WorksheetsProcurement in Logistics and Supply Chain
Total questions: 15
Worksheet time: 9mins
What is the definition of procurement?
The act of keeping track of the history of an organization's activities
The process of ordering goods from a supplier just before they run out
The management control point where all significant purchases are monitored
The computer-to-computer exchange of routine business data
What are the objectives of the procurement department?
Maintain the quality and value of the firm's products
Minimize cash tied-up in inventory
Maintain the flow of inputs to maintain the flow of outputs
Strengthen the firm's competitive position
What are the roles of the procurement department?
Developing purchasing strategies
Understanding the supply market
Obtaining and selecting offers
Appraising and shortlisting suppliers
List down first 5 procurement process
(a)
(b) (c) (d) (e)
What is a purchase order (PO)?
A document generated internally to notify the purchasing department of items it needs to order
A long-term agreement between an organization and a supplier to deliver goods or services
The first official letter issued by the buyer to the seller
The act of keeping track of the history of an organization's activities
What is the purpose of maintaining proper records in procurement?
To monitor the progress of your business
To show whether your business is improving
To identify which items are selling
To make changes in your business
What is a blanket purchase order (BPO)?
A document generated internally to notify the purchasing department of items it needs to order
A long-term agreement between an organization and a supplier to deliver goods or services
A commercial document and the first official letter issued by the buyer to the seller
A document used to avoid withholding large inventories
What is the purpose of electronic data interchange (EDI) in procurement?
To monitor the progress of your business
To show whether your business is improving
To exchange routine business data between trading partners
To make changes in your business
What are the benefits of using EDI in procurement?
Speed
Accuracy
Simplicity
Security
What does just-in-time (JIT) procurement mean?
Ordering goods from a supplier just before they run out
Maintaining a large inventory of goods
Ordering goods in bulk from multiple suppliers
Exchanging routine business data between trading partners
What is the type of sourcing in JIT procurement?
Buying materials and parts from a single source
Buying materials and parts from multiple sources
Buying materials and parts from a single source
Buying materials and parts from multiple sources
What is the characteristic of material quality in JIT procurement?
Product quality is not important
Product quality is important and defects are not tolerated
Product quality is important but defects are tolerated
Product quality is not important and defects are tolerated
What is the characteristic of purchased quantities in JIT procurement?
Large lot sizes
Frequent deliveries of small lot sizes
Frequent deliveries of large lot sizes
Infrequent deliveries of small lot sizes
What is the average monthly frequency of deliveries in JIT procurement?
2.8
4.5
6.9
8.2
What is the purpose of the JIT system in procurement?
To increase efficiency and decrease waste
To maintain a large inventory of goods
To order goods in bulk from multiple suppliers
To exchange routine business data between trading partners
