BUAD 331 EXAM 2 STUDY GUIDE x x x x x
what type of material has many sources of supply and is mostly low value, small indi
x x x x x x x x x x x x x x x
vidual transactions? – answer Non-Critical
x x x x
When are supplier evaluation and selection decisions initiated? –
x x x x x x x x
x answer During routine market testing
x x x x
Which of the following is an item associated with direct spending for aircraft manufa
x x x x x x x x x x x x x
cturer Boeing? – answer Airplane Rivets
x x x x x
At Ted's Wicked Manufacturing Plant his logistics manager realizes that an order nee
x x x x x x x x x x x x
ds to be expedited so he pays for UPS's one day delivery option. What type of spend c
x x x x x x x x x x x x x x x x x
ategory is this expedited order? – answer Services
x x x x x x x
what is the most important tactic purchasing should use to meet the material and supp
x x x x x x x x x x x x x x
ort needs of its internal customers? –
x x x x x x
x answer provide an uninterrupted flow of the appropriate quality materials and servic
x x x x x x x x x x x
es
how can purchasing add value to an organization? – answer all of the above
x x x x x x x x x x x x x
At ted's wicked manufacturing plant his office manager realizes there is not enough p
x x x x x x x x x x x x x
aper ordered to track all the orders. what type of spend category is the paper? -
x x x x x x x x x x x x x x x
x answer indirect materialsx x
, When thinking about price reductions, what can purchasing do to achieve significant
x x x x x x x x x x x x
price or cost savings and maintain the appropriate supplier relationship when buying
x x x x x x x x x x x x
leverage items? - answer reduce supply base to leverage volume
x x x x x x x x x
At Ted's plant the procurement manager realizes there was not enough raw materials
x x x x x x x x x x x x x
to produce the number of finished goods promised on the master production schedule
x x x x x x x x x x x x
. What type of spend category is this raw material? - answer direct materials
x x x x x x x x x x x x x
The purchasing function contributes to the top and bottom line of an organization. -
x x x x x x x x x x x x x
x answer True x
What step in the strategic sourcing process involves determining what supplier receiv
x x x x x x x x x x x
ed the company's business and what opportunities are available to combine volumes
x x x x x x x x x x x x
and standardized purchases? - answer Spend Analysis
x x x x x x
You are a supply manager at a large US bank, responsible for buying marketing and c
x x x x x x x x x x x x x x x
reative services. The marketing services category represents a substantial amount of
x x x x x x x x x x x
procurement spend, and the suppliers that compete in this industry tend to have very
x x x x x x x x x x x x x x
different capabilities. Consider the Kraljic matrix and classify this purchase. -
x x x x x x x x x x
x answer Strategic item x x
What invention by Malcom Mclean revolutionized how products are shipped and red
x x x x x x x x x x x
uced cost so that it is considered a key facilitator of global trade? -
x x x x x x x x x x x x x
x answer shipping contianers x x
Warehouses play a critical role in the supply chain system by: -
x x x x x x x x x x x
x answer providing a buffer between supply and demand
x x x x x x x
what type of material has many sources of supply and is mostly low value, small indi
x x x x x x x x x x x x x x x
vidual transactions? – answer Non-Critical
x x x x
When are supplier evaluation and selection decisions initiated? –
x x x x x x x x
x answer During routine market testing
x x x x
Which of the following is an item associated with direct spending for aircraft manufa
x x x x x x x x x x x x x
cturer Boeing? – answer Airplane Rivets
x x x x x
At Ted's Wicked Manufacturing Plant his logistics manager realizes that an order nee
x x x x x x x x x x x x
ds to be expedited so he pays for UPS's one day delivery option. What type of spend c
x x x x x x x x x x x x x x x x x
ategory is this expedited order? – answer Services
x x x x x x x
what is the most important tactic purchasing should use to meet the material and supp
x x x x x x x x x x x x x x
ort needs of its internal customers? –
x x x x x x
x answer provide an uninterrupted flow of the appropriate quality materials and servic
x x x x x x x x x x x
es
how can purchasing add value to an organization? – answer all of the above
x x x x x x x x x x x x x
At ted's wicked manufacturing plant his office manager realizes there is not enough p
x x x x x x x x x x x x x
aper ordered to track all the orders. what type of spend category is the paper? -
x x x x x x x x x x x x x x x
x answer indirect materialsx x
, When thinking about price reductions, what can purchasing do to achieve significant
x x x x x x x x x x x x
price or cost savings and maintain the appropriate supplier relationship when buying
x x x x x x x x x x x x
leverage items? - answer reduce supply base to leverage volume
x x x x x x x x x
At Ted's plant the procurement manager realizes there was not enough raw materials
x x x x x x x x x x x x x
to produce the number of finished goods promised on the master production schedule
x x x x x x x x x x x x
. What type of spend category is this raw material? - answer direct materials
x x x x x x x x x x x x x
The purchasing function contributes to the top and bottom line of an organization. -
x x x x x x x x x x x x x
x answer True x
What step in the strategic sourcing process involves determining what supplier receiv
x x x x x x x x x x x
ed the company's business and what opportunities are available to combine volumes
x x x x x x x x x x x x
and standardized purchases? - answer Spend Analysis
x x x x x x
You are a supply manager at a large US bank, responsible for buying marketing and c
x x x x x x x x x x x x x x x
reative services. The marketing services category represents a substantial amount of
x x x x x x x x x x x
procurement spend, and the suppliers that compete in this industry tend to have very
x x x x x x x x x x x x x x
different capabilities. Consider the Kraljic matrix and classify this purchase. -
x x x x x x x x x x
x answer Strategic item x x
What invention by Malcom Mclean revolutionized how products are shipped and red
x x x x x x x x x x x
uced cost so that it is considered a key facilitator of global trade? -
x x x x x x x x x x x x x
x answer shipping contianers x x
Warehouses play a critical role in the supply chain system by: -
x x x x x x x x x x x
x answer providing a buffer between supply and demand
x x x x x x x
