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__________encompasses the process of buying, determining the purchasing needs, selecting the supplier, arriving at a proper price, specifying terms and conditions, issuing the contact and following up to ensure proper delivery and payment.
Having just the right levels of inventory, whether raw material or subassembly goods, available to meet the demands of production and/or customer orders are what kind of inventory program?
The allocation of purchasing tasks responsibility and authority can be differentiated on various levels. These levels are:
A major technology breakthrough that provides accurate and real-time information efficiently concerning the movement of product supply is:
The level of purchasing that addresses the ordering process, expediting activities, solving daily quality problems, and evaluating supplier performance is:
A push driven strategy used by buyers when anticipatory buying for future demand requirements is desired is:
True or False: Negotiating a reduction I price with a supplier is a non-value added function.
Change is constant, and mastering change is difficult mainly because of:
A contract between a buyer and seller that specifies the items to be purchased, the price that will be paid and the date that the goods or services are to be delivered is a:
A sequenced driven replenishment program that is mainly used by automotive manufacturers and their suppliers is known as:
True or False: An audit of purchasing first examines the organization, goals and measurements of the function in order to determine its effectiveness.
This strategy does not allow suppliers to produce a product until they have received a confirmed order.
When does the buyer know to start the purchasing process?
True or False: Objectivity is important when negotiating, because emotions, past experience and personalities will start to impact your feelings about what you are negotiating.
True or False: A purchase order is a legal document between the purchasing company and the supplier, giving the supplier authority to do something.
Mass customization of products in which a BOM is not fully defined before an order is placed is referred to as:
The purchasing structure where every business unit manager is responsible for his/her own financial results is:
True or False: There are many steps to a typical PO process. These steps are: (1) replenishment trigger, (2) PO Communicated to suppliers, (3) supplier ships materials, (4) Material is received by purchaser, (4) settlement is triggered.
A barrier that a purchaser may face when trying to convince management that global sourcing would be an asset for the organization:
The responsibility of the buyer-planner can include:
A super process of effectively managing supply by using several processes, including the purchase order management process is called
True or False: If the purchasing position reports to the president or an officer one level below the president of a company, the purchasing function is usually perceived as value added and important to the success of the company.
__________ provide purchasing with the direction to prepare for changes in products, volumes of purchased material and requirements for new technologies , and to assist in aligning suppliers to meet the company’s future needs.
A process that has a main objective of achieving balance between supply and demand and optimizing it if possible is known as:
The benefits of professional certification is (are):
There are disadvantages to a pull-driven system. One (or some) of the disadvantages is (are):
The rules of conduct recognized in a particular area of endeavor or by a profession is known as:
True or False: In a build to stock strategy, suppliers make products in advance of demand and ship them to the purchaser to satisfy demand from their inventories as order come in.
True or False: The rules of conduct by which an organization operates should be published and made available to all employees, but not to the suppliers.
True or False: A corporation’s ethical policy should be different for employees and management because their rank in the company is different.
_______ is the deliberate exchange of something of value for a favor rendered.
The benefits of a company having a pull driven system along with internet technology and agility principles are
When a person has a vested interest in the advancement of an organization other than his or her employer this is called:
_____ ______ are activities that are not illegal but are not in line with the principles of trust, integrity and good business judgment.
A process of managing customer relationships by effectively supporting marketing, sales, demand forecasts, sales order promises and management, and services processes is called:
The resolution of differences through discussion where both parties benefit is called:
Purchasing strategies should address:
The factors causing supply chain management to become more complicated are
True or False. The first step in preparing for negotiation is assessing the environment in which negotiation will take place.
The maneuvers that take place during negotiations are:
True or False: A push driven system is forecast drive, whereas a pull-driven system is driven by demand.
Some of the common tactics for negotiation are called:
True or False: Major challenges to technology are the cost and complexity associated with integrating enterprise applications.
Some of the reasons purchasing may have to explore global suppliers include:
1. Goods are not available domestically
2. After looking at all of the hidden costs along with the quoted price, there is a clear advantage in buying foreign goods
3. There may be a “domestic content” requirement in order to sell in a particular countries’
Tight relationships with suppliers based on a win-win environment is a characteristic of:
This is a means for a company, new to international buying, to receiving credit acceptance by suppliers.
The title to the goods and responsibility for transport move to the buyer at the seller’s place of business is known as:
True or False: C.I.F. is when the seller assumes the cost and responsibility of insurance and freight charges for goods but the title passes to the buyer when the carrier delivers the goods.
True or False: Capital equipment purchases should be treated no different from a normal purchase and they occur just as frequent.
Three online marketplace models that have made internet technologies through streamlining and automating processes are
In order for a contract to be legal it must contain:
True or False: The Uniform Commercial Code was created to give uniformity to the laws regulating interstate commerce.
The Uniform Commercial Codes deal primarily with the purchase and sale of
A lean and agile supply chain means businesses having to work with:
True or False: According to the UCC, if there are certain quality requirements the purchaser does not need to state this to the supplier on the purchase order if the requirements have been previously discussed.
The Act that states “Every contract combination in the form of trust or otherwise, or conspiracy in restraint of trade or commerce among the several states or with foreign nations is declared to be illegal” is the:
Any agreement between two companies to refrain from purchasing from (or selling to) a third company is a violation of:
When there is an absolute precondition of purchase based on a sale, this is:
When a principal (the company) appoints an agent to act on its behalf, and the agent performs the action, the principal (the company) is bound by those actions – not the agent is known as:
True or False: A purchase order confirmation is a document used by purchasing to verify a vendor has the raw material in stock.
True or False: Both purchasing and sales agents have the authority to bind their companies to contracts.
If a purchaser buys a new boat for personal use and uses his or her position with the company to make such a purchase, the purchaser is liable to the company for payment. This is a form of:
____________dictates what, how and when the buyer will pay for the products and services delivered by the supplier.
True or False: A blanket order may yield lower prices for items on the order because it shows a commitment to purchasing a larger quantity than on a discrete order.
A contract in which the purchaser commits to purchase material requirements or come fixed portion thereof, from one supplier is a:
The __________________ is the price paid plus all other costs associated with the purchase.
The unit of measure in which the price is quoted is called:
Calculating the cost of administration is a benefit to purchasing because
When a purchaser invites suppliers to submit a detailed bid which meets the requirements listed in the request is a:
True or False: It is not important to know the financial strength of your supplier for a long term contract.
The ____________ can show the purchaser how much the supplier made or lost over the last year.
The key to staying competitive and gaining critical core competency in today business world is having effective
A company’s ______________ will reveal general financial data on the supplier, also gives information about the officers, and gives a credit history indicating how current the supplier is regarding payment of immediate obligations.
This type of replenishment program allows a supplier to manage and restock inventory physically located at your factory.
When a company has a plan for how many suppliers the company favors for a particular commodity or category, what type of relationship to pursue, and what length of the contract to negotiate is known as:
The quantity to which an inventory may drop before replenishment is triggered is call the
Finding, selecting, contracting and managing the best possible source of supply on a worldwide basis.
TC = DS/Q + ICQ/2 is a(n):
A pull driven strategy for high value items that a purchasing firm cannot afford to keep in inventory
Materials which have undergone no transformation or a minimal transformation, and they serve as the basis materials for a production process are: