Common Learning Block 2 Practice Questions

Question 1

What is the supply chain function that receives inputs from the demand plan to procure materials, equipment, and services?

Answer 1

Procurement

Question 2

Which of the following is considered to be a binding contract?

Answer 2

Purchase order

Question 3

In many cases, procurement awards purchase orders to suppliers based on:

Answer 3

Best value

Question 4

Strategic sourcing is based on which type of relationship?

Answer 4

Cooperative

Question 5

Procurement initiates RFPs and sends them to suppliers. RFP stands for:

Answer 5

Request for proposal

Question 6

Discussions between buyers and sellers to reach agreements are called:

Answer 6

Negotiations

Question 7

RFQs are used to obtain pricing and delivery inputs from suppliers. RFQ stands for:

Answer 7

Request For quotation

Question 8

Procurement employees are often part of a team to determine which type of decision management process?

Answer 8

Make or buy

Question 9

Short-, mid-, and long-term planning are collectively used to ensure a balance of supply and demand and to:

Answer 9

Ensure that supply is available

Question 10

After purchase orders are awarded to suppliers, buyers have the additional role of ensuring that:

Answer 10

Purchase orders are tracked for on-time delivery