A "core competency" is:

Some thing that a company does well

In the context of purchasing, the acronym MRO stands for

Maintenance, Repair, and Operating

The Acronym ISM stands for

Institute for Supply Management

MRP relates to the purchasing function because

it calculates requirements for parts and raw materials

Spend Analysis involves

Researching and understanding where money has been spent

Supply continuity is considered to be:

An overall goal of the purchasing organization

The new model of progressive purchasing involves

Developing closer relationships with suppliers

The best example of "co-locating" in Purchasing is:

An SAP consultant working in a client's office building

This formula best describes a re-order point system

on hand - model inventory = qty required

Under which condition is competitive bidding a preferred method to negotiation?

There are many qualified suppliers who want the business

Capital equipment purchasing is:

Buying assets intended for use exceeding one year

The best example of a "hard" skill that a good Purchasing Professional might have is:

Knowledge of MS Office applications

This characteristic is typical of a Blanket PO

Suppliers ship multiple times against the same PO number

Which of the following characteristics makes a requisition different from a PO?

A requisition is used internally - a PO is sent externally

This purchasing activity lies closest to the beginning of the P2P cycle

Identification of a need or requirement

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Introduction to Purchasing

30 termsStudBud Administration141 plays

A quiz to review some purchasing basics #purchasing #college #procurement

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Questions 30

Answers

1
A "core competency" is:
Some thing that a company wishes it could do well
Some thing that a company tries to do well, but fails
Some thing that a company does poorly
Some thing that a company does well
2
Which of the following is the best example of a semi-finished good?
A McDonald's Big Mac Hamburger
A Tim Horton's Cup of Coffee
An Intel Pentium Computer Chip
A can of Campbell's Soup
3
In the context of purchasing, the acronym MRO stands for
Maintenance, Repair, and Operating
Mathematical Redundancy Option
Multiple Regression Operation
Manufacturing, Resources, and Operations
4
The Acronym ISM stands for
Institute for Supply Management
International Services Methodology
Institute for Suppliers in Manufacturing
Inventory Study Module
5
In purchasing, the term "Statement of Work" (SOW) is most closely related to the concept of
RFP's
Raw Materials Buying
EOQ's
Invoice Matching
6
Which of the following tasks is least likely to be performed in a purchasing department?
Inventory Management
Bookeeping
Spend Analysis
Sourcing
7
MRP relates to the purchasing function because
it calculates requirements for parts and raw materials
it is the system that traces PO status for the buyer
establishes the budgets that purchasing must follow
it is the system that manages new product introductions
8
Spend Analysis involves
Researching and understanding where money has been spent
Developing long range cash requirement forecasts
Setting credit limits for employee credit cards
Establishing budgets to control spending
9
Which of the following tasks are least likely to be performed in a purchasing department?
Forecasting
Expediting
Graphic Design
Buying
10
Supply continuity is considered to be:
A strategic role of the purchasing department
A tactical responsibility of the purchasing department
An overall goal of the purchasing organization
A critical step in the P2P process
11
The new model of progressive purchasing involves
Fining suppliers heavily when they screw up
Developing closer relationships with suppliers
Fiercely negotiating price as the Number One objective
Adversarial relationships between buyers and suppliers
12
P/SM is responsible for "buying" services as well as goods. The best example of a service is:
Forklift Trucks
MRO
Sugar for making chocolate
Landscaping
13
The acronym P2P stands for
Pay to Purchase
Plant to Plant
Procure to Pay
Plant to Production
14
The best example of "co-locating" in Purchasing is:
Bringing a truck alongside a ship to offload a container
An SAP consultant working in a client's office building
Locating a factory next to a warehouse
Moving production activities overseas
15
This formula best describes a re-order point system
DDLT = SS
e = mc2
a(x) + b(y) = c
on hand - model inventory = qty required
16
Under which condition is competitive bidding a preferred method to negotiation?
Performance requires agreement on a wide range of factors
The supplier cannot adequately determine risks or costs
There are many qualified suppliers who want the business
The job is very complex and requires supplier expertise
17
Capital equipment purchasing is:
Buying assets that can be easily liquidated
Limited to buying real estate
Buying assets intended for use exceeding one year
Not normally considered a type of purchasing
18
The best example of a "raw material" is:
Car bumper
Sheet metal
Iron Ore
19
The best example of a "soft skill" that a Purchasing Professional might possess is
Computer literate
Good math skills
Good product knowledge
Has integrity / honest
20
In purchasing, "planning software" might seek to:
Improve forecast accuracy
Launch a prodution order to a factory floor
Help Customer Service to accept and confirm a customer order
Generate a pick list for the warehouse
21
The best example of a "hard" skill that a good Purchasing Professional might have is:
Inspires others to do their best
Good team player
Good listener
Knowledge of MS Office applications
22
The acronym PMI stands for
Procurement Methodology Improvement
Purchasing Managers Index
Product and Merchandise Indentification
Production and Manufacturing Information
23
All of these documents play key roles in the receiving process, except:
the commercial invoice
the packing slip
the bill of lading
the Purchase Order
24
Which of the following is the best example of a "production support" item?
A conveyor belt
A fork lift truck
A drill press
Corrugated cardboard boxes
25
This characteristic is typical of a Blanket PO
It us used to buy finished goods only
Suppliers ship multiple times against the same PO number
It is used internally by organizations
It is issued when goods are valued at over $1,000,000
26
The acronym EDI stands for
Electronic Distribution Information
Electronic Data Interchange
Electronic Data Infusion
Electrical Diffusion Interactivity
27
Which of the following characteristics makes a requisition different from a PO?
A requisition needs to be signed - a PO does not
A requisition shows product specifications - a PO does not
A requisition is used internally - a PO is sent externally
A requisition is a contract - a PO is not
28
This purchasing activity lies closest to the beginning of the P2P cycle
Issuing the PO
Authorization to pay the supplier's invoice
Identification of a need or requirement
Authorization of the PO
29
One way of settling suppliers' invoices for goods shipped is via EFT. What is EFT?
Early Final Funding
Electronic Frequency Transaction
Electronic Funds Transfer
Express Financial Tabulation
30
The opposite of a collaborative relationship is a / an
Mutually beneficial relationship
Friendly relationship
Cooperative relationship
Adversarial relationship

Introduction to Purchasing Flashcards | StudBud