NTC Applied Business Finals

Directions: Select the letter of the BEST answer. Each item is worth 1 point. In the hospitality industry, a Purchase Requisition (PR) is primarily used to:

• Formally authorize payment to a supplier after delivery

• Document a department's request for items, including quantity and budget justification

• Confirm that received goods match the specifications on the Purchase Order

• Establish agreed pricing and terms with a selected vendor

Directions: Select the letter of the BEST answer. Each item is worth 1 point. Which procurement document is issued by the hotel to a supplier after a vendor has been selected and terms have been agreed upon?

• Purchase Requisition

• Request for Proposal

• Purchase Order

• Goods Receipt

Directions: Select the letter of the BEST answer. Each item is worth 1 point. A hotel procurement manager is evaluating a new linen supplier. Which factor is considered a "key consideration" in the hospitality procurement process?

• The supplier's social media presence and branding

• Balancing cost, quality, consistency, and timing of delivery

• Whether the supplier exclusively serves luxury properties

• The supplier's location relative to the hotel's head office

Which of the following best describes the purpose of effective inventory management in a hotel?

• To maximize the number of suppliers the hotel works with

• To ensure all stock is procured in large bulk quantities for cost savings

• To balance accurate forecasting, dynamic pricing, and clever resource allocation

• To eliminate the need for a purchasing department

In SAP Business One, the warehouse type that enables goods to be shipped directly from a vendor to a customer without physically entering the hotel's own storage is called a:

• General Warehouse

• Regional Warehouse

• Bin Managed Warehouse

• Drop Ship Warehouse

The F&B department of a resort flags that kitchen cleaning supplies are nearly depleted. Following the formal procurement cycle in SAP Business One, what is the CORRECT sequence of actions from this point?

• Create PO → Select supplier → Submit PR → Receive goods → Process invoice

• Submit PR → Source supplier → Negotiate & create PO → Receive & verify goods → Process invoice

• Source supplier → Receive goods → Submit PR → Create PO → Process invoice

• Submit PR → Create PO → Source supplier → Receive goods → Process invoice

A hotel's purchasing officer receives invoices from a linen supplier but notices the quantities on the invoice are greater than what was listed on the original Purchase Order. What is the MOST appropriate next step?

• Pay the invoice in full to maintain a positive supplier relationship

• Flag the discrepancy, withhold payment, and reconcile the invoice against the PO and Goods Receipt document

• Issue a new Purchase Order matching the invoice quantities and proceed with payment

• Return all received goods to the supplier pending re-quotation

A hotel operations manager is reviewing two shortlisted vegetable suppliers. Supplier A offers prices 12% lower but has had three late deliveries in the past quarter. Supplier B is priced higher but has a perfect delivery record. Which of the following best reflects sound procurement decision-making in hospitality?

• Always choose the lowest-priced supplier to protect profit margins regardless of delivery history

• Select Supplier B, as delivery reliability directly affects guest satisfaction and kitchen operations

• Continue using both suppliers and split all orders evenly to reduce dependency

• Select Supplier A and request a written guarantee of on-time delivery to balance cost and risk

During solicitation and negotiation with a new toiletry supplier, the purchasing team sends out a document outlining the hotel's requirements and inviting suppliers to submit their pricing and terms. This document is best described as a:

• Purchase Order

• Goods Receipt

• Request for Proposal (RFP)

• Delivery Receipt

A budget hotel is experiencing a spike in occupancy during a long weekend. The procurement manager notices that the housekeeping department submitted PRs for towels and toiletries, but the approved budget ceiling has already been reached. Which action BEST reflects proper procurement governance?

• Approve the PRs immediately since guest experience must never be compromised

• Deny the PRs and inform housekeeping that no supplies can be ordered until the next budget cycle

• Escalate to senior management for budget re-authorization before issuing new POs

• Contact suppliers and request goods on credit to be settled after the occupancy spike