CHAPTER 2

1. Material Purchase Release

 used to order items covered by blanket purchase orders; provides visibility to the
supplier about forecasted material requirements as well as actual material
requirements.
2. Category Management
 creating a strategy to approach the marketplace with that matches personal needs with
supplier capabilities.
3. Receiving Discrepancy Report
 details any shipping or receiving discrepancies noted by the receiving department.
4. Escape Clause
 allows a buyer to terminate the contract in the event of persistent poor quality,
delivery problems, and so on. This provides buyers a right to cancel a blanket
purchase order if the suppliers are not meeting standards.
5. When would you choose competitive bidding?
 - high volume
- specifications and requirements are clear
- marketplace is competitive
- adequate decision time
- no preferred supplier for specific item
6. Reorder Point System
 uses information regarding order quantity and demand forecasts unique to each item
or part number maintained in inventory
7. Cost Management
 understanding the true underlying cost of what is purchased.
8. Blanket Purchase Order
 an open order, usually effective for one year, covering repeated purchases of an item
or family of items.
9. Purchase Agreement
  a legally binding document that takes place after the supplier selection is complete
(contract)
10. Bill of Landing
 records the quantity of goods delivered to a facility
11. Details the contents of a shipment from a supplier
 Material Packing Slip
12. When internal customers purchase directly from nonqualified suppliers and try to bypass
purchasing in the process. They do not wish to use suppliers already deemed by
purchasing as qualified to fulfill the need.
 Maverick Spending
13. Materials required to pack and ship final products
 Production Support Items
14. Lack of processing by supplier; Not all equal quantity; Receive a grade indicating quality
coal, petrol, lumber, copper, and zinc
 Raw Materials Key Characteristics
15. All firms rely on external contractors for certain activities or services lawn care, machine
repair, data entry, consulting, cafeteria services, etc.
 Services
16. A form consisting of a label or bar code with information about whom the item is
purchased from. Utilized by very small companies → Traveling Purchase Requisition
 Sai
17. Characteristics of Capital Equipment
 1. do not occur with frequency
2. requires large sums of money
3. highly sensative to economic conditions
18. What are the 6 steps in the P2P Process?
 1. Forecast and Plan
2. Need Clarification (Requisition)
3. Supplier Identification and Selection
4. Contract and Approval
5. Receive Materials
 6. Settle and Pay
19. MRO Items
 Include anything that does not go directly into an organization's product, but are
essential for running a business.
20. Stock Checks
 The physical count/checking of inventory to verify that system records match actual
on-hand inventory levels
21. When would you choose negotiation?
 - technically complex item
 - vague specifications
 - early supplier involvement is required
 - cannot determine risks/costs
22. Semi Finished Products
 All items purchased from suppliers required to support an organization's final
production
23. A form consisting of a label or bar code with information about whom the item is
purchased from. Utilized by very small companies
 Travelling Purchase Requistion
24. What are the characteristics of a well-developed supply strategy?
 1. repeatable and well-defined
2. clear alignment with exec. vision
3. established goals and metrics for short-term plans
4. established communication plan
25. What are procurement cards?
 Procurement cards are basically company credit cards that have limits and are used
for basic purchases so that you don't have to ask permission every time you make a
small purchase.
26. Contract Management
 Purchasing retains the right to control the overall process, act as an agent to commit
an organization to a legal agreement, and negotiate a purchase price.
27. Preferred Suppliers
  has demonstrated its performance capabilities through previous purchase contracts
and therefore receives preference during the supplier selection process. Receives the
first opportunity of business.
28. Spot Buy: A situation where a need arises with no planning and no preexisting supplier
exists
 When needs cannot be forecasted ahead of time
29. EFT
 automatic transfer of payment from the buyer to the supplier
30. 1. automates the document generation process 2. electronically transmitting purchase
documents to suppliers. *eliminates the document flow process* → How does e-
procurement achieve higher efficiency?
 Đúng
31. 1. do not occur with frequency 2. Requires large sums of money 3. Highly sensative to
economic conditions → Raw Materials Key Characteristics:
 Đúng
32. Has demonstrated its performance capabilities through previous purchase contracts and
therefore receives preference during the supplier selection process.
 Đúng
33. Records the quantity of goods delivered to a facility → Bill of Landing
 Sai
34. An overarching plan for designing the organization, assigning resources, and aligning
these resources against the demands placed on the supply chain by the
business. → Blanket Purchase Order
 Sai
35. Try to bid the lowest cost. it works like an auction but opposite--the price is going down,
not up. → Reverse Auction
 Đúng
36. Using UNIT and RATE consumption levels to forecast and estimate future
consumption → Demand Management
 Đúng
 37. All items purchased from suppliers required to support an organization's final
production → Receiving Discrepancy Report
 Sai
38. An open order, usually effective for one year, covering repeatedpurchases of an item or
family of items. → Reorder Point System
 Sai
39. Involves buying assets intended for use exceeding one year. Standard equipment with no
specific design (toilet) equipment for production → Escape Clause
 Sai
40. Procurement cards are basically company credit cards that have limits and are used for
basic purchases so that you don't have to ask permission every time you make a small
purchase. → What are procurement cards?
 Đúng
Supply Management Strategy
5 Câu hỏi tự luận
1. used to order items covered by blanket purchase orders; provides visibility to the supplier
about forecassted material requirements as well as actual material requirements.
Material Purchase Release
2. 1. automates the document generation process
2. electronically transmitting purchase documents to suppliers.
*eliminates the document flow process*
How does e-procurement achieve higher efficiency?
3. - high volume
- specifications and requirements are clear
- marketplace is competitive
- adequate decision time
- no preferred supplier for specific item
When would you choose competitive bidding?
4. uses information regarding order quantity and demand forecasts unique to each item or part
number maintained in inventory SAI
Reorder Point System
5. 1. lack of processing by supplier
2. not all equal quantity
3. receive a grade indicating quality coal, petrol, lumber, copper, and zinc
Raw Materials Key Characteristics

Câu hỏi thẻ ghép

A. collecting historical data by commodity, relative to demand. Showing how and where you
spent your money
B. allows a buyer to terminate the contract in the event of persistent poor quality, delivery
problems, and so on. this provides buyers a right to cancel a blanket purchase order if the
suppliers are not meeting standards.
C. involves buying assets intended for use exceeding one year. standard equipment with no
specific design (toilet) equipment for production
D. when internal customers purchase directly from non-qualified suppliers and try to bypass
purchasing in the process. They do not wish to use suppliers already deemed by purchasing as
qualified to fulfill the need.
E. all firms rely on external contractors for certain activities or services lawn care, machine
repair, data entry, consulting, cafeteria services, etc.
1. Escape Clause -B
2. Capital Equipment -C
3. Spend Analysis -A
4. Services -E
5. Maverick Spending -D

Câu hỏi nhiều lựa chọn

1. using UNIT and RATE consumption levels to forecast and estimate future consumption
Demand Management
2. 1. do not occur with frequency
2. requires large sums of money
3. highly sensative to economic conditions
Characteristics of Capital Equipment
3. include anything that does not go directly into an organization's product, but are essential for
running a business. MRO Items
4. all items purchased from suppliers required to support an organization's final production. Semi
Finished Products
5. details the contents of a shipment from a supplier. Material Packing Slip

5 câu hỏi Đúng/Sai

1. understanding the true underlying cost of what is purchased. → Demand Management: Sai
2. Procurement cards are basically company credit cards that have limits and are used for basic
purchases so that you don't have to ask permission every time you make a small purchase. →
What are the characteristics of a well-developed supply strategy?: Sai
3. 1. repeatable and well-defined
2. clear alignment with exec. vision
3. established goals and metrics for short-term plans
4. established communication plan → How does e-procurement achieve higher efficiency?:
Sai
4. an open order, usually effective for one year, covering repeated purchases of an item or family
of items. → Blanket Purchase Order: Đúng
5. details any shipping or receiving discrepancies noted by the receiving department →
Receiving Discrepancy Report: Đúng
5 Câu hỏi tự luận
1. the physical count/checking of inventory to verify that system records match actual on-hand
inventory levels.: Stock Checks
2. Purchasing retains the right to control the overall process, act as an agent to commit an
organization to a legal agreement, and negotiate a purchase price.: Contract Management
3. understanding the true underlying cost of what is purchased: Cost Management (Unbundling
of the price paid and understanding the total cost of ownership over the life cycle of a product or
service to see ifit priced competitively in the market)
4. 1. automates the document generation process
2. electronically transmitting purchase documents to suppliers.
How does e-procurement achieve higher efficiency?
5. 1. do not occur with frequency
2. requires large sums of money
3. highly sensative to economic conditions
Characteristics of Capital Equipment

5 Câu hỏi ghép thẻ

A. records the quantity of goods delivered to a facility
B. B. a legally binding document that takes place after the supplier selection is complete
(contract)
C. C. an open order, usually effective for one year, covering repeated purchase of an item or
family of items.
D. an overarching plan for designing the organization, assigning resources, and aligning these
resources against the demands placed on the supply chain by the business.
E. uses information regarding order quantity and demand forecasts unique to each item or part
number maintained in inventory

1. Purchase Agreement -B
2. Supply Management Strategy -D
3. Blanket Purchase Order -C
4. Bill of Landing -A
5. Reorder Point System -E

5 câu hỏi nhiều lựa chọn

1. details any shipping or receiving discrepancies noted by the receiving department: Receiving
Discrepancy Report
2. materials required to pack and ship final products: Production Support Items
3. Procurement cards are basically company credit cards that have limits and are used for basic
purchases so that you don't have to ask permission every time you make a small purchase.: What
are procurement cards?
4. - high volume
- specifications and requirements are clear
- marketplace is competitive
- adequate decision time
- no preferred supplier for specific item: When would you choose competitive bidding?
5. 1. Forecast and Plan
2. Need Clarification (Requisition)
3. Supplier Identification and Selection
4. Contract and Approval
5. Receive Materials
6. Settle and Pay
What are the 6 steps in the P2P Process?

5 câu hỏi Đúng/Sai

1. - technically complex item
- vague specifications
- early supplier involvement is required
- cannot determine risks/costs → When would you choose competitive bidding?
Sai
2. all firms rely on external contractors for certain activities or services lawn care, machine
repair, data entry, consulting, cafeteria services, etc. → MRO Items: Sai
3. has demonstrated its performance capabilities through previous purchase contracts and
therefore receives preference during the supplier selection process. Đúng
4. all items purchased from suppliers required to support an organization's final production →
Receiving Discrepancy Report: sai
5. try to bid the lowest cost. it works like an auction but opposite--the price is going down, not
up. → Spend Analysis: sai

5 Câu hỏi tự luận

1. after the product or service has been delivered and the supplier paid, a record of critical events
associated with the purchase is entered into a supplier performance database
Records Maintenance
2. When customers try to negotiate contracts themselves as a result of you failing to respond to
their needs
Backdoor Buying
3. competitive bidding in private industry involves a request for bids from suppliers and
purchasing manager will typically sell this
Request for Quotation (Objective is to award the business to the most qualified bidder)
4. selection, development, and maintenance of suppliers
Supply Base Management
5. detailed characteristics of an item or service
Description by Specification

5 Câu hỏi ghép thẻ

A. transportation carriers use this to record the quantity of goods delivered to a faciltiy
B. people who have significant stake in the effectiveness of purchasing performance
C. an open order, usually effective for one year, covering repeated purchase of an item or family
of items
D. begins with the identification of a need, projected need may take the form of a component,
raw material, subassembly, or even a completed finished item
E. drafting of a purchase order after supplier selection is complete
1. Stakeholders -B
2. Forecast and Plan Requirements -D
3. Blanket Purchase Order -C
4. Purchase Agreement -E
5. Bill of Lading -A

5 câu hỏi nhiều lựa chọn

1. might be the best choice for standard items, where the requirements are well understood and
there is common agreement between supply chain partners: Description by Market Grade
2. statement of work: SOW (Specifies the work that needs to be completed, when it is needed,
and what type of service is required)
3. an overarching plan for designing the organization, assigning resources, and aligning these
resources against the demand placed on the supply chain by the business: Supply Management
Strategy
4. the process of collecting historical data by commodity, relative to demand from the lines of
business, and the putput is used todrive demand management, commodity management, and risk
management strategies: Spend Analysis
5. the process of using UNIT and RATE consumption levels to forecast and estimate future
consumption: Demand Management and Specifications

5 câu hỏi Đúng/Sai

1.
1. Forecast and Plan Requirements
2. Needs Clarification
3. Supplier Indentificatoin/Selection
4. Contract/Purchase Order Generation
5. Receipt of Material or Service Documentation
6. Settlement Payment and Measurement of Performance → Spend Analysis: Sai
2. details any shipping and receiving discrepancies noted by the receiving department →
Description by Specification: Sai (Receiving Discrepancy Report)
3. dramatic increase in outsourcing, enterprises are relying heavily on external suppliers to
provide not just materials andproducts but also information technology, services, and design
activities→ Supply Continuity: Đúng
4. the suite of tools used to achieve efficiency in purchasing transactions→Cost Management:
Sai
5. internal users communicate their needs to purchasing in a variety of ways
-purchase requistions
-forecasts and customers orders
-routine reordering systems
-stock checks
-new product development
→Supply Continuity: Sai

5 Câu hỏi tự luận

1. details the contents of a shipment, contains the description and quantity of the items in a
shipment: Material Packaging Slip
2. involves the electronic transfer of purchase documents between the buyer and seller, and can
help shorten order cycle time: Electronic Acknowledgement and Receipt
3. functional groups carry out certain duties on behalf of the organization: Span on Control
4. is the end-to-end process of managing a supplier through the entire sourcing life cycle:
Supplier Relationship Management
5. selection, development, and maintenance of suppliers: Supply Base Management

5 Câu hỏi ghép thẻ

A. details any shipping and receiving discrepancies noted by the receiving department
B. focuses attention on the outcomes the customer wants, not on the precise configurations of the
product or service
C. detailed characteristics of an item or service
D. competitive bidding in private industry involves a request for bids from suppliers and
purchasing manager will typically sell this
E. might be the best choice for standard items, where the requirements are well understood and
there is common agreement between supply chain partners
1. Request for Quotation -D
2. Description by Performance Characteristics -B
3. Receiving Discrepancy Report -A
4. Description by Specification -C
5. Description by Market Grade -E

5 câu hỏi nhiều lựa chọn

1. an important area of control is that purchasing has the right to determine how to award
purchase contracts: Contact Management
2. has demonstrated its performance capabilities through precise purchase contracts: Preferred
Supplier
3. record on hand - physical checking of inventory: ROH
4. the process of collecting historical data by commodity, relative to demand from the lines of
business, and the putput is used todrive demand management, commodity management, and risk
management strategies: Spend Analysis
5. people who have significant stake in the effectiveness of purchasing performance:
Stakeholders
5 câu hỏi Đúng/Sai
1.an open order, usually effective for one year, covering repeated purchase of an item or family
of items→Supply Management Strategy: Sai
2.used to identify user requirements, evaluate the users needs effectively and efficiently, identify
suppliers who can meet theneed, develop agreements with those suppliers, develop the ordering
mechanisms, ensure payments occur promptly, ascertainthat the needs were effectively met, and
drive continuous improvement→Purchasing Objectives: Sai
3.an overarching plan for designing the organization, assigning resources, and aligning these
resources against the demandplaced on the supply chain by the business→Blanket Purchase
Order: Sai (Supply Management Strategy)
4.transportation carriers use this to record the quantity of goods delivered to a faciltiy→Bill of
Lading: Đúng
5.after the product or service has been delivered and the supplier paid, a record of critical events
associated with the purchase isentered into a supplier performance database→Records
Maintenance: Đúng

6. physical on hand - actual on hand inventory - POH

5 câu hỏi thẻ ghép

A. competitive bidding in private industry involves a request for bids from suppliers and
purchasing manager will typically sell this
B. 1. Raw Materials
2. Semi-finished products
3. Finished products
4. Maintenance, Repair, and Operating Items
C. if the purchase contract requires negotiation between the buyer and seller
D. is used whena product or service is proprietary or when there is a perceived advantage to
using a particular supplier's product or services
E. might be the best choice for standard items, where the requirements are well understood and
there is common agreement between supply chain partners

1. Description by Market Grade -E

2. Description by Brand -D
3. Request for Proposal -C
4. Types of Purchases B
5. Request for Quotation -A

1.the automatic transfer of payment from the buyer's bank account to the supplier's bank account
:Electronic Funds Transfer
2. Spot Buy Approach: situations arise when an internal customer has a need that comes up
suddenly, which is not planned for and for which there is no preexisting supplier identified
3. Escape Clause: allows buyers to terminated the contract in the event of persistently poor
quality, delivery problems, etc.
4. Cost Management: may involve different decision-support tools and database to create
insights into different costs
5. e-Procurement: the suite of tools used to achieve efficiency in purchasing transactions
6. Procure to Pay Process: Automation of all transactioal activities associated with the thread of
events that occur from buying to selling
7. Request for Proposal: A way of assessing the most qualified bidder in a more complex way
8. Blanket PO: An order that is open for a specified period of time, covering repeated purchases
for an item or family of items
9. Preferred Suppliers:List of suppliers that get the first opportunity for new business
Supplier Performance Management: Selection, development and maintenance of suppliers
Supplier Relationship Management: End-to-end process of managing a supplier throughout the
entire sourcing life cycle
Purchase Requisition: Most common method of informing purchasing of material needs
Purchasing Process: 1. ID user requirements
2. Evaluate user needs
3. ID suppliers that can meet needs
4. Develop agreements with suppliers
5. Develop order mechanism
6. Ensure payment
7. Ensure needs are met
8. Drive improvement