Chapter 1

Question 1

Recognition of Need

Answer 1

1st Step of Purchasing Process

Question 2

Finding Commercial Product Matching Description of Need

Answer 2

2nd Step of Purchasing Process

Question 3

Agreeing on Sutuible Source

Answer 3

4th Step of Purchasing Process

Question 4

Searching of Potential Suppliers

Answer 4

3rd Step of Purchasing Process

Question 5

Finalization of Order/Contract Details

Answer 5

5th Step of Purchasing Process

Question 6

The Delivery of Goods/Services

Answer 6

6th Step of Purchasing Process

Question 7

The Payment of Suppliers

Answer 7

7th Step of Purchasing Process

Question 8

The term used for the focus on minimizing costs and lead times across tiers in the supply chain

Answer 8

Supply Chain Management

Question 9

The term used for the focus on identifying opportunities in cost reductions, new technology advancements, and supply market trends

Answer 9

Strategic Sourcing

Question 10

The term used for the focus on reducing costs and removing non-value-added activities along the supply network

Answer 10

Lean Purchasing

Question 11

The term used for the assessment of the value a product has along its multiple moves and transformations at each stage of the business journey

Answer 11

Supply Web

Question 12

A metric that measures how efficiently a company uses its assets to generate profit.
= NetIncome / TotalAssets
​

Answer 12

ROA

Question 13

Trouble Prevention

Answer 13

Operational

Question 14

Opportunity Maximization

Answer 14

Strategic

Question 15

Bottom-line Impact

Answer 15

Direct

Question 16

Enhancing the Performance of Others

Answer 16

Indirect

Question 17

Operationally Defiant
Strategic Defiant
Directly Defiant
Indirectly Defiant

Answer 17

Negative

Question 18

Operationally Acceptable
Strategic Defiant
Directly Acceptable
Indirectly Defiant

Answer 18

Neutral

Question 19

Operationally Acceptable
Strategic Acceptable
Directly Acceptable
Indirectly Acceptable

Answer 19

Positive