Procurement and Supply Chain
Management Exam 1 Solved 100%
_____ include(s) the materials required to pack and ship final products, such as pallets,
boxes, master shipping containers, tape, bags, wrapping, inserts, and other packaging
material.
a. Raw materials
b. Production support items
c. Semifinished products
d. Components
e. Work-in-process inventory - ANSWER-b. Production support items
_____ is the process of collecting historical data by commodity, relative to demand from
the lines of business, with the exception of personnel expenses, occupancy, and
corporate spend.
a. Demand management
b. Supply analysis
c. Category management
d. Contract management
e. Spend analysis - ANSWER-e. Spend analysis
_____ is the process of using unit and rate consumption levels to forecast and estimate
future consumption in an internal functional customer and providing guidance and input
on how to optimize usage and educating the user on the tradeoffs.
a. Specification management
b. Demand management
c. Category management
d. Supply market intelligence
e. Cost management - ANSWER-b. Demand management
_____ occurs when suppliers are pressured to purchase the buyer's products or
services as a condition of securing a purchase contract.
Negotiation
Competitive bidding
Reciprocity
, Irregular business dealing
None of the above. - ANSWER-c. Reciprocity
. In a _____, when inventory is depleted to a given level, the system notifies the
materials control department (or the buyer in some organizations) to issue a request to
a supplier for inventory replenishment.
a. reorder point system
b. traveling purchase requisition system
c. customer service system
d. forecasting system
e. just-in-time system - ANSWER-a. reorder point system
A _____ involves the physical checking of inventory to verify that system records match
actual on-hand inventory levels.
a. reorder point system
b. stock check
c. just-in-time system
d. forecasting system
e. p-card system - ANSWER-b. stock check
A key characteristic of a/an _____ is a lack of processing by the supplier into a newly
formed product.
a. component
b. semifinished product
c. finished good
d. MRO item
e. raw material - ANSWER-e. raw material
A long-term contract does not provide an incentive for a supplier to invest in new plants
and equipment. - ANSWER-False
A shift to a more trusting buyer-supplier relationship is easy. - ANSWER-True
A/An _____ is an open order, usually effective for one year, covering repeated
purchases of an item or family of items.
a. outstanding order
Management Exam 1 Solved 100%
_____ include(s) the materials required to pack and ship final products, such as pallets,
boxes, master shipping containers, tape, bags, wrapping, inserts, and other packaging
material.
a. Raw materials
b. Production support items
c. Semifinished products
d. Components
e. Work-in-process inventory - ANSWER-b. Production support items
_____ is the process of collecting historical data by commodity, relative to demand from
the lines of business, with the exception of personnel expenses, occupancy, and
corporate spend.
a. Demand management
b. Supply analysis
c. Category management
d. Contract management
e. Spend analysis - ANSWER-e. Spend analysis
_____ is the process of using unit and rate consumption levels to forecast and estimate
future consumption in an internal functional customer and providing guidance and input
on how to optimize usage and educating the user on the tradeoffs.
a. Specification management
b. Demand management
c. Category management
d. Supply market intelligence
e. Cost management - ANSWER-b. Demand management
_____ occurs when suppliers are pressured to purchase the buyer's products or
services as a condition of securing a purchase contract.
Negotiation
Competitive bidding
Reciprocity
, Irregular business dealing
None of the above. - ANSWER-c. Reciprocity
. In a _____, when inventory is depleted to a given level, the system notifies the
materials control department (or the buyer in some organizations) to issue a request to
a supplier for inventory replenishment.
a. reorder point system
b. traveling purchase requisition system
c. customer service system
d. forecasting system
e. just-in-time system - ANSWER-a. reorder point system
A _____ involves the physical checking of inventory to verify that system records match
actual on-hand inventory levels.
a. reorder point system
b. stock check
c. just-in-time system
d. forecasting system
e. p-card system - ANSWER-b. stock check
A key characteristic of a/an _____ is a lack of processing by the supplier into a newly
formed product.
a. component
b. semifinished product
c. finished good
d. MRO item
e. raw material - ANSWER-e. raw material
A long-term contract does not provide an incentive for a supplier to invest in new plants
and equipment. - ANSWER-False
A shift to a more trusting buyer-supplier relationship is easy. - ANSWER-True
A/An _____ is an open order, usually effective for one year, covering repeated
purchases of an item or family of items.
a. outstanding order
