purchasing mgt - group 4

 In processing and extractive industries, which type of procurement spending typically accounts for the largest share?

• Input raw materials

• Labor costs

• Capital assets (machinery, equipment)

• Advertising and marketing

Which of the following is a typical characteristic of the supply chain in the mining and oil industries?

• Flexible production locations near consumers

• Factories located in major economic centers

• Geographically dispersed and remote operation sites

• No need for large-scale transportation

Outsourced services account for approximately what percentage of total purchasing costs in processing and extractive industries?

• Around 50% or more

• Less than 10%

• Around 25%

• Over 80%

What is one main reason why companies in processing and extractive industries form strategic alliances?

• To compete directly with suppliers

• To ensure supply stability and share technology risks

• To reduce marketing costs

• To increase internal staffing costs

Which type of inventory is especially critical in extractive and processing industries?

• Retail products

• Food and beverages

• Office stationery

• MRO (Maintenance, Repair, Operations) supplies

 What is one of the biggest challenges in global sourcing?

• Currency fluctuations and varying quality standards

• High raw material prices

•  Lack of domestic suppliers

• Overly simple procurement processes

What typically characterizes capital purchasing in the processing and extractive industries?

• Small, frequent orders

• Off-the-shelf equipment

• Custom-designed equipment with long delivery times

• Uniform supplier quality

How is procurement usually managed in companies with multiple business sites?

• 100% centralized purchasing from headquarters

• Each site purchases independently

• Depending on site size, local or central purchasing is used

• No formal procurement policy

 How do economic cycles most strongly affect extractive industries?

• Employee salaries rise

• Raw material prices remain stable

• Oil and mineral price volatility impacts procurement planning

• Growth in the service sector

What is a major benefit of using electronic procurement systems (e-procurement)?

• Reduces the number of suppliers

• Speeds up purchasing and lowers costs

•  Eliminates the need for quality checks

•  Removes the need for long-term planning