IDIS 424 EXAM 1 QUESTIONS WITH VERIFIED
ANSWERS
purchasing - Answers - value added function that leverages supply chain capabilites
leverage effect - Answers - small cost reductions in negotiations with suppliers that lead
to significant improvements in profitability
purchasing is a functional _____ as well as a functional _______ - Answers - group;
activity
"the five rights" - Answers - getting the right quality in the right quantity at the right time
for the right price from the right source
value chain - Answers - set of interrelated activities by which a company adds value to
its product/service, leading to competitive advantage
supply chain - Answers - set of 3+ organizations linked directly by 1 or more of
upstream or downstream flows of products, services, finance & information form a
source to customer
supply chain management - Answers - proactive management of the 2-way movement
& coordination of goofs, services, information and funds from raw material to end user
4 enablers of SCM - Answers - organization design, HR, information technology
capable, measurement systems
6 purchasing objectives - Answers - 1. supply continuity
2. manage purchasing process efficiently & effectively
3. develop supply base management
4. develop strong relationships with other functional departments
5. support organizational goals & objectives
6. develop integrated purchasing strategies that support organizational strategies
uninterrupted flow of high quality material to support operational requirements -
Answers - supply continuity
make best use of limited resources to satisfy need of internal customers - Answers -
manage purchasing process efficiently & effectively
improve existing & develop new reliable, high quality sources of supply base - Answers
- develop supply base management
, 2 way communication, positive & problem solving relationship - Answers - develop
strong relationships with other functional departments
develop as core competency to achieve organizational goals & objectives - Answers -
support organizational goals & objectives
purchasing part of strategic team & acts should align with company's goals - Answers -
develop integrated purchasing strategies that support organizational strategies
6 major tasks (keywords) - Answers - 1. identify
2. evaluate
3. supplier selection
4. approval
5. release & receive
6. scorecard
elements of purchase requisiton - Answers - -description
-quantity & date needed
-cost
-account
-requisition date
-authorized signature
RFI - Answers - request for information
RFP - Answers - request for proposal
RFQ - Answers - request for quotation
when to use competitive bidding - Answers - -high volume
-clear product specifications
-competitive marketplace
-adequate time
-no preferred supplier
when is negotiation preferred? - Answers - any situation not favorable to competitive
bidding
blanket purchase order key points - Answers - delivery date & receiving department info
are open
policy - Answers - set of purposes, principles & rules of actions that guide an
organization
purchasing policies - Answers - provide guidance & support to management
ANSWERS
purchasing - Answers - value added function that leverages supply chain capabilites
leverage effect - Answers - small cost reductions in negotiations with suppliers that lead
to significant improvements in profitability
purchasing is a functional _____ as well as a functional _______ - Answers - group;
activity
"the five rights" - Answers - getting the right quality in the right quantity at the right time
for the right price from the right source
value chain - Answers - set of interrelated activities by which a company adds value to
its product/service, leading to competitive advantage
supply chain - Answers - set of 3+ organizations linked directly by 1 or more of
upstream or downstream flows of products, services, finance & information form a
source to customer
supply chain management - Answers - proactive management of the 2-way movement
& coordination of goofs, services, information and funds from raw material to end user
4 enablers of SCM - Answers - organization design, HR, information technology
capable, measurement systems
6 purchasing objectives - Answers - 1. supply continuity
2. manage purchasing process efficiently & effectively
3. develop supply base management
4. develop strong relationships with other functional departments
5. support organizational goals & objectives
6. develop integrated purchasing strategies that support organizational strategies
uninterrupted flow of high quality material to support operational requirements -
Answers - supply continuity
make best use of limited resources to satisfy need of internal customers - Answers -
manage purchasing process efficiently & effectively
improve existing & develop new reliable, high quality sources of supply base - Answers
- develop supply base management
, 2 way communication, positive & problem solving relationship - Answers - develop
strong relationships with other functional departments
develop as core competency to achieve organizational goals & objectives - Answers -
support organizational goals & objectives
purchasing part of strategic team & acts should align with company's goals - Answers -
develop integrated purchasing strategies that support organizational strategies
6 major tasks (keywords) - Answers - 1. identify
2. evaluate
3. supplier selection
4. approval
5. release & receive
6. scorecard
elements of purchase requisiton - Answers - -description
-quantity & date needed
-cost
-account
-requisition date
-authorized signature
RFI - Answers - request for information
RFP - Answers - request for proposal
RFQ - Answers - request for quotation
when to use competitive bidding - Answers - -high volume
-clear product specifications
-competitive marketplace
-adequate time
-no preferred supplier
when is negotiation preferred? - Answers - any situation not favorable to competitive
bidding
blanket purchase order key points - Answers - delivery date & receiving department info
are open
policy - Answers - set of purposes, principles & rules of actions that guide an
organization
purchasing policies - Answers - provide guidance & support to management
