Question 1

Information systems technology can:&#10;A)increase data accessibility and transmission speed,but increases costs.&#10;B)enable system integration across functions,but not data accuracy.&#10;C)increase data accuracy and accessibility at lower cost.&#10;D)enable speedier communication internally,but not externally with suppliers.&#10;E)enable system integration,but increases time spent on tactical issues.

Accepted Answer

Information systems technology can increase data accuracy and accessibility at lower cost through the use of automation and standardization, reducing errors and improving efficiency. While there may be initial costs associated with implementing new technology, in the long run it can result in cost savings.

Question 2

Application software for the procurement process is available:&#10;A)only through an (ERP)system.&#10;B)only from a systems developer who develops a customized application.&#10;C)only from a cloud solution.&#10;D)from an ERP system or systems developer,but not from a cloud solution.&#10;E)from an ERP system,a systems developer,or a cloud solution.

Accepted Answer

Application software for the procurement process is available from an ERP system, a systems developer or a cloud solution. All three options provide various benefits and drawbacks, making it best to choose the option that best meets the specific needs and requirements of the organization.

Question 3

Invoice clearance and payment procedures:&#10;A)are best performed by the user or specifier.&#10;B)are the same for goods and services.&#10;C)are most effective when performed by a person in accounts payable.&#10;D)may be streamlined with an invoiceless system within an e-procurement system.&#10;E)may stipulate dropping a supplier if a variance exceeds a set amount.

Accepted Answer

Invoice clearance and payment procedures can be streamlined with an invoiceless system within an e-procurement system, which can significantly reduce processing time and costs. This involves automating the purchase and payment process, allowing for electronic transactions to take place seamlessly. This eliminates the need for paper invoices and manual data entry, reducing errors and delays.

Question 4

Electronic data interchange (EDI)provides:&#10;A)secure transmission of large amounts of data,but with slow turnaround.&#10;B)secure transmission,greater accuracy and shorter process cycle time for all data.&#10;C)slow processing of large amounts of data,but with greater accuracy.&#10;D)longer process cycle time,but with greater accuracy.&#10;E)secure and rapid transmission of small amounts of data.

Accepted Answer

EDI provides secure transmission, greater accuracy, and shorter process cycle time for all data.

Question 5

Small dollar value purchase orders for MRO can be efficiently and effectively managed by:&#10;A)increasing the number of customized items.&#10;B)implementing a vendor- or supplier-managed inventory system.&#10;C)putting purchases on separate purchase orders.&#10;D)entering into contracts for each item.&#10;E)giving buyers unlimited access to petty cash.

Accepted Answer

Implementing a vendor- or supplier-managed inventory system is the most efficient and effective method for managing small dollar value purchase orders for MRO (maintenance, repair, and operations). This system allows the supplier to monitor and replenish inventory levels based on demand, reducing the need for frequent purchase orders and manual tracking. This frees up time for the purchasing team to focus on more strategic and higher value procurement activities.

Question 6

If the buyer does not have a clear and unambiguous description or specification and wants to find out which supplier can deliver the best value when and where needed,he or she will typically issue a:&#10;A)request for quotation (RFQ).&#10;B)request for proposal (RFP).&#10;C)request for information (RFI).&#10;D)request for bid (RFB).&#10;E)request for suggestions (RFS).

Accepted Answer

A Request for Proposal (RFP) is issued when the buyer does not have a clear and unambiguous description or specification of the product or service needed and is looking for proposals from suppliers to find the best value solution.

Question 7

Radio frequency identification (RFID)will:&#10;A)eliminate bar coding and manual counting.&#10;B)eliminate further investment in information technology.&#10;C)supplement bar coding to reduce theft.&#10;D)be more cost effective to implement than bar coding.&#10;E)improve data capture but slow down inventory picking.

Accepted Answer

RFID technology has the ability to eliminate the need for traditional barcoding and manual counting methods, allowing for more efficient and accurate inventory management. It may require an initial investment in technology, but can ultimately save time and money in the long run.

Question 8

Online reverse auctions have been most effective when:&#10;A)there are a limited number of suppliers available.&#10;B)the organization owns the technology to run the auction.&#10;C)the good or service is unique or highly customized.&#10;D)the market conditions favor sellers.&#10;E)technological,logistical and commercial specifications are clear.

Accepted Answer

Online reverse auctions are most effective when technological, logistical and commercial specifications are clear. This allows for accurate comparisons between suppliers and ensures that the winning bidder is able to meet the organization's requirements. Limited suppliers (A), owning technology (B), unique or highly customized goods or services (C), and market conditions favoring sellers (D) are not necessarily factors that make online reverse auctions more effective.

Question 9

Corporate purchasing cards are issued to:&#10;A)internal customers to purchase low-dollar,high-volume goods and services.&#10;B)internal customers to purchase high-dollar,technical,production materials.&#10;C)supply department staff to speed acquisition of rush orders and small value orders.&#10;D)internal customers to purchase high and low dollar and volume goods and services.&#10;E)supply department personnel to eliminate purchase orders and individual invoices.

Accepted Answer

Corporate purchasing cards are typically issued to internal customers for purchasing low-dollar, high-volume goods and services. This helps to streamline the procurement process, reduce administrative costs, and improve cash flow. Option B is incorrect because high-dollar, technical, production materials would typically require a more extensive procurement process. Option C is incorrect because rush orders and small value orders could be handled through other procurement methods besides purchasing cards. Option D is partially correct but doesn't mention the importance of high-volume purchases. Option E is incorrect because purchasing cards are typically only issued to internal customers, not supply department personnel.

Question 10

The three options for soliciting business from potential suppliers are:&#10;A)request for information (RFI),request for quotation (RFQ)and request for proposal (RFP).&#10;B)request for quotation (RFQ),request for proposal (RFP)and request or invitation for bid (RFB or IFB).&#10;C)request for quotation (RFQ),request for confirmation (RFC)and request for proposal (RFP).&#10;D)request for information (RFI),request for proposal (RFP),and request or invitation for bid (RFB or IFB).&#10;E)request for quotation (RFQ),request for price (RFP),and request or invitation for bid (RFB or IFB).

Accepted Answer

Request for quotation (RFQ) is suitable when seeking pricing information for specific goods or services. Request for proposal (RFP) is used when a more comprehensive response is required from potential suppliers, including strategy, approach, and pricing. Request or invitation for bid (RFB or IFB) is commonly used in government procurement and involves soliciting bids for a specific product or service with a set contract terms and conditions.

Deck 4: Supply Processes and Technology