Purchasing and Inbound Logistics (LSCM7) Exam

The management of all processes involved in obtaining the goods and services necessary for manufacturing products and providing services to customers is called _____.

• Buying

• Purchasing

• Procurement

• Sourcing

This is a function within the procurement process that is largely transactional

and associated with how goods and services are ordered is called _____.

• Buying

• Purchasing

• Procurement

• Sourcing

The period was characterized by firms concentrating on how best to efficiently produce goods without much thought on how to sell or market those goods that were produced. The focus was on how to produce rather than how to solve the problem of selling the goods or providing some level of customer service.

• The Selling Concept

• The Marketing Concept

• The Product Concept

• The Buying Concept

The period developed a thorough understanding of the market place to ensure that the firm was producing goods and services required and desired by the customer.

• The Selling Concept

• The Marketing Concept

• The Product Concept

• The Buying Concept

The period was characterized by firms’ main objective to create sales for existing products; the need for buyers to be stimulated to make purchases and significant efforts put into increasing sales of the company’s products.

• The Selling Concept

• The Marketing Concept

• The Product Concept

• The Buying Concept

Functions of Purchasing:

This involves keeping of financial records in relation to purchasing, store ledger account etc.

• Selection of sources of supply

• Efficient management of supply department

• Negotiation

• Financing

Functions of Purchasing:

Buyer and seller set a target and come to an agreement. For example, price per unit, discounts, period of contract, quality and unit to be supplied.

• Selection of sources of supply

• Efficient management of supply department

• Negotiation

• Financing

Functions of Purchasing:

Purchasing manager must select the most favorable sources of supply by considering factors such as financial stability, distance from the business to suppliers, whether suppliers have enough transporting facilities and also experience of suppliers in the market.

• Selection of sources of supply

• Efficient management of supply department

• Negotiation

• Financing

Functions of Purchasing:

Concerned with making sure that supplies are delivered on time, ensuring that there is no stock out.

• Selection of sources of supply

• Efficient management of supply department

• Negotiation

• Financing

Functions of Purchasing:

This is concerned with changing of materials into economic value goods for example buying in bulk and packaging in small quantity for retaining and distribution of the repackaging goods.

• Maintenance of employee relations

• Conversion of goods

• Contract formulation

• Sourcing