SUPPLY CHAIN EXAM 2 (PEAVEY)
QUESTIONS AND ANSWERS
procurement - Correct Answers -the process of selecting and vetting suppliers,
negotiating contracts, establishing payment terms, and the actual purchasing of goods
and services.
procurement is concerned with - Correct Answers -acquiring all of the goods, services
and work that is vital to an organization.
procurement contains 3 sections, which are... - Correct Answers -purchasing
management,
strategic sourcing
supplier relationship management
purchasing - Correct Answers -the action of obtaining merchandise, capital equipment,
raw materials, services, or maintenance, repair, and operating (MRO) supplies in
exchange for money, or its equivalent.
purchasing is the process of how... - Correct Answers -goods and services are ordered
from an external third party
purchasing can usually be described as the... - Correct Answers -transactional function
of procurement for goods and services
purchasing is also a term commonly used in business to represent... - Correct Answers
-the function of, and the responsibility for, acquiring materials, supplies, and services for
an organization
institute of supply management (ism) - Correct Answers -identification, acquisition,
access, positioning, and management of resources an organization needs or potentially
needs in the attainment of its strategic objectives.
purchase requisition - Correct Answers -an internal document that defines the need for
goods and/or services
,does purchase requisition constitute a contractual relationship with an external party? -
Correct Answers -no
why are purchase requisitions generated by user department? - Correct Answers -to
notify purchasing personnel of items to order, their quantity, and timeframe. it may also
contain authorization to proceed with the purchase.
purchase order (PO) - Correct Answers -an external commercial document, the official
offer issued by a buyer to a seller to acquire goods or services.
purpose of purchase order - Correct Answers -controls the purchasing of products and
services from external suppliers
what does a purchase order indicate? - Correct Answers -types, quantities, and agreed
prices for products or services
when does a purchase order become a legally binding contract? - Correct Answers -
only when accepted by the supplier
e-procurement - Correct Answers -the business-to-business (b2b) purchase and sale of
supplies and services over the internet
merchants - Correct Answers -wholesalers and retailers who purchase for resale
industrial buyers - Correct Answers -individuals within an organization who purchase
raw materials for conversion into products, and/or purchase services, capital equipment,
and MRO supplies.
using strategic sourcing tactics to identify the best suppliers can help companies
maintain [blank] supply chains across all company divisions and partners - Correct
Answers -efficient and effective
cultivating a positive, long-term relationship by working closely with your suppliers can
provide many [blank] - Correct Answers -win-win scenarios
consumers can drive the success of a company through their awareness and demand
for [blank] - Correct Answers -ethical business practices
contracting - Correct Answers -term often used for the acquisition of services
request for information (RFI) - Correct Answers -a standard business process whose
purpose is to collect written information about the capabilities of various suppliers
request for proposal (RFP) - Correct Answers -a detailed capabilities document used to
determine a supplier's capability and interest in the production of a product or service
, request for quote (RFQ) - Correct Answers -a document used to solicit bids from
interested and qualified suppliers for goods or services that the organization needs to
obtain
primary objectives of purchasing - Correct Answers -ensure an uninterrupted flow of
materials and services at the lowest total cost
improve the quality of the finished goods produced
optimize customer satisfaction
purchasing contributes to objectives by - Correct Answers -seek better materials and
reliable suppliers
work with expertise of strategic suppliers to improve quality and materials
Involve suppliers and purchasing personnel in new product design and development
purchasing process steps - Correct Answers -1. A need is identified, and a Purchase
Requisition is issued
2. Obtain authorization as necessary
3. Identify and evaluate potential suppliers
4. Make supplier selection
5. Purchase Order (PO) is created and delivered to the supplier.
6. Supplier confirmation of the Purchase Order
7. Fulfillment
8. Receipt of Goods
9. Invoice and Reconciliation
10. Payment
11. Close out the Purchase Order
12. Analysis
how are many steps completed in leading procurement organizations? - Correct
Answers -through automated systems and pre-defined rules for aspects like low-dollar
value purchase, non-strategic purchases, etc.
QUESTIONS AND ANSWERS
procurement - Correct Answers -the process of selecting and vetting suppliers,
negotiating contracts, establishing payment terms, and the actual purchasing of goods
and services.
procurement is concerned with - Correct Answers -acquiring all of the goods, services
and work that is vital to an organization.
procurement contains 3 sections, which are... - Correct Answers -purchasing
management,
strategic sourcing
supplier relationship management
purchasing - Correct Answers -the action of obtaining merchandise, capital equipment,
raw materials, services, or maintenance, repair, and operating (MRO) supplies in
exchange for money, or its equivalent.
purchasing is the process of how... - Correct Answers -goods and services are ordered
from an external third party
purchasing can usually be described as the... - Correct Answers -transactional function
of procurement for goods and services
purchasing is also a term commonly used in business to represent... - Correct Answers
-the function of, and the responsibility for, acquiring materials, supplies, and services for
an organization
institute of supply management (ism) - Correct Answers -identification, acquisition,
access, positioning, and management of resources an organization needs or potentially
needs in the attainment of its strategic objectives.
purchase requisition - Correct Answers -an internal document that defines the need for
goods and/or services
,does purchase requisition constitute a contractual relationship with an external party? -
Correct Answers -no
why are purchase requisitions generated by user department? - Correct Answers -to
notify purchasing personnel of items to order, their quantity, and timeframe. it may also
contain authorization to proceed with the purchase.
purchase order (PO) - Correct Answers -an external commercial document, the official
offer issued by a buyer to a seller to acquire goods or services.
purpose of purchase order - Correct Answers -controls the purchasing of products and
services from external suppliers
what does a purchase order indicate? - Correct Answers -types, quantities, and agreed
prices for products or services
when does a purchase order become a legally binding contract? - Correct Answers -
only when accepted by the supplier
e-procurement - Correct Answers -the business-to-business (b2b) purchase and sale of
supplies and services over the internet
merchants - Correct Answers -wholesalers and retailers who purchase for resale
industrial buyers - Correct Answers -individuals within an organization who purchase
raw materials for conversion into products, and/or purchase services, capital equipment,
and MRO supplies.
using strategic sourcing tactics to identify the best suppliers can help companies
maintain [blank] supply chains across all company divisions and partners - Correct
Answers -efficient and effective
cultivating a positive, long-term relationship by working closely with your suppliers can
provide many [blank] - Correct Answers -win-win scenarios
consumers can drive the success of a company through their awareness and demand
for [blank] - Correct Answers -ethical business practices
contracting - Correct Answers -term often used for the acquisition of services
request for information (RFI) - Correct Answers -a standard business process whose
purpose is to collect written information about the capabilities of various suppliers
request for proposal (RFP) - Correct Answers -a detailed capabilities document used to
determine a supplier's capability and interest in the production of a product or service
, request for quote (RFQ) - Correct Answers -a document used to solicit bids from
interested and qualified suppliers for goods or services that the organization needs to
obtain
primary objectives of purchasing - Correct Answers -ensure an uninterrupted flow of
materials and services at the lowest total cost
improve the quality of the finished goods produced
optimize customer satisfaction
purchasing contributes to objectives by - Correct Answers -seek better materials and
reliable suppliers
work with expertise of strategic suppliers to improve quality and materials
Involve suppliers and purchasing personnel in new product design and development
purchasing process steps - Correct Answers -1. A need is identified, and a Purchase
Requisition is issued
2. Obtain authorization as necessary
3. Identify and evaluate potential suppliers
4. Make supplier selection
5. Purchase Order (PO) is created and delivered to the supplier.
6. Supplier confirmation of the Purchase Order
7. Fulfillment
8. Receipt of Goods
9. Invoice and Reconciliation
10. Payment
11. Close out the Purchase Order
12. Analysis
how are many steps completed in leading procurement organizations? - Correct
Answers -through automated systems and pre-defined rules for aspects like low-dollar
value purchase, non-strategic purchases, etc.
