Chap 3

What is the primary focus of procurement in an organization?

• Buying goods and services

• Managing internal resources

• Identifying, sourcing, and managing external resources

• Handling customer relationships

Which of the following best describes procurement?

• A subset of purchasing

• The process of acquiring goods and services only

• A strategic function in supply chain management

• A non-essential business activity

How does procurement differ from purchasing?

• Procurement involves strategic sourcing, while purchasing is transactional

• Purchasing is more complex than procurement

• Procurement is limited to small businesses, while purchasing is for large companies

• There is no difference between procurement and purchasing

What is the role of procurement in supply chain management?

• It manages the distribution of goods

• It focuses on customer service-

• It transforms goods into products and distributes them

• It ensures the supply of necessary goods and materials

Which of the following factors is NOT considered in procurement strategies?

• Type of products purchased

• Level of risk

• Marketing strategies

• Uncertainty involved

In Kraljic's Supply Matrix, what does a high-value, high-risk item represent?

• Non-Critical Item

• Bottleneck Itemset

• Leverage Item

• Strategic Item

Which item category in Kraljic's Supply Matrix has low risk and low value?

• Bottleneck Item

• Non-Critical Item

• Leverage Item

• Strategic Item

What is the primary procurement strategy for bottleneck items?

• Increase competition among suppliers

• Standardize the item to reduce uniqueness

• Focus on volume purchasing

• Build close supplier relations

For which type of items does procurement focus on volume purchasing and Just-In-Time (JIT) strategies?

• Non-Critical Items

• Bottleneck Items

• Leverage Items

• Strategic Items

Which procurement strategy is used for critical items in the supply chain?

• Spot purchasing

• Building close supplier relations

• Minimizing inventory

• Increasing supplier competition