Question 1

The _____ group includes the activities supporting the day-to-day operations of the purchasing or materials function.

Accepted Answer

The activities mentioned in choice D, operational support and follow-up, support the day-to-day operations of the purchasing or materials function. Activities such as order processing, delivery coordination, and supplier performance monitoring fall under this group. The other choices either focus on different aspects of the purchasing function (A, B, and E) or are too vague to be considered as supporting day-to-day operations (C).

Question 2

All of the following should be included in detailed short- and long-term purchasing plans except _____.

Accepted Answer

Assignment of the proper cost accounting code is not typically included in detailed short- and long-term purchasing plans. It is usually completed by the accounting department after the purchase has already been made. The other options (historical and projected future usage, purchase objectives, assessment of the supply market, cost/price analysis) are all important components of purchasing plans.

Question 3

Used under the right conditions, teams provide all of the following benefits to organizations except _____.

Accepted Answer

Teams do not guarantee success. Success is dependent upon various factors and the effectiveness of the team.

Question 4

_____ is the process of personally or electronically contacting suppliers to determine the status of past-due or near-past-due shipments.

Accepted Answer

Expediting is the process of personally or electronically contacting suppliers to determine the status of past-due or near-past-due shipments.

Question 5

_____ involves a systematic monitoring of the supply environment to assure a continual economic supply of goods and services.

Accepted Answer

Market intelligence involves monitoring the supply environment, gathering information about suppliers and their products, and analyzing market trends to ensure a continuous supply of goods and services. Operational support and follow-up deal with providing assistance to ensure efficient operations, administration and data management are concerned with managing data and paperwork, material handling deals with transporting goods within a facility, and sourcing, negotiation, and contract management is focused on selecting and managing supplier relationships.

Question 6

The _____ group is responsible for developing the policies and procedures that purchasing personnel follow, administering and maintaining the purchasing information system and database, determining required staffing levels, developing department plans, organizing training and seminars for buyers, and developing measurement systems to evaluate purchasing performance.

Accepted Answer

The responsibilities listed align with those typically associated with the Administration and Data Management group within a purchasing department.

Question 7

By definition, _____ is a broad term describing the purchase of raw materials, components, finished goods, or services from suppliers, some of whom can be another operating unit within the organization.

Accepted Answer

The definition given in the question refers to the process of buying goods and services from suppliers, and the term used to describe this process is "buying". Expediting, negotiating, insourcing, and value analysis are all related concepts or activities that may be involved in the buying process, but they do not encompass the entire process itself.

Question 8

Which of the following is not one of the broad features of the ideal future procurement organizational model?

Accepted Answer

The requirement of having cost accounting personnel present on all cross-functional teams is not a broad feature of the ideal future procurement organizational model. The other options, including a flatter hierarchy for faster decision making, increased use of center-led structures, co-location of purchasing personnel, and rotation of business managers, are broad features of the ideal future procurement organizational model.

Question 9

Which of the following is an example of an operational activity?

Accepted Answer

Operational activities are the day-to-day tasks that are involved in producing and delivering a company's products or services. Generating and forwarding material releases and expediting are examples of operational activities because they are directly related to the production process. Managing relationships with critical suppliers, developing electronic purchasing systems, negotiating company-wide supply contracts, and managing critical commodities are more strategic activities that may be part of procurement or supply chain management, but are not necessarily considered operational activities.

Question 10

Which of the following is an example of a strategic activity?​

Accepted Answer

The answer of Which of the following is an example...

Question 11

_____ is the organized study of an item's function as it relates to value and cost.

Accepted Answer

Value analysis is the organized study of an item's function as it relates to value and cost. The other options such as buying, purchasing intelligence, new product development, and inventory control may be related to the overall purchasing process but do not specifically address the study of an item's function as it relates to value and cost.

Question 12

The _____ function monitors the day-to-day management of purchased and in-process inventory at each using location.

Accepted Answer

The inventory control function is responsible for monitoring and managing purchased and in-process inventory at various locations. This function ensures that the right amount of inventory is available at the right time to meet customer demand while avoiding excess inventory and associated costs. The other options, buying, material handling, expediting, and transportation, may be related to inventory management but do not specifically address day-to-day management at each location.

Question 13

Which of the following is not one of the hurdles that can affect how well an organization uses teams?

Accepted Answer

Increased requirements for the use of social networks is not a hurdle that can affect how well an organization uses teams. The other options are valid hurdles that can impact team effectiveness, such as using part-time members, failing to recognize and reward team effort, and cultural attitudes towards teamwork.

Quiz 5: Purchasing and Supply Management Organization