MNG 2601 PURCHASING & SUPPLY CHAIN
MANAGEMENT EXAM 2025-2026 PREP
QUESTIONS AND ANSWERS GRADED A+ UNISA
Why do firms no longer rely on competitive bidding when awarding purchase
contracts?
less suppliers in market, requires early procurement materials, cannot determine
risks and costs.
List documents which are covered by E-procurement tools.
Proper purchasing document, cost free document, other supporting documents.
What are the advantages/disadvantages of E-Procurement tools?
Advantage: No paperwork, time reduction, error reduction, communication
improvement, reductions in costs.
Disadvantage: push back from users, frictions and resistance, communication gap.
Why is it important to measure and monitor supplier performance improvement?
,ensure performance initiatives, manage purchasing of good and services, identify
opportunities and purchasing trends, support future purchasing decisions.
How does just in time purchasing and production system reduce the need for
certain purchasing documents?
It gives a continuous amount of supply of product or inventory to reduce
documentation. Documents regarding warehouse and transportation are not
needed.
Why has purchasing been involved with transportation and other non-purchasing
areas?
Its an important kind of buying dealing with logistics providers and suppliers. This
includes assembly, packaging, and warehouse production items.
What is the difference between capital equipment and routine supplies?
Capital equipment is a capital expenditure, profits can be earned only in the future,
requires lump sum to buy. Routine Supplies is a revenue expenditure profit earned
immediately, requires less to purchase.
AD
,What is the difference between a purchase order and a blanket order. What are the
advantages of a blanket order?
A purchase order is viable document with the price, quantity and type of product.
Blanket order is an open order that is open and only covers a repeated purchase.
Blankets make the process more efficient and effective. Can be canceled at
anytime.
What should a policy statement have for purchases?
provides guidance to employees, institution for business decisions, act in a
consistent manner.
Why is it important to have a policy that outlines origin and scope of purchasing
authority.
It provides guidance to delegate certain assignments to certain divisions.
What are the benefits of comprehensive policy and procedure manual?
It provides direction, gives job descriptions, avoids conflict.
Why is the purchasing profession sensitive to ethics?
Transparency, Fairness, Confidentiality.
, Why are human and labor rights involved in today's supply chain?
Because the supply chain is able to standardize the work week while monitoring
employees for environmental wellness.
What are the risks of backdoor maverick buying why are purchasers interested in
controlling this?
Its the buying and selling of good without competitive bidding. They control this
because these types of investments are high risk.
Is choosing an organizational design simple if so why would a company change
this?
more responsive to individual customers in different markets, to gain leverage,
structure changes to purchase expenditure.
Why are more top managers recognizing the importance of purchasing/supply
management?
SCM improves relationship building and innovation, improves reputation, time,
competitive advantages, and operating cost of company.
What is the difference between purchasing and supply management? What is the
difference between supply chain orientation and supply chain management?
MANAGEMENT EXAM 2025-2026 PREP
QUESTIONS AND ANSWERS GRADED A+ UNISA
Why do firms no longer rely on competitive bidding when awarding purchase
contracts?
less suppliers in market, requires early procurement materials, cannot determine
risks and costs.
List documents which are covered by E-procurement tools.
Proper purchasing document, cost free document, other supporting documents.
What are the advantages/disadvantages of E-Procurement tools?
Advantage: No paperwork, time reduction, error reduction, communication
improvement, reductions in costs.
Disadvantage: push back from users, frictions and resistance, communication gap.
Why is it important to measure and monitor supplier performance improvement?
,ensure performance initiatives, manage purchasing of good and services, identify
opportunities and purchasing trends, support future purchasing decisions.
How does just in time purchasing and production system reduce the need for
certain purchasing documents?
It gives a continuous amount of supply of product or inventory to reduce
documentation. Documents regarding warehouse and transportation are not
needed.
Why has purchasing been involved with transportation and other non-purchasing
areas?
Its an important kind of buying dealing with logistics providers and suppliers. This
includes assembly, packaging, and warehouse production items.
What is the difference between capital equipment and routine supplies?
Capital equipment is a capital expenditure, profits can be earned only in the future,
requires lump sum to buy. Routine Supplies is a revenue expenditure profit earned
immediately, requires less to purchase.
AD
,What is the difference between a purchase order and a blanket order. What are the
advantages of a blanket order?
A purchase order is viable document with the price, quantity and type of product.
Blanket order is an open order that is open and only covers a repeated purchase.
Blankets make the process more efficient and effective. Can be canceled at
anytime.
What should a policy statement have for purchases?
provides guidance to employees, institution for business decisions, act in a
consistent manner.
Why is it important to have a policy that outlines origin and scope of purchasing
authority.
It provides guidance to delegate certain assignments to certain divisions.
What are the benefits of comprehensive policy and procedure manual?
It provides direction, gives job descriptions, avoids conflict.
Why is the purchasing profession sensitive to ethics?
Transparency, Fairness, Confidentiality.
, Why are human and labor rights involved in today's supply chain?
Because the supply chain is able to standardize the work week while monitoring
employees for environmental wellness.
What are the risks of backdoor maverick buying why are purchasers interested in
controlling this?
Its the buying and selling of good without competitive bidding. They control this
because these types of investments are high risk.
Is choosing an organizational design simple if so why would a company change
this?
more responsive to individual customers in different markets, to gain leverage,
structure changes to purchase expenditure.
Why are more top managers recognizing the importance of purchasing/supply
management?
SCM improves relationship building and innovation, improves reputation, time,
competitive advantages, and operating cost of company.
What is the difference between purchasing and supply management? What is the
difference between supply chain orientation and supply chain management?
