buying goods and services for _______________. Buying typically means procuring items for ________.

(Multiple Choice)
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There are some definite benefits to utilizing ______. The first major benefit is reduced labor. Higher information quality due to a reduction in data entry errors also can be attributed to ______

(Multiple Choice)
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There are many benefits to using EDI. For a smaller company, EDI may help ________

(Multiple Choice)
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Increased shrinkage.

(True/False)
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-purchasing has lead to significant cost saving and coordinated efficiency.

(True/False)
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Reverse auctions should be used to gain market information (new suppliers, prices, new methods, etc.) and should be used as a routine sourcing method.

(True/False)
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The following are the first five steps in the Procurement Order Cycle Standard Procedure with the exception of:

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typical purchasing department is responsible for:

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The main elements of an EDI system are:

(Multiple Choice)
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__________ materials are directly related to the production of the finished goods.

(Multiple Choice)
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Procurement is a very broad term. There is a broad push by _______________________ for companies to migrate all types of purchasing to e-procurement.

(Multiple Choice)
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__________ materials are any commodity or service that is not directly involved in the production of finished goods.

(Multiple Choice)
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_____ purchasing is concerned with critical maintenance and replacement parts, highly engineered machine parts, and manufacturing equipment..

(Multiple Choice)
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