Global Procuremet Management Q1

_____are those items provided by suppliers and used directly during productions or service delivery.

• Direct materials
• Indirect materials
• Internal materials
• Vendor managed inventory

Recent research indicates that all of the following are top knowledge areas for procurement people except:

• Supplier relationship management
• Total cost analysis
• Consumer behavior
• Supplier analysis

The procurement cycle begins with the ___

• Selection of an appropriate supplier
• Issuance of a purchase order
• Receipt of a supplier’s acknowlegement
• Identification of a need (a requirement)

A Three-way match involves which of the following documents?

• Delivery note, purchase order/ contracts, packing list.
• Red Invoice, delivery note, purchase order/ contract.
• Delivery note, commercial invoice, packing list.
• Purchase order/ contract, packing list, commercial invoice.

Which of the following is not one of the common ways that internal customers should communicate their needs to procurement?

• Purchase requisitions from internal users
• Chance meeting in the company cafeteria
• Forcasts and cutomer orders
• Material requirements identified during new product development

All of the following are required elements in a purachse requisitions except

• Quantity and date required
• Estimated unit cost
• Operating account to be charged
• Identification and approval of supplier by the end user

Procurement and Purchasing are basically the same.

• True
• False

In which step of the procurement process do you need to make the description of goods/ service, quantity, budget?

• Place order.
• Purchase Requisition.
• Developing A Purchasing Agreement.
• Evaluate supplier performance.

All of the following are objectives of a world-class procurement organization, except:

• Ensure that all hard copies of purchase orders and other paper document are files correctly in a secure area
• Develop integrated supply strategies that support business goals and objectives
• Manage the sourcing process effeciently and effectively
• Supplier performance management

The procurement manager for ABC is meeting with various departments to determine what they need to order. Which stage of the procurement process is mentioned?

• Evaluating supplier performance.
• Selecting Suppliers.
• Identifying needs.
• Creating a purchase agreement.