Business Functions Chapter 8 Purchasing or Procurement

If your best supplier overworks its employees then you should consider finding another supplier.

• True

• False

• It depends. If the working conditions are inhumane then you must.

• No. The working conditions at your supplier's business are not a consideration for the purchasing function.

You can get a cash discount for settling an account early.

• True

• False

True or false.

The purchasing department MUST also consider international suppliers.

• True

• False

The terms purchasing, procurement, supply, supply-chain and materials are all closely linked

• True

• False

Define procurement as:

• describes the process of buying, learning the need, supplier selection, price negotiation and then following up to ensure timely delivery.

• covers a broader array of processes, including purchasing, stores, traffic, receiving and inspection.

• is often used to refer to the department’s efforts to improve procurement.

• is the management of materials.

Business operations is the department in a business that is responsible for:

• Marketing

• Finance

• Production of goods/provision of services

• Human resources

Which of the following stock control methods would involve frequent deliveries?

• Flow production

• Just in case

• Job production

• Just in time

A business that becomes more streamlined as a result of effective supply chain management is said to be running more:

• Bureaucratically

• Expensively

• Efficiently

• Autocratically

Which of the following is a direct benefit of having an efficient logistics department?

• Products arrive exactly when needed

• Labour productivity will reduce

• Efficiency will be minimised

• Staff motivation will increase

Total quality management aims to:

• Give production line staff minimal say in the level of quality standards

• Check quality standards at the end of the production line

• Ensure that quality is the responsibility of everyone in an organisation

• Ensure a single person/single team is responsible for quality