CPPB - Vocab. Volume 2 with perfect answers 2024

cross-functional team correct answersA group of employees from different departments working together to accomplish a specific task. The group, or team, may be characterized as permanent or ad hoc and may include suppliers and customers, as appropriate. E.g. of procurement specific teams may include: Commodity Procurement Strategy Team; Sourcing Team; Supplier Performance Eval. Team; Supplier Certification Team cycle time correct answersThe time required to complete a process, such as replenishing inventory. parol evidence rule correct answersLegal rule that once a written agreement has been duly executed (signed by all parties), then it cannot be altered or annulled by any oral evidence that may contradict the terms of the agreement, except in case of a fraud or mistrake battle of the forms correct answersA colloquial reference to various forms that are exchanged between buyer and seller, i.e., the contracting parties, in an attempt to have their document prevail in the event of a disagreement. pre-qualification (of bidder/offeror) correct answersThe screening of potential suppliers/contractors in which such factors as financial capability, reputation, and management are considered in order to develop a list of businesses who may then be allowed to submit bids/offers. due dilligence correct answersA business & legal term which refers to the research and inquiries made prior to committing to a purchase or making a major business decision. A thorough investigation into the performance & background of a business market segmentation correct answersA strategy whereby a business divides the total market into groups of people who have relatively similar product needs. obsolescence correct answersThe significant decline in the competitiveness, usefulness, or value of products in a market, sometimes due to the introduction of better products or rapid technology developments. Is a critical part of a product's life cycle and if a product cannot be turned around, it may lead to product abandonment. economies of scale correct answers1. Reduction in min. avg costs as a result of increases in the size (scale) of a plant & equipment. 2. A reduction in selling price as a result of an increase in the quantity ordered. 3. The aggregation of qtys to obtain certain economic advantages.