Multiple Choice 1. The _____ is the process used to identify user requirements evaluate the need effectively and efficiently identify suppliers ensure payment occurs promptly ascertain that the need was effectively met and drive continuous improvement. a. demand management process b. backdoor buying process c. materials budgeting process d. forecasting process e. purchasing process 2. All of the following are objectives of a world-class purchasing organization except _____. a. ensure that all hard copies of purchase orders and other paper documents are filed correctly in a secure area (pp. 38-41) b. support organizational goals and objectives c. manage the purchasing process efficiently and effectively d. develop supply base management e. supply continuity 3. In a practice known as _____ internal users may try to negotiate purchase contracts themselves. a. strategic sourcing b. cross-functional teams c. backdoor buying d. outsourcing e. internal sourcing 4. One of the most important objectives of the purchasing function involves the selection development and maintenance of supply and is also known as _____. a. supply base management b. measurement c. customer service d. procure-to-pay e. backdoor buying 5. Introducing _____ leads to improved spending visibility efficient invoicing and payment and user satisfaction. a. backdoor buying b. inventory management c. materials management d. procure-to-pay systems e. RFID 6. Which of the following is not one of the objectives in developing supply base management? a. Selecting suppliers that are competitive. b. Identifying new suppliers that have the potential for excellent performance and develop closer relationships with these suppliers. c. Improving existing suppliers. d. Developing new suppliers that are not competitive. e. Ensuring timely and accurate payment of supplier invoices. 7. Effective supply market intelligence involves all of the following except _____. a. monitoring supply markets and trends b. ensuring that purchasing does not exceed its annual budget c. identifying critical materials and services d. developing supply options and contingency plans e. supporting the organization’s need for a diverse and globally competitive supply base 8. _____ is a situation that may occur when sellers contact and attempt to sell directly to end users. a. Insourcing b. Bidding c. Maverick spending d. Direct sourcing e. Outsourcing 9. All of the following are benefits of electronically generating and transmitting purchasing-related documents except _____. a. a reduction in the need to ensure higher levels of quality from suppliers b. a virtual elimination of paperwork and paperwork handling c. improved communication both within the company and the release and receipt of an order d. a reduction in errors e. a reduction in the time spent in by purchasing personnel on processing orders and invoices 10. The purchasing cycle begins with the _____. a. selection of an appropriate supplier b. completion of a purchase order c. receipt of a supplier’s acknowledgement d. identification of a need e. determination of who can authorize the purchase
