BUS 370 EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026
Supply Management (SM) - Answers The activities used to analyze sourcing opportunities, select
suppliers, and procure goods/services
Global Sourcing - Answers Procuring goods/services from international suppliers
Total Cost of Ownership (TCO) - Answers Total cost of a product including purchase, usage, and end-
of-life costs
Spend Analysis - Answers Use of data analysis to understand purchasing patterns and identify savings
Category Profile (Internal) - Answers Analysis of internal needs for a sourcing category
Industry Analysis (External) - Answers Evaluation of external market conditions and suppliers
Strategic Sourcing - Answers Systematic process of developing sourcing strategies and selecting
suppliers
Make-or-Buy Decision - Answers Decision to produce internally or outsource
Insourcing - Answers Using internal resources to produce goods/services
Outsourcing - Answers Using external suppliers
Direct Costs - Answers Costs directly tied to production or operations
Indirect Costs - Answers Costs not directly tied to production
Portfolio Analysis - Answers Framework to classify purchases based on value and risk
Routine Items - Answers Low value, low risk items
Leverage Items - Answers High value, low risk
Bottleneck Items - Answers Low value, high risk
Critical Items - Answers High value, high risk
Single Sourcing - Answers Using one supplier
Sole Sourcing - Answers Only one supplier exists
Dual Sourcing - Answers Using two suppliers
Multiple Sourcing - Answers Using several suppliers
Request for Information (RFI) - Answers Inquiry to gather supplier information
Request for Proposal (RFP) - Answers Request for suppliers to propose solutions
Request for Quotation (RFQ) - Answers Request for price bids
Weighted-Point Evaluation Model - Answers Supplier selection method using weighted criteria
Fact-Based Negotiation (FBN) - Answers Data-driven negotiation approach
Contract - Answers Legal agreement between buyer and supplier
Fixed-Price Contract - Answers Price remains constant
Cost-Based Contract - Answers Price tied to cost factors
Procure-to-Pay (P2P) Cycle - Answers Process from identifying need to paying supplier
Purchase Order (PO) - Answers Document authorizing purchase
Sustainable Supply - Answers Environmentally responsible sourcing
Supply Chain Disruption - Answers Major interruption in supply chain
Forecast - Answers Estimate of future demand or variable
Qualitative Forecasting - Answers Based on judgment and experience
Quantitative Forecasting - Answers Uses historical data and math models
Time Series - Answers Data over time
Trend - Answers Long-term movement in data
Seasonality - Answers Repeating patterns over time
Randomness - Answers Unpredictable variation
Moving Average - Answers Average of past periods
Weighted Moving Average - Answers Average with assigned weights
Exponential Smoothing - Answers Forecast using weighted average of past demand
Adjusted Exponential Smoothing - Answers Includes trend adjustment
Linear Regression - Answers Model showing relationship between variables
Causal Model - Answers Forecast based on cause-and-effect relationships
Forecast Error (FE) - Answers Actual demand minus forecast
Mean Forecast Error (MFE) - Answers Average forecast error (bias)
Mean Absolute Deviation (MAD) - Answers Average absolute error
Mean Absolute Percentage Error (MAPE) - Answers % error measure
Tracking Signal - Answers Measures forecast performance over time
Logistics Management - Answers Planning and controlling movement/storage of goods
Supply Management (SM) - Answers The activities used to analyze sourcing opportunities, select
suppliers, and procure goods/services
Global Sourcing - Answers Procuring goods/services from international suppliers
Total Cost of Ownership (TCO) - Answers Total cost of a product including purchase, usage, and end-
of-life costs
Spend Analysis - Answers Use of data analysis to understand purchasing patterns and identify savings
Category Profile (Internal) - Answers Analysis of internal needs for a sourcing category
Industry Analysis (External) - Answers Evaluation of external market conditions and suppliers
Strategic Sourcing - Answers Systematic process of developing sourcing strategies and selecting
suppliers
Make-or-Buy Decision - Answers Decision to produce internally or outsource
Insourcing - Answers Using internal resources to produce goods/services
Outsourcing - Answers Using external suppliers
Direct Costs - Answers Costs directly tied to production or operations
Indirect Costs - Answers Costs not directly tied to production
Portfolio Analysis - Answers Framework to classify purchases based on value and risk
Routine Items - Answers Low value, low risk items
Leverage Items - Answers High value, low risk
Bottleneck Items - Answers Low value, high risk
Critical Items - Answers High value, high risk
Single Sourcing - Answers Using one supplier
Sole Sourcing - Answers Only one supplier exists
Dual Sourcing - Answers Using two suppliers
Multiple Sourcing - Answers Using several suppliers
Request for Information (RFI) - Answers Inquiry to gather supplier information
Request for Proposal (RFP) - Answers Request for suppliers to propose solutions
Request for Quotation (RFQ) - Answers Request for price bids
Weighted-Point Evaluation Model - Answers Supplier selection method using weighted criteria
Fact-Based Negotiation (FBN) - Answers Data-driven negotiation approach
Contract - Answers Legal agreement between buyer and supplier
Fixed-Price Contract - Answers Price remains constant
Cost-Based Contract - Answers Price tied to cost factors
Procure-to-Pay (P2P) Cycle - Answers Process from identifying need to paying supplier
Purchase Order (PO) - Answers Document authorizing purchase
Sustainable Supply - Answers Environmentally responsible sourcing
Supply Chain Disruption - Answers Major interruption in supply chain
Forecast - Answers Estimate of future demand or variable
Qualitative Forecasting - Answers Based on judgment and experience
Quantitative Forecasting - Answers Uses historical data and math models
Time Series - Answers Data over time
Trend - Answers Long-term movement in data
Seasonality - Answers Repeating patterns over time
Randomness - Answers Unpredictable variation
Moving Average - Answers Average of past periods
Weighted Moving Average - Answers Average with assigned weights
Exponential Smoothing - Answers Forecast using weighted average of past demand
Adjusted Exponential Smoothing - Answers Includes trend adjustment
Linear Regression - Answers Model showing relationship between variables
Causal Model - Answers Forecast based on cause-and-effect relationships
Forecast Error (FE) - Answers Actual demand minus forecast
Mean Forecast Error (MFE) - Answers Average forecast error (bias)
Mean Absolute Deviation (MAD) - Answers Average absolute error
Mean Absolute Percentage Error (MAPE) - Answers % error measure
Tracking Signal - Answers Measures forecast performance over time
Logistics Management - Answers Planning and controlling movement/storage of goods
