Student
Examination paper
“Come all for this greatness”
...100% Correct Ans...
MNP3701 Full Summary (Purchasing and Supply Management)
A buyer may be compelled to purchase by specification when:
Ans>> an opportunity exists to purchase identical requirements from several sources.
A cash discount allows:
Ans>> the seller to secure prompt payment, and the buyer to pay a lower price per unit.
A goal of supply chain management is to:
Ans>> reduce uncertainty and risks between and among members of the supply chain.
A weighted point evaluation system:
Ans>> includes evaluation criteria, an importance factor for each, and a rating system.
Activity based costing attempts to:
Ans>> turn indirect costs into direct costs by tracking the cost drivers behind indirect costs.
Although associated with a number of factors, the learning curve normally is most closely
identified with the analysis of
Ans>> direct labor costs
An effective supply strategy primarily focuses on linking:
Ans>> current and future needs to current and future markets
, Capital assets are long-term assets that:
Ans>> have an ongoing effect on the organization's operations and performance.
Close to 70 percent of the value of any given requirement is established when needs are
recognized and described. Therefore, the following functions should work together during
need recognition and description:
Ans>> the primary user, design engineering, supply/purchasing and all other relevant
functional areas such as accounting/finance, marketing and operations.
Commercial bribery:
Ans>> may become an industry practice.
Corporate social responsibility:
Ans>> extends beyond ethics to include community, environment, and human rights.
Early supply and supplier involvement (ESI):
Ans>> pulls both the buyer and supplier into the need recognition and description stages of
the acquisition process.
Early supply involvement can be accomplished by:
Ans>> using cross-functional teams on new product development.
Electronic data interchange (EDI) provides:
Ans>> secure transmission, greater accuracy and shorter process cycle time for all data.
Forward buying:
Ans>> involves purchasing for known or estimated near-term requirements.
If a termination for convenience clause is included in a services contract:
Ans>> if exercised in bad faith, it may mean the termination is a breach of contract.
If the buyer does not have a clear and unambiguous description or specification and wants
to find out which suppliers can deliver the best value when and where needed, he or she will
typically issue a:
Ans>> request for proposal (RFP).
Examination paper
“Come all for this greatness”
...100% Correct Ans...
MNP3701 Full Summary (Purchasing and Supply Management)
A buyer may be compelled to purchase by specification when:
Ans>> an opportunity exists to purchase identical requirements from several sources.
A cash discount allows:
Ans>> the seller to secure prompt payment, and the buyer to pay a lower price per unit.
A goal of supply chain management is to:
Ans>> reduce uncertainty and risks between and among members of the supply chain.
A weighted point evaluation system:
Ans>> includes evaluation criteria, an importance factor for each, and a rating system.
Activity based costing attempts to:
Ans>> turn indirect costs into direct costs by tracking the cost drivers behind indirect costs.
Although associated with a number of factors, the learning curve normally is most closely
identified with the analysis of
Ans>> direct labor costs
An effective supply strategy primarily focuses on linking:
Ans>> current and future needs to current and future markets
, Capital assets are long-term assets that:
Ans>> have an ongoing effect on the organization's operations and performance.
Close to 70 percent of the value of any given requirement is established when needs are
recognized and described. Therefore, the following functions should work together during
need recognition and description:
Ans>> the primary user, design engineering, supply/purchasing and all other relevant
functional areas such as accounting/finance, marketing and operations.
Commercial bribery:
Ans>> may become an industry practice.
Corporate social responsibility:
Ans>> extends beyond ethics to include community, environment, and human rights.
Early supply and supplier involvement (ESI):
Ans>> pulls both the buyer and supplier into the need recognition and description stages of
the acquisition process.
Early supply involvement can be accomplished by:
Ans>> using cross-functional teams on new product development.
Electronic data interchange (EDI) provides:
Ans>> secure transmission, greater accuracy and shorter process cycle time for all data.
Forward buying:
Ans>> involves purchasing for known or estimated near-term requirements.
If a termination for convenience clause is included in a services contract:
Ans>> if exercised in bad faith, it may mean the termination is a breach of contract.
If the buyer does not have a clear and unambiguous description or specification and wants
to find out which suppliers can deliver the best value when and where needed, he or she will
typically issue a:
Ans>> request for proposal (RFP).
