8/18/24, 3:35 AM
inkra
CPSM Exam 1
Jeremiah
Terms in this set (32)
A) Performance & design specs - define what the product or service must do. Often
used with capital equip & services. Performance spes. gives supplier the most control
Methods of communicating attributes of a over how to satisfy the requirement. Design Specs gives buyer most control.
product or service B) Internal vs. external specs - if not the same product will cost more.
C) Supplier samples - a physical sample can serve as the spec when it meets the buyers
needs.
Is a spec for service to be performed. Two components. 1. defines what product must
Statement of Work (SOW)
look like or do and 2. quantitative to measure performance.
1. Offer to buy vs Offer to sell, 2. Informal bid/quotation, 3. Electronic solicitations (RFx),
4. Competitive proposals, 5. Sealed bids / formal advertising, 6. Restricted competition,
Types of solicitation bids
7. Non-competitive negotiations, 8. Two step bidding, 9. alternative/innovative
proposals, 10. Pricing models / market baskets, 11. Lotting strategies (online bidding)
Are information request not binding on either party. Results are usually in the form of
Request for Information (RFI) price list or catalogs and helps supplier in budgeting process. Potential draw backs, is
that RFI's are overused and supplier may not respond.
Used for more complex biding situations and detailed information where dialog w/
Bidder's Conferences buyer and supplier are required with engineering and supplier. Potential problems is
the time it takes to conduct.
X = Type of capital; Y = Total Capital; Z =the interest rate (cost) or each type of capital;
S=sum. Example:
Long term debt = 400K (capital type)
Preferred stock = 300K (capital type)
Total = 700K
Financing cost:
Weighted average cost of capital formula
LTD: 6.2%
PS: 10.5%
Equation:
1. Debt Type/Total debt = debt type's % of debt.
2. Debt types % of debt * financing cost of debt type
3. If multiple debt types add up the sum of each from steps 1 & 2.
CPSM Exam 1
1/2
inkra
CPSM Exam 1
Jeremiah
Terms in this set (32)
A) Performance & design specs - define what the product or service must do. Often
used with capital equip & services. Performance spes. gives supplier the most control
Methods of communicating attributes of a over how to satisfy the requirement. Design Specs gives buyer most control.
product or service B) Internal vs. external specs - if not the same product will cost more.
C) Supplier samples - a physical sample can serve as the spec when it meets the buyers
needs.
Is a spec for service to be performed. Two components. 1. defines what product must
Statement of Work (SOW)
look like or do and 2. quantitative to measure performance.
1. Offer to buy vs Offer to sell, 2. Informal bid/quotation, 3. Electronic solicitations (RFx),
4. Competitive proposals, 5. Sealed bids / formal advertising, 6. Restricted competition,
Types of solicitation bids
7. Non-competitive negotiations, 8. Two step bidding, 9. alternative/innovative
proposals, 10. Pricing models / market baskets, 11. Lotting strategies (online bidding)
Are information request not binding on either party. Results are usually in the form of
Request for Information (RFI) price list or catalogs and helps supplier in budgeting process. Potential draw backs, is
that RFI's are overused and supplier may not respond.
Used for more complex biding situations and detailed information where dialog w/
Bidder's Conferences buyer and supplier are required with engineering and supplier. Potential problems is
the time it takes to conduct.
X = Type of capital; Y = Total Capital; Z =the interest rate (cost) or each type of capital;
S=sum. Example:
Long term debt = 400K (capital type)
Preferred stock = 300K (capital type)
Total = 700K
Financing cost:
Weighted average cost of capital formula
LTD: 6.2%
PS: 10.5%
Equation:
1. Debt Type/Total debt = debt type's % of debt.
2. Debt types % of debt * financing cost of debt type
3. If multiple debt types add up the sum of each from steps 1 & 2.
CPSM Exam 1
1/2
