Purchasing Methods Quiz

What is the first step in obtaining specifications for goods and services to be purchased?

• Determine the needs of the store

• Request for quotations

• Research potential suppliers

• Negotiate with suppliers

Who is responsible for influencing the purchase decision in a buying center?

• Users

• Influencers

• Deciders

• Approvers

What does a Local Purchase Order (LPO) help to evaluate?

• Customer feedback

• Market trends

• Potential suppliers

• Sales data

Which purchasing method is used for routine purchases and offers speed and efficiency?

• Request for proposal

• Spot Buy

• Online ordering

• Blanket Purchase Order

What is a disadvantage of online ordering?

• Immediate processing

• Lack of personal interaction

• Convenience

• Speed of delivery

What is the purpose of a Request for Proposal (RFP)?

• To finalize purchase terms

• To obtain bids from multiple suppliers

• To evaluate supplier performance

• To negotiate prices with suppliers

What is one of the components needed in a product specification sheet?

• Dimensions and weight

• Marketing strategy

• Sales history

• Supplier contact information

What does a Blanket Purchase Order (BPO) allow a buyer to do?

• Make ad-hoc purchases

• Request detailed proposals

• Purchase multiple items over time

• Evaluate supplier performance

What is a key feature of a procurement department in a centralized retailer?

• Purchases are made at the Head Office Buying Centre

• Suppliers are evaluated by store managers

• Decisions are made by external consultants

• All purchases are made by individual stores

What is an example of a purchasing method suitable for low-value or urgent purchases?

• Spot Buy

• Local Purchase Order

• Blanket Purchase Order

• Request for proposal