Test 2 review SCM Question and answer
100% 2026/2027
What is the term for an Internal document that defines the need for goods and/ or services?
Procurement
Purchase Order
e-Procurement
Purchase Requisition - correct answer Purchase Requisition
Which of the following is NOT one of the 12 steps in the basic Purchasing Process?
Obtain authorization as necessary
Fulfillment
Expediting
Analysis - correct answer Expediting
Which of the following is NOT one of the advantages of e-Procurement?
Mobility
Inaccuracy
Real Time
Trackability - correct answer Inaccuracy
Total Cost of Ownership is the sum of the cost elements Quality, Service, Delivery, and Price
,True or False - correct answer True
All of the following are reasons for MAKING an item in your own company operations, Except for which
one?
-There is no competent supplier available
-Due to insufficient capacity in your company operations
-To protect your proprietary technology
-To control transportation and warehouse costs - correct answer Due to insufficient capacity in your
company operations
All of the following are reasons for Buying or Outsourcing an item from an supplier, Except for which
one?
-Due to the lack of expertise in your own company operations
-Because you want adopt multi-sourcing strategy
-Because you want to use existing idle capacity in your own company operations
-Because the item is non-strategic - correct answer Because you want to use existing idle capacity in
your own company operations
One of the main reasons to consider purchasing from an international global source is the opportunity
to improve quality, cost, and delivery performance
True or False - correct answer True
Which of the following are described as Agents licensed by the governmental regulatory authority to
conduct business on behalf of importers, for a service fee?
, -Import Merchants
-Import Brokers
-Trading Companies - correct answer Import Brokers
A proposal or quotation submitted in response to a solicitation from a contracting authority is known as
what?
-Bond
-Tariff
-Countertrade
-Bid - correct answer Bid
Strategic Sourcing is the process of identifying a company that provides a needed good or service.
True or False - correct answer False
Which of the following is NOT one of the drivers of Strategic Sourcing?
-Focusing on customer
-Reducing the delivery lead times
-Optimizing the number of global suppliers
-Increasing the selling price of the product - correct answer Increasing the selling price of the product
Which sourcing strategy would typically be used for items with low profit margins, relatively stable
demand, and high levels of competition?
100% 2026/2027
What is the term for an Internal document that defines the need for goods and/ or services?
Procurement
Purchase Order
e-Procurement
Purchase Requisition - correct answer Purchase Requisition
Which of the following is NOT one of the 12 steps in the basic Purchasing Process?
Obtain authorization as necessary
Fulfillment
Expediting
Analysis - correct answer Expediting
Which of the following is NOT one of the advantages of e-Procurement?
Mobility
Inaccuracy
Real Time
Trackability - correct answer Inaccuracy
Total Cost of Ownership is the sum of the cost elements Quality, Service, Delivery, and Price
,True or False - correct answer True
All of the following are reasons for MAKING an item in your own company operations, Except for which
one?
-There is no competent supplier available
-Due to insufficient capacity in your company operations
-To protect your proprietary technology
-To control transportation and warehouse costs - correct answer Due to insufficient capacity in your
company operations
All of the following are reasons for Buying or Outsourcing an item from an supplier, Except for which
one?
-Due to the lack of expertise in your own company operations
-Because you want adopt multi-sourcing strategy
-Because you want to use existing idle capacity in your own company operations
-Because the item is non-strategic - correct answer Because you want to use existing idle capacity in
your own company operations
One of the main reasons to consider purchasing from an international global source is the opportunity
to improve quality, cost, and delivery performance
True or False - correct answer True
Which of the following are described as Agents licensed by the governmental regulatory authority to
conduct business on behalf of importers, for a service fee?
, -Import Merchants
-Import Brokers
-Trading Companies - correct answer Import Brokers
A proposal or quotation submitted in response to a solicitation from a contracting authority is known as
what?
-Bond
-Tariff
-Countertrade
-Bid - correct answer Bid
Strategic Sourcing is the process of identifying a company that provides a needed good or service.
True or False - correct answer False
Which of the following is NOT one of the drivers of Strategic Sourcing?
-Focusing on customer
-Reducing the delivery lead times
-Optimizing the number of global suppliers
-Increasing the selling price of the product - correct answer Increasing the selling price of the product
Which sourcing strategy would typically be used for items with low profit margins, relatively stable
demand, and high levels of competition?
