Deck 6: Procurement

Question 1

With respect to the supplier selection and evaluation process,___________ looks at both the internal and external environment within which the supply decision is to be made.

A)Identify the need for supply.
B)Identify suppliers.
C)Perform a situation analysis.
D)Evaluate suppliers.

Answer 1

Perform a situation analysis.

Question 2

Procurement and ___________ are viewed as synonymous terms.

A)materials management
B)supply management
C)purchasing
D)inbound logistics

Answer 2

purchasing

Question 3

What is the final step in the supplier selection and evaluation process?

A)Provide feedback.
B)Select suppliers.
C)Implement the decision.
D)Evaluate the decision.

Answer 3

Evaluate the decision.

Question 4

Buying the right products,at the right price,from the right source,at the right specifications,in the right quantity,and for delivery at the right time to the right internal customer is associated with what procurement objective?

A)managing the supply base
B)managing the purchasing process effectively and efficiently
C)supporting operational requirements
D)supporting organizational goals and objectives

Question 5

Single sourcing consolidates purchase volume with a single supplier in hopes of increasing cooperation and communication in the supply relationship as well as ___________.

A)greater supply risk mitigation
B)increased amounts of competition
C)improved market intelligence
D)lower costs per unit

Question 6

Bottleneck,leverage,and strategic are categories associated with ___________.

A)Kraljic's Portfolio Matrix
B)Supplier Audit Matrix
C)Supplier Development Matrix
D)Global Procurement Matrix

Question 7

Which of the following would not be part of a supplier audit?

A)supplier's structure
B)supplier's resources
C)supplier's scorecard
D)supplier's financial and risk health

Question 8

Multiple sourcing uses more than one supplier in hopes of increased competition,improved market intelligence,and ___________.

A)greater supply risk mitigation
B)lower costs per unit
C)increased cooperation
D)increased communication

Question 9

___________ refers to the raw materials,component parts,and supplies bought from outside organizations to support a company's operations.

A)Inbound logistics
B)Procurement
C)Materials management
D)Supply management

Question 10

Which of the following is not a potential benefit associated with procurement cards p-cards)?

A)There is a reduced number of invoices.
B)Users can make purchases in a more timely fashion.
C)Suppliers can be paid in a more timely fashion.
D)They can be used in non-domestic markets.

Question 11

Which of the following is not a potential procurement objective?

A)minimizing procurement costs
B)supporting organizational goals and objectives
C)managing the supply base
D)supporting operational requirements

Question 12

The selection,development,and maintenance of supply sources is associated with which procurement objective?

A)managing the purchasing process effectively and efficiently
B)supporting operational requirements
C)developing relationships with other functional groups
D)managing the supply base

Question 13

A degree of aggressive procurement involvement not normally encountered in supplier selection refers to ___________.

A)supply management
B)supplier development
C)materials management
D)physical supply

Question 14

___________ involves an increased focus on identifying and using data internally and across a supply chain so that a company can consolidate its purchasing power for enhanced value.

A)Supply management
B)Strategic sourcing
C)Supply chain management
D)Procurement

Question 15

A focus on satisfying internal customers is associated with which procurement objective?

A)managing the supply base
B)supporting operational requirements
C)supporting organizational goals and objectives
D)managing the purchasing process effectively and efficiently

Question 16

Procurement's historical focus in many organizations was to ___________.

A)incur minimal supply disruptions
B)use a limited number of suppliers
C)minimize loss and damage
D)achieve the lowest possible cost

Question 17

Procurement costs often range between ___________ and ___________ percent of an organization's revenues.

A)60;80
B)50;70
C)40;60
D)30;50

Question 18

Supplier development is synonymous with ___________.

A)supplier selection and evaluation
B)procurement
C)materials management
D)reverse marketing

Question 19

Kraljic's Portfolio Matrix ___________.

A)provides a framework for evaluating warehousing decisions
B)is used by many managers to classify corporate purchases in terms of their importance and supply complexity
C)allows managers to evaluate whether to add,or not add,product lines
D)is synonymous with the total cost of ownership

Question 20

What is the first step in supplier selection and evaluation?

A)Prepare a request for proposal.
B)Prepare a procurement budget.
C)Identify possible suppliers.
D)Identify the need for supply.

Question 21

Strategic sourcing involves an increased focus on identifying and using data internally and across the supply chain so that a company can consolidate its purchasing power for enhanced value.

Question 22

What concept refers to when firms consider all the costs that can be assigned to the acquisition,use,and maintenance of a purchase?

A)activity-based costing
B)cost trade-offs
C)the systems approach
D)total cost of ownership

Question 23

One benefit to procurement cards is that they are easily used outside of their domestic market.

Question 24

___________ materials are no longer serviceable,have been discarded,or are a by-product of the production process.

A)Waste
B)Obsolete
C)Scrap
D)Excess

Question 25

___________ is often a major shortcoming of many global procurement plans.

A)Confiscation
B)Specification
C)Implementation
D)Evaluation

Question 26

Which of the following is not a dimension associated with socially responsible procurement?

A)profit
B)safety
C)the environment
D)human rights

Question 27

Procurement refers to the raw materials,component parts,and supplies bought from outside organizations to support a company's operations.

Question 28

Supply chain management refers to a relational exchange approach involving a limited number of suppliers.

Question 29

A contemporary procurement manager might have responsibility for reducing cycle times and for generating additional revenues by collaborating with the marketing department.

Question 30

Procuring products from suppliers close to one's own facilities refers to ___________.

A)agglomeration
B)near-sourcing
C)sustainability
D)outsourcing

Question 31

Procurement and purchasing are viewed as synonymous terms.

Question 32

Which of the following is not a reason that purchasers are adopting a more proactive and aggressive role in the procurement process?

A)There are myriad inefficiencies associated with suppliers initiating marketing efforts toward purchasers.
B)They are achieving a competitive advantage in the supply chain.
C)An excess number of suppliers currently exists.
D)Purchasers may be aware of important benefits that are not known to the supplier.

Question 33

Procurement's historical focus in many organizations was to minimize the total number of outside suppliers.

Question 34

With respect to gift giving and gift receiving,a ___________ refers to money paid after an exchange.

A)kickback
B)agglomeration
C)bribe
D)dovetailing

Question 35

___________ identifies opportunities to recover revenues or reduce costs associated with scrap,surplus,obsolete,and waste materials.

A)Recycling
B)Reuse
C)Reverse logistics
D)Investment recovery

Question 36

Procurement's costs often range between 40 and 60 percent of an organization's revenues.

Question 37

With respect to gift giving and gift receiving,a ___________ refers to money paid before an exchange.

A)kickback
B)agglomeration
C)bribe
D)dovetailing

Question 38

___________ materials refer to stock that exceeds the reasonable requirements of an organization.

A)Waste
B)Excess
C)Obsolete
D)Scrap

Question 39

___________ materials have no economic value.

A)Waste
B)Scrap
C)Obsolete
D)Excess

Question 40

What is the first step in a global sourcing development model?

A)planning
B)specification
C)situation analysis
D)problem recognition

Question 41

Bottleneck refers to the low importance,low complexity category of Kraljic's Portfolio Matrix.

Question 42

Implementation is often a major shortcoming of many global procurement plans.

Question 43

Problem recognition is the first step in global procurement.

Question 44

The Optimal Cost Reliability Model is used by many managers to classify corporate purchases in terms of their importance and supply complexity.

Question 45

Supplier development is synonymous with reverse marketing.

Question 46

Supplier scorecards can be categorical,weighted point,or cost based in nature.

Question 47

Global procurement is primarily driven by the input-output and market-access strategies.

Question 48

First and foremost,procurement's objectives must manage the purchasing process effectively and efficiently.

Question 49

A benefit to multiple sourcing is increased cooperation and communication in a supply relationship.

Question 50

Leverage refers to the high importance,low complexity category of Kraljic's Portfolio Matrix.

Question 51

Supply management refers to a degree of aggressive procurement not normally encountered in supplier selection.

Question 52

Supplier scorecards involve assessments of a supplier's structure,resources,technology,health,and responsibility.

Question 53

Single sourcing consolidates purchase volume with a single supplier with the hopes of enjoying lower costs per unit.

Question 54

The first step in supplier selection and evaluation is situation analysis.

Question 55

The final step of the supplier selection process is to evaluate the decision.

Question 56

One of procurement's most important responsibilities involves supplier selection and evaluation.

Question 57

One reason for the growth of the supplier development concept is that achieving competitive advantage in the supply chain is predicated on purchasers adopting a more aggressive approach.

Question 58

Because global sourcing increases the distance that components and inputs must be moved,managers must consider the trade-off between transportation and holding costs.

Question 59

Global procurement refers to buying components and inputs anywhere in the world.

Question 60

Supplier selection and evaluation generally involve multiple criteria,and these criteria can vary in both number and importance,depending on the particular situation.

Question 61

Dovetailing refers to procuring products from suppliers closer to one's own facilities.

Question 62

Investment recovery is often the responsibility of the finance manager.

Question 63

With respect to gift giving and gift receiving,bribes refer to money paid after an exchange.

Question 64

Scrap materials are no longer serviceable,have been discarded,or are a by-product of the production process.

Question 65

Investment recovery identifies opportunities to recover revenues or reduce costs associated with scrap,surplus,obsolete,and waste materials.

Question 66

When taking an activity-based costing approach,firms consider all the costs that can be assigned to the acquisition,use,and maintenance of a purchase.

Question 67

The relevance,importance,and challenges associated with socially responsible procurement are likely to lessen in the coming years.

Question 68

Supply chain finance refers to a set of technology and finance-based processes that strive to optimize cash flow by allowing businesses to extend their payment terms to their suppliers while simultaneously allowing suppliers to be paid early.

Question 69

Diversity and philanthropy are two dimensions of socially responsible procurement.

Question 70

Obsolete materials have no economic value.

Question 71

Sustainable procurement refers to the integration of social and environmental considerations into all stages of the purchasing process.

Question 72

Excess materials refer to stock that exceeds the reasonable requirements of an organization.