SCMT 2103- EXAM 2 QUESTIONS AND
ANSWERS
capital goods; rebuy (standard, modified); maintenance, repair, operations (MRO) -
Correct Answers -identify the 3 types of buys that companies engage in during the
purchasing process?
decision making, vendor communication, order specifics - Correct Answers -identify the
components of the purchasing process?
decision making - Correct Answers -which step in the purchasing process is this?
- what products to purchase?
- How much and when to purchase?
vendor communication - Correct Answers -which step in the purchasing process is this?
- purchase orders are generated
- transmitted to suppliers (technology)
- electronic data interchange
order specifics - Correct Answers -which step in the purchasing process is this?
- requires supply chain objective considered
- quantity, prices, delivery dates, payment terms
direct purchasing - Correct Answers -spending on goods, services, materials that drive
profit and performance
- what a company buys to use in the actual product on the market
- machinery, raw materials, labor, fabric for clothes
high utilization rates - Correct Answers -- long production runs
- centralized facilities
- objective: gain benefits of economies of scale
low inventory levels - Correct Answers -- shorter production runs
- just-in-time
- objective: minimize assets and cash tied up in inventory
high levels of customer service - Correct Answers -- high levels of inventory
- many short production runs
- objective: quick delivery of product and in-stock
, economic lot size - Correct Answers -production set up costs with cost of carrying
inventory
indirect purchasing - Correct Answers -spending on goods, services, maintenances for
day to day operations
- company buys and uses to help company operate, but doesn't go into the actual
product on the market
- rent, office supplies, printers, coffee for employees, computers
capital goods - Correct Answers -Buildings, property, equipment, technology, and tools
needed to produce goods and services.
- long term purchases, purchased less frequently
rebuy - Correct Answers -purchases a buyer makes on a regular basis to operate a
business
standard - Correct Answers -_________ rebuy: the product does not change, it is not
customized, all the same
modified - Correct Answers -________ rebuy: changing the type of product purchased-
quantity, seasonal, price
maintenance, repair, operations (MRO) - Correct Answers -products or services that
help repair capital goods
- to help operate buildings, technology, equipment
- parts to help run machines
value, risk - Correct Answers -categorize items based on the measures of ______ and
______
value - Correct Answers -product features that lead to profits or competitive advantage
risk - Correct Answers -the cost associated with not having the item
distinctives - Correct Answers -- high risk, low value
- engineered items
generics - Correct Answers -- low risk, low value
- office supplies
- maintenance, repair, operations
- not typically used in the final product
criticals - Correct Answers -high-risk, high-value
- unique items
- items critical to final product
ANSWERS
capital goods; rebuy (standard, modified); maintenance, repair, operations (MRO) -
Correct Answers -identify the 3 types of buys that companies engage in during the
purchasing process?
decision making, vendor communication, order specifics - Correct Answers -identify the
components of the purchasing process?
decision making - Correct Answers -which step in the purchasing process is this?
- what products to purchase?
- How much and when to purchase?
vendor communication - Correct Answers -which step in the purchasing process is this?
- purchase orders are generated
- transmitted to suppliers (technology)
- electronic data interchange
order specifics - Correct Answers -which step in the purchasing process is this?
- requires supply chain objective considered
- quantity, prices, delivery dates, payment terms
direct purchasing - Correct Answers -spending on goods, services, materials that drive
profit and performance
- what a company buys to use in the actual product on the market
- machinery, raw materials, labor, fabric for clothes
high utilization rates - Correct Answers -- long production runs
- centralized facilities
- objective: gain benefits of economies of scale
low inventory levels - Correct Answers -- shorter production runs
- just-in-time
- objective: minimize assets and cash tied up in inventory
high levels of customer service - Correct Answers -- high levels of inventory
- many short production runs
- objective: quick delivery of product and in-stock
, economic lot size - Correct Answers -production set up costs with cost of carrying
inventory
indirect purchasing - Correct Answers -spending on goods, services, maintenances for
day to day operations
- company buys and uses to help company operate, but doesn't go into the actual
product on the market
- rent, office supplies, printers, coffee for employees, computers
capital goods - Correct Answers -Buildings, property, equipment, technology, and tools
needed to produce goods and services.
- long term purchases, purchased less frequently
rebuy - Correct Answers -purchases a buyer makes on a regular basis to operate a
business
standard - Correct Answers -_________ rebuy: the product does not change, it is not
customized, all the same
modified - Correct Answers -________ rebuy: changing the type of product purchased-
quantity, seasonal, price
maintenance, repair, operations (MRO) - Correct Answers -products or services that
help repair capital goods
- to help operate buildings, technology, equipment
- parts to help run machines
value, risk - Correct Answers -categorize items based on the measures of ______ and
______
value - Correct Answers -product features that lead to profits or competitive advantage
risk - Correct Answers -the cost associated with not having the item
distinctives - Correct Answers -- high risk, low value
- engineered items
generics - Correct Answers -- low risk, low value
- office supplies
- maintenance, repair, operations
- not typically used in the final product
criticals - Correct Answers -high-risk, high-value
- unique items
- items critical to final product
