Deck 4: Supply Processes and Technology

Question 1

Information systems technology can:

A)increase data accessibility and transmission speed,but increases costs.
B)enable system integration across functions,but not data accuracy.
C)increase data accuracy and accessibility at lower cost.
D)enable speedier communication internally,but not externally with suppliers.
E)enable system integration,but increases time spent on tactical issues.

Answer 1

C

Question 2

Application software for the procurement process is available:

A)only through an (ERP)system.
B)only from a systems developer who develops a customized application.
C)only from a cloud solution.
D)from an ERP system or systems developer,but not from a cloud solution.
E)from an ERP system,a systems developer,or a cloud solution.

Answer 2

E

Question 3

Invoice clearance and payment procedures:

A)are best performed by the user or specifier.
B)are the same for goods and services.
C)are most effective when performed by a person in accounts payable.
D)may be streamlined with an invoiceless system within an e-procurement system.
E)may stipulate dropping a supplier if a variance exceeds a set amount.

Answer 3

D

Question 4

Electronic data interchange (EDI)provides:

A)secure transmission of large amounts of data,but with slow turnaround.
B)secure transmission,greater accuracy and shorter process cycle time for all data.
C)slow processing of large amounts of data,but with greater accuracy.
D)longer process cycle time,but with greater accuracy.
E)secure and rapid transmission of small amounts of data.

Question 5

Small dollar value purchase orders for MRO can be efficiently and effectively managed by:

A)increasing the number of customized items.
B)implementing a vendor- or supplier-managed inventory system.
C)putting purchases on separate purchase orders.
D)entering into contracts for each item.
E)giving buyers unlimited access to petty cash.

Question 6

If the buyer does not have a clear and unambiguous description or specification and wants to find out which supplier can deliver the best value when and where needed,he or she will typically issue a:

A)request for quotation (RFQ).
B)request for proposal (RFP).
C)request for information (RFI).
D)request for bid (RFB).
E)request for suggestions (RFS).

Question 7

Radio frequency identification (RFID)will:

A)eliminate bar coding and manual counting.
B)eliminate further investment in information technology.
C)supplement bar coding to reduce theft.
D)be more cost effective to implement than bar coding.
E)improve data capture but slow down inventory picking.

Question 8

Online reverse auctions have been most effective when:

A)there are a limited number of suppliers available.
B)the organization owns the technology to run the auction.
C)the good or service is unique or highly customized.
D)the market conditions favor sellers.
E)technological,logistical and commercial specifications are clear.

Question 9

Corporate purchasing cards are issued to:

A)internal customers to purchase low-dollar,high-volume goods and services.
B)internal customers to purchase high-dollar,technical,production materials.
C)supply department staff to speed acquisition of rush orders and small value orders.
D)internal customers to purchase high and low dollar and volume goods and services.
E)supply department personnel to eliminate purchase orders and individual invoices.

Question 10

The three options for soliciting business from potential suppliers are:

A)request for information (RFI),request for quotation (RFQ)and request for proposal (RFP).
B)request for quotation (RFQ),request for proposal (RFP)and request or invitation for bid (RFB or IFB).
C)request for quotation (RFQ),request for confirmation (RFC)and request for proposal (RFP).
D)request for information (RFI),request for proposal (RFP),and request or invitation for bid (RFB or IFB).
E)request for quotation (RFQ),request for price (RFP),and request or invitation for bid (RFB or IFB).