Chapter 13 part 1

Question 1

Materials requirements planning (MRP)

Answer 1

seeks to reduce required inventory levels by improving the accuracy of forecasting techniques to better schedule purchases to satisfy production needs

Question 2

Economic order quantity (EOQ)

Answer 2

calculates the optimal order size to minimize the sum or ordering, carrying, and stockout costs

Question 3

Kickbacks

Answer 3

are gifts from suppliers to purchasing agents for the purpose of influencing their choose of suppliers, are another threat

Question 4

Procurement card

Answer 4

a corporate credit card that employees can use only at designated suppliers to purchase specific kinds of items

Question 5

Voucher package

Answer 5

When a supplier’s invoice is received, the accounts payable department is responsible for matching it with a corresponding purchase order and receiving report

Question 6

Two ways to process supplier invoices

Answer 6

nonvoucher or voucher system

Question 7

Nonvoucher system

Answer 7

each approved invoice (along with supporting documentation) is posted to individual supplier records in the account payable file and is then stored in an open-invoice file

Question 8

Voucher system

Answer 8

an additional document called a disbursement voucher is also created when a supplier invoice is approved for payment

Question 9

Disbursement voucher

Answer 9

identifies the supplier, lists the outstanding invoices, and indicates the net amount to be paid after deducting any applicable discounts and allowances

Question 10

Vendor-managemnt inventory

Answer 10

Suppliers are given acces to sales and inventory data and are authorized to automatically replenish inventory when stocks fall to predetermined reorder points

Question 11

Evaluated receipts settlement (ERP)

Answer 11

replaces the traditional three-way matching process (vendor invoice, receiving report, and purchase order) with a two-way match of the purchase order and receiving report