Exam 1: Purchasing and Supply Management

Standard costs of production are the basis for operating budgets, product prices, and control of production costs. As these areas develop, __________________ will become part of the ____________ -information system. Standard costs to create the time and place utilities will be calculable.

The significance of average inventory is that ________________ is a function of average inventory. Inventory is an (a) _______. Working capital is tied up in material rather than an alternative asset. _______________________as well as costs of storing, insuring, and handling are incurred when inventory exists.

The second issue is, what level of authority should the purchasing function have? Given the evolution of outsourcing, the purchasing function is expected to lose authority in the corporate hierarchy

The costs of satisfactory customer service are only partly identifiable and quantifiable. Our knowledge of the opportunity costs of poor customer service is also incomplete. Yet decisions must be made while recognizing the system wide decision criteria are ________________________.

Purchasers buy goods and services for use by their __________________.

Purchasing managers, buyers, and agents must become ________ (with/on) the services, materials, and products they purchase.

The ratios of materials related costs are increasing for all of the following reasons with one exception.

Purchasers and buyers determine which commodities or services are best, choose the suppliers of the product or services, negotiate the lowest price, and award contracts that ensure that the correct amount of the product or service is received at the appropriate time.

Supply management is a developing ____________ and an area of management _______________.

.usinesses have had to change radically in response to ________________.

or each $___ reduction of material cost, there is a $___ increase in profit. The ratio is ____.

.In most firms, functional managers within each area make independent decisions using similar techniques. The objective is to____________________ while ___________________________.

_______________ is the cost to place one order. It is incurred each time an order is placed or part of an order is _____________________.

Whatever the appeal and promise of integrated supply management, achieving integration is a challenge. The decisions of a ___________________________ manager may maximize utilization of production equipment, yet poorly serve the requirements of the ______________ manager.

When supply management costs become more ________, their control becomes more _________.

Purchasing managers, buyers, and purchasing agents evaluate suppliers on the basis of _________________________________.

.The cost of acquiring, storing, and moving materials is an increasingly large portion of the ____________________.

____________ promotes the effective use of purchasing professionals because it allows the materials manager more authority and credibility.

ll supply management activities have potential for _________________ and hence ________________.

hanging economic and political environments, emerging technology versus labor, and the changing nature of purchasing as a discipline-must influence the _______ of purchasing and supply management.