Purchasing C1

Which of the following is NOT one of the five rights of purchasing?

• Right Quality

• Right Location

• Right Quantity

• Right Source

What is the primary goal of purchasing in a logistics environment?

• To buy the cheapest products available

• To ensure materials and services are obtained at optimal cost and quality

• To minimize supplier engagement

• To eliminate the need for inventory management

Which of the following best describes procurement as opposed to purchasing?

• Procurement is more transactional, whereas purchasing is strategic

• Procurement is broader and includes strategic sourcing and supplier relationship management

• Purchasing involves more negotiation than procurement

• Procurement only applies to large companies

Which of the following is NOT a key reason purchasing is important in logistics?

• Reducing time to market

• Improving supplier relationships

• Increasing organizational bureaucracy

• Enhancing cost savings

What is the main advantage of using procurement cards (P-Cards)?

• They eliminate the need for supplier contracts

• They simplify small, non-inventory purchases

• They are only used for capital expenditures

• They eliminate the need for supplier evaluation

A Blanket Purchase Order (BPO) is most useful for:

• One-time purchases

• Long-term agreements with recurring deliveries

• Purchasing raw materials for a single project

• Reducing supplier negotiations

Which of the following is NOT part of the Procure-to-Pay (P2P) process?

• Goods receipt

• Invoice verification

• Sales forecasting

• Supplier selection

Which of the following is a key benefit of system integration in purchasing?

• Increased paperwork

• Improved real-time data visibility

• More manual approval steps

• Higher costs due to IT investment

What is a major risk associated with e-purchasing?

• Decreased efficiency in processing orders

• Increased vulnerability to cyber threats

• Slower supplier communication

• Higher cost compared to traditional methods

What is one of the biggest challenges in the future of purchasing?

• Reducing supplier involvement

• Decreasing automation in procurement

• Managing global supply chain risks

• Eliminating supplier partnerships