Procurement Test Solved 100% Correct
What are direct transit costs? - ANSWER-cost of detecting, transmitting the need for,
and processing the material flow in order to acquire goods
includes the process of detecting inventory needs, requesting and preparing the order
and handling shipping documents
What are landed costs? - ANSWER-inbound transportation flow
actual transportation costs
What are negotiations? - ANSWER-Bartering or haggling to bring a price down on an
item you want.
What are operational logistics costs? - ANSWER-cost of receiving the goods and
equipment used to process orders
production costs of products
What are price quotations used for? - ANSWER-used for standard and specialty items
useful for promoting competition among suppliers
buyer sends request for quotes
vendor examines costs and quotes price
buyer compares with other vendors
What are procurement costs? - ANSWER-Picking a qualified supplier and checking their
validity
What are some techniques to determine a suppliers skills? - ANSWER-TQM, Six
Sigma, ISO 9000
What are supplier relational costs? - ANSWER-costs of creating and maintaining
relationships with suppliers
evaluation of a supplier's quality
What are TQM, Six Sigma, and ISO9000? - ANSWER-Credentials companies can
acquire so seem qualified.
What are traditional basic input costs? - ANSWER-primary price of the product or
materials paid by the firm
price given from quotes, bidding, or negotiating
What factors should you consider when selecting a supplier? - ANSWER-Quality,
Reliability, Risk, Capability, Financials
What is a blanket order? - ANSWER-A purchasing order with a set amount of money to
spend.
What are direct transit costs? - ANSWER-cost of detecting, transmitting the need for,
and processing the material flow in order to acquire goods
includes the process of detecting inventory needs, requesting and preparing the order
and handling shipping documents
What are landed costs? - ANSWER-inbound transportation flow
actual transportation costs
What are negotiations? - ANSWER-Bartering or haggling to bring a price down on an
item you want.
What are operational logistics costs? - ANSWER-cost of receiving the goods and
equipment used to process orders
production costs of products
What are price quotations used for? - ANSWER-used for standard and specialty items
useful for promoting competition among suppliers
buyer sends request for quotes
vendor examines costs and quotes price
buyer compares with other vendors
What are procurement costs? - ANSWER-Picking a qualified supplier and checking their
validity
What are some techniques to determine a suppliers skills? - ANSWER-TQM, Six
Sigma, ISO 9000
What are supplier relational costs? - ANSWER-costs of creating and maintaining
relationships with suppliers
evaluation of a supplier's quality
What are TQM, Six Sigma, and ISO9000? - ANSWER-Credentials companies can
acquire so seem qualified.
What are traditional basic input costs? - ANSWER-primary price of the product or
materials paid by the firm
price given from quotes, bidding, or negotiating
What factors should you consider when selecting a supplier? - ANSWER-Quality,
Reliability, Risk, Capability, Financials
What is a blanket order? - ANSWER-A purchasing order with a set amount of money to
spend.
