SCMN 3730 Exam 1 Complete Answers
what are the circumstances when a spot buy would be appropriate? - ANSWER-
when buyers prefer a purchase order for initial purchases or a one-time purchase
what does it take to become a preferred supplier? - ANSWER-- receive the first
opportunity for new business
- has demonstrated its performance capabilities through previous purchase contracts
explain when it is appropriate to issue a blanket order & what this means -
ANSWER-- usually open for 1 year
- used for repeated purchases of item of family of items
- release materials as needed vs issuing new purchase order each time
- purchase order remains open during specified term
- importance of escape clause
what are raw materials? - ANSWER-material that goes into making the final product
ex: coal, lumber, metals
what are MRO items? - ANSWER-maintenance, repair, & operating items include
anything that does not go directly into an organizations product
ex: space machine parts, office supplies, cleaning supplies
what is capital equipment? - ANSWER-involves buying assets intended for use
exceeding one year (do not occur with regular frequency)
what are production support items? - ANSWER-materials required to pack & ship
final products
ex: pallets, boxes, tape, bags
list of purchasing objectives - ANSWER-1. supply assurance
2, manage sourcing process efficiently & effectively
3. supplier performance management
4. develop aligned goals with stakeholders
5. develop integrated supply strategies that support business goals & objectives
what is the most important purchasing objective? - ANSWER-support business goals
& objectives
the five rights of purchasing - ANSWER-1. getting the right quality
2. in the right quantity
3. at the right time
4. for the right price
5. from the right source
, what is P2P? - ANSWER-- procure to pay process
- automation of all transactional activities associated with the thread events that
occur from the time of buying a good or service, through the release mechanism, to
the point of issuing payment
what are the major stages of P2P? - ANSWER-1. forecast & plan requirement
2. need clarification/requisition
3. supplier identification & selection
4. approval & contract
5. receive material & documents
6. settle, pay, & measure performance
policy - ANSWER-refers to a set of purposes, principles, & rules of action that guide
an organization
procedure - ANSWER-- operating instructions detailing functional duties or tasks
- serves as a "how-to" manual
- no uniform set of procedures that applies to every situation
what is meant by reciprocity? - ANSWER-- giving preference to suppliers that buy
from you
- expecting suppliers to purchase your products as condition for securing a purchase
contract
- looking favorable on competitive bids by suppliers who buy from you
what are some examples of irregular dealings with suppliers? - ANSWER-- accepting
bribes from suppliers
- cronyism
- accepting late bids
- owning a stake in a suppliers company
what are some steps that a policy in support of minority suppliers might include? -
ANSWER-- is the supplier fully qualified?
- does the supplier satisfy US government criteria by definition?
- does supplier meet our standard performance requirements?
- is supplier price competitive?
- how much business can we award supplier given its capacity?
what are the best practices for inclusion in any minority supplier development
initiative? - ANSWER-- mandate tier 1 suppliers to have tier 2 diversity spend goals
- include minority suppliers in all RFQs without exception
- tie goals & objectives to SCM strategies & job functions
- include supplier diversity programs into corporate SCM
- include into all corporate functions in which suppliers are selected & procurement
commitments are made
what is meant by supply integration? - ANSWER-involves professionally managing
suppliers & developing close working relationships with different internal groups
what are the circumstances when a spot buy would be appropriate? - ANSWER-
when buyers prefer a purchase order for initial purchases or a one-time purchase
what does it take to become a preferred supplier? - ANSWER-- receive the first
opportunity for new business
- has demonstrated its performance capabilities through previous purchase contracts
explain when it is appropriate to issue a blanket order & what this means -
ANSWER-- usually open for 1 year
- used for repeated purchases of item of family of items
- release materials as needed vs issuing new purchase order each time
- purchase order remains open during specified term
- importance of escape clause
what are raw materials? - ANSWER-material that goes into making the final product
ex: coal, lumber, metals
what are MRO items? - ANSWER-maintenance, repair, & operating items include
anything that does not go directly into an organizations product
ex: space machine parts, office supplies, cleaning supplies
what is capital equipment? - ANSWER-involves buying assets intended for use
exceeding one year (do not occur with regular frequency)
what are production support items? - ANSWER-materials required to pack & ship
final products
ex: pallets, boxes, tape, bags
list of purchasing objectives - ANSWER-1. supply assurance
2, manage sourcing process efficiently & effectively
3. supplier performance management
4. develop aligned goals with stakeholders
5. develop integrated supply strategies that support business goals & objectives
what is the most important purchasing objective? - ANSWER-support business goals
& objectives
the five rights of purchasing - ANSWER-1. getting the right quality
2. in the right quantity
3. at the right time
4. for the right price
5. from the right source
, what is P2P? - ANSWER-- procure to pay process
- automation of all transactional activities associated with the thread events that
occur from the time of buying a good or service, through the release mechanism, to
the point of issuing payment
what are the major stages of P2P? - ANSWER-1. forecast & plan requirement
2. need clarification/requisition
3. supplier identification & selection
4. approval & contract
5. receive material & documents
6. settle, pay, & measure performance
policy - ANSWER-refers to a set of purposes, principles, & rules of action that guide
an organization
procedure - ANSWER-- operating instructions detailing functional duties or tasks
- serves as a "how-to" manual
- no uniform set of procedures that applies to every situation
what is meant by reciprocity? - ANSWER-- giving preference to suppliers that buy
from you
- expecting suppliers to purchase your products as condition for securing a purchase
contract
- looking favorable on competitive bids by suppliers who buy from you
what are some examples of irregular dealings with suppliers? - ANSWER-- accepting
bribes from suppliers
- cronyism
- accepting late bids
- owning a stake in a suppliers company
what are some steps that a policy in support of minority suppliers might include? -
ANSWER-- is the supplier fully qualified?
- does the supplier satisfy US government criteria by definition?
- does supplier meet our standard performance requirements?
- is supplier price competitive?
- how much business can we award supplier given its capacity?
what are the best practices for inclusion in any minority supplier development
initiative? - ANSWER-- mandate tier 1 suppliers to have tier 2 diversity spend goals
- include minority suppliers in all RFQs without exception
- tie goals & objectives to SCM strategies & job functions
- include supplier diversity programs into corporate SCM
- include into all corporate functions in which suppliers are selected & procurement
commitments are made
what is meant by supply integration? - ANSWER-involves professionally managing
suppliers & developing close working relationships with different internal groups
