PURCHASING AND SUPPLY
MANAGEMENT CHAPTER 1(100%
ACCURATE.)
Which organizations were first to recognize supply function as an independent and
important function? - ANSWERSRailroad organizations before 1900
When did supply function emerge as a recognized managerial activity? -
ANSWERSWWI and WWII
-Success of a firm was no longer dependent on what it could sell b/c market was
unlimited
-Ability to obtain raw materials, supplies, and services needed to keep factories and
mines operating became key determinant of success
What 2 problems did organizations face in early 1970's? - ANSWERS1. Shortage of raw
materials
2. Rate of price increases far above norm
Which event in 1973 intensified the 2 problems faced by organizations in the 70's? -
ANSWERSMiddle East oil embargo
Defensive strategy - ANSWERSThe need to change in order to remain competitive
Aggressive strategy (current trend) - ANSWERSImaginative approach to achieving
supply objectives to satisfy organizational goals
Focus on strategy now includes emphasis on process and knowledge management
New organizational concepts developing but words and terms used ______. -
ANSWERSInterchangeably.
2 employees in different companies have same responsibilities but completely different
job titles
Purchasing, Supply Management, Procurement - ANSWERSInterchangeable words
Refer to the integration of related functions to provide effective and efficient materials
and services to the organization
MANAGEMENT CHAPTER 1(100%
ACCURATE.)
Which organizations were first to recognize supply function as an independent and
important function? - ANSWERSRailroad organizations before 1900
When did supply function emerge as a recognized managerial activity? -
ANSWERSWWI and WWII
-Success of a firm was no longer dependent on what it could sell b/c market was
unlimited
-Ability to obtain raw materials, supplies, and services needed to keep factories and
mines operating became key determinant of success
What 2 problems did organizations face in early 1970's? - ANSWERS1. Shortage of raw
materials
2. Rate of price increases far above norm
Which event in 1973 intensified the 2 problems faced by organizations in the 70's? -
ANSWERSMiddle East oil embargo
Defensive strategy - ANSWERSThe need to change in order to remain competitive
Aggressive strategy (current trend) - ANSWERSImaginative approach to achieving
supply objectives to satisfy organizational goals
Focus on strategy now includes emphasis on process and knowledge management
New organizational concepts developing but words and terms used ______. -
ANSWERSInterchangeably.
2 employees in different companies have same responsibilities but completely different
job titles
Purchasing, Supply Management, Procurement - ANSWERSInterchangeable words
Refer to the integration of related functions to provide effective and efficient materials
and services to the organization
