POB Purchasing Management

By purchasing just the quantity of supplies that is needed, purchasing can:

• plan the company's cash flow.

• provide an uninterrupted flow of supplies.

• buy supplies at the lowest possible price

• minimize inventory investment.

Some businesses use an automatic reorder system to maintain an adequate:

• budget for expenses.

• work environment.

• inventory of supplies.

• maintenance system.

The first step in maintaining an inventory of supplies for the business is to:

• conduct research to find vendors that sell the supplies.

• develop a list of supplies that the business needs.

• compare prices among vendors.

• organize a space to store the supplies.

Trey compares the prices offered by different vendors for the same goods and services. Which part of the purchasing process is Trey involved in?

• price fixing

• bid analysis

• invoice payment

• receipt of goods

Maintaining an inventory of supplies helps a business to:

• establish sales goals.

• operate efficiently.

• locate vendors.

• evaluate processes.

Which question should be answered by the purchasing function?

• How can we inform customers of available merchandise?

• How much merchandise should we buy?

• How will merchandise be shipped to us?

• How can we protect merchandise from pilferage?

When manufacturers give back part of the purchase price of an item to the customer, the manufacturers are engaged in

• price fixing.

• nonprice competition.

• clearance sales.

• offering rebates.

Which of the following would customers need to present at the time of purchase to get money taken off the purchase price of the item:

• Discount coupons

• Rebate certificates

• Refund checks

• Sales receipts

Includes all the costs directly involved in producing a product or delivering a service

• CPI

• Cost of Goods/Services

• Dispatching

• Logistics

Managing the acquisition, movement, and storage of supplies, materials, and finished products in a business.

• Compliance

• Just In Time

• Logistics

• Follow Up