Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A)   Immediate visibility to backordered items.
B)   Longer order cycle time from input to delivery.
C)   Faster order input time.
D)   Reduced ordering errors.
E)   Ability to batch multiple items from multiple users on a single online order.F) A) and C)
G) B) and E)

Question 3

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

Accepted Answer

A)   Repeatable and well-defined process for building strategy and governance.
B)   Clear alignment with executive vision and internal user-specific business goals.
C)   Established goals and metrics for short-term project plans, as well as a definite five-year plan
D)   Established communication plan to inform senior management and all lines of business updated and reviewed quarterly against defined goals and objectives.
E)   Required use of an online catalog.F) B) and E)
G) B) and C)

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A)   semifinished products and components
B)   finished products
C)   MRO items
D)   raw materials
E)   capital equipmentF) C) and E)
G) A) and C)

Question 6

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

Accepted Answer

A)   the buyer has a preferred supplier for the item
B)   volume is high enough
C)   the marketplace is competitive
D)   the specifications or requirements are clear to the seller
E)   adequate time is available for suppliers to evaluate the RFQF) A) and B)
G) A) and C)

Question 7

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

Accepted Answer

A)   Description by industry standard
B)   Description by brand
C)   Description by specification
D)   Description by performance characteristics
E)   Description by market gradeF) B) and D)
G) A) and B)

Question 8

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.

Accepted Answer

A)   reorder point system
B)   traveling purchase requisition system
C)   customer service system
D)   forecasting system
E)   just-in-time systemF) B) and D)
G) A) and B)

Question 9

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

Accepted Answer

A)   Description by market grade
B)   Description by specification
C)   Description by brand
D)   Description by industry standard
E)   Description by performance characteristicsF) A) and E)
G) A) and B)

Question 10

The purchasing cycle begins with the ____.

Accepted Answer

A)   selection of an appropriate supplier
B)   issuance of a purchase order
C)   receipt of a supplier's acknowledgement
D)   identification of a need or requirement
E)   determination of who can authorize the purchaseF) B) and C)
G) A) and D)

Question 11

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.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A)   supply base management
B)   maverick spend
C)   customer service
D)   procure-to-pay
E)   backdoor buyingF) B) and D)
G) All of the above

Question 13

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

Accepted Answer

A)   bill of lading
B)   material packing slip
C)   receiving discrepancy report
D)   material purchase release
E)   blanket purchase orderF) None of the above
G) A) and C)

Question 14

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

Accepted Answer

A)   Insourcing
B)   Bidding
C)   Maverick buying and selling
D)   Direct sourcing
E)   OutsourcingF) A) and D)
G) A) and C)

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

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.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

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.

Accepted Answer

A) True 
 B)False

Question 19

Almost all firms establish blanket purchase orders with their suppliers.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A)   Description by market grade
B)   Description by brand
C)   Description by performance characteristics
D)   Use of prototypes
E)   Description by specificationF) C) and E)
G) B) and C)

Exam 2: The Purchasing Process

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

Almost all firms establish blanket purchase orders with their suppliers.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The purchasing cycle begins with the ____.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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