Supply Chain Exam 2 - Rutgers University Ch. 5-8 Questions and Complete Solutions

Supply Chain Exam 2 - Rutgers University Ch. 5-8 Questions and Complete Solutions Procurement - Correct Answer The process of selecting and vetting suppliers, negotiating contracts, establishing payment terms, and the actual purchasing of goods and services. - concerned with acquiring all of the _goods, services and work_ that is vital to an organization. - overarching or umbrella term within which the action of purchasing can be found. Purchasing - Correct Answer The action of obtaining merchandise, capital equipment, raw materials, services, or maintenance, repair, and operating (MRO) supplies in exchange for money, or its equivalent. - the process of how _goods and services are ordered from an external third party. - can usually be described as the transactional function of procurement for goods or services. - also a term commonly used in business to represent the function of, and the responsibility for, acquiring materials, supplies, and services for an organization. Supply Management - Correct Answer A newer term that _encompasses all acquisition activities beyond the simple purchase transaction. Purchase Requisition - Correct Answer A document that defines the need for goods and/or services - An internal document - Does not constitute a contractual relationship with an external party. - Generated by a user department to notify purchasing personnel of items to order, their quantity, and the timeframe. - It may also contain the authorization to proceed with the purchase. Purchase Order (PO) - Correct Answer a _commercial document__. It is the official offer issued by a buyer to a seller to acquire goods or services. - used to control the purchasing of products and services from external suppliers. - Indicates types, quantities, and agreed prices for products or services. - Becomes a _legally binding contract only when accepted by the supplier. Purchase Requ