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Purchasing Chapter 4 Review your Learning

Total questions: 10

Worksheet time: 50mins

Name
Class
Date
1.

Vendor sourcing involves activities in which the buyer

a)

Questions manufacturers about vendors.

b)

Determines which vendors will be approved.

c)

Determines who generally sells at the lowest prices.

d)

Evaluates vendors’ prices for specific orders.

2.

What happens in the best relationships between buyers and vendors?

a)

Vendors are located very close to the buyer’s operation.

b)

Vendors and buyers maximize benefits from their relationship.

c)

Buyers are consistently able to take advantage of vendors.

d)

Vendors always offer lower prices than other vendors.

3.

What is the approximate number of vendors that should be approved for each category of food products?

a)

4

b)

6

c)

9

d)

1

4.

Which is the best information on which to base selection of a vendor?

a)

The vendor is close to the establishment.

b)

The vendor has a good reputation.

c)

The vendor successfully filled a test order.

d)

The vendor offers the lowest prices.

5.

What is a request for proposal (RFP)?

a)

A document from storeroom staff asking for more products to be ordered

b)

A letter to a vendor asking for marketing information about the company

c)

An inquiry to a vendor about prices for products of a specified quality

d)

A form to vendors asking for noncompeting vendor recommendations

6.

Which type of vendor offers a large selection of relatively few products?

a)

Specialty-line vendor

b)

Buyer’s club

c)

Broad-line vendor

d)

Cooperative purchasing vendor

7.

Who purchases most of the products needed by the units in very large organizations?

a)

Franchisee representatives

b)

Local managers

c)

National buying groups

d)

Cooperative purchasing groups

8.

Who typically bills the franchisees for products received through the purchasing system established by a large multiunit franchisor?

a)

The manufacturer

b)

The distributor

c)

The franchisor

d)

The processor

9.

What type of product is most difficult to purchase and distribute in a large multiunit organization?

a)

Fresh produce

b)

Canned goods

c)

Dry goods

d)

Frozen food products

10.

Information helpful in evaluating the performance of local vendors can come from

a)

Franchisors.

b)

Employees.

c)

Customers.

d)

Manufacturers.