Chapter 8 : PROCUREMENT

What is the primary goal of procurement in supply chain operations?

• Increase inventory

• Ensure continuous supply

• Reduce the number of suppliers

• Outsource all operations

Which of the following procurement strategies focuses on allowing users within the organization to make their own purchase decisions?

• Supplier Operational Integration

• User Buy

• Volume Consolidation

• Value Management

What does the term 'outsourcing' refer to in procurement strategy?

• Buying from local suppliers

• Making all components internally

• Purchasing services or products from external vendors

• Focusing on product development

Which procurement objective aims to reduce the chance of production delays?

• Minimizing inventory

• Continuous supply

• Quality improvement

• Technology and innovation

The procurement strategy that focuses on the 'lowest total cost of ownership' is primarily concerned with:

• Price per unit

• Operational cost savings

• Total cost of acquisition and maintenance

• Environmental sustainability

Which alternative procurement strategy involves integrating processes between buyer and supplier?

• User Buy

• Supplier Operational Integration

• Volume Consolidation

• Value Management

What is the potential risk associated with outsourcing?

• Higher control over internal processes

• Decreased supply chain efficiency

• Loss of control and supply risk issues

• Higher operational costs

What is a key consideration when selecting suppliers?

• Proximity to the production site

• Cultural compatibility

• Inventory level

• Supplier's internal HR policies

Firms rely on suppliers as sources of which of the following?

• Lower prices

• Technology and innovation

• Quality assurance

• Inventory reduction strategies

Which procurement objective focuses on maintaining supply continuity with minimal investment?

• Technology and innovation

• Continuous supply

• Minimize inventory

• Quality improvement