Practice Assessment

Practice Quiz. • 30 min. • 10 total points available.10 total points

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1.
Question 1
Which of the following is not one of the features of the new model of progressive procurement?

            a.         Developing closer relationships with important suppliers.

            b.         Performing due diligence on suppliers before awarding longer-term contracts.

            c.         Focusing primarily on price analysis and short-term contracts.

            d.         Conducting worldwide Internet searches for the best sources of supply.

            e.         Inviting key suppliers to participate in product and process development.

1 / 1 point
c
Correct

2.
Question 2
According to the Institute for Supply Management, _____ is the planning for and acquiring the
organization’s current and future needs through effectively managing the supply base, utilizing a
process orientation in conjunction with cross-functional teams to achieve the organizational mission.

            a.         supply chain management

            b.         procurement

            c.         logistics

            d.         supply management

            e.         distribution

1 / 1 point
d
Correct

3.
Question 3
_____ are those items provided by suppliers and used directly during production or service delivery.

            a.         Direct materials

            b.         Indirect materials
            c.         Indirect services

            d.         Internal materials

            e.         Vendor managed inventories

1 / 1 point
a
Correct

4.
Question 4
Recent research indicates that all of the following are top knowledge areas for procurement people
except _____.

            a.         supplier relationship management

            b.         total cost analysis

            c.         supplier analysis

            d.         consumer behavior

            e.         competitive market analysis

1 / 1 point
d
Correct

5.
Question 5
The _____ is used to identify user requirements, evaluate the user needs effectively and efficiently,
identify suppliers who can meet that need, develop agreements with those suppliers, develop the
ordering mechanism, ensure payment occurs promptly, ascertain that the need was effectively met,
and drive continuous improvement.

            a.         demand management process

            b.         backdoor buying process

            c.         materials budgeting process

            d.         forecasting process

            e.         purchasing process

1 / 1 point
e
Correct

6.
Question 6
All of the following are objectives of a world-class procurement organization except _____.
a.         ensure that all hard copies of purchase orders and other paper documents are filed correctly in a
secure area

            b.         develop integrated supply strategies that support business goals and objectives

            c.         manage the sourcing process efficiently and effectively

            d.         supplier performance management

            e.         supply assurance

1 / 1 point
a
Correct

7.
Question 7
The purchasing cycle begins with the _____.

            a.         selection of an appropriate supplier

            b.         issuance of a purchase order

            c.         receipt of a supplier’s acknowledgement

            d.         identification of a need (a requirement)

            e.         determination of who can authorize the purchase

1 / 1 point
d
Correct

8.
Question 8
Which of the following is not one of the common ways that internal customers should communicate
their needs to procurement?

            a.         Purchase requisitions from internal users.

            b.         Chance meeting in the company cafeteria.

            c.         Forecasts and customer orders.

            d.         Material requirements identified during new-product development.

            e.         Routine reordering systems.

1 / 1 point
b
Correct

9.
Question 9
All of the following are required elements in a purchase requisition except _____.

            a.         quantity and date required

            b.         estimated unit cost

            c.         operating account to be charged

            d.         authorized signature

            e.         identification and approval of a supplier by the end user

1 / 1 point
e
Correct

10.
Question 10
_____ is one that consistently satisfies the performance and service standards defined by the buyer
and responds to unexpected changes.

            a.         certified supplier

            b.         sole source supplier

            c.         partnered supplier

            d.         preferred supplier

            e.         disqualified supplier.

1 / 1 point
d
Correct