MGSC 492 Actual Questions and Correct Answers
Q1
For a transport company fuel may represent as much as of the total operating budget.
Answer: 35%
Q2
The Procurement Cycle - First 5
Answer: Identification of the need to procure a good or service Production of a
requisition document that needs to be approved and passed to the procurement
department A request for quote (RFQ) is sent to a selection of suppliers Suppliers
respond with prices and a period of negotiation may be entered into A supplier is
selected and a purchase order (PO) is raised - records the agreed price, delivery terms
and place, and items or services to be provided.
Q3
The Procurement Cycle - Second 5
Answer: The po is signed and authorized by a manger and sent to the supplier The
goods or services are delivered and inspected The supplier send an invoice The invoice
is approved and paid or held pending resolution of any discrepancies found The
procurement department assess the performance of the supplier based on quantity,
timeliness, price and completeness of the order. Post contract review.
Q4
Modern procurement departments aim to... (4)
Answer: Align their objectives with those of the organization Use the internet to
identify new sources of raw materials and suppliers of goods and services Reduce the
inventory carrying costs through intelligent acquisition such as vendor-managed
inventory. Adhere to the 3E's: economies - spending less; efficiencies - spending well;
and effectiveness - spending wisely;
Q5
Setting the procurement objectives (First 5)
Answer: Whether to make the product or buy it Ensuring the continuing supply of raw
materials and other supplies Vendor-managed inventory (VMI) The quality and number
of suppliers Standardization and product specification
, Q6
Setting the procurement objectives (Second 5)
Answer: Price Origin of the supplies The method of supply (JIT) Mode of transportation
used Hierarchy of importance.
Q7
Ensuring the supply of raw materials (First 3)
Answer: The manufacturer could purchase the supplying company - called backward
integration Sufficient safety stocks may be held at the manufacturing plant to cover
such eventualities A manufacturer may insist on co-location - the supplier next to or in
the plant itself
Q8
Ensuring the supply of raw materials (Second 3)
Answer: Options to buy may be negotiated in advance for commodities A manufacturer
may develop very close relationships with suppliers Take advantage of opportunities
to purchase supplier at unusually low prices.
Q9
Vendor Managed Inventory (3)
Answer: The supplier takes responsibility for the inventory held at the client's
premises. Ownership of the inventory passes to the client when the inventory is
utilized The overall level of inventory in the client's warehouse can be reduced.
Q10
The quality of supplies (2)
Answer: Substandard goods will need to be stored awaiting collection by the supplier.
When good are received or noticed that they are substandard, the supplier is
contacted and an RMA (return material authorization) number is obtained from the
supplier. This number is attached to all paperwork and the outside of the packaging so
the supplier can process the return effectively. Supplier must have quality
management systems in place
Q1
For a transport company fuel may represent as much as of the total operating budget.
Answer: 35%
Q2
The Procurement Cycle - First 5
Answer: Identification of the need to procure a good or service Production of a
requisition document that needs to be approved and passed to the procurement
department A request for quote (RFQ) is sent to a selection of suppliers Suppliers
respond with prices and a period of negotiation may be entered into A supplier is
selected and a purchase order (PO) is raised - records the agreed price, delivery terms
and place, and items or services to be provided.
Q3
The Procurement Cycle - Second 5
Answer: The po is signed and authorized by a manger and sent to the supplier The
goods or services are delivered and inspected The supplier send an invoice The invoice
is approved and paid or held pending resolution of any discrepancies found The
procurement department assess the performance of the supplier based on quantity,
timeliness, price and completeness of the order. Post contract review.
Q4
Modern procurement departments aim to... (4)
Answer: Align their objectives with those of the organization Use the internet to
identify new sources of raw materials and suppliers of goods and services Reduce the
inventory carrying costs through intelligent acquisition such as vendor-managed
inventory. Adhere to the 3E's: economies - spending less; efficiencies - spending well;
and effectiveness - spending wisely;
Q5
Setting the procurement objectives (First 5)
Answer: Whether to make the product or buy it Ensuring the continuing supply of raw
materials and other supplies Vendor-managed inventory (VMI) The quality and number
of suppliers Standardization and product specification
, Q6
Setting the procurement objectives (Second 5)
Answer: Price Origin of the supplies The method of supply (JIT) Mode of transportation
used Hierarchy of importance.
Q7
Ensuring the supply of raw materials (First 3)
Answer: The manufacturer could purchase the supplying company - called backward
integration Sufficient safety stocks may be held at the manufacturing plant to cover
such eventualities A manufacturer may insist on co-location - the supplier next to or in
the plant itself
Q8
Ensuring the supply of raw materials (Second 3)
Answer: Options to buy may be negotiated in advance for commodities A manufacturer
may develop very close relationships with suppliers Take advantage of opportunities
to purchase supplier at unusually low prices.
Q9
Vendor Managed Inventory (3)
Answer: The supplier takes responsibility for the inventory held at the client's
premises. Ownership of the inventory passes to the client when the inventory is
utilized The overall level of inventory in the client's warehouse can be reduced.
Q10
The quality of supplies (2)
Answer: Substandard goods will need to be stored awaiting collection by the supplier.
When good are received or noticed that they are substandard, the supplier is
contacted and an RMA (return material authorization) number is obtained from the
supplier. This number is attached to all paperwork and the outside of the packaging so
the supplier can process the return effectively. Supplier must have quality
management systems in place
